EPA proposes raising biofuel blending volumes

In an effort to advance the priorities of energy security, less pollution and consumer protection, the U.S. Environmental Protection Agency (EPA) has issued a multi-part proposal to boost biofuel blending volumes under its Renewable Fuel Standard (RFS) program.

As reported by Reuters, the agency has proposed increases in the amount of ethanol and other biofuels that oil refiners must blend into their fuel over the next three years.

“The Renewable Fuel Standard program is critical to helping incorporate more homegrown biofuels into the market,” says EPA Administrator Michael S. Regan in a release announcing the proposal. “This proposal supports low-carbon renewable fuels and seeks public input on ways to strengthen the program. With this proposal, EPA seeks to provide consumers with more options while diversifying our nation’s energy mix.

“EPA is also focused on strengthening the economics of our critical energy infrastructure needed to maintain and boost our energy security. We’re eager to continue the dialogue on how biofuels can bolster U.S. energy security, protect consumers from high fuel costs, strengthen the rural economy and help reduce greenhouse gas emissions.”

The proposal includes steady growth of biofuels for use in the nation’s fuel supply for 2023, 2024 and 2025. Under the plan, Reuters reports oil refiners will be required to add 20.82 billion gallons of biofuels to their fuel in 2023, 21.87 billion gallons in 2024 and 22.68 billion gallons in 2025.

Those volumes will include more than 15 billion gallons per year of conventional biofuels like corn-based ethanol, with the rest made up of advanced fuels like those made from switchgrass, animal fats or methane from dairy farms and landfills.

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EPA is also seeking to make use of biofuels to charge electric vehicles (EVs) as part of the renewable fuel program. D3 credit volumes are expected to grow from 720 million in 2023 to 2.13 billion by 2025, with the overwhelming majority of growth coming from credits generated by EVs.

The agency is currently seeking comment on the proposed volumes and how to appropriately balance these factors so the program works for renewable fuel growers and producers, refiners and the union workers who operate these facilities, and fuel consumers.

While the proposal marks a large step by the agency to increase biofuel usage, industry stakeholders like the Advanced Biofuels Association feel the proposed volumes undervalue the current market.

“The EPA’s 2023, 2024 and 2025 Renewable Volume Obligations are a missed opportunity to invest in and expand the adoption of low-carbon advanced biofuels. While the EPA’s proposal provides much-needed certainty for our industry, we are disappointed that the program has undervalued the advanced and biomass-based diesel pool,” says Michael McAdams, president of the Advanced Biofuels Association, in a statement released Dec. 1.

“The Advanced Biofuels Association and our members believe in an all-of-the-above solution to our energy and climate challenges, inclusive of electrification and low-carbon advanced biofuels. However, the EPA’s proposed biofuel blending requirements do not fully reflect the volumes of advanced, biomass-based diesel and cellulosic pools available in the market.”

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