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EPA releases renewable fuel volume requirements

This year, 230 million gallons of cellulosic biofuel are required to be produced, a gain of 107 million gallons compared to 2015. It has made up the vast majority of advanced biofuel production under the RFS to date, and according to the EPA, reduces greenhouse gas emissions by 57 percent to 86 percent compared with petroleum diesel. It requires gasoline to contain a minimum amount of renewable fuels, like ethanol.

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The EPA says the proposed increases for 2017 on all types of biofuels would boost production and provide for “ambitious yet achievable growth”.

As expected, the new total for the Renewable Fuel Standard (RFS) is well below the 24 billion gallons outlined in a 2007 law aimed at cutting US oil imports and boosting renewable fuel use. The 2017 target is 24 billion gallons. “The RFA has demonstrated just how easy it would be for obligated parties to reach the 15 billion gallon statutory volume for conventional biofuels next year”. “It’s possible that the same methodology could allow them to project to 15 billion gallons in the final rule if gasoline consumption continues to rise between now and November, when they finalize the rule”. While going in the right direction, “they once again fail to acknowledge the existing capabilities of the biofuels industry and fuel retailers in meeting the (RFS) goals”, said Poet Chief Executive Jeff Broin.

Big Oil and Big Corn both criticized the EPA announcement, from opposing sides of the issue. However, the agency subsequently withdrew that 2014 proposal after the biofuels industry fiercely opposed it. Charles Grassley of Iowa says it’s below the levels sought by Congress when it passed legislation in 2007.

In a statement, the EPA says they’re committed to keeping the RFS program on track, calling it a success story driving biofuel production.

Past year she told The Hill that the agency was “balancing two dynamics: Congress’ clear intent to increase renewable fuel over time to address climate change and increase energy security, and the real-world circumstances that have slowed progress toward these goals”. Bill Flores (R-Texas), Peter Welch (D-Vt.), Bob Goodlatte (R-Va.), Jim Costa (D-Calif.) and Steve Womack (R-Ark.) said the increases will hurt the American economy and environment.

“Congress needs to act to reform this broken policy”, Cassidy said. Erik Huschitt, who leads the Wisconsin BioFuels Association, added that the RFS has been vital in spurring development in the renewable energy industry in Wisconsin and across the nation.

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“As we’ve said before, the RFS is a broken law which sets unrealistic fuel mandates”, Dunn said.

Chart courtesy of EPA