May 20, 2022
BY Growth Energy
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.”
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Background
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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.
The U.S. House of Representatives early on May 22 narrowly passed a reconciliation bill that includes provisions updating and extending the 45Z clean fuel production tax credit. The bill, H.R. 1, will now be considered by the U.S. Senate.
U.S. EPA Administrator Lee Zeldin on May 21 stressed the agency is working “as fast as humanly possible” to finalize a rulemaking setting 2026 RFS RVOs during a hearing held by the U.S. Senate Committee on Environment and Public Works.
Chevron U.S.A. Inc. on May 15 filed a notice with the Iowa Workforce Development announcing plans to layoff 70 employees at its Ames, Iowa, location by June 18. The company’s Chevron REG subsidiary is headquartered in Ames.
Clean Fuels Alliance America on May 22 delivered a letter to U.S. EPA Administrator Lee Zeldin, urging him to set the 2026 RFS biomass-based diesel volume at no less than 5.25 billion gallons and allow continued growth in the 2027 volumes.
Luxury North Dakota FBO, Overland Aviation—together with leading independent fuel supplier, Avfuel Corp.— on May 19 announced it accepted a 8,000-gallon delivery of sustainable aviation fuel (SAF) on May 12.