November 19, 2013. The Environmental Protection Agency (“EPA”) recently released its proposal for the 2014 Renewable Fuel Standard. Under the Energy Independence and Security Act of 2007 Congress mandated that a particular amount of renewable fuels be blended into gasoline and diesel. To accomplish this mandate the EPA, with input from the U.S. Department of Energy and U.S. Department of Agriculture, developed the Renewable Fuel Standard (“RFS”).
The RFS proposal for 2014 is particularly contentious because the ethanol industry appears to be approaching the “E10 Blend Wall.” The E10 Blend Wall is the point at which the E10 fuel pool is accommodating the maximum amount of E10 possible. Opponents of the RFS have argued that to successfully accommodate the E10 Blend Wall more ethanol will need be blended with gasoline. Ethanol supporters state that vehicles manufactured in 2001 or later can easily accommodate an E15 blend (the EPA has supported this position).
The proposal for the 2014 RFS guidelines put forward by the EPA is requesting input on what additional actions could be taken by government and industry to help overcome current market challenges, and to minimize the need for adjustments in the statutory renewable fuel volume requirements in the future. Also, the EPA, in a separate action, has requested comments on petitions seeking a waiver of the RFS that would apply under the current 2014 proposal.
Upon publishing in the Federal Register the proposals will be open for a 60-day public comment period. For additional information on the current proposals please see the following link. For more information contact Goosmann Law at info@goosmannlaw.com or call 712.226.4000.