Following settlement discussions with Growth Energy, the U.S. EPA is expected to file a notice in the Federal Register on Monday seeking comment on a proposed judicial consent decree that would require EPA to propose the 2023 renewable volume obligation (RVO) by no later than September 16, 2022 and finalize it no later than April 28, 2023. EPA’s notice comes after Growth Energy filed a notice of intent to sue and a complaint in federal district court in response to the agency’s violation of the deadlines to issue RVOs established by Congress for the Renewable Fuel Standard (RFS) program.

“Securing a deadline for the 2023 RVO is a significant victory in our mission to ensure certainty when it comes to biofuel blending, especially as we face a new era of the RFS,” said Growth Energy CEO Emily Skor. “2023 is the first year where required volumes of renewable fuel are not specified by Congress and must be set by EPA. Releasing the proposed RVO is the first step for EPA to keep the RFS program on sound footing for 2023 and beyond. We look forward to EPA releasing an RVO that sets biofuel blending at levels that reflect a move toward more lower-carbon, lower-cost fuel in our transportation system.”

Background

For 2023 and beyond under the Renewable Fuel Standard, EPA, in coordination with the U.S. Department of Energy and the USDA, is required to set RVOs through rulemaking, taking into consideration six statutory factors, including environmental, economic, and energy security. EPA is required to set the 2023 volume requirements at least 14 months prior to the calendar year in which it is to take effect.