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dateline EPA Finalizes Renewable Fuel Standard for 2013; Additional Adjustments Expected In 2014 The Environmental Protection Agency has issued its final rule for the 2013 Renewable Fuel Standard (RFS) program year. The rule sets a 6 million gallon target for cellulosic biofuels use in 2013, less than half the level in the proposed rule issued in February 2013, and far below the 1 billion gallon target specified in the Energy Independence and Security Act of 2007 (EISA 2007). By law, EPA can lower the required volumes of advanced biofuels and total renewable fuels by up to the amount that it reduces the required volume of cellulosic biofuels. EPA chose not to reduce the advanced biofuels and total renewable fuels targets for 2013, leaving the required volume of total renewable fuels in 2013 at the 16.55 billion gallons specified in EISA 2007. However, the final rule states that EPA anticipates the need to adjust those targets for the 2014 RFS program year, for which EISA 2007 specifies a total renewable fuels target of 18.15 billion gallons. EPA's forthcoming notice of proposed rulemaking for the 2014 RFS program year will provide further information. A May 2013 letter from U.S. Energy Information Administration cited in EPA's final RFS rule, and recent testimony by EIA Administrator Adam Sieminski, production of cellulosic biofuels has grown at a much slower pace than envisioned in EISA 2007. The RFS consists of four nested volumetric targets for specific types of biofuels. By 2022, EISA 2007 specifies a 36 billion gallon target for total renewable fuels in transportation fuel, including 21 billion gallons of advanced biofuels, of which 16 billion gallons are cellulosic biofuels. Beyond delays in the ramp-up of cellulosic biofuels production, RFS implementation has recently been challenged by the decline in recent and projected gasoline consumption since enactment of EISA 2007, reflecting higher vehicle fuel economy standards, slower economic growth, higher gasoline prices, and pos- Featured News EPA Finalizes Renewable Fuel Standard for 2013 Leaking Natural Gas Lines Report Blasts Utilities New Technical Director Fortifies Biodiesel Team Avatas and Merchant Warehouse Raise Over $25,000 for Wounded Warrior Project AHRI Heating and Cooling Equipment Shipment Data Sprague Announces Motiva Bridgeport Terminal Acquisition Testo Announces Fall Promotion Intellidyne increases AKR Associates Territory Murdy Named As Northern New England Territory Manager Hudson Valley Oil Heat To Honor Eli VanEtten Taco Announces Promotion Caleffi Publishes the 13th Edition of idronics™: Hydronic Cooling sible changes in consumer behavior. The level of gasoline consumption limits the amount of ethanol that may be used in the gasoline pool at any fixed blending level, such as the 10% ethanol blend (E10) that is predominant in the current U.S. gasoline supply. The anticipated need for adjustments in the 2014 RFS advanced biofuels and total renewable fuels targets reflects a combination of demand and supply issues in the biofuels marketplace, including: • The limited ability of the motor gasoline market in the United States to consume ethanol in higher blends such as E15 and E85, which are constrained as a result of infrastructure- and marketrelated factors • The difficulty of producing significant volumes of non-ethanol advanced biofuels fuels such as biodiesel, renewable diesel, and biogas Lacking foresight into EPA's future RFS rules, EIA has needed to make explicit assumptions about RFS targets for 2014 in developing its monthly Short-Term Energy Outlook (STEO), which from the start of 2013 included forecasts through December 2014. Starting with the February 2013 edition, the STEO has assumed that 2014 RFS targets for advanced and total biofuels would be held at their then-proposed, now-final 2013 levels. The forthcoming EPA proposal for the 2014 RFS rule, and the subsequent final rule, have the potential to affect EIA's forecast of volumes and prices for motor fuels markets next year. Like many others, EIA will be closely monitoring the RFS rulemaking process and other developments that have the potential to affect motor fuel markets. Leaking Natural Gas Lines Report Blasts Utilities The Connecticut Energy Marketers Association (CEMA) representing the state's 600 family owned home heating oil dealers commends Senator Markey (MA) for his outstanding leadership on the issue of old leaking natural gas lines and their impact on our communities and America. Based on the findings in Sen. Markey's report "America Pays for Gas Leaks," CEMA cautions the Department of Energy and Environmental Protection (DEEP) in their overly aggressive posture to promote a massive natural gas expansion project in Connecticut, that is currently being reviewed by the Public Utility Regulatory Authority (PURA), to address the issue of leaking lines in Connecticut first, before further harm is done to the environment, public safety and our economy. When the state's Comprehensive Energy Strategy was released last year, it promoted the expansion of 900 miles of new gas lines. CEMA submitted testimony urging DEEP to ensure that the old and outdated natural gas pipes be replaced. "We raised issues to DEEP when their misguided gas expansion plan was released last year and we raise our concerns again in light of this new report detailing the dangers of leaking gas lines," CEMA president Chris Herb. There are about 1,600 miles of cast iron pipe and 200 miles of steel pipe buried in www.fueloilnews.com | FUEL OIL NEWS | SEPTEMBER 2013 3