Wedoany.com Report-Mar 12, The U.S. EPA on March 7 announced it will extend the compliance year 2024 Renewable Fuel Standard reporting deadline and signaled its intent to revise the 2024 RFS renewable volume obligation (RVO) for cellulosic biofuel.
The agency on Dec. 5, 2024, issued a proposed rule to partially waive the compliance year 2024 RVO for cellulosic biofuel. The rulemaking also proposed to extend the RFS compliance reporting deadline for 2024 and included language to revise certain biogas provisions included in RFS regulations.
The proposed rule was issued following a petition filed with the EPA by the American Fuel & Petrochemicals Manufacturers on Nov. 1 seeking a partial waiver of 2024 cellulosic RVOs.
Within the proposed rule, the EPA explained that in finalizing the 2024 cellulosic RVO in July 2023, the agency projected that 1.09 billion cellulosic renewable identification numbers (RINs) would be generated in 2024. Projections included in the proposed rule estimated that only 970 million cellulosic RINs will be generated in 2024, creating a shortfall of 120 million cellulosic RINs. Data published by the EPA in January indicates that cellulosic biofuel production exceeded the projections included in the proposed rule, with net cellulosic RIN generation reaching 1.01 billion for the full year 2024, which equates to a shortfall of 80 million cellulosic RINs.
The EPA on March 7 published a final rule extending the 2024 RFS compliance deadline. The rule, however, does not take any action on the proposed cellulosic RVO revision. The EPA is expected to address the partial cellulosic RVO waiver in a future rulemaking.
The 2024 compliance deadline, which was set by statute for March 31, 2025, will now be set for the “next quarterly compliance reporting deadline after the effective date of the action finalizing the revised 2024 cellulosic biofuel standard.” In the rulemaking, the EPA explains that it expects that the effective date of the revised 2024 cellulosic biofuel standard will not occur until after the statutory March 31 compliance deadline. The extension is needed in order to provide obligated parties with sufficient time to carry out and adjust their compliance strategies once the agency finalizes the revised 2024 cellulosic standard, according to the agency. The 2024 attest engagement deadline is also being extended to the next June 1 annual attest engagement reporting deadline after the revised 2024 RFS compliance reporting deadline.
The final rule also includes several other provisions, including those consolidating and simplifying the existing provisions for the RFS program’s annual attest engagement deadline; updating the standard specification for biodiesel; and making technical corrections.
Clean Fuels Alliance America has expressed disappointment in the EPA’s actions. “The biomass-based diesel industry needs policy certainty that supports our continued growth and significant contribution to American energy security,” said Kurt Kovarik, Clean Fuels’ vice president of federal affairs. “In response to the proposed waiver of cellulosic volumes, Clean Fuels asked EPA to make decisions on outstanding small refinery exemptions to assess the potential impact on 2024 RIN availability. It is frustrating that EPA is delaying important program decisions and adding to uncertainty for our industry.”
