Introduction by Brett Hicks
Summary by Brianna Welsh
On December 20th, 2024, twenty-five speakers made public comments during EPA’s virtual hearing in regards to the Proposed Partial Waiver of 2024 Cellulosic Biofuel Volume Requirement and Extension of 2024 Compliance Deadline, released December 13th, 2024. Industry experts, obligated parties, compliance consultants and more were given the opportunity to air their opinions of the proposed rule – limited to three minutes each.
RINSTAR listened in and created a summary of each of the speaker’s main points, which can be found below. Relevant links have been provided when referencing certain regulations. The overall sentiment of the speakers towards the proposed partial waiver and the compliance deadline adjustment is that it is unnecessary, invokes market volatility, and incites confusion for obligated parties and investors alike.
Here at RINSTAR Renewable Fuel Registry, we are always compliance-first and help our clients to stay compliant under the Renewable Fuel Standard via RIN management, timely reporting, and Renewable Volume Obligation calculation assistance. Our team keeps a close eye on the ever-changing RFS so that our client’s stay informed and within regulatory guidelines at all times. Given that, we will be on the look out for the final ruling and any RVO or deadline adjustment that occurs. We have hopes that EPA will continue listening to industry insiders when making these decisions, as the effects of each regulatory change is wide-reaching and potentially market-shifting.
If you or your team would like to make a public comment, please scroll to the bottom of this post for next steps.
Speaker Summaries:
| Tia Sutton, speaking on behalf of the American Petroleum Institute (API), expressed API’s support for several aspects of the EPA’s proposed rule during the hearing. API supports lowering the 2024 cellulosic biofuel obligation due to anticipated production shortfalls and recommends finalizing an extension of the 2024 compliance deadlines as soon as possible to provide certainty to regulated parties. Additionally, API backs the proposed technical amendments, including biogas regulatory reform changes and incorporation by reference amendments aligned with EPA’s streamlining rule. Sutton indicated that more detailed comments would be submitted in writing and thanked the EPA for the opportunity to testify. |
| Joe Kakish, General Counsel for Growth Energy, opposed the EPA’s proposal to partially waive the 2024 cellulosic biofuel requirements, arguing it contradicts recent EPA policies and undermines RFS goals of driving innovation and production. Kakish stated “For example, EPA finalized the SET rule for 2023, 2024, 2025 with conventional biofuel volumes at 15 billion gallons, advanced volumes that, at the time, reflected growth and innovation in the industry, and with ambitious targets for cellulosic energy. EPA has also taken actions to end the abuse of small refinery exemptions and restore integrity to the program. Most relevant here, EPA also appropriately denied a request from oil companies to retroactively waive 2023 cellulosic volume requirements. So, EPA’s proposal to partially waive 2024 cellulosic requirements is inconsistent with EPA’s recent RFS policies and with the RFS attempts.“ Kakish noted progress in cellulosic biofuel production, with increasing registrations for these fuels, and stressed that the waiver provision should only be applied prospectively. He expressed concerns about delays in compliance deadlines, which create uncertainty for producers and the fuel supply chain, and urged the EPA to resolve pending RFS issues, such as lifecycle emissions modeling and the backlog of approvals for renewable fuel pathways. |
| Kate Schenck, Director of Regulatory Affairs at Clean Fuels Alliance America, urged the EPA to pause its proposed rule until a comprehensive accounting of D3 Renewable Identification Numbers (RINs) for 2024 is provided and to consider potential relief mechanisms for refiners, including small refinery exemptions or legislative actions. Clean Fuels supports EPA’s decision not to apply the cellulosic waiver authority retroactively, as it is inconsistent with current statutory volumes set by EPA rather than Congress. The alliance advocated for maintaining advanced and overall Renewable Volume Obligations (RVOs) based on an anticipated oversupply of advanced biofuel RINs. They called for a reassessment of underestimated volumes in the SET rule and an upward adjustment of biomass-based diesel (BBD) and advanced volumes for 2024 and 2025. Clean Fuels emphasized that EPA must account for the economic, technical, and environmental realities of the biodiesel industry and projected advanced RIN generation exceeding required volumes. Regarding compliance deadlines, Clean Fuels opposed automatic deadline extensions tied to RFS standard revisions, advocating for case-by-case determinations to ensure program integrity. They also supported updating the biodiesel definition to align with the latest ASTM D6751-24 industry standard as part of EPA’s regulatory streamlining efforts. |
