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EPA plays it safe on 2019 RVO

The Environmental Protection Agency (EPA) unveiled its 2019 renewable volume obligations (RVO) Friday, with finalized volumes for cellulosic biofuel, biomass-based diesel, advanced biofuel, and renewable fuels all remaining largely in-line with previous projections.

The EPA announced an increased blending mandate for advanced biofuels for 2019, with the finalized RVO for 2019 requiring 4.92bn gallons of advanced biofuels, an increase from the initially proposed level of 4.88bn gals in June and a 15% rise from 2018’s finalized figure. Cellulosic biofuel saw its blending requirement lift from the 381mn gals proposed in June to a final figure of 418mn gals. The EPA kept bio-mass biodiesel blending mandates for 2019 unchanged from June’s proposal at 2.1bn gals, while simultaneously finalizing an increase to the BBD volume for 2020 to 2.43bn gals.

The final volume requirements for 2019, which total 19.920 bn gallons, represents a near 3% rise from 2018 requirements, and remains on par with many analyst expectations ahead of the weekend. Yet due to the EPA’s failure to reallocate renewable fuel gallons removed due to small refinery waivers, the renewable fuel sector remains on uncertain ground heading into the new year.

For full analysis of state and Federal biofuel mandates, pricing and trade flows, contact [email protected] for more information.

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