EPA Releases Proposed Rule Setting 2019 RFS Requirements

These blend levels increase requirements from 2018 but are still lower than the statutory levels set by Congress under the RFS. The levels, along with the fact that the proposed rule does not address the reduction in price that Renewable Identification Numbers (RIN) have suffered as a result of EPA’s increased use of small refiner hardship waivers, have resulted in criticism of the rule by biofuel groups. Brent Erickson, Executive Vice President of the Biotechnology Innovation Organization’s (BIO) Industrial & Environmental Section released a statement regarding the proposed rule, stating:

We welcome EPA’s decision to raise the advanced and cellulosic biofuel volumes in its proposal, which will help propel the industry forward in 2019. However, the advanced biofuels industry is still suffering the effects of the Agency’s decision to arbitrarily limit growth for low carbon biofuels in 2018, by setting a backward looking RFS requirement. The 2019 volumes should be higher, to correct from last year and also spur growth for the coming year.

EPA’s decision to forgo reallocation of gallons displaced from small refinery waivers at the behest of the petroleum industry is disappointing. In order to ensure a favorable and supportive investment climate for advanced and cellulosic biofuel producers, EPA must reallocate the gallons from the small refinery waivers already issued and into the future.

A comment period will start following publication of the proposed rule in the Federal Register and comments will be due by August 17, 2018. Comments can be filed online at www.regulations.gov under Docket ID No. EPA-HQ-OAR-2018-0167. EPA plans to schedule a public hearing on the proposed rule.