1) Dec 30 -- Renewable Fuel Standard (RFS) Program: Standards for 2023-2025 and Other Changes
Under the Clean Air Act, the Environmental Protection Agency (EPA) is required to determine the applicable volume requirements for the Renewable Fuel Standard (RFS) for years after those specified in the statute. This action proposes the applicable volumes and percentage standards for 2023 through 2025 for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel. This action also proposes the second supplemental standard addressing the remand of the 2016 standard-setting rulemaking. Finally, this action proposes several regulatory changes to the RFS program including regulations governing the generation of qualifying renewable electricity and other modifications intended to improve the program's implementation.
Comments must be received on or before February 10, 2023.
Entities potentially affected by this proposed rule are those involved with the production, distribution, and sale of transportation fuels (e.g., gasoline and diesel fuel), renewable fuels (e.g., ethanol, biodiesel, renewable diesel, biogas, and renewable electricity), and electric vehicles.
The Renewable Fuel Standard (RFS) program began in 2006 pursuant to the requirements of the Energy Policy Act of 2005 (EPAct), which were codified in Clean Air Act (CAA) section 211(o). The statutory requirements were subsequently amended by the Energy Independence and Security Act of 2007 (EISA). The statute sets forth annual, nationally applicable volume targets for each of the four categories of renewable fuel for the years shown below. . . .
For calendar years after those for which the statute provides volume targets, the statute directs EPA to determine the applicable volume targets in coordination with the Secretary of Energy and the Secretary of Agriculture, based on a review of the implementation of the program for prior years and an analysis of specified factors:
• The impact of the production and use of renewable fuels on the environment, including on air quality, climate change, conversion of wetlands, ecosystems, wildlife habitat, water quality, and water supply;
• The impact of renewable fuels on the energy security of the U.S.;
• The expected annual rate of future commercial production of renewable fuels, including advanced biofuels in each category (cellulosic biofuel and biomass-based diesel);
• The impact of renewable fuels on the infrastructure of the U.S., including deliverability of materials, goods, and products other than renewable fuel, and the sufficiency of infrastructure to deliver and use renewable fuel;
• The impact of the use of renewable fuels on the cost to consumers of transportation fuel and on the cost to transport goods; and
• The impact of the use of renewable fuels on other factors, including job creation, the price and supply of agricultural commodities, rural economic development, and food prices.
While this statutory requirement does not apply to cellulosic biofuel, advanced biofuel, and total renewable fuel until compliance year 2023, it applied to biomass-based diesel (BBD) beginning in compliance year 2013. Thus, EPA established applicable volume requirements for BBD volumes for 2013-2022 in prior rulemakings.
This action proposes the volume targets and applicable percentage standards for cellulosic biofuel, BBD, advanced biofuel, and total renewable fuel for 2023-2025. In association with these volume targets, we are also proposing new regulations governing the generation of Renewable Identification Numbers (RINs) for electricity made from renewable biomass that is used for transportation fuel, as well as a number of other regulatory changes intended to improve the operation of the RFS program.
Low-carbon fuels are an important part of reducing greenhouse gas (GHG) emissions in the transportation sector, and the RFS program is a key federal policy that supports the development, production, and use of low-carbon, domestically produced renewable fuels. This “Set rule” proposal marks a new phase for the program, one which takes place following the period for which the Clean Air Act enumerates specific volume targets. We recognize the important role that the RFS program can play in providing ongoing support for increasing production and use of renewable fuels, particularly advanced and cellulosic biofuels.
For a number of years, RFS stakeholders have provided their input on what policy direction this action should take, and the Agency greatly appreciates the sustained and constructive input we have received from stakeholders. The RFS program is entering a new phase, and we are introducing a new regulatory program governing renewable electricity. We welcome comments not only on the volumes we are proposing in this rule but also on the analyses we conducted and the proposed regulatory changes. EPA looks forward to continued engagement with stakeholders on this rule, through the formal public comment process, the public hearing we will hold, and through meetings with program participants and others.
