Proposed changes to the US Environmental Protection Agency’s renewable fuel standard is sparking confusion among agricultural associations, electric vehicle manufacturers and even oil refiners when they’re set to come into effect later this month..That’s because the regulatory body is set to increase the minimum amount of so-called ‘renewable fuels’ to displace standard petroleum fuel, particularly in diesel and jet fuel..The EPA is supposed to release its final recommendations on June 14.. Biofuel sourcesEPA biofuel rules are changing June 14. .The program was initially established in 2005 and expanded under the Energy Independence and Security Act of 2007. It’s further been extended to 2025 under Biden’s Inflation Reduction Act with proposed modifications — and subsidies — to renewable targets and percentage standards that have left more than a few observers scratching their heads over exactly what it means and what it entails..The proposed changes would increase renewable fuel volumes by 2.05 billion gallons to 22.68 billion gallons by 2025, mainly derived from corn and soy although canola would be allowed as a feedstock for the first time..Soy and canola producers — including those in this country — were delighted, but corn farmers in Iowa complained the quotas aren’t high enough..It was also supposed to have included credits for EV manufacturers who charge their cars with electricity derived from renewable sources such as renewable natural gas — derived from landfills and farm waste — which would have generated billions of dollars in credits for manufacturers such as Tesla and potentially sparking law suits..The move was pulled by the White House after the House Energy and Commerce Committee argued that the RFS was intended to centre on liquid transportation fuels, not to electrify transportation..But the confusion only deepened on the definition of eligible “waste” products that can be blended into fuel. Conventional wisdom suggests it means agricultural byproducts, but ProPublica reported that more than half of all products cleared so far under the new requirements are not in fact ‘biofuels’ at all — but recycled plastics..Under the plan, the EPA gave Chevron approval to produce jet fuel from used plastics derived from petroleum. In addition to actually increasing emissions, ProPublica and the UK Guardian found the compounds could result in a one-in-four cancer risk from breathing the emissions from the jet fuel, which is higher than the lifetime risk of lung cancer in smokers..As for canola producers, the reaction to allowing renewable diesel and jet fuel to be categorized as “advanced biofuels” was mixed. . EPA renewable standardEPA renewable fuel requirements. .The Canola Council of Canada last year said it was enthusiastic over the change which it said is an opportunity to diversify the canola export market away from food-grade oil sales to China. Canada presently has 14 processing plants and several more have been announced in southern Saskatchewan over the next few years..The kicker is, Biden’s subsidies — as much as $2 per gallon for renewable fuels — could encourage US farmers to start seeding canola acres south of the border over other traditional crops, increasing protectionist competition and forcing the government to adopt similar subsidies here. .Already, a $600-million, 6,500 barrel per day renewable diesel plant in Burnaby was cancelled by Calgary-based Parkland Corp. over changes in the US tax system that favour its own producers. The extent of those ‘buy America’ provisions presently rests on negotiations over the debt ceiling. .In its fourth quarter report, it said the decision to not proceed with the facility was due to “rising project costs, a lack of market certainty around emerging renewable fuels and the US Inflation Reduction Act of 2022, which advantages US producers.”.Even environmental activists are upset. Last June the Center for Biological Diversity filed suit against the new rules, accusing the EPA of failing to consider how the increase in land conversion as well as pesticide and fertilizer use needed to meet the higher biofuel targets will affect endangered species..“The renewable fuel program is a colossal boondoggle that gobbles up millions of acres of land. It’s a false solution to the climate crisis, delaying the urgent need to transition to electric vehicles,” said the environmental group.
