Fuel Oil News August 2019 | Page 8

Obligations

The New England Fuel Institute , among other industry groups , criticized a proposed rule under the Renewable Fuel Standards program that would set the minimum amount of renewable fuels that must be supplied to the market in calendar year 2020 , as well as the biomass-based diesel volume standard for calendar year 2021 . EPA Administrator Andrew Wheeler , upon issuing the proposed rule on July 5 , said it put EPA on target to publish the final RFS Renewable Volume Obligations on time for the third
STEPHEN BENNETT consecutive year . NEFI said , in so many words , that the proposed amounts are feeble . “ Our industry needs a robust biodiesel industry to continue providing consumer choice and meet our stated objective of reducing greenhouse gas emissions ,” NEFI President Sean Cota said in the Institute ’ s newsletter , NEON . “ The administration ’ s proposal , which does little more than maintain the status quo , is inconsistent with a growing and competitive Bioheat market ,” Cota said . NEFI noted that the EPA rulemaking establishes a public comment period for 30 days after a public hearing on the proposal is held . NEFI said it will file comments with the EPA on the proposed renewable volume obligations ( RVOs ) and small refiner exemptions ( SREs ).
EPA is proposing an advanced biofuel volume requirement for 2020 of 5.04 billion gallons , which is 0.12 billion gallons higher than the advanced biofuel volume requirement for 2019 . The cellulosic biofuel volume requirement of 0.54 billion ethanol-equivalent gallons for 2020 is based on [ EPA ’ s ] production projection which is 0.12 billion ethanol-equivalent gallons higher than the cellulosic biofuel volume finalized for 2019 . [ EPA is ] proposing to maintain the biomass-based diesel ( BBD ) volume for 2021 at 2.43 billion gallons .
The Clean Air Act requires EPA to set annual RFS volumes of biofuels that must be used for transportation fuel for four categories of biofuels : total , advanced , cellulosic , and biomass-based diesel . For more on this , turn to page 3 .
Propane infrastructure in New England and the wider Mid Atlantic region is undergoing something of a buildup , with a recent example being the just-completed construction of a propane rail terminal in Baltimore ( News , page 3 ).
Mid-Atlantic Rail Services will serve the Mid-Atlantic region with propane by providing destination-delivered supply or railcar through-put arrangements . The new terminal , served by Norfolk Southern and CSX Railroads , will initially provide 120,000 gallons of HD-5 propane storage , along with a four-position rail rack and two truck-loading racks .
Tri Gas & Oil completed the terminal for its newest affiliate , Mid-Atlantic Rail Services . Mid Atlantic is hosting a grand opening at the new terminal on Thursday , Sept . 12 , at 10 a . m . The event is open to the public and includes tours of the terminal .
The propane business continues to undergo some consolidation , as demonstrated by Quarles Petroleum ’ s recent acquisition of Papco ’ s propane business ( Business Operations , page 10 ). Quarles , a regional provider of residential and commercial fuel headquartered in Fredericksburg , Virginia , acquired the commercial and residential propane business of Papco , Inc . While Papco is divesting from its propane businesses , it will continue to operate its fuel business based in Virginia Beach . l FON
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8 AUGUST 2019 | FUEL OIL NEWS | www . fueloilnews . com