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Balanced Reporting. Trusted Insights.
Tuesday, June 28, 2022
Even though less than a quarter of U.S. ethanol plants are running at full capacity, biofuels advocates argue producers can meet this year's blending targets as another battle over the Renewable Fuel Standard heats up.
Over 100 biofuel plants across the country are fully idling or cutting production rates as gas prices fall because people are staying at due to the COVID-19 outbreak and major oil producers feud over output.
Renewable fuel advocates say a final Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule economy rule issued by the Department of Transportation and Environmental Protection Agency misses the mark for transitioning to high octane low carbon fuels.
EPA is not expected to meet the statutory Nov. 30 deadline this year, and supplemental rulemaking to address gallons waived through Small Refinery Exemptions is said to be the holdup.
Global demand for U.S. ethanol has grown substantially over the last decade, but ongoing trade tensions, policy enforcement, and changing markets could set up potential roadblocks for the industry in the years ahead.
Biofuel groups say a Trump administration plan to account for gallons of renewable fuel waived through small refinery exemptions is unsatisfactory and goes back on commitments offered earlier this month.
Ethanol industry groups welcomed the Environmental Protection Agency’s proposed rule that would allow for year-around sale of E15, but refiners were divided over accompanying proposals to reform the biofuel credit market.
In just a few short years, congressional biofuel blending targets will disappear, leaving it up to future leaders of the Environmental Protection Agency to decide what's next.
