Biden weighing cuts to 2022 ethanol blending mandate proposal- sources

Alto Ingredients

12/01/2022 14:53

By Jarrett Renshaw and Stephanie Kelly
    Jan 12 (Reuters) - The Biden administration is considering
lowering the 2022 ethanol blending mandate below the proposed 15
billion gallons amid backlash from the refining lobby and unions
arguing the nation's shrinking ethanol industry can no longer
support the target, according to two sources familiar with the
administration’s thinking. 
    U.S. President Joe Biden vowed to bring some normalcy back
to laws requiring refiners to blend biofuels like ethanol into
the nation’s gasoline pool after his predecessor, Donald Trump,
took unprecedented steps to relieve refiners from the
requirement. 
    But Biden is finding it difficult to live up to his promise.
The COVID pandemic has dampened fuel consumption and triggered a
handful of ethanol plant shutdowns. Higher regulatory costs have
refiners threatening to close refineries and shed high-paying
union jobs. 
    In December, the Environmental Protection Agency issued a
long-awaited biofuel blending mandate proposal that cut ethanol
requirements for 2020 and 2021 but restored them to 15 billion
gallons for 2022. Farmers and biofuel producers criticized the
rollbacks but welcomed the restoration this year.
    But, in recent weeks, administration officials have
considered rolling back the 15 billion gallon mandate when the
final rule is issued later this year, the two sources told
Reuters. 

 (Reporting By Jarrett Renshaw and Stephanie Kelly, Editing by
Chizu Nomiyama)
 ((jarrett.renshaw@thomsonreuters.com; (646) 223-6193;))