| Geoff Moody, representing the American Fuel and Petrochemical Manufacturers (AFPM), which represents nearly 90% of U.S. refining capacity. At this time, AFPM supports key aspects of the EPA’s proposal to partially waive 2024 cellulosic biofuel standards and extend compliance deadlines. Moody emphasized these measures are necessary due to significant production shortfalls in 2023 and 2024 that have depleted the cellulosic RIN bank, leaving obligated parties without sufficient access to RINs for compliance. AFPM submitted a waiver petition in November, estimating a 2024 shortfall of at least 115 million cellulosic RINs, accounting for both the 2023 deficit and ongoing production challenges. While there is a modest discrepancy between AFPM’s and EPA’s projections, this is attributed to differences in proprietary data and diesel consumption modeling methodologies. Moody asserted that the EPA must utilize its cellulosic waiver authority to issue waiver credits as mandated by statute, in addition to leveraging its general waiver authority. He also highlighted the importance of the EPA’s proposal to set firm compliance deadlines for 2024 to provide regulatory certainty. |
| Geoff Cooper, CEO of the Renewable Fuels Association (RFA), emphasized the need for stability and predictability in the Renewable Fuel Standard (RFS) program, urging the EPA to avoid retrospectively lowering Renewable Volume Obligations (RVOs), which he argued destabilize the RIN market, discourage investment, and undermine the program’s goals. Instead, he recommended that the EPA rely on its cellulosic waiver authority to address production shortfalls, as this authority remains intact and is more appropriate than using the general waiver retroactively. Cooper supported maintaining the 2024 advanced biofuel and total RVOs but contended that the EPA underestimated potential D3 RIN generation, citing recent rapid growth in cellulosic ethanol production from corn kernel cellulose and the typical year-end surge in renewable natural gas (RNG) output, which could push D3 RIN generation to 990 million to 1 billion. He urged the EPA to incorporate final full-year D3 RIN figures before finalizing any reductions. |
| Glenn Johnston, Chair of the Regulatory Committee for the Advanced Biofuels Association (ABFA), testified on behalf of its 40+ global members, who produce over 4 billion gallons of advanced biofuels annually, with significant growth in renewable diesel. He expressed ABFA’s support for the EPA’s proposal to partially waive the 2024 cellulosic biofuel volume requirement, citing uncertainties in setting precise targets, and commended the agency’s decision to maintain the total advanced biofuel standard, as the sector consistently exceeds volume targets. Johnston endorsed extending the Renewable Fuel Standard (RFS) compliance deadline for 2024 to ensure regulated parties can meet obligations effectively. |
| Martina Simkins, Senior Director of Policy at Anew Climate, a leading North American climate solutions company with 20 years of success in the Renewable Fuel Standard (RFS) program, emphasized the importance of preserving the EPA’s ability to set ambitious yet achievable cellulosic biofuel volume obligations. While supporting the EPA’s use of general waiver authority to address the 2024 under-supply of D3 RINs, Simkins cautioned against over-reliance on this mechanism, which could destabilize markets and deter investment in cellulosic biofuels. She highlighted the need to expand pathways, such as e-RINs and bio-intermediates like RNG used in diesel production, to align with the RFS program’s intent and the growing RNG industry, which is poised to exceed demand for CNG and LNG transportation fuels. Simkins warned that existing waiver mechanisms and pricing caps might not fully reflect the true costs of innovation, limiting the EPA’s ability to set standards that promote long-term growth. She urged the EPA to act quickly to greenlight new pathways, remove constraints, and support RNG’s potential to convert waste gases from farms, landfills, and wastewater plants into clean energy. These steps, she argued, are critical for achieving congressional goals and fostering investment in the cellulosic biofuels sector. |
