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Thursday, February 04, 2010
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NBB Welcomes RFS3 Rule

US - The National Biodiesel Board (NBB) has welcomed the issuing of the Environmental Protection Agency's (EPA) final rule to implement the expanded Renewable Fuels Standard (RFS2) provided for in the Energy Independence and Security Act of 2007(EISA).

"The US biodiesel industry is pleased that the EPA has issued the final RFS2 rule," said Joe Jobe, Chief Executive Officer of the NBB.

"There are significant job creation, energy security and environmental benefits associated with expanded biodiesel use. Today's rulemaking - in particular implementation of the Biomass-based Diesel programme will allow America to reap these benefits."

EISA was enacted on 19 December 2007. The legislation expanded the Renewable Fuels Standard and for the first time specifically provided for a renewable component in US diesel fuel.

RFS2 requires the use of 500 million gallons of Biomass-based Diesel in 2009, increasing gradually to 1 billion gallons in 2012. From 2012 through 2022, a minimum of 1 billion gallons must be used domestically, and the Administrator of the EPA is given the authority to increase the minimum volume requirement.

To qualify as Biomass-based Diesel, the fuel must reduce greenhouse gas (GHG) emissions by 50 per cent compared to petroleum diesel.

Biodiesel is the only fuel available in commercial quantities in the US that meets the definition of Biomassbased Diesel.

On 26 May 2009, the EPA issued the proposed rule to implement the RFS2 programme.

The proposed rule contained several significant flaws that were highlighted in NBB's comments.

Many of these concerns have been addressed in the final rule, including:

  • Final rule accounts for 2009 and 2010 Biomass-based Diesel use requirements. Consistent with EISA's requirements, 1.150 billion gallons of biodiesel must be used domestically by the end of 2010. Biodiesel used domestically in 2009 and 2010 will count towards this total.
  • EPA's lifecycle GHG emission calculations are significantly improved. NBB's comments noted significant shortcomings with EPA's initial lifecycle methodology, including inaccuracies pertaining to nitrogen fixing with soybeans; co-product allocation; energy balance; and agricultural efficiencies. Industry comments also noted significant flaws associated with EPA's initial international land use assumptions.

The GHG methodology used in the final rule has been updated to reflect industry comments, and biodiesel produced from domestic soybean oil is assumed to reduce GHG emissions by 57 per cent compared to petroleum diesel fuel, and the EPA's uncertainty analysis recognises that the GHG reduction could be as high as 85 per cent. Thus, biodiesel produced from soybean oil will qualify for the Biomass-based Diesel programme, and the rulemaking provides pathways for biodiesel produced from other vegetable oils to qualify for the programme. Though NBB continues to object to the use of international indirect land use change in EPA's GHG methodology, the methodology employed in the final rule represents a significant improvement over the proposed rule. "The US biodiesel industry stands ready to provide the fuel that will be needed to meet the readily attainable Biomass-based Diesel goals established in RFS2. We look forward to working with all industry stakeholders to successfully implement this worthwhile programme," concluded Mr Jobe.

TheBioenergySite News Desk


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