Exclusive-U.S. EPA Mulling Cuts to Biofuel Blending in Win for Oil Industry

FILE PHOTO: Signage is seen at the headquarters of the United States Environmental Protection Agency (EPA) in Washington, D.C., U.S., May 10, 2021.
FILE PHOTO: Signage is seen at the headquarters of the United States Environmental Protection Agency (EPA) in Washington, D.C., U.S., May 10, 2021.
(REUTERS/Andrew Kelly/File Photo)

The U.S. Environmental Protection Agency is proposing big cuts to the nation's biofuel blending requirements for the years 2020, 2021 and 2022, according to a document seen by Reuters, in a move that is sure to anger farmers and biofuel producers. 

The proposal is a win for the oil industry, which argued for the cuts due to an overall slowdown in fuel demand during the coronavirus pandemic. The agency would reduce the mandates for 2020 and 2021 to about 17.1 billion gallons and about 18.6 billion gallons, the document showed. That would be lower than a level of 20.1 billion gallons that was finalized for 2020 before the coronavirus pandemic. 

The agency also would set the level for 2022 at about 20.8 billion gallons, the document showed.

The EPA did not comment for this story, but administration officials cautioned that numbers are not final and still subject to revisions before clearing an interagency review process. The agency sent the proposal to the Office of Management and Budget to start the review process in August.

Under the U.S. Renewable Fuel Standard, oil refiners must blend biofuels into the nation's fuel mix, or buy tradeable credits, known as RINs, from those that do. Small refiners can apply for the exemption to the rules if they can prove the obligations financially harm them. 

 (Reporting by Stephanie Kelly and Jarrett Renshaw; Editing by Richard Valdmanis and Lisa Shumaker)

Tags

 

Latest News

DOE Rejects API Appeal on LNG Export Suspension, Ensures Review Continues
DOE Rejects API Appeal on LNG Export Suspension, Ensures Review Continues

The Department of Energy (DOE) has declined a request by the American Petroleum Institute (API) and others to lift the suspension on new liquefied natural gas (LNG) export approvals.

Oil Testing Offers Value: Like a Blood Test for Tractors and Combines
Oil Testing Offers Value: Like a Blood Test for Tractors and Combines

Oil and fluid testing answers both short- and long-term questions about the internal condition of engines, transmissions and hydraulic systems.

Airplane
Still Waiting on SAF Announcement

While the White House aims to boost production of SAF, it has faced challenges in defining rules for tax credits, particularly for crop-based forms of the fuel.

Corn Prices Higher After USDA's Bullish Reports, Soybeans Flat: Where Do the Markets go Now?
Corn Prices Higher After USDA's Bullish Reports, Soybeans Flat: Where Do the Markets go Now?

Grains end mixed with strong gains in corn in reaction to USDA's 90 million acre estimate and lower than expected stocks. But how much higher can corn go? Garrett Toay, AgTraderTalk, shares his thoughts.

Where Did All the Corn Acres and Principal Crop Acres Go? The Two Biggest Questions from USDA's Big Prospective Plantings Report
Where Did All the Corn Acres and Principal Crop Acres Go? The Two Biggest Questions from USDA's Big Prospective Plantings Report

USDA says farmers intend to plant 90 million acres of corn this year, which is lower than the trade expected prior to USDA's big Prospective Plantings report.

USDA Shocks the Markets with 90 Million Corn Acre Estimate:  Where do Corn and Soybean Prices Go From Here?
USDA Shocks the Markets with 90 Million Corn Acre Estimate: Where do Corn and Soybean Prices Go From Here?

USDA provides bullish reports for corn, but neutral to bearish for soybeans and wheat. Brian Splitt, AgMarket.Net, has details.