Biofuels standards put farm, oil state members on opposite sides 완벽가이드
Biofuels standards put farm, oil state members on opposite sides
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The perennial battle over EPA’s biofuels mandates is coming to a head soon as the agency works on finalizing updates to the Renewable Fuel Standard’s blending obligations. So far, the EPA’s proposal for the 2026 and 2027 RFS mandates has drawn the support of farm-state lawmakers — who often fi
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The perennial battle over EPA’s biofuels mandates is coming to a head soon as the agency works on finalizing updates to the Renewable Fuel Standard’s blending obligations. So far, the EPA’s proposal for the 2026 and 2027 RFS mandates has drawn the support of farm-state lawmakers — who often find themselves at odds with the Trump administration over issues such as trade policy — and put some of the president’s oil industry allies on the defensive. The proposed updates, released in June, would increase the program’s renewable volume obligations, which dictate how much biofuel — such as corn-based ethanol and biodiesel made from feedstocks like soybean oil and animal fats — is mixed into the nation’s transportation fuel supply. The agency is now sifting through public comments, submitted during a period that ended Oct. 31, before sending a draft final rule to the White House Budget office for review.
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Imports penalized Under the proposed rule, the renewable fuel volume requirement would rise from the current standard by about 1.7 billion ethanol-equivalent gallons in 2026 and 2.1 billion EEGs in 2027. And, in a departure from current policy, the proposal would cut in half the value of renewable identification numbers, or RINs — tradeable credits oil refiners can buy in lieu of meeting their biofuel blending targets — for imported biofuels and biofuel feedstocks. These changes would provide a competitive advantage to U.S. farmers and biofuel producers, who would benefit from the larger renewable volume obligations, known as RVOs, combined with larger RIN values for their domestic products that make them more attractive. But they could make meeting those obligations more costly for refiners.
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To keep expenses down while maintaining compliance with RFS requirements, refiners often rely on a global supply of feedstocks and biofuels. Industry sources say this is at least partly because domestic supplies are insufficient to meet RFS volume obligations. “You can think of it this way — that biofuel producers end up getting a subsidy out of this program, but oil producers end up getting taxed because they have to comply with this and actually buy those tradeable credits,” said Nafisa Lohawala, a fellow at Resources for the Future whose research focuses on transportation issues. “The fact that the incentives are quite different on both sides means that their priorities are going to be quite different.” Members representing farm states — including Iowa, Illinois, Michigan, Minnesota and Wisconsin. among others — have been outspoken in their support for the RFS update as proposed in June.
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