Regulation of Fuels and Fuel Additives: 2011 Renewable Fuel Standards

The Environmental Protection Agency is required to set the renewable fuel standards each November for the following year based on gasoline and diesel projections from the Energy Information Administration (EIA). Additionally, EPA is required to set the cellulosic biofuel standard each year based on the volume projected to be available during the following year, if the projected volume is less than the applicable volume provided in the statute. These cellulosic biofuel volume projections are to be based in part on EIA projections as well as assessments of production capability from industry. This action establishes annual percentage standards under Clean Air Act section 211(o) for cellulosic biofuel, biomass-based diesel, advanced biofuel, and renewable fuels that apply to all gasoline and diesel produced or imported in calendar year 2011. We have determined that the applicable volume of cellulosic biofuel on which the percentage standard should be based is 6.0 million ethanol-equivalent gallons. We believe that available volumes of cellulosic biofuel could be significantly higher in 2012. This action also finalizes two changes to the Renewable Fuel Standard program regulations: modifications to the delayed RINs provision which provides a temporary and limited means for certain renewable fuel producers to generate RINs after they have produced and sold renewable fuel, and a new process for parties to petition EPA to authorize use of an aggregate approach to compliance with the renewable biomass provision for foreign feedstocks akin to that applicable to the U.S. Finally, this action makes two administrative announcements, one regarding the price for cellulosic biofuel waiver credits for 2011, and another regarding the status of the aggregate compliance provision for domestic crops.