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Advanced Biofuels Association calls on EPA to properly recognize advanced biofuels production in RVO proposal

WASHINGTON, DC – Today, the Advanced Biofuels Association (ABFA), the leading voice of energy innovators working to decarbonize transportation fuel, released comments calling on the U.S. Environmental Protection Agency (EPA) to restore regulatory certainty in their proposed Renewable Volume Obligation (RVO) under the Renewable Fuel Standard (RFS). ABFA’s comments support a higher standard for the Advanced (D5) pool than proposed by EPA, referencing data on available feedstocks and production capacity to support up to 7 billion Renewable Identification Numbers (RINs).

 

ABFA’s members, whose fuels help to deliver a lower-carbon future by exceeding the minimum greenhouse gas (GHG) reduction requirements set forth under the RFS, are calling on EPA to recognize its responsibility to encourage the production of advanced low-carbon biofuels. EPA previously proposed that the total advanced biofuel pool be set at 5.77 billion RINs. In the fall of 2021, leaked EPA documents showed an EPA proposed number closer to 7 billion RINs, which ABFA supports.

 

ABFA’s membership alone will account for five billion gallons of renewable diesel production to be online by the end of 2024. Rapid innovation in this sector represents an area of remarkable success for the advanced biofuels industry. This presents a terrific opportunity for this administration to achieve significant carbon reduction from the distillate side of the transportation market.

 

“For the advanced biofuels industry to meet the growing demand for low-carbon fuels, we’re calling on the EPA to maintain a strong RVO supported by data, fostering a predictable regulatory and policy environment that properly recognizes both the growing demand for advanced biofuels, and the carbon benefits of this technology,” said Michael McAdams, President of ABFA. “We support increasing available RINs from EPA’s proposed 5.77 billion to a data-driven 7 billion.”

 

Fuel markets have been highly volatile since the onset of the COVID-19 pandemic. This volatility significantly impacted costs to comply with the RFS program, reflected in the prices of RINs and ongoing market swings. Without clarity and certainty as called for in the RFS statute, market rumors and government vagueness have wreaked havoc on the advanced biofuels industry, disrupting its stability and ability to plan and invest. Policy certainty from EPA has never been more important.

 

A recent study released by ABFA, and shared with the EPA, shows that demand for biofuels is growing strongly, particularly for biomass-based diesel (BBD), as countries aim to meet carbon reduction goals. “ABFA has set a goal for the U.S. to reach 21 billion gallons per year of BBD to replace fossil fuels by 2040. In order to hit this target, ABFA members will need to reach 9 billion gallons per year by 2030. Currently, feedstock supplies available for use in the U.S. are more than enough to meet our forecast demand, after accounting for food. We look forward to engaging the EPA about the findings of this study and the outlook for the RFS this year,” said McAdams.

 

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About the Advanced Biofuels Association

Founded in 2007, ABFA represents 45 companies from the U.S. and around the world who are stakeholders in the biofuels industry. ABFA represents all sustainable aviation fuel (SAF) currently in production in the United States, adding to our membership’s worldwide annual production exceeding five billion gallons of renewable diesel, biodiesel, renewable gasoline, and renewable heating oil.

 

Study shows available advanced biofuels feedstocks can pace biofuel demand through 2030

Growing demand for biomass based diesel advanced biofuels can be met with projected supply of lipid feedstocks through 2030 without encroaching on food resources, finds a new study from LMC International, commissioned by the Advanced Biofuels Association (ABFA).

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