EPA won’t finalize 2014 volumetric standards this year
November 21, 2014 | 01:03 PM
The Environmental Protection Agency announced today it would not finalize the long-awaited 2014 volumetric standards before the end of the year.
EPA distributed the following notice:
“Today, EPA issued a notice announcing that it will not be finalizing 2014 volume standards under the Renewable Fuel Standard program before the end of 2014.
“The proposed rule, issued in November 2013, generated a significant number of comments, particularly on the proposal’s ability to ensure continued progress toward achieving the law’s renewable fuel targets.
“Due to the delay in finalizing the standards for 2014, and given ongoing consideration of the issues presented by the commenters, the agency intends to take action on the 2014 standards rule in 2015. Looking forward, one of EPA’s objectives is to get back on the annual statutory timeline by addressing 2014, 2015, and 2016 standards in the next calendar year.”
The American Coalition for Ethanol, Growth Energy and the Advanced Ethanol Council praised the announcement, while the National Biodiesel Board and the Renewable Fuels Association expressed disappointment about the uncertainty that no decision presents.
Brian Jennings
The American Coalition for Ethanol said the decision was victory for ethanol producers.
Brian Jennings, executive vice president for the group, said the decision means EPA will set the final 2014 volume standard in 2015, and try to get back on schedule in proposing the 2015 and 2016 blending volumes.
“Big Oil came close to bullying the administration to completely rewrite the RFS this year so oil companies could escape their legal responsibility to blend more ethanol in gasoline,” Jennings said.
“But thanks to thousands of comments from ACE members and other biofuel supporters, EPA wisely chose to reconsider their ill-advised proposal which would have legitimized the so-called ‘blend wall,” he said.
“While we will reserve full judgment until they finalize the 2014 targets next year, it certainly appears the administration recognizes their proposed RFS changes were inconsistent with legislative history and the Clean Air Act,” Jennings said.
“We will continue to work with the administration to ensure they use their authority to hold oil companies legally responsible for making cleaner and less expensive renewable fuel choices, such as E15 and E85, available to consumers.”
Tom Buis
Growth Energy, which represents ethanol plant builders and operators, praised EPA, saying that the extra will to draft the final rule “will ensure that EPA gets the final rule right.”
“The EPA made the appropriate decision today to not finalize the 2014 RVO numbers,” Growth Energy CEO Tom Buis said in a statement. “We commend them for listening to all stakeholders.”
“Today’s announcement is a clear acknowledgement that the EPA’s proposed rule was flawed from the beginning,” Buis said.
The statement continued:
“There was no way the methodology in the proposed rule would ever work, as it went against the very purpose and policy goals of the RFS. The EPA wisely decided not to finalize the rule so they could fix the flawed methodology. Their initial proposal over a year ago was unacceptable and simply acquiesced to the demands of Big Oil and their refusal to blend more renewable fuels into the marketplace.
“The decision to withdraw the rule is a win for the renewable fuels industry. While a further delay is unwelcome news, at the end of the day, the most important aspect is that the EPA gets the final rule right.
“The EPA must implement the RFS as it was originally envisioned and supported by a bipartisan majority in Congress. This policy was established to help improve our environment, create jobs that cannot be outsourced and reduce our dangerous dependence on fossil fuels and foreign oil, all while providing consumers with a choice and savings at the pump by increasing market access to cleaner burning renewable fuels.
“Growth Energy stands ready to work with the administration to ensure that America stays on a path to energy security and innovation by ending the decades old, shortsighted practice of ‘putting our eggs in one basket’ by relying only on foreign oil and fossil fuels.
“I encourage the EPA to act swiftly to produce a final rule that ensures the methodology allows our industry to move forward and invest in additional production of biofuels, which will help grow an American industry that creates jobs, reduces our dependence on foreign oil and fossil fuels, reduces carbon pollution and creates new economic opportunities all over the country.”
Anne Steckel
“This administration says over and over that it supports biodiesel, yet its actions with these repeated delays are undermining the industry,” said Anne Steckel, National Biodiesel Board vice president of federal affairs.
“Biodiesel producers have laid off workers and idled production. Some have shut down altogether,” Steckel said in a statement.
“We know that fuels policy is complex, but there is absolutely no reason that the biodiesel volume hasn't been announced. We are urging the administration to finalize a 2014 rule as quickly as possible that puts this industry back on track for growth and puts our country back on track for ending our dangerous dependence on oil.
