UPDATE 1-U.S. EPA finalizes 2016 renewables target at 18.1 bln gallonsEnter a post title

Monday, November 30, 2015


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UPDATE 1-U.S. EPA finalizes 2016 renewables target at 18.1 bln gallons

30-Nov-2015 02:07:25 PM

(Updates with details from statement)

By Chris Prentice

NEW YORK, Nov 30(Reuters) - The U.S. Environmental Protection Agency wants energy companies to blend 18.1 gallons of biofuels into the nation's fuel supply next year, more than in a proposal it laid out in May, it said in announcing final rules on renewables use for 2014-16 on Monday.

The EPA's long-awaited Renewable Fuel Standard (RFS) mandates put the ethanol requirements for next year at 14.5 billion gallons, representing an increase from the agency's May proposal and in line with figures reported by Reuters ahead of the announcement. (Full Story)

The long-awaited Renewable Fuel Standard (RFS) mandates are likely to trigger criticism both from biofuels groups that feel the levels fall short of Congressional targets and oil firms that argue they cannot blend more renewables into gasoline.

The EPA set the total volume for renewable fuels at 16.93 billion gallons for the current year and 16.28 billion gallons for 2014, compared with proposal earlier this year of 16.30 billion and 15.93 billion, respectively.

The rule helps "provide for ambitious, achievable growth" in renewable fuels, the EPA said in the statement.

The finalized rule is expected to trigger a wave of lawsuits from oil companies, ethanol producers, and environmentalists that have lobbied heavily on both sides of the controversial policy.

The EPA set the total volume for renewable fuels at 16.93 billion gallons for the current year and 16.28 billion gallons for 2014, compared with May proposals of 16.30 billion and 15.93 billion, respectively.

That put the target for ethanol use in 2016 at 14.5 billion gallons, at 14.05 billion gallons in 2015, and at 13.61 billion gallons in 2014. That was higher than in a May proposal and slightly above expectations for modest increases.

The agency proposed putting a 2016 requirement of 3.61 billion gallons for advanced biofuels, with 1.9 billion for biomass-based diesel, or biodiesel, and 230 million gallons for cellulosic biofuel.

The agency also proposed setting 2017 use for biodiesel at 2.0 billion gallons.

The finalized RFS mandates had been long delayed. Congress laid out a plan in a 2007 law that outlines the amount of renewable fuels required through 2022, and the EPA is meant each year by the end of November to set the mandate for the next year.

EPA's earlier proposal drew ire from both sides and threats of legal action. Biofuels groups said it fell short of the law's requirements, while oil groups said it was impossible to blend greater amounts of renewables into fuels.

(Reporting by Chris Prentice; Editing by Alden Bentley) ((christine.prentice@thomsonreuters.com; +1)(646)(223 6136; Reuters Messaging:
christine.prentice.thomsonreuters@reuters.net))


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