In a step that pleased no one, the EPA proposed a small increase in the biofuels share of the gasoline market for 2017. The overall target for biofuels would rise to 18.8 billion gallons, up by 700 million gallons from this year, with corn ethanol earmarked for 14.8 billion gallons, a 300 million-gallon increase.
Ethanol makers scored EPA for being too timid when, by statute, it could set the Renewable Fuels Standard at higher levels. Environmental groups said biofuels did not deserve support at all. The American Petroleum Institute said the biofuel mandate should be lower than EPA proposed and called on Congress to repeal the RFS or modify it significantly.
“The proposed increases would boost renewable fuel production and provide for ambitious yet achievable growth,” said EPA, which was months behind schedule in setting the 2015 and 2016 mandates because of challenges from the oil industry.
While the 2007 energy law calls for an overall mandate of 24 billion gallons in 2017, including 15 billion gallons of corn ethanol, EPA utilized a provision of the law allowing it discretion to adjust the levels. Second-generation biofuels, such as ethanol made from grass, have been slow coming into commercial production, so EPA proposed an advanced biofuels mandate of 4 billion gallons, compared to 3.61 billion gallons this year. Biodiesel is the the major advanced biofuel.