| Nicole Mulanaphy, a partner in the Energy Compliance Service Group at Weaver, provided detailed comments on the EPA’s proposed amendments to measurement, sampling, and testing regulations. She addressed the need for greater flexibility in sampling methodologies under RNG producer certificates and recommended the inclusion of alternative collection methods outlined in existing measurement requirements. Mulanaphy advocated for modifying the proposed standards for flow meters to focus on accuracy requirements, highlighting that most manufacturers guarantee precision of 1% or better. She also requested that EPA incorporate already approved alternative measurement protocols and ISO standards for pressure differential devices to better accommodate flow meters used in the biogas and RNG industries. For LNG, she emphasized incorporating weight-based methods, such as using weigh scale tickets or bills of lading, as flow meters are uncommon for cryogenic liquids. Mulanaphy concluded by urging the EPA to consider these revisions to ensure the regulations align with industry practices and enhance accuracy and practicality. |
| Grant Zimmerman, CEO of Amp Americas, highlighted his company’s role as a methane abatement organization, capturing methane from regulated manure management practices on dairy farms and generating revenue based on the environmental impact of avoided emissions. Despite a billion-dollar pipeline of renewable natural gas (RNG) projects, Zimmerman expressed concern that policy uncertainty, including the EPA’s proposed waiver and compliance deadline delay, has delayed investments. He argued that the waiver rewards non-compliance by oil companies, undermines confidence in RIN markets, and discourages private investment in low-carbon solutions like RNG, which provide immediate environmental benefits. Zimmerman emphasized that the EPA’s approach risks creating future RIN shortfalls, misjudges supply levels (especially if small refinery exemptions are granted), and sends a harmful market signal that deters investment in RNG projects. He noted that $400 million had been raised last year for RNG projects but warned that these projects may not be able to fully utilize this capital if the proposal is finalized. Zimmerman urged the agency to reconsider the waiver proposal to ensure the stability and growth of the RNG industry, support low-carbon innovation, and achieve methane reduction goals. |
| Asher Goldman, Vice President of Investments at Generate Capital, highlighted his company’s mission to scale decarbonizing infrastructure through sustainable investments that provide market-leading, risk-adjusted returns. Generate Capital has invested over $10 billion in sustainable projects, including hundreds of millions in biofuels, relying on the confidence that the EPA would uphold Renewable Volume Obligations (RVOs). Goldman expressed serious concerns about the EPA’s proposed waiver, arguing that it undermines investor confidence and the long-term integrity of the Renewable Fuel Standard (RFS). He emphasized that biofuel projects require stable, enforceable demand to justify the capital-intensive investments needed to expand supply. Goldman warned that the waiver sets a harmful precedent by signaling to the market that RVOs are not binding and the EPA may not enforce compliance, deterring future investments. This intervention, he argued, risks stalling growth, reducing supply, and undermining the RFS’s objectives. Goldman called on the EPA to uphold the integrity of the RFS, allowing market pricing signals to drive investments and ensure supply meets demand. |
| Andrew Craig, Vice President of California Bioenergy, emphasized the critical role of the Renewable Fuel Standard (RFS) in enabling the growth of his organization’s development of over 80 dairy digester projects across the U.S. Since 2020, these projects have reduced 1.9 million metric tons of CO2 equivalent annually and produced renewable fuel equivalent to 50 million gasoline gallon equivalents per year, supporting farmers, creating jobs, and contributing to energy independence. Craig voiced concerns over the EPA’s proposal to partially waive the 2024 cellulosic biofuel requirement, noting that such policy shifts undermine investor confidence and jeopardize the high capital investments required for digester projects. His organization has invested hundreds of millions in new projects, assuming RVO targets were set in stone and cellulosic waiver credits eliminated, but the proposed changes create uncertainty and hinder future development. Craig highlighted the vast potential for expanding RNG production, pointing out that only 419 of California’s 40,000 dairy farms currently have operational digesters, and emphasized the importance of maintaining strong RVO targets to drive methane capture on additional farms. He supported calls to delay decisions on waivers until 2024 D3 RINs are fully reported and urged the EPA to expand D3 eligibility to include biogas used as a feedstock for transportation fuels. |
