EPA  Issues Direct  Final  Rule for
                   2013 Cellulosic  Standard
                       EPA is taking direct final action to revise the 2013 cellulosic bio*
                       fuel standard. This action follows from EPA having granted the
                   American Petroleum Institute's and the American Fuel and Petro-
                   chemical 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 eel'
                   lulosic fuel in 2013 or the cellulosic biofuel target established in the
                   statute.  Since data are available to show actual production volumes
                   for 2013, EPAs "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 pro-
                   posed 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 per-
                   centage standard using the volume of cellulosic biofuel (6 million ethanol-equivalent
                   gallons) expected to be produced and used in the United States in 2013,
SEPA
United States
Environmental Protection
Agency
Office of Transportation and Air Quality
                 EPA-420-F-14-018
                       April 2014

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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 Regula-
tion 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 re-
duced 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
                    "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 non-
controversial 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.

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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 insti'
tute 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&	
          utma=172919287.1468713822.1394210240.1398171856.1398176819.107&_utm
          b= 172919287.10.8.1398177813303&_utmc=172919287&_utmx='&_utmz= 17
          2919287.1394028814.1.l.utmcsr=(direct) | utmccn=(direct) | utmcmd=(none)&	
          utmv=172919287.1 l=visitor%20id=1468713822=l&_utmk=121727307

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