The EPA released its finalized 2013 Renewable Fuel Standard yesterday, which laid out modified volumetric requirements for renewable fuels blended into the fuel supply, as well as more flexibility in meeting the standard.

This year’s volumetric requirement is unchanged from a previous proposal, at 16.55 billion gallons this year. Of that volume, 1.28 billion gallons must be biomass-based diesel, 2.75 billion gallons advanced biofuels, and 6 million gallons cellullosic biofuels. The requirement for cellulosic biofuels is down from 14 million gallon requirement in the EPA’s previous proposal.

Cellulosic biofuels output has lagged expectations. An EIA estimate from earlier this year suggested that production might exceed 5 million gallons this year.

“These standards reflect EPA’s updated production projections, which are informed by extensive engagement with industry and a thorough assessment of the biofuels market.,” said the EPA in a statement.

The agency has also taken steps to address the issue of the blendwall – a level above which incorporating more renewables into the gasoline supply raises concerns about engine performance and safety.

“EPA is announcing that it will propose to use flexibilities in the RFS statute to reduce both the advanced biofuel and total renewable volumes in the forthcoming 2014 RFS volume requirement proposal.,” the agency said. “EPA is also providing greater lead time and flexibility in complying with the 2013 volume requirements by extending the deadline to comply with the 2013 standards by four months, to June 30, 2014.”

Jason Bordoff, Director of Columbia University’s Center on Global Energy Policy

“The EPA’s announcement today that it will leave the renewable fuel volume mandates in place for 2013 but is willing to use its flexibility to issue waivers next year shows the Obama Administration clearly understands the current RFS statutory mandates are unworkable beyond 2013.”

“The EPA took the unusual step of explaining why it will be unfeasible in 2014 to blend enough ethanol into the gasoline supply to comply with the statutory mandates, given that cars generally cannot take gasoline with more than 10 percent ethanol.”

“We need Congress to take action on the outdated RFS.”

API President Jack Gerard “called on Congress to immediately repeal the broken mandate”.

“While the administration acknowledges that higher ethanol mandates are unworkable by suggesting a new approach for the 2014 standards, EPA missed an opportunity to fix the problem this year. Now it’s up to Congress to exercise leadership and move quickly to end this dangerous mandate before it hurts consumers, damages vehicles, and harms our economy.”

Fuels America:

“The 2013 volumetric targets set by the EPA reflect the reality that the biofuels industry is growing and becoming a vital part of our transportation fuel mix.”

“The policy [RFS] allowed domestically produced, renewable fuel to displace 462 million barrels of crude oil in 2012, and is poised to further reduce our dependence on fossil fuels. The RFS is working.”

American Fuel & Petrochemical Manufacturers President Charlie Drevna:

“We are disappointed that EPA failed to provide refiners and consumers immediate and necessary relief against the E10 blendwall and skyrocketing costs of our nation’s biofuel mandate.”

“We hope that EPA will soon use its waiver authority to significantly reduce the amount of ethanol and other biofuel required under the RFS for 2014…Congress now needs to start working on repealing this poorly-devised mandate as soon as possible to stop what will become a growing drain on the U.S. economy.”

Brooke Coleman, Executive Director of the Advanced Ethanol Council:

“This is another clear example of the agency utilizing the flexibility provisions originally legislated by Congress to ensure that the RFS is attainable each and every year. Amidst all the smoke and mirrors coming from those who do not want to see competition in the motor fuel marketplace, people need to remember that the renewable fuels industry produced enough conventional and advanced renewable fuel to meet the original legislated standard through 2012, and expect to again in 2013.”

Thomas J. Pyle, President of the Institute for Energy Research:

“Today’s announcement by the EPA that federal regulators will increase the requirement on refiners this year to blend a staggering 16.55 billion gallons of biofuel is the latest example of how Washington bureaucracies don’t understand the real world or how energy mandates affect real people.”

Leticia Phillips, Brazilian Sugarcane Industry Association:

“Sugarcane ethanol producers applaud today’s Environmental Protection Agency (EPA) announcement on 2013 annual percentage standards for the Renewable Fuels Standard (RFS), which maintains the advanced biofuel volume at 2.75 billion gallons.”

“We also support EPA extending the time for obligated parties to demonstrate compliance with 2013 standards to June 30, 2014 – a common sense approach that will allow ethanol producers to take anticipated 2014 RIN obligations into consideration as they determine 2013 compliance actions.”

“Brazilian exports provided nearly one-quarter of the entire U.S. advanced biofuel supply in 2012, are projected to supply nearly 700 million gallons in 2013, and could supply up to one billion additional gallons in 2014.”