The U.S. Environmental Protection Agency ditched a detailed plan that would have forced refiners to blend more biofuels into their gasoline and diesel in 2019 to compensate for volumes likely to be exempted under the agency’s small refinery hardship waiver program, according to newly released EPA documents.
The plan would have boosted the renewable fuel blending obligation for the refining industry to 11.76 percent from 10.88 percent to offset volumes lost under the waiver program, which has been expanded sharply under President Donald Trump’s EPA, and keep overall blended volumes on target.
The idea was aimed at assuaging the powerful U.S. corn lobby which has accused Trump’s EPA of undermining demand for biofuels like corn-based ethanol through the waiver program, but was scrapped amid intense protest from the refining industry.
“What this shows is the EPA acknowledges it has the authority and the ability to reallocate the volumes lost under the small refinery exemption program,” Geoff Cooper, an executive at the Renewable Fuels Association, said on Wednesday.
The EPA said the documents reflect the agency’s process for administering the Renewable Fuel Standard (RFS), which is done in conjunction with the departments of Energy and Agriculture as well as the White House.
The move would have likely rallied compliance credit prices that have plunged to multi-year lows amid reports of the agency’s expansion of the waiver program.
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