EPA renewable fuels proposals will be released soon

The US Environmental Protection Agency (EPA) is expected to release it proposals for renewable fuel use requirements for 2018 soon, perhaps within a matter of days, according to Reuters.

Traders are apparently expecting no changes to conventional targets, and modest increases to biofuels volumes, the Reuters article claims.

The proposal marks a significant moment in the relationship between the EPA and US President Donald Trump. For the first time during the President’s administration, the EPA will make proposals relating to the consistently controversial Renewable Fuel Standard (RFS), a 2005 law aimed at cutting US oil imports and boosting renewable fuel use.

An anonymous source told Reuters: “We are expecting a modest increase in advanced and no change to the 15 billion” for conventional ethanol.

Renewable Identification Numbers, otherwise known as biofuels credits, are used by fuel companies to meet the annual requirements from EPA for the volumes of ethanol and biodiesel that need to be blended in gasoline and diesel used by American drivers. According to Reuters, the credits were fluctuating in active trade in anticipation of the EPA announcement, with prices of RINs jumping by as much as 4 cents each.

The EPA’s proposal went to the White House for review last month. It includes targets for conventional and advanced biofuel for 2018 and for biomass-based diesel for 2019.