American Fuel & Petrochemical Manufacturers asks EPA to waive cellulosic RFS volumes

In Washington, the American Fuel & Petrochemical Manufacturers association filed a petition requesting that EPA waive the 2016 RFS cellulosic volumes to avoid “phantom fuel” compliance payments arising from a shortfall in 2016 cellulosic production.  AFPM estimates that a favorable decision on this petition would reduce payments for these non-existent fuels by $50-75 million.

In December 2015, EPA promulgated the applicable volumetric requirements for various renewable fuels under the RFS for compliance years 2014-2016. This rulemaking established the mandated volume of cellulosic biofuel for 2016 at 230 million ethanol-equivalent gallons.

In promulgating the final rule, EPA exercised its waiver authority to reduce the statutorily-prescribed amount of cellulosic biofuel under the RFS from 4.25 billion gallons to 230 million gallons. In connection with that rulemaking, AFPM commented that the reduced cellulosic volumes EPA was contemplating in the proposal were too aggressive and unlikely to be achieved.

AFPM also filed a petition for review with the U.S. Court of Appeals for the District of Columbia Circuit.