The U.S. Environmental Protection Agency has proposed increases in the amount of ethanol and other biofuels that oil refiners must blend into their fuel over the next three years.
The agency also proposes incorporating electricity made from renewable biomass and used for electric vehicle use into the program for the first time. The long-awaited proposal will call for overall blending mandates of 20.82 billion gallons in 2023, 21.87 billion gallons in 2024 and 22.68 billion gallons in 2025.
Under the Renewable Fuel Standard (RFS), oil refiners are required to blend billions of gallons of biofuels into the nation’s fuel mix or buy tradeable credits from those that do.
Bunge expects U.S. renewable diesel capacity of about five billion gallons by 2024
While Congress set out specific goals through 2022, the law expands the EPA’s authority for 2023 and beyond to change the way the RFS is administered. Starting next year, the agency has leeway to set multi-year mandates and make other changes.
The EPA’s biofuel mandate for the current year is 20.88 billion gallons, which includes the annual volume requirement plus a supplemental 250 million gallons added to compensate for volumes that were not blended in previous years.
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