Farm Policy News Summary

EPA Proposes Biofuel Reallocation Options

  • Ryan Hanrahan
  • biofuels
 Print

Reuters’ Jarrett Renshaw reported that “the U.S. Environmental Protection Agency on Tuesday issued a proposal for reallocating to large refineries the biofuel blending obligations waived under the Small Refinery Exemption (SRE) program, offering two primary options of 50% and 100%. Additionally, the agency said it will ask for comment on other potential volumes, such as 25%, 75% or none at all.”

“The proposal’s failure to narrow down potential options is destined to extend the latest clash between Big Oil and Big Farm over the issue, as both industries vie for influence over U.S. energy and agricultural policy,” Renshaw reported. “Biofuel groups want full reallocation to ensure the small refinery waivers do not dent demand for products like corn-based ethanol, while refiners oppose reallocation citing costs.”

“Industry officials from both sectors called the EPA proposal a ‘punt’ and said the 45-day comment period will be crucial,” Renshaw reported. “‘With every option on the table, we didn’t get much clarity today,’ said one of the officials, who asked not to be named criticizing the agency.”

“The EPA in August cleared a backlog of more than 170 SRE requests dating back to 2016 — a sweeping move that required it to come up with the plan to account for waived obligations,” Renshaw reported. “The EPA was only required to come up with a plan to reallocate exempted gallons dating back to 2023, however, because RINs generated for previous years have already expired.”

Biofuels Groups React Positively

Progressive Farmer’s Todd Neeley reported that “the Renewable Fuels Association said in a statement Tuesday that it was ‘encouraged’ by EPA’s proposal.”

“‘While we continue to question whether any SREs for 2023-2025 are truly justified in the first place, we are encouraged that EPA is proposing to add the exempted volumes back to future RFS requirements for 2026 and 2027,’ said Geoff Cooper, RFA president and CEO,” Neeley reported.

“Growth Energy CEO Emily Skor said her group also supports the full reallocation option presented by EPA,” Neeley reported. “‘With this proposal, EPA acknowledges how important biofuels like ethanol are to the rural economy,’ she said in a statement. ‘We commend the Trump EPA for being the first-ever EPA to propose a way to ensure past-year SRE gallons don’t compromise renewable fuel demand. Full reallocation of exempt gallons is a surefire way to drive income to America’s rural communities.'”

Agri-Pulse’s Kim Chipman reported that “Clean Fuels American Alliance, a leading trade group for renewable diesel and biodiesel producers, said the proposal was a victory for farmers and renewable fuel producers.”

Refinery Groups React Negatively

Bloomberg’s Gerson Freitas Jr reported that “the American Fuel & Petrochemical Manufacturers criticized the move, saying it will further increase costs for fuelmakers and consumers.”

“‘Consider EPA’s announcement a multi-billion dollar-addendum to its already-historic $70 billion-per-year RFS proposal,’ the group said in a statement,” according to Freitas Jr’s reporting. “‘Americans and US refiners should not have to pay for this nonsense.'”

Ryan Hanrahan is the Farm Policy News editor and social media director for the farmdoc project. He has previously worked in local news, primarily as an agriculture journalist in the American West. He is a graduate of the University of Missouri (B.S. Science & Agricultural Journalism). He can be reached at rrh@illinois.edu.

Related News Summaries

Back To Top