• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 15 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days The United States produced more crude oil than any nation, at any time.
  • 6 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 1 hour How Far Have We Really Gotten With Alternative Energy
Magnesium Battery Breakthrough Could Challenge Lithium-Ion Dominance

Magnesium Battery Breakthrough Could Challenge Lithium-Ion Dominance

Tohoku University researchers have developed…

Uncertainty Drives Investors to Oil Stocks

Uncertainty Drives Investors to Oil Stocks

The reason that investors have…

EPA Changed Biofuel Credit Rules before Court Allowed It

The Environmental Protection Agency relaxed rules for refiners under the Renewable Fuel Standard at its own discretion before a court ruled in favor of such a relaxation, Reuters reports citing documents that have not been released before as well as a government source.

According to the documents and the source, the rule change came into effect at least four months before a court ruling that the Trump administration cites to the corn industry as basis for its move to relax the rules that saved refineries hundreds of millions of dollars. This, according to Reuters’ source, was the purpose of the early change as well.

The revelation will likely cause anger in the corn industry, which has been pushing for the opposite of what the refining lobby wants, that is, requirements for more ethanol in fuel. The issue has basically put the administration between a rock and a hard place as the interests of the oil and the corn lobbies are at irreconcilable odds.

The EPA finalized the Renewable Fuel Standard, which is part of the 2007 Energy Independence and Security Act, in 2016. Under the terms of the standard, all refiners are obligated to blend their gasoline with ethanol, but smaller facilities can win an exemption if they can prove that blending gasoline with ethanol would harm them financially. Indeed, refiners have spent billions on compliance with the standard, so it’s not surprising that ever since its entry into effect, refiners and corn producers have been pushing for their respective interests and they have been getting results.

The early rule change revealed by Reuters is the latest example of this. It followed a requirement set out by the EPA in the then brand new Renewable Fuel Standard that 15 billion gallons of ethanol be produced in 2017 alone. Although short of an earlier annual production requirement, the 2016 one was praised by the corn industry. For reference, one bushel of corn produces around 2.8 gallons of ethanol. 

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News