• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 10 minutes Phase One trade deal, for China it is all about technology war
  • 12 minutes Trump has changed into a World Leader
  • 3 hours Indonesia Stands Up to China. Will Japan Help?
  • 1 hour We're freezing! Isn't it great? The carbon tax must be working!
  • 4 mins US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 7 hours Shale Oil Fiasco
  • 21 hours Might be Time for NG Producers to Find New Career
  • 6 mins Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 4 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 8 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 14 hours Beijing Must Face Reality That Taiwan is Independent
  • 19 hours Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 1 day Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 1 day China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024

EPA Changed Biofuel Credit Rules before Court Allowed It

Ethanol plant

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

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play