I have heard some confusion and have gotten several inquires about where palm oil sits today under the renewable fuel standard (RFS2). Palm oil is not an approved pathway&mdash;at least not yet. I say not yet because EPA has not yet made its direct final rule on the matter.
You will recall that EPA published its analysis of palm oil in January and determined that biodiesel and renewable diesel produced from palm oil feedstock does not meet the minimum 20 percent greenhouse gas (GHG) emission reduction required in RFS2 to qualify as a renewable fuel, let alone the 50 percent reduction needed to meet the biomass-based diesel or advanced biofuel standard.
It found that palm oil biodiesel had a GHG reduction rating of only 17 percent, while palm oil renewable diesel had only an 11 percent reduction. EPA said it used the same approach to estimate land-use change effects for palm oil as it did for other biofuel pathways, noting that the analysis considered new data from Indonesia and Malaysia, where nearly 90 percent of the world&rsquo;s palm oil originates.
Then, on Feb. 14, EPA pushed back the closing of its public comment period to April 27. Hundreds of comments were filed with the agency.
The deadline came and went, and now more than four months have passed.
The president of the Advanced Biofuels Association is Michael McAdams, also an attorney with Holland &amp; Knight, the law firm retained by the Malaysian Palm Oil Council, the Indonesian Palm Oil Board and Neste Oil, to lobby EPA to rework its analysis so palm oil biodiesel and renewable diesel can qualify for RFS2. Just days ago Mike told me EPA is still reviewing the data. &ldquo;We won&rsquo;t see anything probably until next year,&rdquo; he said. &nbsp;
But until then, are biodiesel facilities that were in operation or under construction before Dec. 19, 2007, using palm oil from lands cleared prior to that date, eligible? Here&rsquo;s what EPA says about it.
Q: If a biodiesel producer was able to show a full identity preserved chain of custody demonstrating that the palm oil feedstock they use is from lands cleared prior to December 19, 2007 and that meets all other components of the renewable biomass definition, could that producer generate RINs for their biodiesel prior to an EPA evaluation of the GHG performance of a palm oil-based pathway? Would this producer have to submit a formal petition to pursue this approach? Are there any standardized forms for doing so? Would EPA create a new D code so that they could generate RINs regardless of broader approval of palm oil? &nbsp;
A: Prior to July 1, 2010, when the RFS2 regulations take effect, fuel producers can generate RINs under the RFS1 rules as long as the fuel meets the definition of renewable fuel under 80.1101. Beginning July 1, 2010, RFS2 regulations will apply. After that date, new fuel pathways not included in the existing regulations (Table 1 to 80.1426) will need to receive EPA&rsquo;s lifecycle analysis and D-code designation prior to qualifying for RIN generation (unless the facility qualifies for grandfathering under 80.1403). As stated in the preamble to the final rule, EPA is actively analyzing the GHG performance of palm-oil based pathways, and intends to amend the RFS2 rules as appropriate to reflect its final conclusions. EPA anticipates that this analysis will be completed in 2010. Palm oil interests do not need to petition the Agency for this action. If EPA adds a new qualified pathway to Table 1 to 80.1426 reflecting its analysis of palm oil, fuel producers using palm oil will be able to start generating RINs with the next quarterly update of pathways in the EMTS. Prior to completion of this process, RINs with a D code of 6 can be generated for palm-oil based biofuels that meet the definition of renewable fuel (including the renewable biomass requirement) if the production facility qualifies for grandfathering under 80.1403.&nbsp;
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An update on EPA's assessment of the palm oil pathway

Palm oil biodiesel and the renewable fuel standard

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Upcoming Events

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2026 International Biomass Conference & Expo

Palm oil biodiesel and the renewable fuel standard