With 2014 nearly two-thirds over, EPA sent its proposed biofuels mandate for this year to the White House for review, said The Hill newspaper, quoting an EPA official as saying the agency’s goal “is to put the RFS (Renewable Fuels Standard) program on a path that supports continued growth in renewable fuels over time.” EPA initially proposed a target of roughly 13 billion gallons for corn-based ethanol, rather than allowing it to rise as spelled out by law. Since then, EPA, officials have hinted the targets would be raised because of an upturn in fuel demand.
Submission of the package to the White House is a major milestone but “even under the most optimistic timetable – a late September release – the volume mandates still would come ouit nearly a year after the Nov 30, 2013, deadline the EPA was supposed to meet under federal law,” said the Houston Chronicle. The Chronicle said “one floated target” was 13.6 billion gallons of corn ethanol. The oil industry says EPA’s original proposal was uncomfortably close to demanding the fuel industry consume more ethanol that it has capacity to blend.
Last year, the White House cleared the biofuels mandate in just over 30 days, said Reuters.
Biofuels Digest says “the biodiesel industry is suffering from sinking prices as buyers wait on the sidelines until the mandate is announced.” EPA proposed a biodiesel mandate of 1.28 billion gallons compared to 1.8 billion gallons produced in 2013 before a $1 a gallon tax credit expired. The publication says Citigroup has estimated up to 20 ethanol plants would be idled if EPA’s original figures are ratified.