1. Federal Bioenergy Policy
NDSU Ag Policy
February 25, 2019
David Ripplinger

2. The Renewable Fuel Standard

3. What year is it?

4. Energy security Environmental concerns Rural economics vitality

5. The real reason?

6. The RFS
The Renewable Fuel Standard (RFS) mandates minimum use of biofuel by type and year. There are four categories: advanced, biodiesel, cellulosic, and conventional. There is a nested structure so advanced, biodiesel, and cellulosic can satisfy the conventional mandate…

8. The nested structure of the RFS
Total
Advanced
Biodiesel
Cellulosic

9. Mandate Table

10. Fuel definitions

11. How is the system managed?
EPA is the regulator. Approve new biofuel pathways Change the mandate Oversee compliance

12. When can mandates be changed?
Inadequate supply
Significant economic harm
EPA has regularly cut cellulosic mandates
EPA turned down a request after the 2012 drought

13. RINS & RVOs
Created an accounting mechanism – renewable identification numbers (RINS) – to track compliance. 38 digit number initially assigned to physical biofuel. Blenders and others are required to meet their annual renewable volume obligation (RVO).

14. The Life of a RIN RIN Generated RIN Separated RIN Retired Biofuel
Imported
or Produced
Biofuel
Blended or Used
Submitted by
Obligated
Party
to EPA

15. How much?
Changes each year
Can be modified by EPA

16. How does it work?
Each year blenders are told the amount of each type of fuel they need to blend based on the amount of fuel they used the previous year

17. Phantom Fuel The Blend Wall
Two snags
Phantom Fuel The Blend Wall

18. Two reasons to change mandates
- Economic harm - Inadequate domestic supply Case in point: cellulosic ethanol

19. 2012 Drought
In 2012, blenders requested a waiver. EPA denied the request.

20. Breaking down the blend wall
Biodiesel E15 and E85

21. Waivers

22. E15

23. What are the five largest US ethanol destinations (Jan-May 2018)?
Brazil (40%)
Canada (16%)
India (6%)
South Korea (5%)
UAE (4%)

24. Hardship Waivers
The Renewable Fuel Standard (RFS) allows the EPA to waive the Renewable Volume Obligation (RVO) of small refiners (<75,000 bbls/day) enduring severe hardship due to the policy.
The EPA under Scott Pruitt waived
19 of 20, 2016 waivers – 790 million gallons
29 of 33, 2017 waivers – 1.46 billion gallons