| Eric McAfee, Chairman and CEO of Aemetis, a NASDAQ-listed renewable fuels company generating $300 million in annual revenue, highlighted the detrimental impact of the EPA’s proposed 2024 D3 RIN waiver on the renewable fuels industry. His company committed $400 million to building dairy digesters at 75 California dairies, producing carbon-negative renewable natural gas (RNG) that generates D3 cellulosic RINs. McAfee opposed the waiver, arguing that it undermines the Renewable Fuel Standard (RFS) by incentivizing oil companies to avoid investing in renewable fuels production, instead relying on waivers to meet their obligations. He noted that rumors of the waiver already caused a significant crash in D3 RIN prices, resulting in massive financial losses for renewable fuel investors while increasing oil company profits. McAfee criticized the EPA for failing to enforce the RFS’s intent to drive investment in renewable fuels, create jobs, and enhance energy independence and security. “The Renewable Fuel Standard was passed in 2007. It was not named the Oil Company Convenience Act of 2007.” He emphasized that the lack of D3 RINs stems from oil companies’ failure to invest in RNG infrastructure, such as truck fleet conversions and fueling stations. He pointed out that recent actions by the EPA have caused over $70 million in industry losses this month alone, transferring wealth to oil companies and undermining the RFS’s climate and economic goals. McAfee urged the EPA to uphold the RFS’s integrity, enforce blending obligations, and ensure profits are reinvested in renewable energy projects. |
| Benjamin Kling, Policy Research Associate at Beta Analytic, a global leader in carbon-14 analysis, addressed the EPA’s biogenic testing requirements for renewable natural gas (RNG) under the Renewable Fuel Standard (RFS). Beta Analytic provides independent laboratory testing using the ASTM-D6866 standard, a critical method for verifying renewable content in fuels. Kling emphasized that the D6866 test has been a cornerstone of the RFS since 2005, ensuring renewable fuel producers accurately represent the renewable content of their fuels and preventing fraud. He expressed concern over proposals to reduce the testing frequency from annually to every three years, arguing this change would be ineffective in regulating renewable content and could incentivize overestimations, leading to fraud. Kling advocated for quarterly testing for RNG, aligning with EPA’s requirements for co-processed fuels and other global renewable fuel programs, such as the EU Renewable Energy Directive and Canada’s GHGRP. He noted that quarterly testing provides the necessary rigor to verify renewable content and aligns with best practices. Additionally, he highlighted that alternative testing methods cannot match the accuracy of ASTM-D6866 and should not replace it. Quarterly testing, conducted by independent laboratories, ensures transparency, maintains program integrity, and supports the generation of RINs for compliant fuels. |
| Bill Johnson, CEO of Vision RNG, a leading renewable natural gas (RNG) development company, expressed serious concerns about the EPA’s proposed partial waiver of the 2024 cellulosic biofuel requirement under the Renewable Fuel Standard (RFS). Vision RNG specializes in partnering with landfill owners to build and operate processing plants that capture harmful methane emissions and convert them into clean RNG for productive uses like transportation fuel. Johnson emphasized the critical importance of policy certainty and predictability for making substantial investments in RNG infrastructure, noting that his company has made significant business decisions based on the established RVOs for 2024 and 2025. Johnson detailed the negative market impacts caused by the waiver proposal, including a frozen project development, plummeting D3 RIN prices (a drop of over $1 per RIN), and the withdrawal of a $60 million debt financing for his company due to market uncertainty. He criticized the waiver proposal for undermining both current and future RNG demand by signaling the potential reinstatement of cellulosic waiver credits at lower prices. He argued that the proposal is premature and fails to account for the accelerated production of RNG, highlighting a newly commissioned plant by his company in October that is already contributing additional D3 RINs to the market. |
| Jeff Prevatt, Deputy Director of Pima County Regional Wastewater Reclamation in Tucson, Arizona, and a representative of the Water Environment Federation’s RNG Task Force, addressed the EPA’s recent set rule changes and their impact on the wastewater treatment industry. Representing municipal wastewater treatment facilities nationwide, Prevatt highlighted the significant investments—ranging from half a million to a million dollars per facility—that utilities have made in upgrading biogas to RNG production and shifting infrastructure away from cogeneration. However, he expressed concerns about the rapid pace of regulatory changes and their associated costs, which have created equipment backlogs, contractor delays, and extended lead times