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� INDUSTRY FIGHTS EPA MOVE TO LIMIT BIODIESEL BLENDS
NEFI and its allies filed comments with the U . S . Environmental Protection Agency in opposition to proposed changes to the Renewable Fuels Standard ( RFS ). The National Energy & Fuels Institute reports the EPA is proposing a change “ that would effectively limit biodiesel blends to no more than 20 percent ( B20 ), and make biodiesel blending into heating oil difficult .”
NEFI said that it consulted with many industry stakeholders in drafting its letter . “ The consensus is the changes proposed by the EPA will harm the ability of our industry and state governments to deliver on their environmental commitments , increase greenhouse gas emissions , and increase costs for heating oil consumers ,” the Institute said in its Feb . 14 newsletter , NEON .
The EPA will review the comments received and write a final rule over the next few months , NEFI said . In the meantime , the Institute said , it plans to relay the industry ’ s concerns to key members of Congress .
“ We believe the heating oil market presents an important opportunity to help meet this country ’ s decarbonization goals ,” reads the conclusion to the letter . “ Toward those ends , Congress included “ heating oil ” as “ additional renewable fuel ” that could be used toward meeting the RFS volume requirements . This is an important incentive to help meet the Northeast region ’ s decarbonization goals and enhance U . S . energy security and independence . person that refines , blends , or imports additional renewable fuels specified by the Administrator ; and ( ii ) for the use of
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such credits by the generator , or the transfer of all or a portion of the credits to another person , for the purpose of complying …
“ While Congress gave EPA some discretion in determining the “ appropriate amount ” of credits ( i . e ., the number of credits , which EPA has done with respect to the creation of equivalence values ), EPA does not provide any explanation how this would apply to potentially restrict the amount of blending or , even if it does , why use of its discretion here is needed , supported , or furthers the goals of the statute .
“ Currently , EPA also allows for RIN separation for neat biodiesel and biodiesel blends with diesel fuel that are not blended further downstream . While EPA proposes to remove the ability of biodiesel producers to utilize this provision ( again without explanation ), we do not believe this provision solves the concerns of the industry . Much of the supply comes from blenders who would be restricted to B20 blends to separate the RINs , if higher blends were sought downstream . This would change the economics of the transaction and , in any event , would limit
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MARCH 2023
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the ability to blend at higher levels .”
Organizations endorsing the letter to the EPA : The Advanced Biofuels Association , Better Home Heat Council of the Lehigh Valley , Clean Fuels Alliance America , Connecticut Energy Marketers Association , Delaware Valley Energy Marketers Association ( Pennsylvania ),
6 MARCH 2023 | FUEL OIL NEWS | www . fueloilnews . com