EPA sets final 2013 US renewable fuel mandate

Industry commentary

Michael McAdams, president, Advanced Biofuels Association

“ABFA salutes the EPA and today’s announcement of the 2013 RVOs. We are delighted to see EPA validate the significant contributions that advanced and cellulosic biofuels are making to the American biofuels sector. Today’s announcement of 6 million gallons of cellulosic fuels should put to an end the argument that refiners are being taxed to pay for phantom fuels.  Advanced and cellulosic biofuels will continue to grow over time, giving Americans a diversity of lower carbon fuels for our future.”

Brent Erickson, Executive Vice President of BIO’s Industrial & Environmental Section

“This is a pivotal year for cellulosic and advanced biofuels. Following years of research and development and millions of dollars in investment, the first companies are right now commissioning biorefineries and producing commercial volumes of cellulosic fuel for American drivers. Additional companies have new facilities under construction, with expected start up over the next few years.

“BIO firmly believes that the limits to market access for biofuels commonly referred to as the blendwall represent a series of barriers contrived by obligated parties to prevent biofuels from gaining access to the marketplace. Multiple avenues exist for blending additional volumes of biofuel into the nation’s fuel supply. BIO urges EPA to withstand pressure to reduce RFS obligations based on blendwall claims.”

Bob Dinneen, CEO, Renewable Fuels Association

“First and foremost, by decreasing the cellulosic requirement by 99.4 percent to a very realistic, achievable number, the EPA has totally obliterated Big Oil’s myth that the RFS is inflexible and unworkable. As in years past, the finalized annual requirements are a testament to the inherent flexibility that is the backbone of the RFS.”

Tom Buis, CEO, Growth Energy

“Growth Energy is pleased that the EPA has finalized the 2013 biofuel volumes and has continued to show its strong commitment to the RFS.  We look forward to closely reviewing the final rule and we strongly support increasing levels of renewable fuel into our nation’s fuel supply.

Brooke Coleman, Executive Director, Advanced Ethanol Council

“It is clear that U.S. EPA has done its homework when it comes to setting the 2013 standard. The commercial cellulosic biofuel facilities that U.S. EPA projected to start up in 2013 are indeed operating, and the adjusted targets reflect the number of actual gallons expected to be available through the end of the year. We agree with U.S. EPA that there will be sufficient quantities of advanced biofuels in the market to maintain the broader advanced biofuel standard, which is consistent with the legislative intent of the RFS to promote advanced renewable fuels.”

Anne Steckel, vice president of federal affairs, National Biodiesel Board

“Biodiesel is proving that Advanced Biofuels are working today and that they can reduce prices for consumers. The RFS is a critical component to that success, and today’s rule will help stimulate new technologies and additional growth. Today’s announcement also demonstrates that the EPA has tremendous flexibility in addressing concerns stemming from the various volume requirements under the RFS, and that it is prepared to use that flexibility in a practical way to ensure that the policy is running smoothly.”

Leticia Phillips, Brazilian Sugarcane Industry Association (UNICA)

“Sugarcane ethanol producers applaud today’s Environmental Protection Agency (EPA) announcement on 2013 annual percentage standards for the Renewable Fuels Standard (RFS), which maintains the advanced biofuel volume at 2.75 billion gallons. Brazilian exports provided nearly one-quarter of the entire U.S. advanced biofuel supply in 2012, are projected to supply nearly 700 million gallons in 2013, and could supply up to one billion additional gallons in 2014 – all with at least 61% fewer emissions than gasoline, according to the EPA.”

Jason Bordoff, Director of Columbia University’s Center on Global Energy Policy

“The EPA’s announcement today that it will leave the renewable fuel volume mandates in place for 2013 but is willing to use its flexibility to issue waivers next year shows the Obama Administration clearly understands the current RFS statutory mandates are unworkable beyond 2013. It’s a significant development for the EPA to overtly state that it intends to be flexible in using its waiver authority to ensure consumers are not penalized at the pump.”

Brian Jennings, Executive Vice President for the American Coalition for Ethanol

“ACE appreciates that EPA has issued the final volumes for 2013, keeping the total volume intact and thoughtfully used the flexibility given to it by Congress to set the final cellulosic target at 6 million gallons.  We think that total is realistic to reach this year.  To ensure that the RFS drives sufficient demand for E15 and higher blends of ethanol, and serves as a catalyst for innovation in advanced and cellulosic biofuels, ACE will continue our constructive dialogue with EPA as it considers its flexibility to address the volumes for 2014 and beyond.”

In today’s Digest: reaction from industry analysts; and the Digest’s Take – by following the page links below.