Exclusive-U.S. EPA mulling cuts to biofuel blending in win for oil industry -document

Related Articles

imageWorld40 minutes ago (Sep 22, 2021 11:37AM ET)

(C) Reuters. 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

By Stephanie Kelly and Jarrett Renshaw

NEW YORK (Reuters) -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.

Exclusive-U.S. EPA mulling cuts to biofuel blending in win for oil industry -document

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Subscribe

Category

Popular stories