By Lynn L. Bergeson and Carla N. Hutton
 
On July 12, 2023, the U.S. Environmental Protection Agency (EPA) published a final rule establishing the applicable volumes and percentage standards for 2023 through 2025 for cellulosic biofuel, biomass-based diesel (BBD), advanced biofuel, and total renewable fuel. 88 Fed. Reg. 44468. The final rule also establishes the second supplemental standard addressing the judicial remand of the 2016 standard-setting rulemaking. Finally, according to EPA, the rule makes several regulatory changes to the Renewable Fuel Standard (RFS) program, including changes related to the treatment of biogas and other modifications to improve the program's implementation. As reported in our June 28, 2023, blog item, the final volume targets (billion Renewable Identification Numbers (RIN)) are as follows:
 

 
^a BBD is given in billion gallons.
 
The rule will be effective September 11, 2023, except for amendatory instruction 30, which will be effective February 1, 2024, and amendatory instructions 41 and 42, which will be effective April 1, 2024.

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By Lynn L. Bergeson and Carla N. Hutton
 
The U.S. Department of Agriculture announced on June 26, 2023, that it plans to invest up to $500 million from President Biden’s Inflation Reduction Act to increase the availability of domestic biofuels and “give Americans additional cleaner fuel options at the pump.” USDA notes that in December 2022, it made available $50 million in Inflation Reduction Act funding to expand the use and availability of higher-blend biofuels through the Higher Blends Infrastructure Incentive Program (HBIIP). On June 26, 2023, USDA Secretary Tom Vilsack announced the first awardees of 59 infrastructure projects that will receive a total of $25 million. In addition, USDA announced that in July 2023 it will begin accepting applications for $450 million in grants through HBIIP. These grants will continue to support the infrastructure needed to lower out-of-pocket costs for transportation fueling and distribution facilities to install and upgrade biofuel-related infrastructure such as pumps, dispensers, and storage tanks.

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By Lynn L. Bergeson and Carla N. Hutton
 
On June 21, 2023, the U.S. Environmental Protection Agency (EPA) announced a final rule under the Renewable Fuel Standard (RFS) program that will establish the biofuel volume requirements from 2023 to 2025. According to EPA, the final rule “builds on the RFS program’s progress over the previous two years and reflects the Biden-Harris Administration’s commitment to strengthen the nation’s energy independence, advance low-carbon fuels, and support agricultural communities.” EPA states that the final rule strengthens U.S. energy security by reducing reliance on foreign sources of oil by roughly 130,000 to 140,000 barrels of oil per day over the time frame of the final rule, 2023-2025. The final rule also discusses EPA’s intent to monitor the ongoing implementation of the RFS program and its impacts on domestic refineries, “which have a critical role to play in our energy security.”
 
The final rule will establish the biofuel volume requirements and associated percentage standards for cellulosic biofuel, biomass-based diesel (BBD), advanced biofuel, and total renewable fuel for 2023-2025. EPA notes that the final rule also completes its response to a court remand of the 2016 annual rule by establishing a supplemental volume requirement of 250 million gallons of renewable fuel for 2023. The final volume targets (billion Renewable Identification Numbers (RIN)) are as follows:
 

 ^a BBD is given in billion gallons.
 
According to EPA, the final rule includes steady growth of biofuels for use in the nation’s fuel supply for 2023, 2024, and 2025. EPA notes that the Energy Independence and Security Act (EISA) of 2007 does not specify statutory volumes after 2022, and EPA in this rule will establish final biofuel volume targets for all categories under the “set” authority provided by the Clean Air Act. When determining biofuel volumes for years after 2022, EPA states that it must consider a variety of factors specified in the statute, including costs, air quality, climate change, implementation of the program to date, energy security, infrastructure issues, commodity prices, water quality, and supply.
 
In addition to setting the volume requirements, EPA will make several regulatory changes intended to expand the use of biogas under the program while, at the same time, putting in place provisions that will improve the operation of the RFS program.

