Bergeson & Campbell, P.C. (B&C®) is a Washington, D.C., law firm providing biobased and renewable chemical product stakeholders unparalleled experience, judgment, and excellence in bringing innovative products to market.

By Lynn L. Bergeson and Ligia Duarte Botelho, M.A.

On April 18, 2022, EPA announced the opportunity for public comment on its proposed analysis of the lifecycle greenhouse gas (GHG) emissions associated with biofuels produced from canola/rapeseed oil. EPA’s assessment considers diesel, jet fuel, heating oil, naphtha, and liquefied petroleum gas (LPG) produced from canola/rapeseed oil through a hydrotreating process. EPA is proposing to find that these pathways would meet the lifecycle GHG emissions reduction threshold of 50 percent required for advanced biofuels and biomass-based diesel under the Renewable Fuel Standard (RFS) program. Based on its analyses, EPA is also proposing to approve these fuel pathways, making them eligible to generate Renewable Identification Numbers (RIN) if they meet the definitional and RIN generation criteria for renewable fuel specified in the RFS regulations.

Comments must be submitted by May 18, 2022.

Tags: EPA, GHG, Biofuel, RFS, RIN

 

By Lynn L. Bergeson and Ligia Duarte Botelho, M.A.

On March 10, 2022, EPA issued a notice of disclosure to all obligated parties under the Renewable Fuel Standard (RFS) program that have petitioned for a small refinery exemption (SRE) or that have submitted certain RFS compliance reports. EPA will disclose information that is claimed to be, or has been determined to be confidential business information (CBI) from May 21, 2021, through December 31, 2023, to the Government Accountability Office (GAO). These records include:

  • All materials submitted by small refineries as part of petitions;
  • Any documentation that the Department of Energy (DOE) provided to EPA stating DOE’s petition findings and scores and any EPA responses thereto;
  • Any EPA record addressing the subject of the exemption petitions; and
  • EPA’s final exemption decisions sent to refineries.

GAO will destroy, delete, or return to EPA all CBI claimed documents at the conclusion of its review.

Tags: EPA, DOE, RFS, Biofuel

 

By Lynn L. Bergeson 

On January 31, 2022, U.S. Senators Amy Klobuchar (D-MN) and Chuck Grassley (R-IA) and 12 of their colleagues submitted a letter to EPA Administrator, Michael Regan, regarding EPA’s RFS Annual Rules and Proposed RFS Small Refinery Exemption Decision. In the bipartisan letter, Senators Klobuchar and Grassley and their colleagues urge EPA to prioritize the RFS in support of a “homegrown energy future” by:

  1. Maintaining the blending requirements for 2022, including the 250 million gallon remand;
  2. Denying all pending SRE;
  3. Eliminating the proposed retroactive cuts to the 2020 RVO; and
  4. Setting 2021 volumes at the statutory levels.

The letter commends EPA’s efforts to better the RFS program and highlights areas with room for improvement. Of particular concern to the letter signatories is EPA’s proposal to waive retroactively 2.96 billion gallons of renewable fuel from the 2020 RVOs. The letter states that adjusting these biofuel volumes more than two years after they were finalized would set a troubling precedent and impact negatively the entire agriculture and fuel supply chain. Therefore, Klobuchar and her colleagues urge EPA to eliminate the proposed retroactive cuts to the 2020 volumes and require obligated parties to comply with the 2020 standards that were issued in final in 2019. The signatories express similar concerns with the proposal to reset retroactively authority to establish 2021 RVOs and state that EPA cannot meet its ambitious climate goals without providing for growth and certainty in the RFS.

Senators Klobuchar and Grassley and their colleagues request that EPA finalize these actions as quickly as possible to restore integrity, stability, and growth to the RFS program and the U.S. biofuel sector.