for compliance. Prevatt detailed industry frustration over investments made to meet new requirements, only to find that existing equipment, such as mass spectrometers, Coriolis flow meters, and other instruments, might have been sufficient. These rapid changes have also delayed registrations due to pending engineering reviews, further exacerbating compliance challenges. While he acknowledged and supported the EPA’s broader goals, Prevatt urged the agency to extend implementation timeframes to allow utilities to adapt without incurring unnecessary costs or delays. He emphasized the need for a more measured approach, ensuring that investments align with long-term compliance and operational efficiency while maintaining industry confidence in the regulatory process. |
| Patrick Foody, Chief Development Officer of Iogen, emphasized the company’s three decades of leadership in cellulosic biofuels and its active role in U.S. biofuel production. Addressing the EPA’s proposed 2024 cellulosic biofuel waiver, Foody argued that the issue is not insufficient RNG supply but a lack of vehicle availability to generate RINs, which he called a demand-side issue. He questioned the EPA’s use of general waiver authority, noting that addressing demand-side considerations contradicts the agency’s stated rationale. Foody advocated for enabling the refinery hydrogen pathway for RIN generation, leveraging available RNG supply and existing refinery infrastructure to address demand-side challenges. He highlighted that Iogen has submitted a pathway petition to allow refiners to generate RINs using their refining assets, meeting all eligibility criteria. Foody stressed that such a pathway would create substantial new demand for RNG, increase RIN generation, and expand compliance options, aligning with the goals of the Renewable Fuel Standard (RFS). He criticized the EPA for failing to pursue necessary rulemaking and policy updates, missing clear opportunities to enhance RIN availability and support industry growth. Foody underscored that enabling pathways like refinery hydrogen aligns with Congress’s intent for the RFS to increase renewable fuel production, enable drop-in fuels, stabilize fuel supplies, and support workforce development. He urged the EPA to prioritize solutions that utilize existing infrastructure rather than resorting to waivers, which he argued were not the intent of Congress. |
| Morgan Beeler, leading renewable fuels policy and regulatory affairs for STX Commodities, a global environmental commodity trading firm active in the RFS as an RNG seller, and RIN trader, emphasized the importance of delivering certainty and stability to ensure the program’s long-term success. She highlighted concerns over the EPA’s proposed reduction in the 2024 cellulosic biofuel mandate, arguing that such actions contradict the RFS’s Congressional goal of increasing renewable fuel volumes in transportation. Beeler explained that the uncertainty caused by such proposals disrupts RIN markets and discourages investment in renewable fuel capacity, particularly in the capital-intensive cellulosic category, which depends heavily on predictable future RIN values to finance production facilities, fueling infrastructure, and compatible vehicle engines. Beeler cautioned that lowering RIN prices through volume reductions significantly reduces financial incentives to expand the necessary infrastructure for cellulosic fuels. While acknowledging the challenges the EPA faces in addressing short-term D3 RIN availability, she warned that reducing cellulosic volumes undermines the program and risks long-term collapse of the category. She questioned the statutory validity of using the general waiver authority, asserting that there is no evidence of an inadequate cellulosic fuel supply and noting the missed deadline for applying the cellulosic waiver authority in 2024. Beeler advocated for letting the market determine the best course of action, whether through obligated parties carrying a deficit or reducing carryover RINs. |
| Andy Foster, President of Aemetis Advanced Fuels, highlighted his company’s extensive contributions to the Renewable Fuel Standard (RFS) and its ambitious plans to invest over $1 billion in renewable fuels projects, including cellulosic ethanol, dairy-based RNG, carbon capture and sequestration, and sustainable aviation fuel. Aemetis, based in California’s Central Valley, employs over 100 people and has created hundreds of construction-related jobs. By the end of the year, Aemetis will operate 12 digesters producing over 500,000 MMBTUs of RNG annually, with plans to expand to 70 digesters and 1.6 million MMBTUs of negative-carbon-intensity RNG by 2028. Foster emphasized that such projects rely heavily on policy certainty to secure private capital and government-backed loans, which are essential for debt repayment and investor returns. Foster