LINCOLN, Neb. (DTN) -- Although a new proposal from the U.S. Environmental Protection Agency to reduce cellulosic biofuels levels in the Renewable Fuel Standard is on hold pending review by the new administration, biofuels groups spoke in opposition to the proposal in comments submitted this past week.

The EPA, under the Biden administration, proposed allowing a partial waiver of 2024 cellulosic requirements and the extension of a deadline to comply on the volumes finalized in June 2023.

That final rule set cellulosic ethanol volumes at 840 million gallons for 2023, 1.09 billion in 2024 and 1.38 billion in 2025.

On Dec. 12, 2024, the EPA published a proposed rule to partially wave the 2024 cellulosic volumes because of what is reportedly a shortfall in production.

In comments to the EPA, several national biofuels groups spoke out against the proposal.

Geoff Cooper, CEO and president of the Renewable Fuels Association (RFA), said in a letter to EPA that partially waiving the cellulosic volumes would harm the market for biofuels credits in the RFS.

"RFA believes that retrospectively lowering RVOs destabilizes the RIN market, discourages investment and is contrary to the market-forcing purpose of the RFS program," Cooper said in comments.

"Reopening RVOs long after they have been finalized chills investment and growth in cellulosic-biofuel production and causes a loss of confidence in EPA's standards. However, we understand the challenge EPA is facing with regard to setting cellulosic biofuel standards in a manner that is simultaneously consistent with the agency's statutory authorities, court decisions and the Congressional intent of the RFS program."

Cooper said if the EPA grants the waiver, the agency should ensure that it "clearly meets" the statutory requirements for such waivers.

"Unfortunately, we do not believe that EPA's proposal to use its general waiver authority has fully satisfied these requirements," Cooper said.

The EPA previously rejected requests for retroactive waivers to 2023 cellulosic volumes.

Chris Bliley, senior vice president of regulatory affairs for Growth Energy, said a waiver on 2024 volumes would harm the purpose of the RFS.

"Any waiver of 2024 cellulosic volume requirements should not provide precedent for the future of the RFS program or suppress RFS program goals, which are to drive production and innovation of biofuels, including cellulosic biofuels and not to passively track a biofuels marketplace without them," he said in comments.

"Furthermore, delaying the compliance deadline injects unnecessary uncertainty into the process for bioethanol producers and the entire fuel supply chain."

Clean Fuels Alliance America asked the agency to pause the rulemaking process until the agency can provide a full accounting of available cellulosic renewable identification numbers, or RINs, for 2024 and to evaluate whether pending small-refinery exemptions provide relief to refiners. In addition, Clean Fuels asked the EPA to address the underestimation of biomass-based diesel and advanced biofuel volumes for 2024 and 2025.

"We cannot accurately evaluate EPA's calculation of an inadequate supply of cellulosic RINs for 2024 without first knowing the number of RINs that might be returned to the market through small-refinery exemptions," Clean Fuels said in its comments.

"We ask that EPA finalize a step-change in 2024 advanced RVOs to EPA's own projected advanced RIN generation, which is currently expected to exceed the required volumes by at least 2.6 billion RINs. Clean Fuels appreciates EPA's acknowledging a more-than-adequate supply of advanced and renewable RINs but this alone is not enough. EPA should take this opportunity instead to address Clean Fuels' petition and reconsider the 2024 and 2025 BBD and advanced biofuel RVOs."

Read more on DTN:

"EPA Finalizes Multi-Year RFS Volumes," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

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