EPA lowers ethanol requirements, citing reduced demand

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The Biden administration on Tuesday lowered annual production requirements for ethanol and other biofuels to account for reduced demand as a result of the coronavirus pandemic.

EPA Administrator Michael Regan stands near the Marathon Petroleum Refinery as he conducts a television interview, while touring neighborhoods that abut the refinery, in Reserve, La., Tuesday, Nov. 16, 2021. Regan visited St. John and St. James parishes on a tour he called"Journey to Justice." The five-day trip from Mississippi to Texas in mid-November highlighted low-income, mostly minority communities adversely affected by decades of industrial pollution.

The actions announced Tuesday will enable officials “to get the RFS program back in growth mode by setting ambitious levels for 2022 and by reinforcing the foundation of the program so that it’s rooted in science and the law,” said Michael Regan, administrator of the Environmental Protection Agency, which sets ethanol requirements under the RFS.

The ethanol industry struggled last year as gasoline usage dipped because workers stayed home instead of commuting and vacation travel halted. As fuel sales began to return, demand for ethanol increased, pushing prices higher. The Renewable Fuels Association, an ethanol lobbying group, called the retroactive reduction of the 2020 targets “unprecedented” and unfair, but said it welcomes the 2022 projection of 15 billion gallons of corn ethanol.

“I don’t want to hear another word about President Biden’s so-called climate priorities until he puts his money where his mouth is and delivers cleaner, cheaper biofuels for Americans, just as he promised Iowans on the campaign trail,” he said. The American Fuel & Petrochemical Manufacturers, which represents refineries, said the 2022 proposal would “needlessly increase already record-breaking RFS compliance costs” and raise gasoline and diesel prices.

 

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