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1 [1] (December 1, 2014)

handle is hein.crs/crsmthaaayn0001 and id is 1 raw text is: CRS Insights EPA Delays Decision on 2014 Renewable Fuel Standard to 2015 Mark A. McMinimy, Analyst in Agricultural Policy (mmcminimy( crs.Iocaov, 7-2172) r 1, 2014 (I1 The Environmental Protection Agency (EPA) announced in November 2014 that it will delay issuing a long-awaited final 2014 Renewable Fuel Standard (RFS) until 2015. The RFS sets the annual minimum use requirements for biofuels in the nation's transportation fuel supply. EPA is required by statute to announce the RFS for various categories of biofuels by November 30 of the preceding year, which for 2014 would have been November 30, 2013. The agency has missed such deadlines before, but not by such a wide margin (Tabl-e.1). In announcing the delay, the agency cited significant comment and controversy over its proposal for a reduction in biofuel use mandates for 2014. At this date, EPA has also missed the November 30, 2014, deadline for issuing the 2015 RFS. Congress established the RFS (RFS1) in the Energy Policy Act of 2005 (P.L.1L.0-.5). Two years later, in 2007, Congress enacted the Energy Independence and Security Act of 2007 (.L. 110-14), or RFS2, greatly expanding and accelerating the use mandate for biofuels. RFS2 also created separate use mandates for four categories of renewable fuel: total renewable fuels; advanced biofuels; biomass- based diesel; and cellulosic biofuels. As RFS administrator, the EPA calculates the total volume of renewable fuel that is to be used in a year, expressed as a percentage of the expected total gasoline and diesel fuel use. It then calculates a separate ratio (Renewable Volume Obligation, RVO) for each of the four individual categories of biofuel. Obligated users of biofuels, consisting of gasoline and diesel fuel refiners, blenders, and importers, must demonstrate that they have included in their total annual fuel sales a quantity of biofuels equal to the RVO that EPA issues with the annual RFS rule (CRS Report R40155, Renewable Fl Stndr (RFS): Overview andIu). EPA has authority to waive the RFS requirements in whole or in part if it determines there is inadequate domestic supply to meet the mandate, or if implementing it would severely harm the economy or environment of a state, a region, or the nation. EPA also may waive, in whole or in part, the specific sub-mandates for cellulosic biofuel and biomass-based diesel fuel. As these sub-mandates are included in the totals for advanced biofuel and total renewable fuel, EPA may choose to factor any reductions in these sub-mandates into the totals for advanced biofuels and total renewable fuel (CRS Report RS22870, Waiver Authority Under the Renewable Fuel Standard (RFS)). 2014 Proposal Lowers RFS Volumes On November 29, 2013, EPA published a proposed rule for the 2014 RFS that would have lowered the total RFS to 15.21 billion gallons, well below the 18.15 billion gallons called for in the statute and also below the 16.55 billion gallon blend mandate for 2013 (Tabe 1). EPA cited limits on the volume of ethanol that can be consumed due to constraints on the supply of higher ethanol blends in gasoline, and limits on the availability of advanced biofuels, as its rationale for reducing the total RFS for 2014 and, within it, the advanced biofuel category. Table 1 provides a partial picture of the RFS, and compares statutory volumes with final blending requirements. Table 1. Renewable Fuel Standard (RFS2) under EISA 2007 (in billions of gallons) 2012 2013 2014 2015 Statute Final Statute Final Statute Proposed Statute Total 15.2 15.2 16.55 16.55 18.15 15.21 20.50

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