Biden administration to cut biofuel quotas for 2020 and 2021

423
4
Biden administration to cut biofuel quotas for 2020 and 2021

Bloomberg - - The Biden administration is preparing to propose cutting biofuel quotas for 2020 and 2021, amid pressure from refining interests and their Democratic allies in Congress, according to several people familiar with the matter.

None The Global Housing Market Is Broken, and It s Spanning Entire Countries

None Istanbul turn Taps on old Fountains, Joining Global Push for Free Drinks.

On the Arc de Triomphe, which lies sideways in Paris, none is Polarize.

A None How the Child Care Crisis Became a global financial fiasco?

None Merkel s legacy comes to life on Berlin's Arab Street The environmental protection agency is also on track to propose a modest increase in the amount of plant-based fuels that are to be mixed into gasoline and diesel in 2022 under a draft plan which is now being reviewed by the White House Office of Management and Budget.

Under that draft proposal the overall renewable fuel requirement for 2020 would be reduced by as much as 15%, say people who asked anonymity before the measure is announced. The proposed target for 2021 would also drop under the draft, though a modest increase is planned for 2022.

The EPA approach represents a bid by the administration to balance competing demands from Democratic allies and industry. Lawmakers from the U.S. Northeast have pressed for more bullish targets and politicians from the U.S. Midwest say reductions are essential to make up for the pandemic-spurred drop in fuel demand and compensate for 2020 targets they say exceeded blending capacity.

Spokespersons for the EPA did not comment on the plan that was reported by Reuters earlier.

Ethanol credits used to track compliance with U.S. biofuel blending rules began soaring late last year on expectations that the incoming Biden administration would be more friendly toward the industry than Donald Trump's EPA. The credits, known as RINs, have tumbled over the last few months and touched 91 cents each on Wednesday, down 33% from $1.35 on September 10, according to traders active in the market. Oil companies argue that high prices for RIN put refinery jobs at risk and the broader economy at risk.

We hope the Administration acts to address skyrocketing RIN costs and to ensure that refiners will simply be able to comply with whatever standard is finalized, said Brendan Williams, head of government relations for oil refiner PBF Energy Inc.

Shares of biofuel producers dropped Wednesday. The Biodiesel Producer Renewable Energy Group Inc. fell 6.6% to the lowest in two months, while the biodiesel maker Green Plains Inc. took 3.9%. Oil refiners rose, with PBF climbing from 11% to the highest price since mid-July. HollyFrontier Corp. rose 6.3%, the highest profit since April 2012.

The biofuel blending quotas are closely watched because of their importance in boosting demand for corn-based ethanol and soy-based biodiesel.

A document showing the potential number of compliance credits that would be needed to meet the targets was widely circulating in Washington this week as stakeholders clamored for more information about the quotas that could be finalized later this year. The Renewable Fuels Association warned against relying on an email claiming to show numbers the trade group distributed to members on Wednesday. Instead, the numbers are total fabrication and the message is fake, the group said.

The planned reductions would be blow to biofuel producers, who had hoped President Joe Biden's campaign pledges to support the federal renewable fuel program would result in more aggressive quotas and an end to waivers exempting some refineries from the mandates.

If reported figures are accurate, it would be like a back pedaling on Biden's promise to Emily Skor. It's hard to imagine any reason behind the administration making such a move, Skor said.

No In Amazon s Flagship Fulfillment Center, the machines in Amazon run the show.

None Microsoft and an army of tiny telecom operators are part of a program to wire rural America.

None Just Get Me a box inside the brutal realities of supply chain Hell.