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EPA Resets 2014 RVO Decision to 2014 and 2015 in One Move  

Friday, November 21, 2014

After waiting more than a year for the Environmental Protection Agency (EPA) to finalize renewable fuel standard (RFS) targets for 2014, the agency surprisingly pulled back its proposed rule today. This decision essentially sets the stage for EPA to set the renewable volume obligation (RVO) for advanced biofuels at whatever level of fuel is actually produced in 2014. The Advanced Biofuels Association (ABFA) issued the following statement in response, which should be attributed to Michael McAdams, ABFA President.

“Today, EPA hit the big reset button. Given the fact that we are already at the end of 2014, we appreciate EPA’s recognition that the real importance is to set the program on a clear glide path for 2015 and 2016. The numbers do matter, and utilizing the actual production will be a positive step from what was proposed. We appreciate how EPA recognized that cutting requirements for advanced biofuels would be a mistake. This emerging industry deserves better considering it has already demonstrated the capacity to generate 3.2 billion gallons of advanced biofuel annually. But, at least EPA’s decision leaves the glass more than half full and allows us to get back on track next year.

We are hopeful that this resets the bar to allow EPA to release 2015 numbers as quickly as possible and give certainty to the program. It has been the uncertainty that has created issues for the advanced and cellulosic sectors to move forward.

Congress intended the RFS to improve America’s energy security by fostering development of the next generation of cleaner, more sustainable biofuels. Considering EPA is nearly a year late, which has left the air of uncertainty around the program, perhaps it is time for lawmakers to take a fresh look at whether the program is meeting expectations and following Congress’s desired goal of creating an advanced and cellulosic industry.”

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