EPA IS PROPOSING TO APPROVE THE USE OF CANOLA OIL TO CREATE RENEWABLE PROPANE UNDER THE RENEWABLE FUELS STANDARD

The U.S. Environmental Protection Agency (EPA) published its intention to approve adding canola oil among products that can be utilized to create renewable fuels. Through a hydrotreating process, canola oil can serve as the base to create renewable propane as well as renewable diesel, jet fuel, and heating oil. The United States Canola Association petitioned the EPA to add canola oil as a pathway to produce these renewable products under the Renewable Fuels Standard (RFS).

Through RFS, producers of renewable fuels can claim Renewable Identification Numbers (RINS), which are credits. Producers must meet a threshold of credits in different fuel production categories to demonstrate compliance with upstream production standards.

Ultimately, more fuel pathways approved to generate RINS may encourage more production of renewable propane by upstream producers. Also, the more fuels eligible for the production of renewable propane, the more possibilities for producers. Information about the RFS is available online here. Information about the EPA proposal to approve the inclusion of canola oil pathways is available online here.