strongly opposed the EPA’s proposed partial waiver of the 2024 cellulosic biofuel RVO, arguing it undermines investor confidence and sends a message that policy commitments and enforcement lack credibility. He criticized the waiver as premature and based on incomplete data, asserting that obligated parties could meet their requirements with proper planning under the existing RVO. Foster noted that reducing RVOs tilts the playing field further in favor of the century-old petroleum industry and disincentivizes investments in renewable fuels, job creation in distressed areas, air quality improvements in disadvantaged communities, and reductions in methane and CO2 emissions from agriculture and transportation. Foster urged the EPA to abandon the waiver and compliance delays, reaffirm its commitment to the RFS, and maintain the program’s integrity and predictability to ensure long-term success in reducing greenhouse gas emissions, creating jobs, and advancing energy independence. |
| Adam Comora, Co-CEO of Opal Fuels highlighted his organization’s leadership in capturing waste methane emissions and converting them into renewable electricity or renewable natural gas (RNG). Opal Fuels invests over $200 million annually in projects, produces about 10% of D3 RINs, and operates a network of over 300 fueling stations to support RNG as a transportation fuel. Comora expressed deep concerns over the EPA’s proposed retroactive waiver of 2024 cellulosic biofuel volume obligations, warning that such actions undermine market stability and harm the RFS program. Comora argued that retroactive volume reductions incentivize obligated parties to delay or avoid RIN purchases, leading to market imbalances, reduced RIN prices, and stagnation of new production. He cautioned that this could push RNG out of the RFS program, causing lower RIN generation and perpetuating a cycle of market decline. The proposal, he noted, unfairly punishes compliant obligated parties while rewarding those who fail to meet their obligations. Comora emphasized that such policy uncertainty destabilizes the D3 market and discourages growth in cellulosic fuel production. He urged the EPA to utilize existing mechanisms, such as deficit carry forwards, to address potential shortfalls in 2025 without taking immediate action that could damage the program. Comora highlighted that the general waiver authority and cellulosic waiver credits (CWC) should support, not undermine, a stable and functioning D3 market. |
| Johannes Escudero, Founder and CEO of the RNG Coalition, testified against the EPA’s proposed waiver of the 2024 cellulosic biofuel volume requirement under the RFS program. Escudero highlighted the RNG industry’s exponential growth since qualifying to generate cellulosic biofuel RINs, growing from 41 companies and 47 RNG facilities in 2014 to 408 companies operating 442 facilities today, with 170 more under construction and 286 in development. This expansion has generated over $7 billion in GDP, supported $14 billion in economic activity, and created more than 55,000 jobs nationwide, significantly benefiting local economies. Escudero emphasized that the RFS program’s Congressional intent was to increase cellulosic biofuel volumes through a predictable and stable regulatory environment, a necessity for securing long-term financing for high-capital-cost RNG projects. The RNG industry, he noted, has consistently met its obligations, producing over 95% of D3 RINs and exceeding 2025 volume requirements. He argued that the proposed waiver undermines market certainty, discourages investment, and risks long-term harm to the RFS program, especially for smaller companies and projects that depend on stable volume requirements. Escudero disputed the EPA’s rationale for invoking its general waiver authority, asserting there is no shortage of RNG supply to meet the 2024 volume requirement and that the EPA has previously acknowledged such waivers could harm the RFS program by reducing future demand for cellulosic biofuels. |
| Geoffrey Dietz, Director of Federal Government Affairs for the RNG Coalition, voiced opposition to the EPA’s proposed waiver of the 2024 cellulosic biofuel volume requirement. Dietz argued that the waiver is premature and urged the EPA to focus on facilitating D3 RIN generation to ensure compliance with existing volume requirements. He emphasized that sufficient RNG supply exists to meet the 2024 requirement, citing projections from the RNG Coalition and Argonne National Laboratory estimating over 1.8 billion ethanol-equivalent gallons of RNG in 2024. Dietz identified three key issues with the EPA’s proposal. First, he highlighted the regulatory uncertainty and delays caused by the biogas regulatory reforms, which have constrained the industry’s participation in the RFS program. He specifically pointed to restrictive interpretations around RIN activation