EPA Proposes Renewable Volume Obligations for 2019
June 26, 2018 by Admin | 
Today, U.S. EPA released the Proposed Renewable Volume Obligation (RVO) for 2019 under the Renewable Fuel Standard (RFS). EPA also proposed the RVO for Bio-mass Based Biodiesel for 2020. Cellulosic biofuel increased from 288 million gallons to 381 million gallons for 2019. Bio-massed Based Diesel for 2020 has a proposed volume at 2.43 billion gallons, a noted increased from the finalized volume in 2019. Advanced Biofuel increased from 4.29 to 4.88 billion gallons. Lastly, the total renewable fuels proposed volume has increased from 19.29 to 19.88 billion gallons for 2019.
While the Clean Air Act has called for 8.5 billion gallons of cellulosic biofuels in 2019, the proposed cap for 2019 is much lower. EPA states, as its justification for this decrease, that “the market has fallen well short of the statutory volumes of cellulosic biofuel, resulting in shortfalls in the advanced biofuel and total renewable fuel volumes.” EPA has used its waiver authority to reduce the requirements of each renewable fuel volume. However, these proposed volumes are much higher than 2018’s finalized numbers. You can find a link to the proposed rule here.
Additionally, EPA’s proposed rule setting these volumes does not change the point of obligation. Last November, EPA heard arguments on and denied the petition to shift the point of obligation from refiners and importers to downstream entities, such as blenders.
Finally, EPA does not seem to be taking any action on small refinery waivers. EPA has stated, “[a]t this time no exemptions have been approved for 2019, and therefore we have calculated the percentage standards for 2019 without any adjustment for exempted volumes. EPA is maintaining its approach that any exemptions for 2019 that are granted after the final rule is released will not be reflected in the percentage standards that apply to all gasoline and diesel produced or imported in 2019.”
As always, if you have any questions about this or anything else, please don’t hesitate to contact us at 1-866-433-7467 or info@rinalliance.com.
