February 25, 2020

Biofuels; Ag Economy; and, the Farm Bill

Biofuels: EPA- RFS (Renewable Fuel Standard)

Gregory Meyer reported on Friday at The Financial Times Online that, “The Obama administration has formally moved to put the brakes on US biofuels as it juggles conflicting pressures from two of the most powerful lobbies in Washington.

“Its proposal to trim a statutory ethanol blending mandate for the first time drew the threat of a lawsuit from the renewable fuels industry, and complaints from the oil lobby that the measure did not go far enough.”

Mr. Meyer noted that, “The rule unveiled for public comment on Friday by the Environmental Protection Agency [proposed rule, fact sheet, news release] called for 15.21bn gallons to be blended into the motor fuel supply in 2014, 16 per cent lower than the 18.15bn gallons under the renewable fuels law passed in 2007. It is a significant reversal for the agency, which just a year ago upheld the mandate in the face of protests from several state governors.”

The FT article indicated that, “‘As a result, we are now at the ‘E10 blend wall,’ the point at which the E10 fuel pool is saturated with ethanol,’ the EPA said.”