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Issue link: https://read.dmtmag.com/i/166098
TOP OF THE NEWS EPA finalizes Renewable Fuel Standard for 2013 EIA provides input, perspective T he 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 EIA 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 n ACS applauds court N ruling on debit fees The National Association of Convenience Stores (NACS) issued the following statement from Senior Vice President of Government Relations Lyle Beckwith on U.S. District Judge Richard Leon's decision that found that the Federal Reserve misapplied Congress' intent when it implemented required swipe fees reforms: "The Court has vindicated our position that the final Federal Reserve rules on the implantation of the Durbin Amendment were flawed. We look forward to the 6 September 2013 since enactment of EISA 2007, reflecting higher vehicle fuel economy standards, slower economic growth, higher gasoline prices and possible 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 E10 blend wall in the context of stagnant or declining demand for petroleum-based gasoline • 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 infrastructureand market-related factors • The difficulty of producing significant volumes of nonethanol advanced biofuels fuels such as biodiesel, renewable diesel, and biogas This has created some challenges at EIA. 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. Fed revisiting their initial analysis that concluded the actual cost of a debit transaction was actually 4 cents. By following the law and using their own data, the Fed should produce a debit card rule that lowers these outrageous fees paid by merchants and ultimately consumers." The National Association of Convenience Stores, National Retail Federation, National Restaurant Association, Food Marketing Institute, Miller Oil Co. and Boscov's Department Store LCC filed the initial complaint with the court. n U.S. biodiesel production reached record level in May 2013 U.S. biodiesel production in May 2013 reached a record level of 111 million gallons, according to data released by the U.S. Energy Information Administration on July 30. Production came from 116 active biodiesel plants with operable capacity of 2.2 billion gallons per year. Production for the first five months of 2013 was 449 million gallons, an increase of 17 million gallons from the same period in 2012. There were 3,427 million pounds NPN Magazine n www.npnweb.com