EPA Announces Generous Proposals for Biofuel Mandates

The U.S. Environmental Protection Agency (EPA) has proposed increases in the amount of ethanol and other biofuels refiners must blend into their fuel for the next three years. The long-awaited announcement also detailed a proposal to incorporate electricity made from renewable biomass to be used for electric vehicles for the first time. The blending mandates include 20.82 billion gallons in 2023, 21.87 billion in 2024, and 22.68 billion in 2025.

The announcement marks a win for the biofuels industry, which also received a boost from the recent Inflation Reduction Act. The boost involves significant subsidies to biodiesel and sustainable jet fuel industries in the form of lucrative tax credits to encourage the production of the soybean-derived fuel. EPA’s biofuel mandate for this year is 20.88 billion gallons. Ag groups have responded favorably to the proposal.

Read more on biofuels and the Renewable Fuel Standard here.