EPA extends deadline for refiners to comply with renewable fuel standard
In a notice published on Friday, the U.S. Environmental Protection Agency announced that it would extend the deadline for oil refiners who must demonstrate compliance with biofuel blending law. This could reduce the high cost of compliance.
The agency didn't give any additional details about the new deadline but said that it would be included as part of a formal action to come. In an email, the EPA acknowledged the notice. It said it "recognizes that the RFS program is important and is committed to maintaining stability and certainty." The Renewable Fuel Standard, a federal program that aims to increase the use of renewable fuels, required refiners to prove they had met their 2025 biofuel blend mandates by September 1. They could do this by generating Renewable Identification Numbers through the blending of biofuels in the nation's gasoline supply or purchasing credits from other market players. A delay would allow refiners to meet their obligations, and help them to manage the high RIN prices that have increased compliance costs for certain companies. The RIN market, which is worth billions of dollars, is a vital component of the biofuels program and can be a source of uncertainty for refiners. Farmers, ethanol producers and green fuel advocates have been pushing for higher blending rates, but small refiners are resisting. The EPA was reported to be considering a similar extension?in late 'July. Friday, the agency said that it would make a decision on all pending requests from smaller refiners for waivers of their obligations before the end of August. This issue has placed the White House at the center a battle between refiners & biofuel producers. These decisions had a deadline of September 1, as well. The EPA has imposed stricter biofuel blending standards and RIN prices are at record highs. Smaller refiners claim that the compliance costs of 2025 have become prohibitive. (Reporting and editing by David Gregorio in New York, Siddharth Cavale in New York)
(source: Reuters)