dates that limit RIN generation relative to RNG supply, calling for revisions to allow greater flexibility. Second, Dietz noted that retroactive waivers incentivize obligated parties to delay purchasing RINs, undermining the market-forcing intent of the RFS. He reported that such delays have already occurred in anticipation of the proposed waiver. Finally, Dietz addressed the reconsideration of small refinery exemptions (SREs), suggesting that resolving these could increase D3 RIN availability and alleviate claimed deficits by obligated parties. Dietz called on the EPA to work collaboratively with the RNG industry to address these transition issues and ensure that all available D3 RINs are accounted for before making any waiver determination. |
| Sandra Franco, Legal and Regulatory Counsel at the RNG Coalition, strongly opposed the EPA’s proposed waiver of the 2024 cellulosic biofuel volume requirement, arguing that it is premature, legally unwarranted, and detrimental to the Renewable Fuel Standard (RFS) program’s objectives. She emphasized that the EPA lacks the statutory authority to issue a retroactive waiver under Section 07(D) of the Clean Air Act, as the provision is explicitly forward-looking, based on projections from the Energy Information Administration, and does not permit adjustments based on year-end assessments. Franco explained that Congress designed the waiver authority to stabilize markets, not to allow obligated parties to revisit compliance obligations retroactively. Retroactive application, she argued, undermines the procedural and substantive requirements of the general waiver authority, destabilizes the market, and contradicts the statutory intent to create market-forcing renewable fuel volume requirements. Franco further highlighted that issuing a waiver based on perceived supply shortfalls introduces significant market uncertainty and volatility, deterring investment and harming the broader renewable fuels industry. Citing the Americans for Clean Energy v. EPA case, she noted that “inadequate domestic supply” pertains strictly to supply-side factors and does not encompass demand-side constraints or distribution capacity. The court also ruled that noncompliance concerns by obligated parties do not justify a waiver, as doing so would unlawfully lower the economic harm threshold established by Congress. Franco underscored that the proposed waiver is not grounded in a lack of RNG supply or production but instead reflects the choices of certain obligated parties not to procure available supply, a factor that should be deemed immaterial under the RFS statute. Franco stressed that the EPA’s proposed waiver undermines the price-stabilizing mechanism of cellulosic waiver credits, which are designed to operate predictably within the compliance year. She called on the EPA to enforce the existing 2024 volume requirements to ensure their market-forcing function, as intended by Congress, and to avoid the adverse consequences of a waiver that fails to meet statutory criteria. |
| Joe Jobe, CEO of the Sustainable Advanced Biofuel Refiners Coalition (SABER), addressed the EPA’s proposed waiver of the 2024 cellulosic biofuel volume requirement, emphasizing its inconsistency with Congressional intent and the Renewable Fuel Standard (RFS) program’s goals. SABER represents a broad coalition of stakeholders, including feedstock growers, biodiesel producers, distributors, retailers, and consumers, all of whom have invested significantly in producing biodiesel, the first successful advanced biofuel under the RFS. Jobe argued that the RFS is a market-forcing policy, and its volume requirements must be enforced as Congress directed. He underscored that the waiver authority is narrowly defined and cannot be used to reduce advanced biofuel volumes in the absence of genuine supply constraints. He noted that there is no lack of supply to meet the 2024 advanced biofuel volume requirements, with D4 and D5 RIN generation through September exceeding the 2024 requirement of 6.54 billion RINs. He argued that reducing the already modest volume requirements would be unjustified and detrimental to the industry. Furthermore, Jobe stated that the EPA cannot base a waiver on environmental or economic harms, as these factors were already considered when setting the 2024 volumes, and the agency cannot rely on grounds outside the scope of its original public comments. SABER expressed support for the proposed revision to the ASTM specification for biodiesel under the RFS program, noting that it had urged the EPA to adopt this change to align with market practices. Additionally, Jobe called on the EPA to address disparities in its biomass-based diesel regulations, particularly concerning the equivalence value for renewable diesel. He criticized the current regulations for allowing RIN generation for the non-renewable portion of fuels, a discrepancy that the EPA acknowledged in its December 2022 proposed RVO rule. Jobe urged the EPA to act on SABER’s petition for reconsideration to correct this issue. |
