Regulation of Fuels and Fuel Additives: Renewable Fuel Standard ...
Regulation of Fuels and Fuel Additives: Renewable Fuel Standard ...
Regulation of Fuels and Fuel Additives: Renewable Fuel Standard ...
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enewable fuel volumes in the calculation <strong>of</strong> the st<strong>and</strong>ard would not serve the purpose<br />
intended by the Act <strong>of</strong> ensuring that the statutorily required renewable fuel volumes are<br />
consumed in the 48 contiguous States.<br />
A final issue that could affect the calculated value <strong>of</strong> the st<strong>and</strong>ard is any deficit<br />
carryover from 2006. Any deficit carryover from 2006 would increase the st<strong>and</strong>ard only<br />
for 2007. Since renewable fuel use in 2006 is expected to exceed the 2.78 percent default<br />
st<strong>and</strong>ard, we are proposing that no deficit be carried over to 2007. Beginning with the<br />
2007 compliance period, when annual individual party compliance replaces collective<br />
compliance, any deficit is calculated for an individual party <strong>and</strong> is included in the party’s<br />
<strong>Renewable</strong> Volume Obligation (RVO) determination, as discussed in Section III.A.4.<br />
In summary, in order to get the total projected non-renewable gasoline volumes<br />
from which to calculate the st<strong>and</strong>ard, EPA is proposing to use EIA projections <strong>of</strong><br />
nationwide <strong>and</strong> state gasoline consumption, <strong>and</strong> small refinery <strong>and</strong> small refiner volumes<br />
estimated as a constant percentage <strong>of</strong> national gasoline volumes.<br />
Based on the discussion above, the formula which we are proposing to be used for<br />
calculating the percentage st<strong>and</strong>ard is shown below:<br />
Where<br />
RFVi<br />
− Celli<br />
RFStdi<br />
= 100 ×<br />
( Gi<br />
− Ri)<br />
+ ( GSi<br />
− RSi)<br />
− GEi<br />
RFStdi = <strong>Renewable</strong> <strong>Fuel</strong> st<strong>and</strong>ard in year i, in percent<br />
RFVi = Nationwide annual volume <strong>of</strong> renewable fuels required by section<br />
211(o)(2)(B) <strong>of</strong> the Act for year i, in gallons<br />
Gi = Amount <strong>of</strong> gasoline projected to be used in the 48 contiguous states, in<br />
year i, in gallons<br />
Ri = Amount <strong>of</strong> renewable fuel blended into gasoline that is projected to be<br />
consumed in the 48 contiguous states, in year i, in gallons<br />
GSi = Amount <strong>of</strong> gasoline projected to be used in Alaska, Hawaii, or a U.S.<br />
territory in year i if the state or territory opts-in, in gallons<br />
RSi = Amount <strong>of</strong> renewable fuel blended into gasoline that is projected to be<br />
consumed in Alaska, Hawaii, or a U.S. territory in year i if the state or<br />
territory opts-in, in gallons<br />
GEi = Amount <strong>of</strong> gasoline projected to be produced by exempt small refineries<br />
<strong>and</strong> small refiners in year i, in gallons (through 2010 only)<br />
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