FRN:
https://www.federalregister.gov/d/2022-26499 [175 pages]
2) Dec 13 -- Public Hearing for RFS Standards for 2023-2025 and Other Changes
The Environmental Protection Agency (EPA) is announcing a virtual public hearing to be held on January 10, 2023, on its proposal for the “Renewable Fuel Standard (RFS) Program: Standards for 2023-2025 and Other Changes,” which was announced on November 30, 2022. An additional session will be held on January 11, 2023, if necessary, to accommodate the number of testifiers that sign-up to testify. EPA is proposing the 2023-2025 renewable fuel standards for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel. EPA is also proposing the second supplemental standard addressing the remand of the 2016 standard-setting rulemaking and several regulatory changes to the RFS program, including regulations governing the generation of qualifying renewable electricity and other modifications intended to improve the program's implementation.
The virtual public hearing will begin at 9 a.m. Eastern Time (ET) and end when all parties who wish to speak have had an opportunity to do so, but no later than 5 p.m. ET. All hearing attendees (including even those who do not intend to provide testimony) should register for the public hearing by January 3, 2023. Information on how to register can be found at
https://www.epa.gov/renewable-fuel-standard-program/proposed-renewable-fuel-standards-2023-2024-and-2025.
FRN:
https://www.federalregister.gov/d/2022-26943
Dec 1 -- 3) EPA Takes Next Steps in Renewable Fuel Standard Program for 2023-25 -- Proposal Seeks Public Input on Program’s Role in U.S. Energy Security, Economy and Environment [news release]
Today, EPA issued a multi-part proposal that will build on the strong foundation for the Renewable Fuel Standard (RFS) program started in the Biden-Harris Administration and seeks to advance the priorities of energy security, less pollution, and consumer protection. The RFS “Set” proposal requests public input on required volumes of biofuel for the next one to three years and on a series of important modifications to strengthen and expand the program. The agency is seeking public input on the proposal to help shape the RFS program in the years ahead. . . .
This proposal includes steady growth of biofuels for use in the nation’s fuel supply for 2023, 2024, and 2025. Because the Energy Independence and Security Act of 2007 (EISA) does not include volumes after 2022, this is the first time that EPA is setting these proposed biofuel volume targets without using those outlined in statute. When setting biofuel volumes for years after 2022, EPA must consider a variety of factors specified in the statute, including costs, air quality, climate change, implementation of the program to date, energy security, infrastructure issues, commodity prices, and water quality and supply.
The agency is seeking comment on the proposed volumes and how to appropriately balance these factors so that the program works for renewable fuel growers and producers, refiners and the union workers who operate these facilities, and fuel consumers. Because this rule is an opportunity to take a fresh look at many aspects of the program, EPA is also seeking comment on how this rule can intersect with continued viability of domestic oil refining assets, including merchant refineries, how best to support novel fuels like sustainable aviation fuels and clean hydrogen, and how to account for the new and updated incentives in the Inflation Reduction Act.
EPA is also proposing new regulations governing the generation of qualifying renewable electricity made from renewable biomass that is used for transportation fuel in electric vehicles. The agency is seeking comment on this new component of the RFS program that would tie electricity generation from renewable biomass into the program for the first time.
This proposed rule would increase U.S. energy security by reducing U.S. oil imports by roughly 160,000 to 180,000 barrels of oil per year over the time frame of the proposed rule, 2023 to 2025. The anticipated value of the energy security benefits over the time frame of the proposed rule ranges from $200-$223 million per year.
https://www.epa.gov/newsreleases/epa-takes-next-steps-renewable-fuel-standard-program-2023-25
4) Proposed Renewable Fuel Standards for 2023, 2024, and 2025
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.
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 transportation fuel.
Minor regulatory changes including updates to third-party oversight review and other changes are also included in the proposed rule.
EPA will hold a virtual public hearing on January 10, 2023, for the proposed rule. An additional session will be held on January 11, 2023, if necessary, to accommodate the number of testifiers that sign-up to testify. This hearing will be held virtually-only using Zoom (i.e., there will be no in-person hearing).
In order to attend the virtual public hearing, all attendees (including those who will not be presenting verbal testimony) must register by sending an email to RFS-Hearing@epa.gov. A separate registration form must be submitted for each person attending the hearing. Please register no later than January 3, 2023.
https://www.epa.gov/renewable-fuel-standard-program/proposed-renewable-fuel-standards-2023-2024-and-2025