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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