US EPA finalises 2017 biofuel volume requirements

HOUSTON (ICIS)–The US Environmental Protection Agency (EPA) released on Wednesday its final requirements for renewable fuel volumes in 2017 under the Renewable Fuels Standard (RFS), which will apply increases across all types of biofuels.

The EPA has set total renewable fuel volumes at 19.28bn gal, up from 18.11bn gal in 2016. This marks a significant increase from the 18.8bn gal originally proposed in May.

The agency also noted that that 15bn gal of total volumes would be for conventional biofuel, which is primarily ethanol derived from corn feedstock.

The RFS requires refiners and fuel importers to blend in increasing volumes of biofuels each year for the US market. That includes cellulosic ethanol, biomass-based diesel, advanced biofuel and total renewable fuel.

According to the EPA, cellulosic biofuel volumes have been set at 311m gal, up from 230m gal in 2016.

Biomass-based diesel volumes have been set at 2bn gal, up from 1.9bn gal in 2016.

Advanced biofuel volumes have been set at 4.28bn gal, up from 3.61bn gal in 2016.

Janet McCabe, the EPA’s acting assistant administrator for the Office of Air and Radiation, said the final standards would “boost protection, providing for ambitious yet achievable growth of biofuels in the transportation sector”.

“By implementing the program enacted by Congress, we are expanding the nation’s renewable fuels sector while reducing our reliance on imported oil,” she said.

Renewable Fuels Association (RFA) president and CEO Bob Dineen welcomed the announcement, and said the finalised requirements would send a positive signal to investors.

“By signaling its commitment to a growing biofuels market, the agency will stimulate new interest in cellulosic ethanol and other advanced biofuels, drive investment in infrastructure to accommodate E15 and higher ethanol blends, and make a further dent in reducing greenhouse gas emissions,” Dineen said.

However, other industry groups were less impressed with the decision.

American Petroleum Institute (API) Downstream group director Frank Macchiarola said the organisation was disappointed with the EPA’s final rule.

“Today’s announcement only serves to reinforce the need for congress to repeal or significantly reform the RFS. Democrats and Republicans agree this program is a failure,” Macchiarola said.

The American Fuel & Petrochemical Manufacturers (AFPM) also reiterated calls to repeal or reform the RFS.

AFPM president Chet Thompson said the decision to increase the 2017 RFS volumes was “completely detached” from market realities.

“A decade has passed since promulgation of the programme and the cellulosic biofuels industry still has not delivered on its promise of commercially viable fuels,” Thompson said.

“Despite this reality, EPA unfortunately finalised a RFS volume requirement that looks to force more biofuel in the fuel supply than consumers want or infrastructure can handle. Refiners should not have the responsibility to force consumers to use products they either don’t want or that are incompatible with their cars, boats, and motor equipment.”

INSET IMAGE: Ethanol blended gasoline at the pump. (OJO Images/REX/Shutterstock)