Renewable Fuel Standard (RFS) Program: RFS Annual Rules rule
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The Renewable Fuel Standard (RFS) Program: RFS Annual Rules is a significant rule issued by the Environmental Protection Agency (EPA), effective August 30, 2022, that updates the Renewable Fuel Standard Program pursuant to the Clean Air Act.[1]
Timeline
The following timeline details key rulemaking activity:
- August 30, 2022: The final rule took effect.[1]
- July 1, 2022: The Environmental Protection Agency (EPA) published the final rule.[1]
- December 7, 2021: The EPA published the proposed rule.[1]
Background
The Energy Policy Act of 2005 amended section 211 of the Clean Air Act and required the EPA to establish renewable fuel targets. It also created the Renewable Fuel Standard (RFS) program which was later amended by the Energy Independence and Security Act of 2007 (EISA). The EPA is responsible for creating volume targets for renewable fuels, including cellulosic biofuel, advanced biofuel, biomass-based diesel, and total renewable fuel. [1]
Summary of the rule
The following is a summary of the rule from the rule's entry in the Federal Register:
| “ | Under section 211 of the Clean Air Act (CAA), the Environmental Protection Agency (EPA) is required to set standards every year to implement nationally applicable renewable fuel volume targets. This action modifies the 2021 and 2022 statutory volume targets for cellulosic biofuel, advanced biofuel, and total renewable fuel, as well as establishes the 2022 volume target for biomass-based diesel. This action also modifies the previously established cellulosic biofuel, advanced biofuel, and total renewable fuel volume requirements for 2020. In addition, this action establishes the 2020, 2021, and 2022 renewable fuel percentage standards for all four of the above biofuel categories. Finally, this action also addresses a judicial remand of the 2016 standard-setting rulemaking, as well as several regulatory changes to the Renewable Fuel Standard (RFS) program, including regulations for the use of biointermediates to produce qualifying renewable fuel, flexibilities for regulated parties, and clarifications of existing regulations.[2] | ” |
Summary of provisions
The following is a summary of the provisions from the rule's entry in the Federal Register:[1]
| “ | In this action we are establishing the applicable volumes for cellulosic biofuel, advanced biofuel, and total renewable fuel for 2021 and 2022, and the biomass-based diesel (BBD) applicable volume for 2022,[1] as well as modifying the applicable volumes that EPA previously established for cellulosic biofuel, advanced biofuel, and total renewable fuel for 2020.[2 3] We are also establishing the annual percentage standards (also known as “percent standards”) for cellulosic biofuel, BBD, advanced biofuel, and total renewable fuel that apply to gasoline and diesel fuel produced or imported by obligated parties in 2020, 2021, and 2022. In addition, we are addressing the remand of the 2016 annual rule by the U.S. Court of Appeals for the D.C. Circuit, in Americans for Clean Energy v. EPA, 864 F.3d 691 (2017) (hereafter 'ACE') by establishing a supplemental volume of 250 million gallons for 2022. EPA intends to establish an additional supplemental volume of 250 million gallons for 2023 in a subsequent action.
The final volume requirements in this action, combined with the changes EPA is separately taking with respect to the small refinery exemption (SRE) program, will provide much-needed stability to the RFS program. It will also strengthen the role of the program in advancing greater use of domestically produced low-carbon renewable fuels that are critical to building real energy independence in the long-term.[2] |
” |
Significant impact
- See also: Significant regulatory action
Executive Order 12866, issued by President Bill Clinton (D) in 1993, directed the Office of Management and Budget (OMB) to determine which agency rules qualify as significant rules and thus are subject to OMB review.
Significant rules have had or might have a large impact on the economy, environment, public health, or state or local governments. These actions may also conflict with other rules or presidential priorities. Executive Order 12866 further defined an economically significant rule as a significant rule with an associated economic impact of $100 million or more. Executive Order 14094, issued by President Joe Biden (D) on April 6, 2023, made changes to Executive Order 12866, including referring to economically significant rules as section 3(f)(1) significant rules and raising the monetary threshold for economic significance to $200 million or more.[1]
The text of the Renewable Fuel Standard (RFS) Program: RFS Annual Rules rule states that OMB deemed this rule economically significant under E.O. 12866:
| “ | This action is an economically significant regulatory action that was submitted to the Office of Management and Budget (OMB) for review. [2] | ” |
Text of the rule
The full text of the rule is available below:[1]
See also
External links
Footnotes
