Biofuels organizations have submitted comments opposed to a proposed rule announced by EPA last month to partially waive the 2024 cellulosic biofuel volume requirement and revise the associated percentage standard under the Renewable Fuel Standard program due to a shortfall in cellulosic biofuel production.

The Renewable Fuels Association comments that “retrospectively lowering RVOs destabilizes the RIN market, discourages investment, and is contrary to the market-forcing purpose of the RFS program.”
Reopening RVOs long after they have been finalized chills investment and growth in cellulosic biofuel production and causes a loss of confidence in EPA’s standards. However, we understand the challenge EPA is facing with regard to setting cellulosic biofuel standards in a manner that is simultaneously consistent with the agency’s statutory authorities, court decisions, and the Congressional intent of the RFS program. It is critical that any decision to utilize the agency’s waiver authority to partially waive the 2024 cellulosic biofuel RVO clearly meets the statutory requirements for such waivers. Unfortunately, we do not believe that EPA’s proposal to use its general waiver authority has fully satisfied these requirements.

Clean Fuels Alliance America, which is meeting this week in San Diego, also submitted comments opposing the rule.
“Clean Fuels asks EPA to pause the rulemaking process until the agency can provide a full accounting of available cellulosic RINs for 2024 and consider whether pending small refinery exemptions or other mechanisms provide relief to refiners. Additionally, Clean Fuels encourages EPA to address the significant underestimation of biomass-based diesel and advanced biofuel volumes for 2024 and 2025.”

Kurt Kovarik, Clean Fuels Vice President of Federal Affairs, added, “EPA’s low volumes are holding back the potential of the clean fuels industry to meet the energy security, environmental, and economic goals of the RFS.”

Yesterday was the last day of the comment period for the rule.