Regulation of Fuels and Fuel Additives: Renewable Fuel Standard ...
Regulation of Fuels and Fuel Additives: Renewable Fuel Standard ...
Regulation of Fuels and Fuel Additives: Renewable Fuel Standard ...
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enewable fuel volume which each party must ensure is blended into gasoline consumed<br />
in the U.S., with credit for certain other renewable fuels that are not blended into<br />
gasoline. EPA will publish the percentage st<strong>and</strong>ard for a year by November <strong>of</strong> the<br />
preceding year.<br />
For 2007, we are proposing that the renewable fuel volume obligation be<br />
determined by multiplying the percentage st<strong>and</strong>ard by the volume <strong>of</strong> gasoline produced<br />
or imported prospectively from the effective date <strong>of</strong> the final rule until December 31,<br />
2007. As discussed in Section III.A.3, we considered <strong>and</strong> are seeking comment on<br />
several other approaches for compliance in 2007, but believe this approach is most<br />
appropriate given the circumstances. We are also confident that the total volume <strong>of</strong><br />
renewable fuel used in 2007 will still exceed the volume specified in the Act.<br />
In determining their annual gasoline production volume, obligated parties would<br />
include all <strong>of</strong> the finished gasoline which they produced or imported for use in the<br />
contiguous 48 states, <strong>and</strong> would also include renewable blendstock for oxygenate<br />
blending (RBOB), <strong>and</strong> conventional blendstock for oxygenate blending (CBOB).<br />
Blenders would count as their gasoline production only the volumes <strong>of</strong> blendstocks added<br />
to finished or unfinished gasoline. <strong>Renewable</strong> fuels blended into gasoline by any party<br />
would not be counted as gasoline for the purposes <strong>of</strong> calculating the annual gasoline<br />
production volume.<br />
Small refiners <strong>and</strong> small refineries would be exempt from meeting the renewable<br />
fuel requirements through 2010. All gasoline producers located in Alaska, Hawaii, <strong>and</strong><br />
noncontiguous U.S. territories would be exempt indefinitely. However, if Alaska,<br />
Hawaii or a noncontiguous territory opted into the RFS program, all <strong>of</strong> the refiners<br />
(except for small refiners <strong>and</strong> refineries), importers, <strong>and</strong> blenders located in the state<br />
would be subject to the renewable fuel st<strong>and</strong>ard.<br />
Section III.A provides more details on the st<strong>and</strong>ard that must be met, while<br />
Section III.C describes the parties that are obligated to meet the st<strong>and</strong>ard.<br />
3. What Qualifies As A <strong>Renewable</strong> <strong>Fuel</strong>?<br />
We have designed the proposal flexibly to cover the range <strong>of</strong> renewable fuels<br />
produced today as well as any that might be produced in the future, so long as they meet<br />
the Act’s definition <strong>of</strong> renewable fuel <strong>and</strong> have been registered <strong>and</strong> approved for use in<br />
motor vehicles. In this manner, we believe that the proposed program will provide the<br />
greatest possible encouragement for the development, production, <strong>and</strong> use <strong>of</strong> renewable<br />
fuels to reduce our dependence on petroleum. In general, renewable fuels must be<br />
produced from plant or animal products or wastes, as opposed to fossil fuel sources.<br />
Valid renewable fuels would include ethanol made from starch seeds, sugar, or cellulosic<br />
materials, biodiesel (mono-alkyl esters), non-ester renewable diesel, <strong>and</strong> a variety <strong>of</strong><br />
other products. Both renewable fuels blended into conventional gasoline or diesel <strong>and</strong><br />
those used in their neat (unblended) form as motor vehicle fuel would qualify. Section<br />
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