“We also urge them to move quickly on 2015 so that we don’t repeat this flawed process again next year.”
Brooke Coleman
“Pulling back on the 2014 RFS rule is the right thing to do at this stage in the game when it comes to preserving the integrity of the program,” said Advanced Ethanol Council Executive Director Brooke Coleman in a statement.
“While the cellulosic biofuel industry will not get the policy certainty it needs from this decision, it does suggest that the administration is listening when it comes to our concerns about giving oil companies too much power to avoid its obligations under the RFS going forward,” Coleman said.
“This battle was never about the 2014 volumes for the oil industry, and we appreciate the administration’s willingness to pivot in the right direction this late in the game. The key now for advanced biofuel investment is to move quickly to fix what needs to be fixed administratively so we can reestablish the RFS as the global gold standard for advanced biofuel policy.”
Bob Dinneen
The Renewable Fuels Association was less pleased.
“Deciding not to decide is not a decision,” said RFA President and CEO Bob Dinneen.
“Unfortunately, the announcement today perpetuates the uncertainty that has plagued the continued evolution of biofuels production and marketing for a year,” he said.
“Nevertheless, the administration has taken a major step by walking away from a proposed rule that was wrong on the law, wrong on the market impacts, wrong for innovation, and wrong for consumers,” Dinneen said.
“Moreover, it is clear that one of the reasons we find ourselves in this position is that the oil industry has steadfastly refused to make the investments in infrastructure or allow their marketers to offer higher ethanol blends like E85 or E15. In the absence of their dogged efforts to undermine the RFS, this would be far simpler for EPA.
“The monopoly-protecting talking points of the oil industry notwithstanding, the RFS has been enormously successful. It has compelled competition in motor fuel markets, lowered consumer gasoline costs, and reduced the carbon footprint of transportation fuels. We look forward to working with the administration to assure this critically important program is implemented consistent with congressional intent, to the benefit of consumers and with the goal of advancing the evolution of biofuels production and marketing.
“Refiners will continue to resist the competition from biofuels. The RFS must be allowed to be the market forcing mechanism it was designed to be. In the end, the verdict on today’s announcement can only be made after a decision on a path forward for biofuels is identified.”
▪ Environmental Protection Agency — Notice of Delay in Issuing 2014 Standards for the Renewable Fuel Standard Program
EPA distributed the following notice:
“Today, EPA issued a notice announcing that it will not be finalizing 2014 volume standards under the Renewable Fuel Standard program before the end of 2014.
“The proposed rule, issued in November 2013, generated a significant number of comments, particularly on the proposal’s ability to ensure continued progress toward achieving the law’s renewable fuel targets.
“Due to the delay in finalizing the standards for 2014, and given ongoing consideration of the issues presented by the commenters, the agency intends to take action on the 2014 standards rule in 2015. Looking forward, one of EPA’s objectives is to get back on the annual statutory timeline by addressing 2014, 2015, and 2016 standards in the next calendar year.”
The American Coalition for Ethanol, Growth Energy and the Advanced Ethanol Council praised the announcement, while the National Biodiesel Board and the Renewable Fuels Association expressed disappointment about the uncertainty that no decision presents.
The American Coalition for Ethanol said the decision was victory for ethanol producers.
Brian Jennings, executive vice president for the group, said the decision means EPA will set the final 2014 volume standard in 2015, and try to get back on schedule in proposing the 2015 and 2016 blending volumes.
“Big Oil came close to bullying the administration to completely rewrite the RFS this year so oil companies could escape their legal responsibility to blend more ethanol in gasoline,” Jennings said.
“But thanks to thousands of comments from ACE members and other biofuel supporters, EPA wisely chose to reconsider their ill-advised proposal which would have legitimized the so-called ‘blend wall,” he said.
“While we will reserve full judgment until they finalize the 2014 targets next year, it certainly appears the administration recognizes their proposed RFS changes were inconsistent with legislative history and the Clean Air Act,” Jennings said.
“We will continue to work with the administration to ensure they use their authority to hold oil companies legally responsible for making cleaner and less expensive renewable fuel choices, such as E15 and E85, available to consumers.”
Growth Energy, which represents ethanol plant builders and operators, praised EPA, saying that the extra will to draft the final rule “will ensure that EPA gets the final rule right.”
