## Summary of Interagency Working Comments on Draft Language under EO

12866 and EO 13563 Interagency Review. Subject to Further Policy Review.

Interagency Comments on U.S. Environmental Protection Agency (EPA) draft proposed rule titled, “ Renewable Fuel Standard Program: Standards for 2014, 2015, and 2016 and

Biomass

- Based Diesel Volume for 2017

, ” RIN 2060

- AS22

I. Executive Summary

(pg 6) The fundamental objective of the RFS provisions under the Clean Air Act is clear: to increase the volumes of renewable fuels that are used in the U.S. transportation system every year. The se volumes include corn starch ethanol, the predominant biofuel in use to date, but Congress envisioned the majority of growth

in RFS II over time to come from advanced biofuels as the portion of conventional corn starch ethanol remains constant starting i n 2015 while the advanced volumes continue to grow . Advanced

– those biofuels are expected to that have lower greenhouse gas (GHG) emissions on a lifecycle basis than conventional biofuels. Increased use of renewable fuels means less use of fossil fuels, which results in lower GHG emissions over time as advanced biofuel production and use becomes more commonplace. By aiming to diversify the country’s fuel supply, Congress also intended to increase the nation’s energy security. Renewable fuels represent an opportunity for the U.S. to move away from fossil fuels towards a set of cleaner transportation fuels, and a chance for a still

- developing clean technology sector to grow.

Response: Some edits made to text.

(pg 7) Today’s proposal attempts to find an approach that balances these two dynamics. We believe that the RFS program can drive renewable fu el use, and that it is appropriate to consider this potential of the market to respond to the standards we set when we assess the amount of renewable fuel consumption that can be achieved. While we are proposing to use the tools Congress provided to make adjustments to the law’s volume targets in recognition of the constraints that exist today, we are proposing standards for 2015 and 2016 that will drive growth in renewable fuels, particularly those fuels that have the lowest are lower in lifecycle GHG emi ssions.

Response: S ome edits made to text.

(pg 9) USDA’s Biorefinery Assistance Program has provided loan guarantees for the development and construction of commercial scale biorefineries with a number of the new projects focused on producing fuels

other than ethanol. Greater GHG benefits continue to inc rease are expected to be realized as technologies for producing corn starch ethanol continue to improve and the production and use of these lower

carbon advanced biofuels accelerates, and the volume requirements that we are proposing today support this goal.

Response: The Agency's policy goal is to increase the use of advanced biofuels which are required to have significantly lower GHGs than conventional renewable fuel. We do not believe that the suggested changes support this policy goal.(pg 49) 3. 2016

We intend to finalize the volume requirements for 2016 by November 30 of this year, in accordance with the schedule set forth in the statute. As a result, obligated parties and other stakeholders in the marketplace will have the full compliance year to respond to the standards that we set. We believe, therefore, that the supply of renewable fuels to vehicles can grow more dramatically in 2016 than in 2015. Moreover, as for the 2015 proposal, we believe that this growth should emphasize advanced biof uels over conventional (non

- advanced)

renewable fuel . Congress envisioned that all renewable fuel growth after 2014 would arise from growth in

advanced biofuel as opposed to conventional fuel s. Advanced biofuels have substantially greater GHG

benefits than conventional renewable fuel. A s a program designed not only to increase the nation's energy security position but also contribute to efforts to reduce impacts on climate change, we believe that a focus on growth in advanced biofuel is appropriate. However, we also acknowledge that the volume of non

advanced biofuel production and use that has been achieved to date falls short of the volumes that Congress envisioned. Therefore we believe it is appropriate to provide for the continued growth of con ventional

renewable fuels at this time as well. Since convention al and advanced renewable fuels provide substantial greenhouse gas benefits, we believe that the focus on growth of both categories of fuel is appropriate.

Response: Text was modified to more explicitly point to the statutory requirements. We do not believe that deleting all references to conventional renewable fuel is appropriate as the statements we make are factually accurate. More importantly, our focus on advanced biofuels is an imp ortant part of the Agency's policy goals.



### (pg 65) The short time frame provided for the annual renewable fuel rule process does not allow sufficient time for EPA to conduct a comprehensive analysis of the benefits of the 2015 and 2016

standards and the s tatute does not require it. Moreover, as discussed in the proposed rule establishing the 1.28 billion gallon requirement for BBD in 2013, the costs and benefits of the RFS program as a whole are best assessed when the program is fully mature in 2022. 1 

### We continue to believe that this is the case, as the annual standard

- setting process encourages consideration of the program on a piecemeal (i.e., year to year) basis, which may not reflect the long

- term economic effects of the program. Therefore, for t he purpose of this annual rulemaking, we have not quantified benefits for the 2015 and 2016 proposed standards. We do not have a quantified estimate of the GHG impacts for the single year (e.g., 2015, 2016). When the RFS is fully phased in, the

program w ill result in considerable volumes of conventional, advanced and cellulosic biofuels that will reduce GHG emissions in comparison to the fossil fuels which they replace. EPA estimated greenhouse gas, energy security and air quality impacts and benefits for the 2010 Proposed RFS Rule

for 2022.

Response: Some edits made to text.

1 77 FR 59477, September 27, 2012. Commented [A1]: The newest conventional corn starch ethanol plants reduce greenhouse gas emissions by 48%.