Regulatory Alert
EPA FINALIZES RFS BLENDING MANDATES FOR 2020, 2021 and 2022
June 3, 2022
The U.S. EPA has finalized RFS blending mandates
for 2020, 2021 and 2022. The EPA set 2022 volume
mandates for ethanol at 20.63 billion gallons
and retroactive volume mandates for 2021 at
18.84 billion gallons. Retroactive volume
mandates for 2020 are set at 17.13 billion
gallons.
The EPA also announced the
denial of 69 petitions from small refineries
seeking small refinery exemptions (SREs) from
the Renewable Fuel Standard (RFS) program for
one or more of the compliance years between 2016
and 2021.Petition denials are based on a recent
federal Appeals Court decision finding small
refinery exemptions may only be granted when a
hardship is caused by compliance with the RFS
program. However, the EPA is allowing small
refineries to demonstrate compliance with RFS
blending mandates for 2016, 2017 and/or 2018
without purchasing or redeeming additional RIN
credits.
Four separate volumetric
standards are required under the RFS program,
corresponding to the four separate renewable
fuel categories. The final standards are shown
below expressed in billion gallons.
Final Volume Requirements for 2020, 2021
and 2022 (Billions of Gallons):
| Category | 2020 | 2021 | 2022 |
| Cellulosic Biofuel | 0.51 | 0.56 | 0.63 |
| Biomass-Based Diesel | 2.43 | 2.43 | 2.76 |
| Advanced Biofuel | 4.63 | 5.05 | 5.63 |
| Total Renewable Fuel (Ethanol) | 17.13 | 18.84 | 20.63 |
| Supplemental | n/a | n/a | 0.25 |
The renewable fuel standards are expressed as a
volume percentage and are used by each refiner
and importer of petroleum-based gasoline or
diesel fuel to determine their renewable fuel
volume obligations. The final standards are
shown below express RFS percentage standards.
Percentage Standards for 2020, 2021
and 2022
| Category | 2020 | 2021 | 2022 |
| Cellulosic Biofuel | 0.32% | 0.33% | 0.35% |
| Biomass-Based Diesel | 2.30% | 2.16% | 2.33% |
| Advanced Biofuel | 2.93% | 3.00% | 3.16% |
| Total Renewable Fuel (Ethanol) | 10.82% | 11.19% | 211.59% |
| Supplemental | n/a | n/a | 0.14% |
The EPA also announced the denial of 69 petitions from small refineries seeking small refinery exemptions (SREs) from the Renewable Fuel Standard (RFS) program for one or more of the compliance years between 2016 and 2021.Petition denials are based on a recent federal Appeals Court decision finding small refinery exemptions may only be granted when a hardship is caused by compliance with the RFS program. However, the EPA is allowing small refineries to demonstrate compliance with RFS blending mandates for 2016, 2017 and/or 2018 without purchasing or redeeming additional RIN credits.
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