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Petroleum industry

Biofuel Industry Pushes Back Against EPA's Proposed Renewable Fuel Standard

Strategic Insights

— 1 min read

The US biofuel industry, comprised of farmers, biofuel makers, and oil companies, has urged the Environmental Protection Agency (EPA) to revisit its proposal for the Renewable Fuel Standard (RFS) program. Ahead of a midnight deadline for comments, industry groups and companies like Archer Daniels Midland and Valero Energy submitted thousands of filings to the EPA, arguing that the proposed plan for biofuel use in gasoline will breach the "blend wall," a practical limit on ethanol use without significant infrastructure changes. The EPA's proposal aims to increase ethanol use by promoting higher ethanol blends, such as E15 and E85, to meet Congressional goals set in 2007 to reduce US dependence on foreign oil and use cleaner, domestic energy sources.

Key Takeaways:

  • The biofuel industry is pushing back against the EPA's proposed RFS program, citing concerns that the plan will breach the "blend wall" and require significant infrastructure changes.
  • The industry argues that the proposal for higher ethanol blends will increase the price of gasoline for consumers and hinder energy independence.
  • The EPA's proposal aims to increase ethanol use in gasoline from 10% to 15% in 2016, with the goal of reducing US dependence on foreign oil and promoting cleaner, domestic energy sources.
  • The Renewable Fuel Standard program was established by Congress in 2007 to promote the use of renewable fuels and reduce dependence on foreign oil.
  • Thousands of filings were submitted to the EPA by industry groups and companies, including Archer Daniels Midland and Valero Energy, ahead of a midnight deadline for comments on the proposal.
  • The EPA must balance the interests of the oil and corn industries, which have competing views on the proposed RFS program.

Statistics:

  • The proposed RFS program aims to increase ethanol use in gasoline from 10% to 15% in 2016.
  • The "blend wall" refers to the practical limit on ethanol use without significant infrastructure changes, which the industry argues will be breached by the proposed plan.
  • The RFS program was established by Congress in 2007 to promote the use of renewable fuels and reduce dependence on foreign oil.
  • The EPA received thousands of comments from industry groups and companies ahead of the midnight deadline for comments on the proposal.
  • The corn sector argues that renewable fuels promote energy independence and rural economies.

Sources:

  • "US farm biofuel makers push EPA on ethanol content"

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