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December 7, 2018
Thirteen years after the passage of the Renewable Fuel Standard (RFS), the domestic corn ethanol industry produces 16 billion gallons of ethanol a year and the biodiesel industry produces 2.7 billion gallons of biodiesel and renewable diesel a year. Conversely, advanced and cellulosic fuels, those leading to greenhouse gas reductions greater than 50 percent, have reached production of only about 500 million gallons per year. This is despite the Congressional mandate that these fuels make up the majority of the 36 billion gallons called for by 2022 under the RFS.
The industry has been unable to produce the volumes called for under the advanced and cellulosic categories due to a variety of reasons – including the pace of technology, falling petroleum prices, and regulatory uncertainty, to name a few. Since the industry continues to miss these targets, in January of 2019, the Environmental Protection Agency (EPA) will propose resetting fuel volume targets of advanced and cellulosic fuels for the years 2020 through 2022. However, there are many administrative steps the EPA could be actively taking to unlock the production of additional gallons of advanced and cellulosic gallons.
That’s the finding of the Biomass R&D Technical Advisory Committee (TAC), an independent advisory board to the federal government. The TAC recently released a report, Identification of Regulatory Barriers to Advanced Biofuels, which identifies the regulatory steps EPA could take to increase the growth of advanced and cellulosic fuels. The TAC grouped potential actions into near-term and intermediate opportunities. Longer-term opportunities were briefly addressed, but represent steps that would require Congressional intervention to re-visit the basic parameters of the RFS.
Near-Term Opportunities
Intermediate-Term Opportunities
EPA should take steps to understand the total volume of fuels represented by these opportunities and take them into consideration when setting reset volumes for 2020 through 2022. Additionally, the EPA should be transparently setting goals on meeting already agreed upon steps to increase advanced and cellulosic fuel volumes, such as finalizing the Renewables Enhancement and Growth Support (REGS) Rule, which EPA proposed two years ago.
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