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EPA Proposes Renewable Volume Obligations for 2020 On Track to Meet Statutory Deadline

07/05/2019
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EPA Proposes Renewable Volume Obligations for 2020 on Track to Meet Statutory Deadline

WASHINGTON (July 5, 2019) – Today, U.S. Environmental Protection Agency (EPA) Administrator Andrew Wheeler issued a proposed rule under the Renewable Fuel Standards (RFS) program that would set the minimum amount of renewable fuels that must be supplied to the market in calendar year 2020, as well as the biomass-based diesel volume standard for calendar year 2021. This puts EPA on target to publish the final RFS Renewable Volume Obligations (RVOs) on time for the third consecutive year. This is in contrast to the previous administration, which frequently failed to release their RVOs by the date intended by Congress.

“Unlike the previous administration, we have consistently issued the annual renewable volume obligations rule on time, which is critically important to America’s farmers and all stakeholders impacted by the Renewable Fuel Standard program,” said EPA Administrator Andrew Wheeler. “We are on track to meet the deadline on time for the third year in a row and continue to provide greater regulatory certainty to farmers and refiners across the country.”

Some key elements of today’s action:

  • “Conventional” renewable fuel volumes, primarily met by corn ethanol, would be maintained at the implied 15-billion gallon target set by Congress.
  • EPA is proposing an advanced biofuel volume requirement for 2020 of 5.04 billion gallons, which is 0.12 billion gallons higher than the advanced biofuel volume requirement for 2019.
  • The cellulosic biofuel volume requirement of 0.54 billion ethanol-equivalent gallons for 2020 is based on our production projection which is 0.12 billion ethanol-equivalent gallons higher than the cellulosic biofuel volume finalized for 2019.
  • We are proposing to maintain the biomass-based diesel (BBD) volume for 2021 at 2.43 billion gallons.

Proposed and Final Renewable Fuel Volume Requirements for 2019-2021

 

2019

2020 Statutory Volumes

2020 Proposed Volumes

2021 Proposed Volumes

Cellulosic biofuel (billion gallons)

0.42

10.50

0.54

n/a

Biomass-based diesel (billion gallons)

2.1

≥1.0

N/A

2.43

Advanced biofuel (billion gallons)

4.92

15.00

5.04

n/a

Renewable fuel (billion gallons)

19.92

30.00

20.04

n/a

All values are ethanol-equivalent on an energy content basis, except for BBD which is biodiesel-equivalent.

The Clean Air Act requires EPA to set annual RFS volumes of biofuels that must be used for transportation fuel for four categories of biofuels: total, advanced, cellulosic, and biomass-based diesel. EPA is using the tools provided by Congress to adjust the standards below the statutory targets based on current market realities. EPA implements the RFS program in consultation with the U.S. Department of Agriculture and the U.S. Department of Energy. 

For more information on today’s announcement, go to: https://www.epa.gov/renewable-fuel-standard-program/proposed-volume-standards-2020-and-biomass-based-diesel-volume-2021