The EPA on Monday, July 12, 2010, released its proposed 2011
percentage standards for the four fuels categories under the agency's second Renewable
Fuel Standard (RFS2) program. After its controversial 11-percent target for
2010, the agency backed off considerably, proposing a final standard of just
under 8 percent.
The proposed 2011 overall volumes and standards are:
- Biomass-based diesel (0.80 billion gallons; 0.68
percent)
- Advanced biofuels (1.35 billion gallons; 0.77 percent)
- Cellulosic biofuels (5 – 17.1 million gallons;
0.004 – 0.015 percent)
- Total renewable fuels (13.95 billion gallons; 7.95
percent)
The EPA noted in its press release that its 2011 cellulosic
volume is much lower than the EISA target, reason being: market availability,
i.e. there's simply not enough corn. The agency noted it will continue to
evaluate the market as it works to finalize the cellulosic standard in the
coming months. The EPA noted it expects availability to increase in the future,
suggesting the agency has plans to raise future standards again.
The EPA also proposed changes to the RFS2 regulations that
would potentially apply to renewable fuel producers who use canola oil, grain
sorghum, pulpwood, or palm oil as a feedstock. This program rule would allow
the fuel produced by those feedstocks dating back to July 1, 2010 be used for
compliance should the EPA determine in a future rulemaking that such fuels meet
certain greenhouse gas reduction thresholds.
The second change would set criteria for foreign feedstocks
to be treated like domestic feedstocks in terms of the documentation needed to
prove that they can be used to make qualifying renewable fuel under the RFS2
program.
The Energy Independence and Security Act of 2007 (EISA)
established the annual renewable fuel volume targets, reaching an overall level
of 36 billion gallons in 2022. To achieve these volumes, the EPA calculates a
percentage-based standard for the following year. Based on the standard, each
refiner, importer and non-oxygenate blender of gasoline determines the minimum
volume of renewable fuel that it must ensure is used in its transportation
fuel.
The agency is seeking public comment on the renewable fuel
standards and the proposed changes to the RFS2 regulations, which are due
Friday, Aug. 13, 2010.
More information on the standards and regulations is
available at
www.epa.gov/otaq/fuels/renewablefuels/regulations.htm
More information on renewable fuels is available at
www.epa.gov/otaq/fuels/renewablefuels/index.htm
Read the Federal Register notice from July 15 at
http://edocket.access.gpo.gov/2010/2010-17281.htm.
