Milling & Baking News - December 6, 2016 - 26

Industry Activities X

E.P.A. unveils more robust Renewable
Fuel Standard program for 2017

conventional biofuel requirement to
the 15-billion-gallon level required
by the statute. The move will send a
positive signal to investors, rippling
WASHINGTON - The U.S. Environ- Rulemaking and other information throughout our economy and environmental Protection Agency on Nov. that has become available since May ment. By signaling its commitment to
23 announced its finalized volume has led us to conclude that volume a growing biofuels market, the agency
requirements that apply under the reductions for 2017 need not be as will stimulate new interest in cellulosRenewable Fuel Standard Program great as we had proposed. In light of ic ethanol and other advanced biofu(R.F.S.) for calendar year 2017 for cel- the lower reductions necessary, in this els, drive investment in infrastructure
lulosic biofuel, biomass-based diesel, final rule, we rely exclusively on the to accommodate E15 and higher ethaadvanced biofuel and total renewable cellulosic waiver authority to provide nol blends, and make a further dent in
fuel. The E.P.A. also finalized the vol- reductions in both advanced biofuel reducing greenhouse gas emissions."
The American Soybean Association
ume requirement for biomass-based and total renewable fuel volumes.
diesel for 2018. The E.P.A. noted the That is, we have determined it is not applauded the E.P.A. for increasing
finalized standards meet or exceed the necessary to provide an additional in- the R.F.S. for advanced biofuels but
volume targets specified by Congress crement of volume reduction for total was disappointed the agency did
for total renewable fuel, biomass-based renewable fuels through use of the not raise the volume requirement for
diesel and advanced biofuel. The fi- general waiver authority based on a 2018 specifically relating to biomassnalized volume requirements for ad- finding of inadequate domestic sup- based diesel.
"The levels announced today provanced biofuel and total renewable fuel ply, as we had done in the final rule
also were higher than those proposed establishing annual standards for vide opportunities but also do not
take full advantage of an
by the E.P.A. in May.
opportunity to further
The E.P.A. set the X
Renewable fuel volume requirements
promote a viable, domestotal renewable fuel
tically produced renewvolume requirement at
2014 2015 2016 2017 2018
able fuel industry that
19.28 billion gallons,
Cellulosic biofuel (million gallons)
33
123
230
311
NA
Biomass-based diesel (billion gallons)
1.63 1.73
1.9
2.0
2.1
is U.S. biodiesel," said
up 480 million gallons
Advanced biofuel (billion gallons)
2.67 2.88 3.61
4.28
NA
Richard Wilkins, A.S.A.
from the May proposal
Renewable fuel (billion gallons)
16.28 16.93 18.11 19.28
NA
president and soybean
and up 1.17 billion galfarmer from Greenwood,
lons, or 6%, from 18.11
Source: Environmental Protection Agency
Del. "E.P.A. will raise
billion gallons in 2016.
the overall volumes relaOf the renewable fuel
requirement, 4.28 billion gallons were 2014-16 and as we also proposed to do tive to the proposed rule and increase
the total advanced biofuels volume
earmarked for advanced biofuel, and in establishing standards for 2017."
Senator Chuck Grassley of Iowa requirements for 2017 from 4 billion
15 billion gallons will comprise "conventional" renewable fuel, primarily said in response to the E.P.A.'s notice, gallons to 4.28 billion, an increase of
corn-based ethanol. Under the May "This announcement is good news for 19%. That's a plus for biodiesel as the
proposal, the ethanol volume require- Iowa, and in particular corn ethanol primary source of advanced biofuels."
Mr. Wilkins noted, however, that the
ment would have been 200 million producers. While more work needs to
be done to increase levels for biodiesel, E.P.A. chose not to raise the biomassgallons lower at 14.8 billion gallons.
The E.P.A. left unchanged from May this is the first time that the E.P.A. has based diesel volume requirement withits volume requirements for biomass- reached the statutory level for tradi- in the advanced biofuel pool for 2018.
"When E.P.A. issued its proposed
based diesel in 2017 and 2018 at 2 bil- tional corn ethanol. This achievement
lion gallons and 2.1 billion gallons, marks significant progress for renew- rule, A.S.A. clearly stated that the
respectively. No other 2018 volume re- able energy and is a tribute to Iowa's 2.1-billion-gallon mark did not adequately capture the capacity of the
quirements were included in the Nov. clean energy leadership."
His view was echoed across the biodiesel industry," Mr. Wilkins said.
23 announcement.
"To see the volume remain at 2.1 bilWhen the E.P.A. issued its proposed aisle.
"Today, I am pleased that the E.P.A. lion gallons as they were in the provolume requirements for renewable
fuel for public comment last May, has gotten the R.F.S. back on schedule posed rule is frustrating. We know we
several commodity organizations and and released more robust, final vol- can do more."
The American Petroleum Institute
farm state members of Congress as- ume obligations for 2017," said Repserted the E.P.A. should raise its re- resentative Collin Peterson of Minne- voiced its displeasure with the E.P.A.
quirement for total renewable fuel to sota, ranking member on the House announcement.
"We are disappointed that E.P.A.
meet the target set in legislation. In Committee on Agriculture. "I have
previous years, the E.P.A. had used advocated continuously for a strong has taken a step backwards with this
waiver authority given it under the R.F.S. and for E.P.A. to match congres- final rule," said Frank Macchiarola,
R.F.S. Program to issue volume re- sional intent. This is an important step A.P.I.'s downstream group director.
quirements below those targeted by toward strengthening confidence in "The R.F.S. mandate is a bad deal for
Congress based on findings of "inad- the biofuels industry and maintaining the American consumer. Today's announcement only serves to reinforce
a strong rural economy."
equate domestic supply."
Bob Dinneen, president and chief the need for Congress to repeal or sigIn its Nov. 23 final rule, though, the
E.P.A. said, "A careful review of the executive officer of the Renewable nificantly reform the R.F.S. Democrats
comments we received in response to Fuels Association, said, "We can all and Republicans agree this program is
the May 31, 2016, Notice of Proposed be thankful E.P.A. has raised the a failure." MBN
26 / December 6, 2016 XMilling & Baking News

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Milling & Baking News - December 6, 2016

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