“The EPA made the appropriate decision today to not finalize the 2014 RVO numbers,” Growth Energy CEO Tom Buis said in a statement. “We commend them for listening to all stakeholders.”
“Today’s announcement is a clear acknowledgement that the EPA’s proposed rule was flawed from the beginning,” Buis said.
The statement continued:
“There was no way the methodology in the proposed rule would ever work, as it went against the very purpose and policy goals of the RFS. The EPA wisely decided not to finalize the rule so they could fix the flawed methodology. Their initial proposal over a year ago was unacceptable and simply acquiesced to the demands of Big Oil and their refusal to blend more renewable fuels into the marketplace.
“The decision to withdraw the rule is a win for the renewable fuels industry. While a further delay is unwelcome news, at the end of the day, the most important aspect is that the EPA gets the final rule right.
“The EPA must implement the RFS as it was originally envisioned and supported by a bipartisan majority in Congress. This policy was established to help improve our environment, create jobs that cannot be outsourced and reduce our dangerous dependence on fossil fuels and foreign oil, all while providing consumers with a choice and savings at the pump by increasing market access to cleaner burning renewable fuels.
“Growth Energy stands ready to work with the administration to ensure that America stays on a path to energy security and innovation by ending the decades old, shortsighted practice of ‘putting our eggs in one basket’ by relying only on foreign oil and fossil fuels.
“I encourage the EPA to act swiftly to produce a final rule that ensures the methodology allows our industry to move forward and invest in additional production of biofuels, which will help grow an American industry that creates jobs, reduces our dependence on foreign oil and fossil fuels, reduces carbon pollution and creates new economic opportunities all over the country.”
“This administration says over and over that it supports biodiesel, yet its actions with these repeated delays are undermining the industry,” said Anne Steckel, National Biodiesel Board vice president of federal affairs.
“Biodiesel producers have laid off workers and idled production. Some have shut down altogether,” Steckel said in a statement.
“We know that fuels policy is complex, but there is absolutely no reason that the biodiesel volume hasn't been announced. We are urging the administration to finalize a 2014 rule as quickly as possible that puts this industry back on track for growth and puts our country back on track for ending our dangerous dependence on oil.
“We also urge them to move quickly on 2015 so that we don’t repeat this flawed process again next year.”
“Pulling back on the 2014 RFS rule is the right thing to do at this stage in the game when it comes to preserving the integrity of the program,” said Advanced Ethanol Council Executive Director Brooke Coleman in a statement.
“While the cellulosic biofuel industry will not get the policy certainty it needs from this decision, it does suggest that the administration is listening when it comes to our concerns about giving oil companies too much power to avoid its obligations under the RFS going forward,” Coleman said.
“This battle was never about the 2014 volumes for the oil industry, and we appreciate the administration’s willingness to pivot in the right direction this late in the game. The key now for advanced biofuel investment is to move quickly to fix what needs to be fixed administratively so we can reestablish the RFS as the global gold standard for advanced biofuel policy.”
The Renewable Fuels Association was less pleased.
“Deciding not to decide is not a decision,” said RFA President and CEO Bob Dinneen.
“Unfortunately, the announcement today perpetuates the uncertainty that has plagued the continued evolution of biofuels production and marketing for a year,” he said.
“Nevertheless, the administration has taken a major step by walking away from a proposed rule that was wrong on the law, wrong on the market impacts, wrong for innovation, and wrong for consumers,” Dinneen said.
“Moreover, it is clear that one of the reasons we find ourselves in this position is that the oil industry has steadfastly refused to make the investments in infrastructure or allow their marketers to offer higher ethanol blends like E85 or E15. In the absence of their dogged efforts to undermine the RFS, this would be far simpler for EPA.
“The monopoly-protecting talking points of the oil industry notwithstanding, the RFS has been enormously successful. It has compelled competition in motor fuel markets, lowered consumer gasoline costs, and reduced the carbon footprint of transportation fuels. We look forward to working with the administration to assure this critically important program is implemented consistent with congressional intent, to the benefit of consumers and with the goal of advancing the evolution of biofuels production and marketing.
“Refiners will continue to resist the competition from biofuels. The RFS must be allowed to be the market forcing mechanism it was designed to be. In the end, the verdict on today’s announcement can only be made after a decision on a path forward for biofuels is identified.”
▪ Environmental Protection Agency — Notice of Delay in Issuing 2014 Standards for the Renewable Fuel Standard Program
