EPA provides mixed results on biofuel blending requirements

The Environmental Protection Agency (EPA) finalized biofuel requirements on Friday, delivering mixed results for the ethanol and petroleum industries.

EPA’s final 2022 requirements would require a significant amount of biofuels, such as corn-derived ethanol, to be added to gasoline. The agency also separately rejected refiners’ requests for exemptions from blending requirements.

These actions are a success for biofuel producers and a blow to the oil industry.

But the agency also scored a win for the oil industry by setting standards for 2020 and 2021 that will be consistent with actual use in those years.

The 2020 standard was particularly noteworthy because the agency actually returned to and changed a previously established, more stringent standard.

The 2020 standard change is expected to give refiners back fuel blending tax credits that they can use later to add less ethanol to gasoline in the future.

Two traditionally Republican constituencies are fighting each other on mixing requirements because farmers and the oil industry are the backbone of the GOP.

Geoff Cooper, president and CEO of the Renewable Fuel Association, a major biofuels trade group, told The Hill that overall he sees the results as a win.

“Today we would describe this as a good package for the renewable fuels industry,” Cooper said.

Meanwhile, Chet Thompson, president of American Fuel & Petrochemical Producers (AFPM), said his group supports the 2020 and 2021 requirements, but called the rest of the EPA’s plan “staggering” in a statement.

For the latest news, weather, sports and video, visit The Hill.