 

By Lynn L. Bergeson 

On February 16, 2022, EPW held a hearing to examine EPA’s RFS program. U.S. Senator and EPW Chairman, Tom Carper (D-DE), made the opening statement, highlighting that EPW had not held an oversight hearing on the RFS since 2016. While Senator Carper demonstrated continued support for the RFS program, he also noted that “[f]or example, the amount of advanced renewable fuel used today in this country is far less than the 36 billion gallons that Congress mandated in 2007 be used by 2022. That shortfall is partly due to unforeseen market challenges and partly due to EPA’s delay in approving new fuels to enter the marketplace.” Senator Carper criticized the CAA for prohibiting some advanced biofuels that qualify for state programs from qualifying as renewable fuels under the RFS. He highlighted that volatility in compliance costs for refiners also presents challenges to implementing the RFS. The hearing included further discussions on other management and implementation challenges that EPA is facing and addressed opportunities to encourage increased deployment of more sustainable fuels.


 

By Lynn L. Bergeson 

On January 27, 2022, U.S. Senator Shelley Moore Capito (R-WV), Ranking Member of the Senate Environment and Public Works (EPW) Committee, and 14 of her colleagues submitted a letter to the U.S. Environmental Protection Agency (EPA) Administrator, Michael Regan, requesting that EPA reconsider its proposed actions under the Renewable Fuel Standard (RFS) program through the RFS Annual Rules and the Proposed RFS Small Refinery Exemption Decision. Senator Capito and her colleagues request specifically that EPA reassess its proposed denial of all pending small refinery exemption (SRE) petitions under the RFS program, because EPA’s decision breaches congressional intent under the Clean Air Act (CAA). According to the letter, Congress’ intent in amending the CAA to allow for SREs was to alleviate disproportionate economic hardship associated with RFS compliance for small refiners. Therefore, the denial of all pending SRE petitions contravenes Congress’ intent and, according to Senator Capito and her colleagues, will lead to increased litigation and uncertainty under the RFS program.

The letter also states that EPA’s “proposal for all-time high Renewable Volume Obligations (RVO) for 2022 does not reflect market realities and is likely to further raise costs for refiners – especially small and independent refiners – and therefore American consumers and the economy.” Senator Capito and her colleagues urge EPA to reconsider these actions to:

  • Provide relief and certainty for companies, employees, and communities across the United States;
  • Bolster access to affordable and domestically produced fuels for U.S. consumers; and
  • Remove obstacles for an economy that is challenged currently by inflation and supply chain difficulties.

 

By Lynn L. Bergeson and Carla N. Hutton
 
On January 21, 2022, the U.S. Environmental Protection Agency (EPA) announced a new effort under the Toxic Substances Control Act (TSCA) to streamline the review of new chemicals that could be used to displace current, higher greenhouse gas (GHG) emitting transportation fuels. The Office of Chemical Safety and Pollution Prevention’s (OCSPP) New Chemicals Division (NCD) has implemented a “robust, consistent, and efficient process to assess the risk and apply mitigation measures, as appropriate, for substitutes to petroleum-based fuels and fuel additives that use biobased or waste-derived sources to produce biofuels.” EPA states that this effort supports its goals under the Renewable Fuel Standard (RFS) program, as well as its 2021 Climate Adaptation Action Plan. According to the announcement, EPA has received over 30 biofuel premanufacture notices (PMN) “that collectively describe plans for close to 800 million gallons per year of production of advanced biofuels, that could contribute to annual volume mandates under the RFS program and help support the goals of energy security through increasing domestic production” within the United States.
 
The announcement includes:
 
New Chemicals Division Integrated Approach to Biofuels
 
Under this effort, NCD formed a dedicated team to collaborate on the review of PMNs for biobased or waste-derived feedstocks used to make transportation fuel substitutes with the goals to use the best available science while creating a consistent and efficient review process. EPA states that NCD developed a standardized process for the way biofuel PMNs are reviewed. For example, the same dedicated team will be conducting reviews for all biofuels PMNs, helping to ensure the assessments and determinations are consistent and aligned with requirements. Further, NCD will generate one report for biofuels PMNs that combines the six different risk assessments typically conducted for PMNs, helping to provide a clearer summary explanation of how EPA conducted its assessment and made its determination.
 
