EMA Files Comments On RFS Proposed Rule
Recently, the Energy Marketers of America (EMA) filed comments on EPA’s Renewable Fuel Standard (RFS) proposed renewable volume obligations (RVOs) and percentage standards for 2023, 2024, and 2025, as well as a series of modifications to expand the RFS program.
Specifically, EMA highlighted the challenges higher ethanol blend requirements could have on existing underground storage tank systems.
EMA called for a reduction to the proposed corn ethanol volume mandate while acknowledging its support for a permanent E15 year-round fix provided Congress appropriates over $1 billion for small to medium sized companies to make UST system compatibility upgrades.
Meanwhile, EMA argued that EPA’s proposed biomass-based diesel and overall advanced biofuel volumes through 2025 are not consistent with the industry’s projected growth, or with the Administration’s own goals to reduce greenhouse gas emissions.
EMA supported an increase in RVOs for biomass-based diesel and overall advanced biofuel volumes given that there is room for growth in that segment.
Renewable diesel fuel is the game changer for the energy marketing industry because it has the same ASTM specifications as diesel fuel and can be used in existing USTs.
Additionally, the EPA’s proposal limits separation of RINs assigned to biodiesel blended into diesel fuel at a content of 20 percent or less.
EMA confirmed with the Office of Air and Radiation in writing that the 20 percent blend concentration limit does not apply to designated heating oil blended with biodiesel.
Still, EMA requested the agency provide clarifying language in the final rule highlighting that fuel designated as heating oil is not subject to the 20 percent blend concentration limitation, including transportation diesel fuel redesignated as heating oil and subsequently blended with biodiesel.
EMA opposed the agency’s eRIN proposal which would allow automakers to generate eRINs based on the EVs they sell by establishing contracts with parties that produce electricity from qualifying biogas.
EMA argued that the EPA lacks the authority to implement the proposed eRIN credit for renewable electricity because it is inconsistent with the statutory purpose of the RFS, which is to support the production of renewable fuels, not the production and sale of certain vehicle technologies that eRINS are designed to promote.
Making automakers RIN generators is a clear attempt to siphon capital away from clean green biofuels to electric vehicles.