EPA noted in its 118-page proposal that the targets fall short of the volumes Congress originally mandated in the Renewable Fuel Standard (RFS), which was signed into law by President George W. Bush in 2007. However, it added that the targets would still result in further growth in U.S. consumption of renewable fuels, in line with the original intent of Congress. The RFS sought to reduce oil consumption and emissions of greenhouse gases by mandating the blending of steadily rising volumes of biofuels, such as ethanol and biodiesel, into petroleum fuels such as gasoline and diesel. Problems developed when U.S. fuel consumption grew more slowly than anticipated at the time the RFS was developed. Furthermore, oil refiners noted practical obstacles to blending ever-increasing volumes of biofuels into petroleum fuels. Specifically, refiners have argued that it is unsafe to blend biofuels in concentrations greater than 10 percent because doing so can damage automobile engines and the equipment used to transport, store and dispense the blended fuels. In its proposal, EPA relied on its authority to set targets at lower levels than Congress originally mandated since, in its view, the statutory volumes were not reasonably achievable. EPA set the total renewable fuels target for 2014 at the level that was actually blended in that year: 15.93 billion gallons. It also proposed t1argets of 16.30 billion gallons for 2015 and 17.40 billion gallons for 2016. EPA believes “the proposed standards to be ambitious but within reach of a responsive marketplace.” Once the proposal is published in the Federal Register, it will be open for public comment through July 27, with the goal of finalizing the targets by November 30. EPA noted that this would put the agency back on track to meet the statutory deadline for finalizing annual RFS blending targets. EPA will hold a public hearing on the proposal on June 25 in Kansas City, Kansas. The bottom line for the petroleum equipment industry: If the renewable fuels targets for 2015 and 2016 are finalized as proposed, the market for E15-compatible equipment will continue to be more market- and incentive-based (see article that follows) than statutorily driven. SOURCE - PEI NEWSLETTER |
Written by IslandPumpTank
