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The U.S. Environmental Protection Agency (EPA) has finalized increases in renewable fuel volume requirements across all categories of biofuels under the Renewable Fuel Standard (RFS) program.

The action fixes the volume requirements and associated percentage standards for cellulosic biofuel, advanced biofuel, biomass-based diesel and total renewable fuel for 2017.

"Renewable fuel volumes continue to increase across the board compared to 2016 levels," said Janet McCabe, the agency's acting assistant administrator for the Office of Air and Radiation. "These final standards will boost production, providing for ambitious yet achievable growth of biofuels in the transportation sector. By implementing the program enacted by Congress, we are expanding the nation's renewable fuels sector while reducing our reliance on imported oil."

The Clean Air Act requires the EPA to set annual RFS volume requirements for four categories of biofuels. The EPA implements the RFS program in consultation with the U.S. Department of Agriculture and the U.S. Department of Energy.

The key elements of the new ruling are as follows:

- Cellulosic biofuel: The requirement for cellulosic biofuel is 35 percent higher in 2017 compared to 2016. It must achieve at least 60 percent lifecycle greenhouse gas emissions (GHG) reductions.

- Advanced biofuel: The new standard for advanced biofuel - comprised of biomass-based diesel, cellulosic biofuel, and other biofuel - is 19 percent higher in 2017 compared to 2016. It is required to achieve at least 50 percent lifecycle GHG emissions reductions.

- Biomass-based biodiesel: The requirement for biomass-based biodiesel has grown by 100 million gallons in 2017, an increase of 5 percent. The required volume of biomass-based diesel for 2017 is twice that of the minimum congressional target. At least 50 percent lifecycle GHG emission reductions are required compared to petroleum-based diesel.

- Total renewable fuel: The requrement for total renewable fuel is up 1.2 billion gallons in 2017 compared to 2016, a 6 percent increase.

Renewable fuel requirements for 2014-2017

	2014	2015	2016	2017
Cellulosic biofuel (million gallons)	33	123	230	311
Advanced biofuel (billion gallons)	2.67	2.88	3.61	4.28
Biomass-based diesel (billion gallons)	1.63	1.73	1.90	2.00
Total renewable fuel (billion gallons)	16.28	16.93	18.11	19.28

Earlier this year, in August, a U.S. Navy ship operated for the first time ever on a 100 percent drop-in renewable diesel fuel named ReadiDiesel. The product was developed by Applied Research Associates (ARA) and Chevron Lummus Global as a drop-in replacement for petroleum F-76 marine diesel.

Also in August, the U.S. Navy and the state of Queensland, Australia, signed a cooperation agreement to work together in projects that advance shared interests in alternative fuel development. This year, several U.S. Navy ships operating in the Pacific Ocean have been powered by an alternative fuel blend containing 10 percent advanced biofuel derived from beef tallow provided by Midwest farmers. The blend is said to require no changes to engine modifications or operational procedures.

In July, Bunker Index reported that the US Navy had awarded a contract to build six biofuel-refuelling Navy oilers. The vessels will have the capacity to carry 156,000 barrels of oil, including the Navy's new biofuels.