The EPA made a major biofuels announcement on Tuesday outlining a proposal for Renewable Volume Obligations and Small Refinery Exemptions. The agency is proposing to set the 2022 conventional ethanol level at the statutory 15 billion gallons. However, the levels for 2021 would be set at 13.3 billion gallons, 1.7 billion below the statute level. In an unprecedented move the agency also retroactivity lowered the 2020 levels by 2.5 billion gallons.
Ron Lamberty, Senior Vice President with the American Coalition for Ethanol, says it’s disappointing.

He says the rollback of 2020 levels wasn’t necessary since the self-correction mechanisms in the RFS already adjusted the biofuels requirement down to account for COVID-related reduce gas use.

EPA stated its intent to restore the 500 million gallons of remanded volume as ordered by DC Circuit Court in 2017 in the volumes for 2022 and 2023.
Plus, they’re proposing to reject waivers from 65 refiners from biofuels mandates across multiple years.

The industry will now have 30 days to comment. Additionally, USDA announced $100 million of infrastructure funding and $700 million for pandemic relief.

The proposed rule increases the biomass-based diesel category and advanced biofuel category to 2.76 billion gallons and 5.77 billion gallons respectively for 2022.