EPA Releases RFS Rule

This week, the EPA issued its final rule for the Renewable Fuel Standard, or RFS, production requirements for 2023-2025. 

The announced rule will introduce the highest mandated biofuel level ever, but will also lower corn based ethanol requirements. That cut directs a drop of 250 million gallons for 2024 and 2025 from the original 2007 proposal, setting volumes at 15 billion gallons for both years.

Officials at the EPA argue the final rule reduces American consumption of foreign oil by up to 140,000 barrels per day over the 24-months outlined in the new rule. 

The RFS mandates that transportation fuel contain a minimum amount of renewable fuels derived from biomass in the form of ethanol. Roughly one-third of the US corn crop is converted into ethanol each year. 

Biofuel interest groups were disappointed by the new measure.

Geoff Cooper, CEO, Renewable Fuels Association: “... today's final rule flatlines conventional renewable fuels at 15 billion gallons and misses a valuable opportunity to accelerate the energy sector's transition to low- and zero-carbon fuels.” 

For Market to Market, I’m Peter Tubbs.