In comments submitted August 17 regarding the Renewable Fuel Standard (RFS) program’s targets for 2019, NACWA approved of EPA’s increased cellulosic biofuel targets but asked that the Agency consider methods for stabilizing the market for these fuels.
Clean water utilities that digest their biosolids and produce biogas can produce compressed natural gas that qualifies as a cellulosic biofuel in the RFS program, allowing revenue to be earned through the program. EPA’s increase in the 2019 target for cellulosic biofuels recognizes the growth in production of this type of fuel, which will continue allowing utilities to participate in the program. However, if production increases beyond the targets, the price of the biofuel credits could crash. Given the length of time needed for utilities to plan and construct renewable fuel production facilities, market stability is needed.
NACWA members that are participating in the RFS program or that have an interest in learning more are encouraged to contact Cynthia Finley, NACWA’s Director, Regulatory Affairs.