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BIODIESEL INDUSTRY WELCOMES RENEWABLE FUELS PROPOSAL The National Biodiesel Board voiced mea- sured support on May 29 for the EPA's proposal to increase volumes for biodiesel and other Advanced Biofuels under the Renewable Fuel Standard while calling for improvements in the final rule. "This proposal is a significant step in the right direction," said NBB CEO Joe Jobe. "It is not perfect, but it will get the U.S. biodiesel industry growing again and put people back to work. I want to thank Administrator McCarthy and Secretary Vilsack for restoring growth to the program and for their commitment to renewable fuels." "Biodiesel has proven that Advanced Biofuels can do just what we said they would, which is create jobs and strengthen our energy security while significantly cutting harmful pollution from petro- leum," Jobe said. "Biodiesel has displaced more than 8 billion gallons of petroleum diesel in the U.S. over the last decade. That is an incredible achievement, and we will build on that success under the proposal the EPA released today. However, more can be done, and we particularly look forward to working with the administra- tion on strengthening biodiesel volumes for 2016 and 2017 during the comment period in the coming weeks." Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is a renewable, clean-burning diesel replace- ment used in existing diesel engines without modification. It is the first and only commercial-scale fuel produced across the U.S. to meet the EPA's defini- tion as an Advanced Biofuel—meaning the EPA has determined that it reduces greenhouse gas emissions by more than 50 percent when compared with petro- leum diesel. Biodiesel falls under the Biomass- based Diesel category of the RFS, which is a subset of the overall Advanced Biofuels category. The EPA proposal, which is slated to be finalized in November, would gradually raise biodiesel volumes by about 100 million gallons per year to a standard of 1.9 billion gallons in 2017. Because of biodiesel's higher energy content, this would count as 2.95 billion ethanol equiv- alent gallons under the RFS. The overall Advanced Biofuel standard would rise to 3.4 billion ethanol equivalent gallons in 2016. NBB had requested more aggressive growth to a biodiesel standard of 2.7 bil- lion gallons by 2017, along with additional growth in the overall Advanced Biofuel category. In its initial proposal in November 2013, the EPA called for holding the bio- diesel standard flat at 1.28 billion gallons through 2015—an effective cut from actual annual production in 2013 and 2014 of about 1.8 billion gallons. "Biodiesel is one of the most prac- tical, cost-effective means we have for cutting carbon emissions in the transpor- tation sector, and there is no doubt that the industry can exceed the EPA's pro- posed volumes in a sustainable way using domestic resources," Jobe said, noting that the EPA's proposal for 2017 is only slightly higher than the actual biodiesel production of 1.8 billion gallons in over the last two years. API: EPA MUST DO MORE TO PROTECT CONSUMERS UNTIL CONGRESS CAN REPEAL THE RFS EPA must do more to ensure Americans have access to fuels they want and can safely use in their vehicles until Congress can repeal the outdated Renewable Fuel Standard program outright, API President and CEO Jack Gerard told reporters in a conference call Friday following EPA's proposal for the 2014, 2015, and 2016 RFS mandates. "Consumers' interest should come ahead of ethanol interests," said Gerard. "EPA assumes growing demand for high-ethanol fuel blends that are not com- patible with most cars on the road today, potentially putting American consumers, their vehicles and our economy at risk." Higher ethanol blends can damage engines and fuel systems—potentially leaving drivers stranded, according to extensive testing by the auto and oil indus- tries (here and here). The Congressional Budget Office found that consumers could see rising fuel prices unless EPA acts to lower mandates. API is asking EPA to set the final ethanol mandate to no more than 9.7% of gasoline demand to help avoid the 10 percent ethanol blend wall and meet strong consumer demand for ethanol-free gasoline. "Perhaps the most confusing aspect of today's announce- ment is that the administration is pushing more corn ethanol at the same time they pursue a climate agenda to lower green- house gas emissions," said Gerard. RFA: EPA'S RVO DECISION IS NOT WHAT THE STATUTE INTENDED Today (May 29), the Environmental Protection Agency released its proposed Renewable Fuel Standard renewable vol- www.fueloilnews.com | FUEL OIL NEWS | JULY 2015 3 STATES - pg 9 • Connecticut Fire Code Update • PA Competes Among Top Energy Producing Nations • PA Governor Awards Small Business Grants • ATA Expresses Dismay at RI Truck Tolls FUELS/EIA - pg 10 • REG statement on RFS fuel volumes • Scully Offers Nozzle Trade-Ins • NuStar, CHS To Expand Infrastructure • EIA: Renewables Highest Since 1930s • NORA Releases Biodiesel/Bioheat Gas Report BUSINESS OPERATIONS - pg 20 • PPA Summer Conference • Small Businesses Remain Positive • Cargasenergy.com Launches • Kilowatt Financial Announces Solar Financing • How Do You Interact With Your Workers? HVAC/HYDRONICS - pg 32 • Aggressive Furnace, Boiler Standards Move Forward • AHRI Releases Q1 Heating and Cooling Equipment Shipment Data • Testo Donates Bluetooth Manifolds To HVAC Students • Westmor Redesigns Stock Listing Webpage • Rees Scholarship Foundation Awards Scholarships Featured News DATELINE BREAKING NEWS