RFS 2013 Compliance Extended

STREATOR, Ill. (DTN) -- Citing the delays in finalizing the Renewable Volume Obligation for 2014, obligated parties will have more time to comply with their 2013 RVO under the Renewable Fuel Standard.

This represents the third extension the Environmental Protection Agency has allowed for the 2013 RVO compliance.

EPA said in a notice Thursday obligated parties for the 2013 RVO will have until 30 days following the date when the final RVO is established for the 2014 mandate, which is now eight months late.

"This proposed action would ensure timely amendment of existing deadlines, before compliance obligations would otherwise go into effect," EPA said, the agency that administers the RFS.

Under the statute establishing the enhanced RFS, obligated parties -- refiners, blenders and importers -- have until Feb. 28 of the following year to file reports of compliance with the RFS mandate. The volumes are to be established by EPA by Nov. 30 of the prior year.

For 2013, EPA initially extended the Feb. 28 deadline for compliance to June 30 before extending it to the end of September last month. Today's extension contains no definitive date for compliance.

The 2014 RVO was originally promised to be finalized by June 22, which was still seven months late.

First introduced in 2005 and amended in 2007, the RFS, which is part of the Clean Air Act, requires higher levels of renewables to be used each year through 2022 when it reaches 36 billion gallons. The RFS features nested categories that include D6 renewable biofuel primarily satisfied with corn-based ethanol, D5 advanced biofuel which includes ethanol derived from sugar, D4 biomass-based diesel satisfied with biodiesel and renewable diesel, D7 cellulosic diesel, and D3 cellulosic biofuel.

The 2013 RFS mandated a total of 16.55 billion gallons of renewable fuel be blended into petroleum-based fuels with 1.28 billion gallons in D4 biomass-based diesel required, and 2.75 billion gallons of D5 advanced biofuel. The remaining portion is satisfied with D6 renewable fuel.

In November 2013, EPA proposed a reduction in the 2014 mandate from statute from 18.1 billion gallons to between 15.0 billion and 15.52 billion gallons. The largest proposed cut was for the D6 renewable fuel nested category from 14.4 billion gallons stated by statute to 13.0 billion gallons, which would be the first reduction in this category. The nested category is primarily satisfied by corn-based ethanol, which is blended into gasoline. The majority of gasoline in the United States has a 10% concentration of ethanol referred to as E10.

(BM/AG)

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