President Joe Biden's administration has delayed by one week the release of a final rule that will set biofuel blending mandates for 2023-25 under the Renewable Fuel Standard (RFS).
The US Environmental Protection Agency (EPA) now intends to finalize the biofuel rule by 21 June, rather than an original deadline of 14 June, according to a court notice filed today. The short-term delay comes as biofuel producers, refiners and environmentalists have been lobbying the administration over the stringency and scope of the rule.
EPA did not immediately respond to a request for comment.
Liquidity dropped today in markets for RINs, the tradable credits used to show compliance under the RFS, as participants became aware of the final rule's last-minute delay. Sources expect RIN market conditions will remain bearish until the final volumes are released.
The pending biofuel rule will mark the first time since the creation of the RFS that regulators have not been trying to meet volumetric blending targets set by Congress, a shift that provided EPA more flexibility over the program. EPA last year, in its proposed version of the rule, said it wanted to increase renewable fuel blending mandates by 1pc this year to 20.82bn USG, followed by a 21.87bn USG target in 2024 and 22.68bn USG in 2025.
Among the most contested parts in the 2023-25 proposal is the administration's idea to expand the RFS to include "eRINs" that would be available to auto manufacturers as an incentive to sell more electric vehicles. That part of the rule might be removed from the final rule and taken up at a later date, given the continued legal and policy debates about the concept, according to industry officials.
EPA since last year has been under a legal consent decree with the biofuel group Growth Energy to sign the biofuel blending final rule by 14 June, but the group said it agreed to revise the deadline after discussions with agency leaders.
"We fully expect EPA to comply with the new deadline and look forward to a robust final rule that strengthens the RFS and enhances the biofuels industry's ability to decarbonize the transportation sector," Growth Energy chief executive Emily Skor said.
The White House Office of Management and Budget was scheduled to meet today with six external groups to receive input on the biofuel rule in meetings as late as 4:30 pm ET, according to a public database. EPA's last-minute delay was not a major surprise to biofuel industry officials who are accustomed to delays around the RFS program.
