EPA Will Not Credit Biofuel under Renewable Fuel Standard

Date: October 3, 2012

Source: News Room

The EPA has ruled that heating oil biofuels used in boilers and power production cannot earn credit under the renewable fuel standard (RFS) as proposed by industry which was seeking to ease compliance with EPA's pending boiler air toxics rules by using the lower-emitting oil. In a direct final rule and parallel proposed rule, EPA says fuel oils used to generate process heat, power, or other functions cannot qualify for renewable identification number (RIN) credits that industry uses to comply with the RFS. The agency says these fuels are not within the scope of the definition of "home heating oil" that can qualify for the RFS as outlined in the 2007 energy law. "The proposed amendment would not modify or limit fuel included in the current definition of heating oil," EPA says in the new rulemaking.

EPA is revising its boiler maximum achievable control technology (MACT) air toxics rule and a related emissions standard for commercial and solid waste incinerators in response to industry comments that the original versions of the rules are too stringent and would impose massive costs. The agency sent the final revised regulations for White House review May 17 but they appear stalled, with issuance unlikely until after the November elections.

Advanced biofuel companies argue that using their lower-emitting fuel to power boilers subject to the MACT would help industries reduce costs and make the rule achievable. Allowing biofuel heating oils used in boilers to qualify under the RFS would help spur a market for the fuels and increase the number of producers. The absence of the renewable credits limits their incentive to produce the fuels they argue.

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