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RFS Pulls Back on Some Biofuels

 

 

Koehler Urges Higher Gas Prices
Migues Villagran – Getty Images

The Environmental Protection Agency released its proposals on how much biofuels will go into the national fuel supply next year and it was a mixed bag.

Politico’s Morning Agriculture Report says there were some pleasant surprises and some disappointments. Ethanol producers wanted the continuation of an Obama-era requirement of 15 billion gallons of ethanol in the nation’s fuel supply and that’s precisely what they got. Advanced biofuels didn’t fare as well.

EPA Administrator Scott Pruitt cut the requirement for advanced biofuels by 40 million gallons, reducing the total amount of biofuel required under the program. Pruitt also cut the cellulosic ethanol mandate by almost a quarter. But the EPA chief didn’t stop there, starting down a path to possible significant changes to the guidelines. He’s starting an analysis for a possible reset of the volumes allowed under the law. He’s looking for comments on imported ethanol and biodiesel.

Pruitt is also opening the door to examine the market with zero percent ethanol. Meantime, the EPA will accept comments on its current proposals until November 30th, analyze them, and come up with a final rule.

 

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