The Environmental Protection Agency on June 26 released its proposed renewable volume obligations for 2019 under the Renewable Fuel Standard (RFS). The proposal also includes a proposed 2020 volume mandate for biomass-based diesel. The proposal would increase advanced biofuels volume requirements for 2019 and biodiesel requirements for 2020 while holding the so-called “ethanol” volume requirement steady.
These increases are positive for NATSO members. However, the proposal also indicates that EPA will continue to liberally waive obligations for small refineries, which in essence means that the actual volume increases are less than the numbers indicate (as the waivers function as mandate cuts). These waivers undercut the purpose of the RFS and inject uncertainty and volatility into markets that can hinder NATSO members’ operations…. Read More