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US EPA proposes renewable fuel volumes for 2023-2025

2 December 2022

The US Environmental Protection Agency (EPA) issued a proposal for required volumes of renewable fuels under the Renewable Fuel Standard (RFS) for the next one to three years, as well as several modifications to the program. The latter include requirements for fuels used for electric vehicles for the first time.

The Renewable Fuel Standard (RFS) program requires fuel refiners and importers to blend a certain volume of biofuel into the national pool of retail fuel or purchase credits from other refiners participating in the program.

The EPA proposed steady growth of biofuel volumes and percentage standards for 2023, 2024, and 2025. Because the Energy Independence and Security Act of 2007 (EISA) does not include volumes after 2022, this is the first time that EPA is setting these proposed biofuel volume targets without using those outlined in statute.

The proposal includes the second “supplemental standard” (after 2022) addressing the remand by a court of the 2016 reduction of RFS blending requirements.

Proposed Volume Targets (billion RINs)†
Cellulosic biofuel0.721.422.13
Biomass-based diesel*2.822.892.95
Advanced biofuel5.826.627.43
Renewable fuel20.8221.8722.68
Supplemental standard0.25n/an/a
† One RIN is equivalent to one ethanol-equivalent gallon of renewable fuel
* Biomass-based diesel is in billion gallons
Proposed Percentage Standards
Cellulosic biofuel0.41%0.82%1.23%
Biomass-based diesel2.54%2.60%2.67%
Advanced biofuel3.33%3.80%4.28%
Renewable fuel11.92%12.55%13.05%
Supplemental standard0.14%n/an/a

The EPA has also proposed new regulations governing the generation of qualifying renewable electricity made from renewable biomass that is used for transportation fuel in electric vehicles. The agency is seeking comment on this new component of the RFS program that would tie electricity generation from renewable biomass into the program for the first time.

While ethanol growers and producers were largely supportive of the proposal, some soybean and biodiesel groups voiced concerns about insufficient growth of biomass-based diesel volumes.

The EPA will be soliciting public comment on the proposed rule and holding a public hearing in January.

Source: US EPA