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By Lynn L. Bergeson and Carla N. Hutton
 
The U.S. Department of Energy (DOE) announced on May 24, 2023, the launch of the Clean Fuels & Products Shot^TM, a new initiative that aims to reduce significantly greenhouse gas emissions (GHG) from carbon-based fuels and products. DOE notes that this is its seventh DOE Energy Earthshot, which focuses on reducing carbon emissions from the fuel and chemical industry through alternative, more sustainable sources of carbon to achieve a minimum of 85 percent lower GHG emissions as compared to fossil-based sources by 2035. According to DOE, the Clean Fuels & Products Shot^TM supports the national goal of achieving net-zero emissions by 2050 by developing the sustainable feedstocks and conversion technologies necessary to produce crucial fuels, materials, and carbon-based products that are better for the environment than current petroleum-derived components. It aims to meet projected 2050 net-zero emissions demands for 100 percent of aviation fuel; 50 percent of maritime, rail, and off-road fuel; and 50 percent of carbon-based chemicals by using sustainable carbon resources.
 
DOE notes that a ribbon-cutting took place on May 30, 2023, for the Biofuels National User Facility, a $15 million, three-year-long facility upgrade at Idaho National Laboratory funded by DOE’s Bioenergy Technologies Office (BETO) and an important asset to reach the goals of the Clean Fuels & Products Shot^TM. According to DOE, the facility “is designed to solve critical biofuels production challenges associated with the feeding, handling and preprocessing of diverse biomass and waste materials.” DOE states that industry use of the facility “will enable rapid technology development and large-scale commercialization of biofuels and bioproducts, an important component of the Biden-Harris Administration’s goals related to clean fuels and products.”

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By Lynn L. Bergeson and Carla N. Hutton
 
The U.S. Environmental Protection Agency (EPA) announced on April 28, 2023, that it issued an emergency fuel waiver to allow E15 gasoline -- gasoline blended with 15 percent ethanol -- to be sold “during the summer driving season.” EPA states that this action will provide relief from ongoing market supply issues “created by Russia’s unprovoked war in Ukraine by increasing fuel supply and offering consumers more choices at the pump.” According to EPA, the waiver will help protect Americans from fuel supply crises by reducing reliance on imported fossil fuels, building U.S. energy independence, and supporting American agriculture and manufacturing. EPA notes that current estimates indicate that, on average, E15 is about 25 cents a gallon cheaper than E10.

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By Lynn L. Bergeson and Carla N. Hutton
 
On April 11, 2023, a bipartisan group of legislators led by Senators Amy Klobuchar (D-MN) and Chuck Grassley (R-IA) sent a letter to the U.S. Environmental Protection Agency (EPA), urging it to strengthen the Renewable Fuel Standard (RFS) by maintaining the blending requirements for 2023; denying all pending Small Refinery Exemptions (SRE); eliminating proposed retroactive cuts to the renewable volume obligations (RVO); and setting RFS volumes at the statutory levels. According to Klobuchar’s April 14, 2023, press release, the letter states that the RFS “creates competition in the marketplace, keeping fuel costs low for consumers while bringing down carbon emissions.” By taking the suggested steps, EPA “can set the RFS on a path that provides stability and growth for the U.S. biofuel sector.” This would guarantee that this “essential program” continues to function as intended by reducing emissions, driving economic growth in rural communities, keeping gas prices low, and “bolstering national security by promoting an essential homegrown energy source.”

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By Lynn L. Bergeson and Carla N. Hutton
 
On March 23, 2023, the U.S. Department of Energy’s (DOE) Bioenergy Technologies Office (BETO) announced the release of its 2023 Multi-Year Program Plan (MYPP). The MYPP is used as an operational guide, setting forth BETO’s mission, goals, and strategic approach. It also serves as a resource to help manage and coordinate BETO’s activities and communicate its strategy to stakeholders and the public. The new plan identifies BETO’s forthcoming research, development, and demonstration (RD&D) plans and activities and outlines why these undertakings are critical to meeting the energy and sustainability challenges facing our nation. According to BETO, due to the urgency of reducing greenhouse gases (GHG) across all modes of transportation, BETO has shifted its focus to low-carbon and net-zero carbon fuels for the aviation, marine, rail, and heavy-duty, long-haul industries, which have fewer options for reducing carbon impact. The MYPP prioritizes strategies to enable the decarbonization of the industrial sector via the advancement of renewable chemicals and materials, recognizing the potential for bioenergy technologies to decarbonize communities and other economic sectors through sustainable agriculture, improved waste management, and additional beneficial uses of biomass.

