View Rule

The Clean Air Act requires EPA to promulgate regulations that specify the annual volume requirements for renewable fuels under the Renewable Fuel Standard (RFS) program. Standards are to be set for four different categories of renewable fuels: cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel. The statute requires that the standards be finalized by November 30 of the year prior to the year in which the standards would apply. In the case of biomass-based diesel, the statute requires applicable volumes to be set no later than 14 months prior to the year for which the requirements would apply.

Statement of Need:

The Clean Air Act requires EPA to promulgate regulations that specify the annual volume requirements for renewable fuels under the Renewable Fuel Standard (RFS) program. The statute requires that the standards be finalized by November 30 of the year prior to the year in which the standards would apply. In the case of biomass-based diesel, the statute requires applicable volumes to be set no later than 14 months prior to the year for which the requirements would apply.

Summary of the Legal Basis:

CAA section 211(o)

Alternatives:

Volume Standards for the Renewable Fuel Standard Program were proposed for 2018 and for Biomass Based Diesel for 2019. The Proposal also sought comments on alternative volumes, both lower or higher, than what the Agency proposed.

Anticipated Costs and Benefits:

Costs and benefits of this rulemaking are highly complex given the nature of the program and the standards being categorically nested under a total volume standard. Costs were based on a number of illustrative assumptions. Illustrative analyses of the four separate hypothetical scenarios are included in the proposed rulemaking. Illustrative Costs for the proposed 40 million gallon reduction in the advanced biofuel category ranged from: (1) Soybean Biodiesel Scenario - $(45)-$(33) million dollars; Brazilian Sugarcane Ethanol Scenario - $(61)-(23) million dollars; CNG/ LNG Biogas Scenario - $(2) - 2 million dollars; Corn Fiber Derived Ethanol Scenario - $(70) - $(36) million Dollars.

Risks:

This is a statutory rulemaking. Environmental assessments are primarily addressed under another section of the CAA (Section 204). Refer to last 204 report and / or the original RIA under the 2010 rulemaking for these assessments.