Last week, press reports emerged that the EPA may propose to significantly reduce RFS requirements for 2014. These reports were based on a supposedly leaked draft document that indicated EPA would use its waiver authority to reduce the overall RFS program by almost 3 billion gallons (from 18.1 to15.2 billion gallons) from the existing statutory requirements. The reports suggest that the proposal would hold the Biomass-based Diesel category level at the 2013 requirement of 1.28 billion gallons. With most EPA personnel furloughed due to the partial government shutdown, the ability to get a response or confirmation from EPA was limited. EPA Administrator Gina McCarthy did issue a statement indicating that the EPA is still working on the numbers and has made no final decisions on the Required Volume Obligation (RVO) proposal for 2014. In the statement, McCarthy also emphasized the Obama Administration’s continued commitment to renewable fuels.

"The Obama Administration remains firmly committed to furthering the development of all biofuels-including corn-based ethanol, cellulosic biofuel, and advanced biofuel-as part of the President's commitment to developing a clean energy economy,” said McCarthy in the statement. “Biofuels are a critical part of the President's all of the above energy strategy that is reducing America's dependence on oil and creating jobs across the country. At this point, EPA is only developing a draft proposal. The agency has made no final decision on the proposed renewable fuel standards for 2014. And no decisions will be made on the final standards without a full opportunity for all stakeholders to comment on the EPA's proposed 2014 renewable fuel standards and be heard on how to best foster a growing biofuels industry that takes into account infrastructure- and market-related factors."

Additionally, Agriculture Secretary Tom Vilsack released a similar statement, saying "The biofuels industry has helped to reduce America’s dependence on foreign oil to its lowest level in almost 20 years and has created thousands of jobs throughout rural America. We remain steadfast in our support of biofuels development and its role in President Obama’s all-of-the-above energy strategy. The EPA is currently developing its draft proposal for the 2014 renewable fuel standards. The EPA has not yet reached a final decision regarding that proposal, and will not do so until all stakeholders have had the opportunity to comment and to provide input on what is required for this industry, and the rural communities that depend on it, to continue to thrive."

EPA was expected to make its 2014 proposal public this month, but the government shutdown has delayed the process, and it now is unclear when the proposal will be released. When the proposed 2014 RVO is released for public comment, ASA will be weighing-in with comments to support a biomass-based diesel volume requirement that is not less than the actual production in 2013. The biodiesel industry is currently expected to produce approximately 1.7 billion gallons this year, which would exceed the 2013 requirement of 1.28 billion gallons. ASA will be providing materials and supporting information to our members and urging that you weigh-in with EPA as well.