EPA's initial proposed levels for the Renewable Volume Obligations (RVOs) under the Renewable Fuel Standard (RFS) landed at the Office of Management and Budget (OMB) in mid-May and they are still showing as being under review.
EPA Administrator Andrew Wheeler had signaled the proposed levels were being revised in the wake of the COVID-19 situation. That discussion is still ongoing, Wheeler told AgriTalk November 2.
“The problem is trying to figure out what the markets are going to do,” Wheeler said, including what the Department of Energy projects on driving miles. EPA and DOE are looking at this year's data, he noted, pointing out that with COVID it is difficult to determine where levels should be as the agency wants to set “realistic numbers,” Wheeler said, noting most of the focus is on advanced biofuel levels. “That's an active conversation between us and the Department of Energy, but we're looking at all government data, trying to figure out what the right numbers are.”
He largely deflected a question on the situation for 2022, the last year covered by the current RFS authority, stating, “We're trying to make sure we get the 2021 [RFS levels] set in time.” But Wheeler pointed out relative to 2022 that they have not really started working on that yet but did note that actions by California to go with all-electric vehicles are issues that have to be considered ahead.
The reference to getting the 2021 RFS levels set in time is relative to the statutory deadline of finalizing the levels by November 30. That has been a focal point by the administration of meeting that deadline in past years.
As for the small refinery exemptions (SREs) that have been a hot-button issue, Wheeler signaled DOE has not yet sent back their recommendations on the 17 remaining gap-year requests and EPA cannot make decisions on those. Plus, the Supreme Court has been asked to assess the 10th Circuit Court decision and Wheeler signaled he did not want to make decisions only to have the court order a different decision.