EPA Establishes RFS Blending Mandates for 2023, 2024 and 2025

The U.S. EPA released a proposed rulemaking that sets volumetric blending mandates for 2023, 2024 and 2025 under the Renewable Fuels Standard (RFS). The proposed rulemaking marks the first time the EPA is authorized to set its own blending mandates since the statutory volumes set by Congress under the Energy Independence and Security Act of 2007 ended in 2022.

Under the new rulemaking, the EPA is proposing to require 20.82 billion gallons of total renewable fuel for 2023, followed by 21.87 billion gallons in 2024 and 22.68 billion gallons in 2025. The proposed blending mandates represent an incremental increase from the 20.63 billion gallons established for 2022. The proposed blending mandates include both conventional biofuels, comprised largely from corn-based ethanol, as well as advanced biofuels, including biodiesel and cellulosic biofuels. The EPA is proposing volume targets for advanced biofuel blending of 5.82 billion gallons in 2023, 6.62 billion gallons in 2024 and 7.43 billion gallons in 2025. The proposed blending targets would require at least 15 billion gallons of ethanol blended into the nation’s gasoline supply for the three years.

The EPA is also proposing new regulations governing the generation of qualifying renewable electricity made from renewable biomass used as transportation fuel in electric vehicles. If adopted in the final rule, this new pathway would mark the first time that electricity generation is included in the RFS. The EPA initially approved an electric pathway for biogas in 2014 but is only now proposing to implement it for 2023 and beyond. According to the EPA, the proposed rule would reduce U.S. oil imports by 160,000 to 180,000 barrels of oil per year over the next three years.

Public comments are due February 10, 2023, and EPA will hold a public hearing sometime in January.