For risk management actions, NCD will apply appropriate mitigation measures to address any potential for unreasonable risk identified in an efficient and consistent manner within TSCA consent orders and significant new use rules (SNUR).
 
Outreach and Training
 
According to the announcement, OCSPP is launching outreach and training for interested stakeholders in the biofuels sector to review TSCA requirements, outline the streamlined approaches for risk assessments and risk management actions, and provide information on how to navigate the new chemicals PMN process.
 
OCSPP will hold a kick-off meeting on February 9, 2022, to provide an overview of this initiative and answer questions from stakeholders. Registration for the meeting is open.
 
Other planned outreach and training related to this biofuels initiative include webinars on:

  • TSCA requirements and the PMN process;
  • The TSCA Inventory, nomenclature, and Bona Fide process;
  • New chemicals risk assessments, including applications of the tools, models, and databases; and
  • New chemicals risk management actions, including TSCA Section 5 orders and SNURs.

EPA states that it may add additional outreach and training sessions, including training opportunities applicable to all new chemical submitters, based on stakeholder interest and feedback.

Tags: Biofuels, RFS, GHG, EPA, TSCA

 

By Lynn L. Bergeson and Ligia Duarte Botelho, M.A.
 
On December 10, 2021, the U.S. Environmental Protection Agency (EPA) announced that it will hold a virtual public hearing on its proposal for the “Renewable Fuel Standard (RFS) Program: RFS Annual Rules” signed on December 7, 2021. The virtual public hearing is scheduled for January 4, 2022, from 9:00 a.m. to 5:00 p.m. (EST). If necessary, EPA will hold an additional virtual session on January 5, 2022, to accommodate the number of testifiers.
 
EPA is proposing the 2020, 2021, and 2022 renewable fuel standards for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel. It is also proposing to:

  • Address the remand of the 2016 standard-setting rulemaking;
  • Extend certain RFS compliance and attest engagement reporting deadlines for the 2019, 2020, and 2021 compliance years; and
  • Implement several regulatory changes to the RFS program.

 

 

By Lynn L. Bergeson and Ligia Duarte Botelho, M.A.

On November 26, 2021, EPA issued a proposed rule to modify certain compliance dates under the Renewable Fuel Standard (RFS) program. For small refineries only, EPA is proposing to extend the RFS compliance reporting deadline and the associated attest engagement reporting deadline for compliance year 2019. EPA is also proposing to extend the RFS compliance reporting deadline and the associated attest reporting deadline for 2020 and 2021 compliance years for all obligated parties. Lastly, EPA is also proposing to change the way that it determines future RFS compliance and attest engagement reporting deadlines.

Comments on the proposed rule are due on or prior to January 3, 2022.

Tags: RFS, Biofuel

 

By Lynn L. Bergeson

On July 2, 2021, U.S. Representatives Angie Craig (D-MN) and Randy Feenstra (R-IA) introduced a bill called the Small Refinery Exemption Clarification Act of 2021. The bill clarifies that only oil refineries that have been continuously receiving small refinery exemptions (SRE) since 2011 should be eligible to petition for extensions of renewable fuel blending requirement exemptions. The SRE Clarification Act follows the Supreme Court’s decision in late June 2021 that, according to Representatives Craig and Feenstra, could negatively influence the biofuels industry by making it easier for oil refineries to avoid Renewable Fuel Standard (RFS) blending requirements. Representative Craig stated that “[‌i]t is vital that we continue to support the clean biofuels industry as we reduce the carbon intensity of our transportation sector and make important investments across rural America.” Representative Feenstra emphasized that “we must erase ambiguities and ensure oil refineries are not able to take shortcuts when it comes to blending biofuels.”


 
 1 2 3 >  Last ›