THE LAND, DECEMBER 6, 2013
4 B
Changes ahead? Understanding the 2014 RFS proposal The recent announcement by the U.S. Environmental Protection Agency to reduce the Renewable Fuels Standard targets has created quite a stir among the agriculture and renewable energy industry. The EPA is proposing to reduce the total required volume of renewable fuels for 2014 from the previous requirement of 18.15 billion gallons to a revised level of 15.21 billion gallons. The EPA proposal rep-
resents a reduction of approximately 16 percent from the original RFS fuel volume for 2014, which was established by the Energy Independence and Security Act of 2007. The overall goal of this legislation was to reduce U.S. dependence on foreign oil to meet our energy needs, and to expand the production of renewable fuels domestically. The revisions in the 2014 RFS requirements being
proposed by the EPA are ... • Total renewable fuel: 15.21 billion gallons (Range of 15 billion to 15.52 billion gallons) • Advanced biofuels: 2.20 billion gallons (Range of 2 billion to 2.51 billion gallons) • Cellulosic biofuel: 17 million gallons (Range of 8 milFARM PROGRAMS lion to 30 million gallons) • Biomass-based diesel: By Kent Thiesse 1.28 billion gallons • Corn-based ethanol (est.): 13.01 billion gallons (Range of 12.70 billion to 13.20 billion gallons) Note: The EPA does not provide a specific volume requirement for corn-based ethanol use; however, the proposed adjustments in the total required volume of renewable fuel, and the requirements for advanced biofuels, would indicate the likely volume for cornbased ethanol, based on previous historical data. The total renewable fuel requirement for 2014 established by the EISA of 2007 was 18.15 billion gallons of total renewable energy, with an estimated 14.4 billion gallons to be derived from corn-based ethanol production. The total RFS set by the EPA for 2013 was 16.55 billion gallons, with an estimated 13.8 billion gallons from corn-based ethanol. The 2007 EISA requirements for total RFS advanced biofuels in 2014 was put at 3.75 billion gallons, and was set at 2.75 billion gallons for 2013 by the EPA. The RFS, as it was originally designed in 2007, was supposed to continue to increase in volume from 2008 to 2022, eventually reaching a total 36 billion gallons of renewable fuel. The volume of corn-based ethanol was set to increase to 15 billion gallons by 2015, and then be held steady. Most of the increases beyond 2015 were slated to occur from development of the production of advanced biofuels, primarily from cellulosic ethanol. Thus far, the production of most advanced biofuels, other than soybean-based biodiesel, have lagged far behind the expectations that were established in 2007. The 2007 EISA legislation granted the EPA the authority to waive the renewable fuels requirement for an individual calendar year by “reducing the national quantities of renewable fuels that are required,” based on certain criteria. To reduce the RFS requirement, the EPA must determine that implementing the requirements would “severely harm the economy or environment,” or that there is “an inadequate domestic supply” of renewable fuels. The EPA is expected to consult with the U.S. secretaries of agriculture and energy before reaching a final decision. Now that the EPA has issued revisions in the RFS requirements, there is a 60-day public comment period, which will continue until Jan. 28. When issuing the proposed RFS requirements for 2014, the EPA offered the following official explanation of the decision. “Nearly all gasoline sold in the U.S. is now ‘E10,’
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See PROGRAMS, pg. 6B