The U.S. administration finalized biofuel mixing requirements for the upcoming year, leaving a crucial part of the rule consistent from an earlier deal that the corn lobby had criticized as inadequate to assist struggling farmers.
The step is destined to anger biofuel sector officials and corn-state senators who had pushed hard for adjustments until the 11th hour, potentially threatening Trump’s support among farmers ahead of next year’s election.
Beneath the U.S. Renewable Fuel Standard (RFS), the Environmental Protection Agency (EPA) is charged with setting biofuel mixing requirements for the refining sector to help farmers by fueling demand for corn- and soybean-based fuels, while decreasing U.S. reliance on oil.
The finalized rule increases the quantity for mixing necessities to 20.09 billion gallons next year, up from over 19 billion gallons in 2019. The order included 15 billion gallons of conventional biofuels like ethanol, consistent from 2019.
The point of rivalry involves a plan the EPA introduced in the rule to offset the biofuel industry for the company’s expanded use of exceptions from standards given to oil refiners.
The U.S. administration’s EPA has roughly quadrupled the number of the so-called Small Refinery Exceptions, or SREs, to help refiners in financial woes, which corn farmers and biofuel producers say has undermined demand for ethanol.
First revealed by the EPA in October, the plan raises the biofuel volumes that some refineries should mix next year based on U.S. Energy Department suggestions for volumes that should be exempted. The rule concludes the methodology based on the 2016-2018 annual average of DOE suggestions.
The biofuel sector needed the changes to be based on actual volumes waived since the EPA routinely waives higher volumes than the DOE recommends.