Market News & Headlines >> EPA Sets Biofuel Blending Targets
The U.S. Environmental Protection Agency on Monday finalized blending targets for biofuel use under the Renewable Fuel Standard (RFS) for 2014-2016, requiring energy companies to blend a total of 18.10 billion gallons of renewables into the nation's fuel supply next year.
That overall biofuel blending mandate is 700 million gallons higher than the level implied by a proposal the agency put forward in May, but is still down from the target of 22.25 billion gallons set by Congress in the 2007 Energy Independence and Security Act.
The EPA's long-awaited RFS mandates put the ethanol blending requirement for 2016 at 14.50 billion gallons, an increase of 500 million gallons from level implied by the agency’s May proposal, but still below the original target of 15 billion gallons set by Congress in 2007. The 2015 ethanol mandate was set at 14.05 billion gallons, up from the 13.40 billion implied by the earlier proposal.
The EPA set the 2016 mandate for biomass-based diesel fuel (biodiesel) at 1.90 billion gallons, up 100,000 gallons from the level implied by its May proposal. The 2007 energy law called for biodiesel use of at least 1.00 billion gallons.
The 2016 mandate for cellulosic biofuels was set at 230 million gallons, up from the 206 million implied by its early proposal, but well below the level of 4.25 billion gallons set by the 2007 energy law as cellulosic biofuels production capacity remains limited.