EPA tones down renewable fuel targets in 2018 proposal
The U.S. Environmental Protection Agency (EPA) has issued its proposed renewable volume obligations (RVOs) for 2018 under the Renewable Fuel Standard (RFS), as well as RVOs for biomass-based diesel for 2019.
The EPA is proposing to lower the various volumes below their statutory levels. The EPA’s RVO proposal for 2018 holds the level for non-advanced biofuels (generally corn ethanol), steady at 15 billion gallons, the amount required by law, reports NACS.
Biomass-based diesel levels for 2018 and 2019 also remain steady at 2.1 billion gallons. Advanced biofuels see a slight decrease from last year’s numbers—dropping to 4.24 billion gallons. Cellulosic biofuels, however, took the biggest hit in the 2018 proposal, dropping from 311 million gallons last year to 238 million gallons this year – far from the 7.0 billion gallons that the Clean Air Act calls for.
The EPA explains that “renewable fuels will continue to play a critical role as a complement to our petroleum-based fuels,” but that “real-world challenges…have slowed progress towards meeting Congressional goals.”
The Agency has also solicited comments on whether and how the current Renewable Identification Number (RIN) trading structure “provides an opportunity for market manipulation,” and how changes to that system might fix such concerns.
For more on the EPA’s proposal, click here.