Fuel Oil News

Fuel Oil News January 2016

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FINAL RENEWABLE FUEL STANDARDS FOR 2014, 2015 AND 2016 On Nov. 30 EPA announced its volume determinations under the RFS for 2014- 2016. While the volumes are greater than those previously proposed, they are lower than the mandated volumes which were waived. The mandated renew- able fuel volume requirement for 2016 would have been 22.25 billion gallons without the waiver, and it is now 18.11 billion gallons. The final 2016 standard for advanced biofuel is nearly 1 billion gallons, or 35%, higher than the actual 2014 volumes, while the total renewable standard requires growth from 2014 to 2016 of over 1.8 billion gallons of biofuel, or 11% higher than 2014 actual volumes. Biodiesel standards grow steadily over the next several years, increasing every year to reach 2 billion gallons by 2017. EPA noted in the rule summary: "Our decision to finalize volumes for total renewable fuel that rely on exercis- ing the general waiver authority is based on the same fundamental reasoning we relied upon in the June 10, 2015 proposal. Despite significant increases in renew- able fuel use in the United States, real -world constraints, such as the slower than expected development of the cellulosic biofuel industry and constraints in the marketplace needed to supply certain bio- fuels to consumers, have made the timeline laid out by Congress impossible to achieve. These challenges remain, even as we recog- nize the success of the RFS program over the past decade in boosting renewable fuel use, and the recent signs of progress towards development of increasing vol- umes of advanced, low GHG-emitting fuels, including cellulosic biofuels. "We believe that the RFS program can and will drive renewable fuel use and, indeed, we have considered the ability of the market to respond to the standards we set when we assessed the amount of renewable fuel that can be supplied. Therefore, while this final rule applies the tools Congress provided to make adjustments to the statutory volume tar- gets in recognition of the constraints that exist today, we believe the standards we are finalizing today will drive growth in renewable fuels, particularly advanced biofuels which achieve the lowest lifecycle GHG emissions." The full PDF of the EPA rule can be found here: http://www2.epa.gov/sites/ production/files/2015-11/documents/ rfs-2014-2015-2016-annual-rule-frm.pdf BIODIESEL ASSOCIATION WELCOMES RENEWABLE FUELS ANNOUNCEMENT The National Biodiesel Board applauded the Obama administration for reducing America's dependence on high-carbon fossil fuels by raising biodiesel volumes under the Renewable Fuel Standard (RFS). "This decision means we will displace billions of gallons of petroleum diesel in the coming years with clean-burning bio- diesel. That means less pollution, more American jobs, and more competition that is sorely lacking in the fuels market," said NBB CEO Joe Jobe. "It is a good rule. It may not be all we had hoped for but it will go a long way toward getting the U.S. biodiesel industry growing again and reducing our dangerous dependence on fossil fuels." "I want to thank President Obama, Administrator McCarthy and Secretary Vilsack for supporting growth in the program and for their commitment to biodiesel," Jobe added. "We have seen three years of damaging delays, but the Administration took a strong step forward today that should put biodiesel and the RFS on a more stable course in the years to come." Made from a diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is a renewable, clean-burning diesel replacement used in existing diesel engines. According to the EPA, it reduces greenhouse gas emissions by 57% to 86% compared with petro- leum diesel, qualifying it as an Advanced Biofuel under the RFS. Under the new RFS rule, Biomass- based diesel volumes would grow to 1.9 billion gallons in 2016 and 2 billion gal- lons in 2017. The Biomass-based diesel category—a diesel subset of the overall Advanced Biofuel category – is made up mostly of biodiesel but also includes renewable diesel, another diesel alterna- tive made from the same feedstocks using a different technology. The new standards reflect modest but meaningful growth over recent years when the U.S. market has hovered around 1.8 billion gallons annually. www.fueloilnews.com | FUEL OIL NEWS | JANUARY 2016 3 DATELINE • Final Renewable Fuel Standards for 2014, 2015 and 2016 • Biodiesel Association Welcomes Renewable Fuels Announcement • API: EPA Must Do More to Protect Consumers from High Ethanol • RFA: EPA's Final RFS Rule Puts Future of Biofuels & Climate Policy in Hands of Oil Industry FUELS/EIA - pg 11 • Diesel Technology Forum: Achieving COP21 Goals Requires New Clean Diesel Technology, Renewable Biofuels • Biodiesel Industry Calls on Congress to Act on Tax Incentive • EIA: U.S. Oil and Natural Gas Reserves Increase in 2014 • EIA: Highlights from the Short-Term Energy Outlook BUSINESS OPERATIONS - pg 22 • Survey: Most Small Businesses are Unprepared for Cyber Crime • ATA Opposes FMCSA's Proposed Certification Label Rule • Baby Boomer Owners Fret More Than 'In-Control' Millennials, Chase for Business Survey Reveals • Disconnect Between Retirees and Employers over Medical Benefits • The Power of Positive Thinking HVAC/HYDRONICS - pg 26 • OESP Accepting Applications for the 16th Annual Dave Nelsen Scholarship Program • OAHRI April-September 2015 U.S. Heating and Cooling Equipment Shipment Data • New Report Finds More American Businesses are Installing Solar than Ever • Before Coralie Bailly Joins Suntec • U.S. Boiler Co. Announces Partnership with Urell Inc. • 2016 AHR Expo Innovation Award Winners Announced Featured News DATELINE BREAKING NEWS

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