[fullwidth background_color=”” background_image=”” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ background_repeat=”no-repeat” background_position=”left top” video_url=”” video_aspect_ratio=”16:9″ video_webm=”” video_mp4=”” video_ogv=”” video_preview_image=”” overlay_color=”” overlay_opacity=”0.5″ video_mute=”yes” video_loop=”yes” fade=”no” border_size=”0px” border_color=”” border_style=”” padding_top=”20″ padding_bottom=”20″ padding_left=”0″ padding_right=”0″ hundred_percent=”no” equal_height_columns=”no” hide_on_mobile=”no” menu_anchor=”” class=”” id=””][title size=”1″ content_align=”left” style_type=”underline solid” sep_color=”#000000″ margin_top=”” margin_bottom=”” class=”” id=””]EPA releases proposed Renewable Volume Obligations for biofuels under the Renewable Fuel Standard for 2014, 2015 and 2016[/title][fusion_text]Monday, June 1st 2015
The Environmental Protection Agency today released proposed Renewable Volume Obligations (RVOs) for biofuels under the Renewable Fuel Standard for 2014, 2015 and 2016 that show an increase in required blending, but still below statutory levels sought by the renewable fuels industry. EPA’s proposal reflects actual usage for 2014, but calls for increases in subsequent years. Janet McCabe, EPA’s acting assistant administrator for the Office of Air, said the proposed volume requirements “will provide a strong incentive for continued investment and growth in biofuels.” The EPA is proposing incremental increases in every biofuel category, including corn ethanol used in E10 and higher blends at gas pumps across the country. In 2015, the agency is proposing 16.3 billion gallons of renewable fuels, with the potential for 13.4 billion of those gallons coming from corn ethanol. In 2016, the agency suggests further increases to 17.4 billion gallons of biofuels – a jump of about 1.5 billion gallons from actual 2014 production – with the potential for corn ethanol to account for 114 billion of the total. Cellulosic and advanced biofuels saw the biggest gains under the new proposals with proposed 2016 volumes coming in six times higher – more than 170 million gallons – than actual 2014 volumes. Advanced biofuels jumped about 700 gallons in the same time period, an increase of about 27 percent. Biodiesel blending requirements also predict 1.9 billion gallons of growth in the industry, about 17 percent higher than actual 2014 production. The RFS – created under the Energy Policy Act of 2005 and expanded in 2007 – sets mandatory requirements for blending renewable fuels with gasoline. Proponents say it is necessary to create demand for renewable fuels like ethanol and biodiesel, but opponents say it forces the product on the marketplace and artificially inflates commodity prices. The oil and renewable fuels industries have been especially at odds over the “blend wall.” Oil companies contend that the American public has hit the blend wall and cannot use any more renewable fuels, but renewable fuel advocates claim oil companies are creating an artificial blend wall due to their control over the delivery of the fuel supply. The proposal will now be open for public comment for 60 days after being published in the Federal Register.
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