EPA Proposes 2013 Renewable Fuel
                   Standards
                        Under the Clean Air Act Section 21 l(o), as amended by the
                        Energy Independence and Security Act of 2007, the Environmen-
                   tal Protection Agency (EPA) is required to set the annual standards
                   under the Renewable Fuel Standard program (RES) for the following
                   year based on gasoline and diesel projections from the Energy Infor-
                   mation Administration (ElA). EPA is also required to set the cellu-
                   losic biofuel standard each year based on the volume projected to be
                   available during the following year, using EIA projections and assess-
                   ments of production capability from industry. This regulatory action
                   proposes to establish the annual percentage standards for 2013 for
                   cellulosic, biomass-based diesel, advanced biofuel, and total renewable
                   fuels that apply to all gasoline and diesel produced or imported in
                   year 2013.
                   EPA is also required to determine and promulgate the applicable
                   volume of biomass-based diesel that will be required in 2014, as the
                   statute does not specify the applicable volumes for years after 2012.
                   EPA is setting the applicable volume of biomass-based diesel that will
                   be required in 2014 in a separate action.
                   General Background
                   This rulemaking provides an evaluation of the expected volumes of cellulosic bio-
                   fuel for 2013. We are proposing to set the 2013 standard for cellulosic biofuel at 14
                   million gallons. The approach to developing the cellulosic standards being proposed
                   for 2013 is consistent with a ruling from January 2013 by U.S. Court of Appeals for
                   D.C, and we believe the sum of these volumes expected by the specific companies
SEPA
United States
Environmental Protection
Agency
Office of Transportation and Air Quality
                 EPA-420-F-13-007
                    January 2013

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noted in the proposal (14 million gallons) is a reasonable representation of expected production.
This projection reflects EPA's current estimate of what will actually happen in 2013, and we will
consider public comments before setting the final cellulosic standard. This action also proposes
to set the 2013 volume requirements for advanced biofuel and total renewable fuel at the levels
required by the statute 2.75 and 16.55 billion gallons, respectively. EPA previously set the 2013
volume requirement for biomass-based diesel in a separate action, finalizing a volume of 1.28
billion gallons. All volumes are ethanol-equivalent, except for biomass-based diesel which is
actual,

Final Percentage Standards for 2013
To calculate the percentage standard for cellulosic biofuel for 2013, EPA used a volume of 14
million ethanol-equivalent gallons. EPA is also using the applicable volumes that are specified
in the statute to set the percentage standards for advanced biofuel and total renewable fuel for
2013. These volumes are shown in Table 1,

                                       Table  1
      Volumes Used to Determine the Proposed 2013 Percentage Standards3
Cellulosic biofuel
Biomass-based diesel
Advanced biofuel
Renewable fuel
14 mill gal
1.28 bill gal
2.75 bill gal
16.55 bill gal
   1 All volumes are ethanol-equivalent, except for biomass-based diesel which is actual.
The volumes in Table 1 are the minimum that would need to be consumed in the U.S. Insofar
as excess volumes of cellulosic biofuel or biomass-based diesel were to be consumed, they would
count towards the advanced biofuel and total renewable fuel volume requirements.

Four separate percentage standards are required under the RES program, corresponding to the
four separate volume requirements shown in Table 1. The percentage standards represent the
ratio of renewable fuel volume to non'renewable gasoline and diesel volume. Thus, in 2013
about 10% of all fuel used will be from renewable sources. The standards for 2013 are shown in
Table 2.

                                       Table 2
                      Proposed Percentage Standards for 2013
Cellulosic biofuel
Biomass-based diesel
Advanced biofuel
Renewable fuel
0.008%
1.12%
1.60%
9.63%

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            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:


                     www.epa.gov/otaq/fuels/renewablefuels/compliancehelp/index.htm

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