In an exclusive report, Reuters is reporting that document it saw showed EPA plans to propose a biofuel blending mandate of 18.6 billion gallons for 2021 and 20.8 billion gallons for 2022, which compares to a 20.1 billion gallon blending requirement finalized for 2020—before the pandemic hit. Reuters is also reporting the agency plans to revise the 2020 Renewable Fuel Standard (RFS) blending mandate down to 17.1 billion gallons. But it should also be noted that while EPA officials did not comment on the story, administration officials cautioned the numbers are not final and subject to revisions before clearing an interagency review process.
Ethanol would take the biggest hit, according to the document the Biden administration is reportedly considering. Reuters reports, “Levels for conventional renewable fuel, which includes ethanol, would drop from 15 billion gallons to about 12.5 billion gallons in 2020, 13.5 billion gallons in 2021 and 14.1 billion gallons in 2022, according to the document.”
The Office of Management and Budget (OMB) is currently reviewing EPA’s proposals and Senator Chuck Grassley (R-Iowa) on AgriTalk again said rumors indicate the proposals will be released Friday afternoon. He also said rumors signal “that it could be detrimental to ethanol, maybe positive to biodiesel, but not good news for ethanol.” He added, “I don’t know the rationale behind it, but it could have something to do with their promoting of EV vehicles.”
Also on AgriTalk today, Ag Secretary Tom Vilsack said, “I don’t know what the numbers will be. But what I do know is that that it’s fair to it’s fair to say that there were some significant disruptions during 20 and 21, as a result of the pandemic.” He added, “I’m going to look for ways in which we a USDA can provide help and assistance. That’s why we are prepared to provide $700 million of assistance now and additional resources above and beyond that, for infrastructure to expand the capacity to get higher blends out there to consumers.” He went on to comment the most important thing regarding the RFS is stability and being “able to count on the numbers that you’re provided.”
It should also be noted that The Renewable Fuels Association (RFA) alerted reports today it has been made aware that some reporters may be receiving an email that includes fake 2020-2022 renewable volume obligation (RVOs) numbers that were supposedly shared by RFA with its members. “We want you to know that this is a complete fabrication and a shameful ‘spoofing’ attempt,” RFA said.
It continues: “RFA never sent any such email or circulated any potential RVO numbers to our member companies. RFA does not have any information regarding the 2021-2022 RVO numbers or possible revisions to the 2020 RVO. Like everyone else, we are anxiously awaiting the public release of the RVO proposals and will have more information and comment at that time.
It’s not yet clear whether the proposed numbers Reuters printed aligned with those in the RFA “spoof” letter. Prices for renewable identification numbers dropped sharply following the reports, with soybean oil and corn prices also pulling back after the initial report.