| Michael Jensen, Senior Counsel and Director of Regulatory Affairs at WM (formerly Waste Management), provided comprehensive feedback on the EPA’s proposed 2024 cellulosic biofuel volume adjustment rule, highlighting its potential negative implications for the RFS program and the RNG industry. WM, a leading North American provider of environmental solutions and RNG production, has invested approximately $1.4 billion to expand its RNG processing facilities from four in 2020 to an anticipated 24 facilities by 2026. Jensen expressed concern over the damaging impact the proposed rule has already had on D3 RIN pricing, which could disincentivize future investments in RNG projects. He argued that the EPA lacks the legal authority to utilize the cellulosic waiver for 2024, as the Clean Air Act requires this authority to be exercised by November of the preceding compliance year, which in this case was November 2023. He also cautioned against overusing the general waiver authority, noting that it could destabilize market dynamics. If obligated parties anticipate end-of-year agency interventions, they might delay RIN purchases, creating downward pressure on RIN prices and setting a harmful precedent that undermines market stability and hinders the growth of cellulosic biofuels. Jensen also recommended that the EPA avoid accounting for perceived shortfalls in cellulosic biofuel production as grounds for reducing volume obligations, as such actions would contradict the RFS’s intent to encourage market-forcing policies. Additionally, Jensen expressed support for the proposed revisions to the biogas reform components of the set rule, commending the efforts of Robert Anderson and his team at the EPA for their collaborative approach. He highlighted the need for continued flexibility in facility registrations and the ability to roll over dispensing capacity until utility invoices are received. These measures, Jensen argued, would help ensure smoother compliance for RNG producers and sustain growth in the sector. |
| Paul Winters, Director of Public Affairs at Clean Fuels Alliance America, raised critical concerns about the EPA’s proposed waiver for the 2024 RVO, highlighting its potential impact on the RFS program’s integrity and the advanced biofuel industry. Winters emphasized that the EPA must provide a comprehensive accounting of RINs availability for 2024, considering the potential effects of small refinery exemptions (SREs), E15 fuel approval, and annual compliance flexibilities. Recent court decisions have returned previously denied SREs to the EPA for reconsideration, with at least one decision expected by January 2. The enactment of the Consumer and Fuel Retailer Choice Act of 2024 could also significantly affect the market by reintroducing unspecified RINs. These uncertainties, Winters argued, make it impossible for stakeholders to evaluate the EPA’s projections of domestic cellulosic RIN availability without full transparency on the number of RINs potentially re-entering the market through SREs. Winters noted that EPA’s actions, including emergency E15 waivers and potential legislation to expand E15 use, could significantly impact market space for advanced biofuels like biodiesel, further complicating compliance and market predictability. Winters also expressed concern that refineries’ multiple compliance options, including deferrals and retroactive exemptions, could undermine the volumes EPA modeled to backfill the overall RVO. EPA’s projection of advanced biofuel RIN generation exceeding set volumes by more than 2.6 billion RINs could lead to inefficiencies, as many banked RINs would exceed the allowable 20% carryover limit, rendering them valueless. Moreover, additional RINs returning to the market through SREs would exacerbate oversupply, undermining the efficacy of the RFS program and eroding investments made by the biodiesel and renewable diesel industries to expand production capacity. In conclusion, Winters called on the EPA to pause its current proposal and reconsider its approach to ensure that the RFS program remains effective, predictable, and supportive of the advanced biofuel industry. |
Next Steps:
If you are interested in submitting your own comment, the instructions are as follows, directly from EPA:
Submit your comments, identified by Docket ID No. EPA–HQ–OAR–2024–0411, at https://www.regulations.gov. Once submitted, comments cannot be edited or removed from the docket. EPA may publish any comment received to its public docket.
For compliance assurance, RIN management assistance, guidance on EMTS registration and much more, contact RINSTAR Renewable Fuel Registry anytime at services@cfch.com or by filling out the form on our Contact page.
