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EPA issued yesterday a notice of proposed rules for 2013 renewable fuel volumes. The agency kept total renewable fuel and total advanced biofuel at the Congressionally applicable volumes of 16.55 and 2.75 billion gallons. EPA lowered the cellulosic biofuel production for 2013 to 14 million gallons, and EPA had earlier set biodiesel at 1.28 billion gallons.
This means a significant increase in the volume requirements for advanced biofuels and biodiesel. This increase sends a strong, positive signal to domestic ethanol plants that can convert to advanced biofuel production using grain sorghum. However, the proposed advanced biofuel standard also potentially allows even more Brazilian ethanol imports, which would be detrimental to the entire U.S. ethanol industry in today’s reduced fuel market. NSP looks forward to weighing in on the proposed rule.
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