Ethanol Blog

STREATOR, Ill. (DTN) -- A respected think tank in Washington, D.C., suggested Dec. 16 the Environmental Protection Agency should freeze the volume of biofuels needed to meet requirements of the Renewable Fuel Standard at current levels for some time.

The Bipartisan Policy Center didn't indicate how long the freeze should last, but said the mandated volume, known as Renewable Volume Obligation could be "pumped up in the future."

BPC's comments were made in light of the wrangles over RFS, which is a law initially passed under the Energy Policy Act of 2005 and updated two years later under Energy Independence and Security Act of 2007. RFS has come under criticism by several groups, including the oil, food and auto industries that want it scrapped. The law is currently facing court challenges.

Under the law, the RFS biofuels mandate is set to increase each year until 2022. For 2014, EPA is a year late in issuing its final rule establishing the Renewable Volume Obligations under RFS, and the industry is currently using proposals that have not been finalized by EPA.

EPA has proposed reducing the mandate for 2014 from the statute requirement of 18.1 billion gallons to a range of 15.0 to 15.52 billion gallons.

The largest proposed cut in the 2014 RFS is for the D6 renewable fuel nested category from 14.4 billion gallons stated by statute to 13.0 billion gallons, which would be the first reduction in this category. D6 renewable fuel is satisfied primarily by corn-based ethanol.

Last month, EPA said it would not issue the final rule for 2014 RVOs until next year when it plans to also address 2015 and 2016 RVOs. The EPA move created market uncertainty.

BPC also said there needs to be consequences if EPA fails to meets the statutory deadline for issuing the final biofuels rule, and added that RVOs should be based on "a percentage of consumption" rather than estimated targets.

BPC was founded seven years ago by former Senate Majority Leaders Howard Baker, R-Texas, Tom Daschle, D-S.D., Bob Dole, R-Kan., and George Mitchell, D-Maine, to promote bipartisan solutions to problems.

Myke Feinman can be reached at myke.feinman@telventdtn.com

(ES)

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