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Ag interests split over EPA’s proposed biofuel blending rule

The Environmental Protection Agency is getting mixed reviews for its proposed final rule for the Renewable Fuel Standard over the next three years. 

Emily Skor with Growth Energy says biofuels remain the single best tool for shielding motorists from volatile oil prices while decarbonizing the transportation sector. “We are greatly encouraged by EPA’s strong set proposal with implied conventional biofuel volumes at 15 billion gallons for 2023 and increasing to 15.25 billion for 2024 and 2025.”

National Corn Growers Association President Tom Haag says he’s pleased with EPA’s proposal of annual blending increases and renewable fuel volumes but encourages them to allow more ethanol. “We asked EPA to continue working with us on complimentary policies that advance higher ethanol blends enabling ethanol to do more to cut both emissions and costs.”

But not everyone is pleased with the proposed rule.  Kent Engelbrecht is with Archer Daniels Midland and says the EPA’s proposal for biodiesel is disappointing. “While we appreciate the conventional ethanol volumes proposed, from a biodiesel perspective, the proposed rule does not live up to our shared RFS program goals. As stated, it does not continue from the jumping off point provided in the rule the agency finalized just seven months ago.”

Engelbrecht says the clean fuels industry needs volumes set at a level that provides certainty for the investments it has made at the administration’s direction and accurately reflects their achieved sustainable growth.

EPA’s proposed rule is also getting pushback from refiners, chemical companies, and cooking oil recyclers.

The following rule summary is from the Environmental Protection Agency:

On December 1, 2022, EPA announces a proposed rule to establish required Renewable Fuel Standard (RFS) volumes and percentage standards for 2023, 2024, and 2025, as well as to propose a series of important modifications to strengthen and expand the RFS program. The proposed volume targets and percentage standards are listed below.

	2023	2024	2025
Cellulosic biofuel	0.72	1.42	2.13
Biomass-based diesel	2.82	2.89	2.95
Advanced biofuel	5.82	6.62	7.43
Renewable fuel	20.82	21.87	22.68
Supplemental standard	0.25	n/a	n/a

^a One RIN is equivalent to one ethanol-equivalent gallon of renewable fuel.

	2023	2024	2025
Cellulosic biofuel	0.41%	0.82%	1.23%
Biomass-based diesel	2.54%	2.60%	2.67%
Advanced biofuel	3.33%	3.80%	4.28%
Renewable fuel	11.92%	12.55%	13.05%
Supplemental standard	0.14%	n/a	n/a

Additionally, the proposed rule includes regulatory changes to prescribe how RINs from renewable electricity (eRINs) would be implemented and managed under the RFS program. This update to the RFS program would allow parties to register with EPA and generate eRINs produced from qualifying renewable biomass used as a transportation fuel.

Minor regulatory changes including updates to third-party oversight review and other changes are also included in the proposed rule.