July 9, 2024
BY Erin Voegele
The White House Office of Management and Budget on July 5 published its 2024 Unified Agenda and Regulatory Plan, which outlines rulemakings and other actions under development by various federal agencies related to the Renewable Fuel Standard, biofuel infrastructure, CO2 pipeline safety, and wood heating.
According to the agenda, the EPA is currently scheduled to issue a notice of proposed rulemaking (NPRM) to set 2026 RFS renewable volume standards (RVOs) in March 2025, with a final rule issued by December 2025. The RFS rulemaking is expected to adopt applicable volumes and percentage standards for cellulosic biofuel, biomass-based diesel, advanced biofuel and toral renewable fuel. The agenda also explains the rulemaking is set to include several regulatory changes to the RFS program intended to improve the program’s implementation.
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The agenda also outlines plans by the EPA to conduct a Section 610 review of new source performance standards (NSPS) for residential wood heaters. Section 610 reviews aim to determine if provisions of a rule that are related to small entities should be continued without change, rescinded, or amended to minimize adverse economic impacts on small entities. The review is set to begin in July 2024 and will focus on the 2015 NSPS for residential wood heaters, as finalized in March 2015. The review is expected to be complete by November of this year.
The USDA scheduled to issue a proposed rule in May 2025 focused on the Higher Blends Infrastructure Program, a program that aims to increase the sales and use of higher blends of ethanol and biodiesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products. The upcoming rulemaking is expected to codify the policies and procedures for the HBIIP program in the Code of Federal Regulations. The proposed rule is intended to seek comment on the codification of existing authorities provided through statutory language on eligibility requirements, types and terms of funding, program requirements and processing procedures. The agenda does not include an estimate of when the rulemaking could be finalized.
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According to the agenda, the USDA is also expected to finalize an existing rulemaking on the Biobased Markets Program (Biopreferred) this year. The rulemaking aims to codify guidance included within the 2018 Farm Bill into program regulations. The action is expected to reduce burden on both the applicants and the USDA by reducing requirements, clarifying requirements, streamlining the application and certification process and increasing efficiencies in program delivery. A NPRM was issued in January 2024, with a final rule expected in July 2024.
The OMB’s agenda also provides an update of the DOT’s efforts to issue new safety regulations for carbon dioxide and hazardous liquid pipelines. A NPRM is now expected to be released in November 2024. According to the agenda, the proposed rulemaking would amend the Pipeline and Hazardous Materials Safety Administration’s pipeline safety regulations to adopt provisions that would enhance the safe transportation of carbon dioxide by pipelines to accommodate an anticipated increase in the number of CO2 pipelines and volume of CO2 transported. The rulemaking is also expected to include requirements related to emergency preparedness and response for CO2. The OMB’s agenda does not indicate when the NPRM could be finalized.
A full copy of the Spring 2024 Unified Agenda of Regulatory and Deregulatory Actions is available on the OMB website.
While final IRS guidance is still pending, the foundation of the 45Z program is well defined. Clean fuel producers should no longer be waiting; they can now move forward with critical planning and preparation, according to EcoEngineers.
The IRS on July 21 published a notice announcing the 2025 calendar-year inflation adjustment factor for the Section 45Z clen fuel production credit. The resulting adjustment boosts maximum the value of the credit by approximately 6%.
The U.S. Senate on July 23 voted 48 to 47 to confirm the appointment of Aaron Szabo to serve as assistant administrator of the U.S. EPA’s Office of Air and Radiation. Biofuel groups are congratulating him on his appointment.
U.S. Secretary of Agriculture Brooke L. Rollins today announced the reorganization of the USDA, refocusing its core operations to better align with its founding mission of supporting American farming, ranching, and forestry.
The U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy is soliciting public comments on a preliminary plan for determining provisional emissions rates (PER) for the purposes of the 45Z clean fuel production credit.