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By Lynn L. Bergeson and Carla N. Hutton
 
On February 16, 2023, Representative Randy Feenstra (R-IA) introduced a legislative package that includes bills regarding researching the potential of biofuels to power jet engines and developing a commercially viable fuel cell system for cars and trucks powered exclusively by biofuels. The package includes:

• The Comparison of Sustainable Transportation (COST) Act would direct the Comptroller General of the U.S. Government Accountability Office (GAO) and the U.S. Secretary of Energy to compare the financial and environmental costs between replacing the entire federal gasoline-powered fleet with either electric vehicles or E-85 capable flex-fuel cars and trucks;
   
• The Biojet Fuel Research Act would direct the Federal Aviation Administration (FAA) to establish a working group focused on identifying research and development needs to produce biojet fuel. The working group would consist of the Bioenergy Technologies Office of the U.S. Department of Energy (DOE), the U.S. Department of Agriculture (USDA), biorefinery stakeholders, agriculture research universities, and others; and
   
• The Biofuel Cell Research Act would direct the DOE Secretary to establish a research, development, and demonstration program for a commercially viable fuel cell system that uses biofuels as the main fuel source.

Feenstra introduced similar legislation in the 117th Congress.
 

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By Lynn L. Bergeson and Carla N. Hutton
 
The Senate Committee on Environment and Public Works held a hearing on February 15, 2023, on “The Future of Low Carbon Transportation Fuels and Considerations for a National Clean Fuels Program.” The Committee heard from the following witnesses:

• Michael J. Graff, Chair and Chief Executive Officer (CEO), American Air Liquide Holdings Incorporated;
• Geoff Cooper, President and CEO, Renewable Fuels Association; and
• Chris Spear, President and CEO, American Trucking Association.

In his opening statement, Senator Tom Carper (D-DE) noted that when exploring ways to improve federal policies, he often looks to see what works well at the state level. According to Carper, “states have learned from the federal government’s mistakes when it comes to programs like the Renewable Fuel Standard” (RFS). States such as California and Oregon have implemented, or are considering implementing, technology-neutral low carbon fuel standards. Carper stated that unlike the RFS, “existing state programs often focus more on emissions reduction potential when determining what qualifies as a clean fuel. In addition to reducing the number of questions the states have to ask when determining which fuels qualify for a clean fuels program, this structure allows multiple options for obligated parties to comply.” Carper concluded his opening statement by expressing his hope “that today’s hearing is the first of many conversations on how we can bring together industry, environmental groups, agriculture and other stakeholders to further decarbonize our nation’s transportation fuels, while also supporting job creation across our nation.”

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By Lynn L. Bergeson and Carla N. Hutton
 
As reported in our January 4, 2023, blog item, on January 3, 2023, the U.S. Environmental Protection Agency (EPA) announced the release of a draft document entitled “Biofuels and the Environment: Third Triennial Report to Congress (External Review Draft)” for public comment. 88 Fed. Reg. 72. EPA’s Office of Research and Development (ORD) and Office of Air and Radiation (OAR), in consultation with the U.S. Departments of Agriculture (USDA) and Energy (DOE), prepared the document. The purpose of the report is to examine the effects of the Renewable Fuel Standard (RFS) Program on the environment, including the impacts to date and likely future impacts to the nation’s air, land, and water resources. The draft report focuses on the dominant biofuel sources in the United States: (1) domestic corn ethanol from corn starch; (2) domestic biodiesel from soybean oil; (3) domestic biodiesel from fats, oils, and greases (FOG); and (4) imported ethanol from Brazilian sugarcane.
 
ERG, an EPA contractor, is organizing an independent external peer review of the draft report. The peer review meetings are open to anyone who would like to attend as an observer and will include a brief public comment period on the first day (February 24, 2023). Registration is required. Panel peer review meetings will be held:

• February 24, 2023, 11:00 a.m.-6:45 p.m. (EST);
   
• February 27, 2023, 11:00 a.m.-6:30 p.m. (EST); and
   
• February 28, 2023, 1:00 p.m.-3:40 p.m. (EST).

Comments on the draft report are due March 6, 2023.

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