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.