After proposing in December the 2022 ethanol blending requirement will be 15 billion gallons, the Biden administration is thinking about reducing it before it becomes final later this year, according to Reuters, citing sources familiar with the situation.
The refining industry and unions argue the ethanol industry cannot support the 15 billion gallon blending level due to shrinking fuel consumption, ethanol plant shutdowns and higher regulatory costs.
In December, EPA announced the ethanol blending volumes for 2020, 2021 and 2022. It cut the blending amounts for 2020, 2021 and restored the 2022 level to 15 billion gallons. EPA held a virtual hearing on the blending requirements on Jan. 4, 2022. The public comment period on the RFS proposals closes on Feb. 4.
