2022 Renewable Fuel Standard final rule
A July final rule modified the 2021 and 2022 statutory volume targets for cellulosic biofuel, advanced biofuel, and total renewable fuel. It also set the 2022 volume target for biomass-based diesel. The 2022 volumes consider the potential renewable fuel volume impacts on wildlife habitats, water quality, and water supply.
Furthermore, the rule established the 2020, 2021, and 2022 renewable fuel percentage standards for the four fuel categories. All four categories have larger percentage standards for 2022 than 2021, and the 2021 standards are higher than the 2020 standards. The following are the set percentage standards for 2022:
- Cellulosic biofuel – 0.35%
- Biomass-based diesel– 2.33%
- Advanced biofuel – 3.26%
- Cellulosic biofuel – 11.59%
These volume percentages are used by each refiner and importer of petroleum-based gasoline or diesel fuel to determine renewable fuel volume obligations. This rule modified the four previously established fuel volume requirements for 2020 to account for the COVID-19 pandemic and its effect on plummeting transportation fuel demand.
Lastly, the final rule outlined changes to the Renewable Fuel Standard (RFS) program. These changes include regulations for the use of biointermediates to make qualifying renewable fuel, flexibilities for regulated parties, and explanations of current regulations. Among the regulation changes, EPA clarified the definitions for: agricultural digesters, baseline volume, biodiesel, combined heat and power (CHP), facility, and foreign renewable fuel producer. EPA also altered treatment of confidential business information.
Under the Clean Air Act, the Environmental Protection Agency (EPA) must set standards annually to implement appropriate renewable fuel volume targets nationwide. Those possibly affected by this rule include any involved in the production, distribution, and sale of transportation fuels, including gasoline and diesel fuel, as well as renewable fuels like ethanol, biodiesel, renewable diesel, and biogas. EPA estimates that this rule will decrease the imports of crude oil and refined products by about 2.9 billion gallons. The rule is effective on August 30, 2022.