Both ethanol and non-ethanol biofuels can be used to meet the RFS requirements; however ethanol has and will likely continue to be the predominant renewable fuel in the market for the near and foreseeable future. As the volume requirements of the RFS program increase, it becomes more likely that the volume of ethanol projected to meet those requirements will exceed the volume that can be consumed in the common blend ratio of 10 percent ethanol and 90 percent gasoline, referred to as E10. Additional volumes of ethanol would then need to be used at higher blend levels such as E15 or E85 to meet increasing RFS levels or significant additional volumes of non-ethanol biofuels would be needed. As a result, to the extent that ethanol is likely to be used to meet RFS volume requirements, the volume of ethanol that can be legally and practically consumed is a limiting factor in meeting the statutory volumes.
For 2013, we expect compliance with the RFS standards through the use of RINs generated in 2013 and those generated in 2012 that are available under the regulations for use (carryover RINs) in complying with 2013 standards. In 2014, the situation could be different. There are a number of factors that will play a role in determining how regulated parties will demonstrate compliance with the applicable RFS volumes. First, the advanced biofuel and total renewable fuel requirements rise substantially to 3.75 billion gallons and 18.15 billion gallons, respectively. While non-ethanol biofuels are anticipated to continue to grow to help supply the advanced biofuel standard, an estimated 16 billion gallons or more of conventional and advanced ethanol might still be needed to comply with the RFS program in 2014. Second, the number of carryover RINs from 2013 will also be a critical factor in determining how obligated parties show compliance with the 2014 RFS volume requirements. EPA will continue to engage with stakeholders on this issue as..