Office of Transportation and Air Quality

EPA-420-F-14-018

April 2014

EPA Issues Direct Final Rule for 

2013 Cellulosic Standard

EPA is taking direct final action to revise the 2013 cellulosic biofuel standard. This action follows from EPA having granted the 

American Petroleum Institute’s and the American Fuel and Petrochemical Manufacturers’ petitions for reconsideration of the 2013 

cellulosic biofuel standard published on August 15, 2013. 

On reconsideration, section 211(o) of the Clean Air Act directs EPA 

to base the standard on the lower of “projected” production of cellulosic fuel in 2013 or the cellulosic biofuel target established in the 

statute. Since data are available to show actual production volumes 

for 2013, EPA’s “projection” and direct final rule are based on actual 

cellulosic biofuel production in 2013. Specifically, we are calculating 

the volume of cellulosic biofuel to be used in 2013 by reference to the 

actual number of cellulosic biofuel renewable identification numbers 

(RINs) generated and reported through EPA’s Monitored Transaction 

System (EMTS) in 2013.

EPA is also publishing a separate document that will serve as the proposed rule to revise the 2013 cellulosic standard if adverse comments 

are received on the direct final rule. If no adverse comments are received, 

EPA will take no further action on the proposed rule.

Overview

On August 6, 2013 EPA finalized the annual standard for cellulosic biofuel as required 

under the Clean Air Act Section 211 (o). EPA set the 2013 cellulosic biofuel percentage standard using the volume of cellulosic biofuel (6 million ethanol-equivalent 

gallons) expected to be produced and used in the United States in 2013. 

Regulatory Announcement
Regulatory Announcement

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On October 10, 2013 and October 11, 2013 the U.S. Environmental Protection Agency (EPA) 

received petitions from the American Fuel and Petrochemical Manufacturers and the American 

Petroleum Institute requesting that EPA reconsider portions of the final rule entitled Regulation of Fuels and Fuel Additives: 2013 Renewable Fuel Standards (78 Fed Reg. 49794; August 15, 

2013).

After review, EPA determined that the petitions for reconsideration with regard to the 2013 

cellulosic biofuel standard had demonstrated the statutory criteria specified in Section 307(d)

(7)(B) of the Clean Air Act for the reconsideration. Reconsideration was granted due to the reduced estimate of anticipated cellulosic biofuel production in 2013 that was announced shortly 

after EPA signed its final rule by one of two companies expected to produce cellulosic biofuel 

in 2013. On January 23, 2014, the Administrator notified petitioners that their petitions, with 

regard to the 2013 cellulosic biofuel standard, had been granted and that EPA would initiate a 

rulemaking to reconsider the standard.

Final Percentage Standards for 2013

To calculate the percentage standard for cellulosic biofuel for 2013, EPA used a volume of 

810,185 ethanol-equivalent gallons. 

Table 1 

Volumes Used to Determine the Final 2013 Percentage Standards a

Cellulosic biofuel 810,185

a Due to the manner in which the percentage standards are calculated, 

the volume is given in terms of ethanol-equivalent gallons

The percentage standard for cellulosic biofuel represents the ratio of the renewable fuel volume 

we have determined should be required for 2013 to the non-renewable gasoline and diesel volume 

used in 2013, with appropriate corrections. 

Table 2

Percentage Standards for 2013

Cellulosic biofuel 0.0005%

Why is EPA Using a Direct Final Rule?

EPA is publishing a direct final rule without a prior proposed rule because we view this as a noncontroversial action. Finalizing this adjusted 2013 cellulosic biofuel standard expeditiously will 

reduce regulatory uncertainty and avoid unnecessary cost or burden for obligated parties. Until 

this adjusted cellulosic biofuel standard is finalized, obligated parties will have to comply with 

the current and significantly higher 2013 cellulosic biofuel standard. This would likely involve 

a substantial purchase of cellulosic waiver credits, which EPA would subsequently need to 

reimburse. 
Regulatory Announcement

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We are publishing a separate document that will serve as the proposed rule to revise the 2013 

cellulosic standard if adverse comments are received on this direct final rule. We will not institute a second comment period on this action. Any parties interested in commenting must do 

so at this time. For further information about commenting on this rule, see the ADDRESSES 

section of the Federal Register document.

If EPA receives relevant adverse comment, we will publish a timely withdrawal in the Federal

Register informing the public that the direct final rule will not take effect. We would address all 

public comments in any subsequent final rule based on the proposed rule. 

For More Information 

For more information on this proposal, please visit the RFS website at: 

www.epa.gov/otaq/fuels/renewablefuels 

To submit a question on the RFS program, and to view Frequently Asked Questions, please visit: 

http://fuelsprograms.supportportal.com/ics/support/default.asp?deptID=23005&__

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