Clean Fuel News

EPA Announces Final 2017 RFS Volumes

The EPA released the final 2017 RFS volumes which raised the total amount of biofuels required for blending into gasoline and diesel from 18.1 billion gallons in 2016 to 19.28 billion gallons (15 billion gallons of corn ethanol). The 2018 biodiesel mandate was left unchanged from the proposal at 2.1 billion gallons earlier this year. Although this increase represents a 10.7 percent ethanol blend, PMAA believes that refiners will continue to use RIN credits to maintain E10 blended gasoline for the foreseeable future.

PMAA is disappointed but not surprised that the outgoing Obama Administration decided to raise the ethanol mandate. PMAA will now work with the incoming Trump Administration to cap the ethanol mandate at 9.7 percent of gasoline supply going forward. Capping the ethanol mandate at 9.7 percent will resolve UST compatibility concerns with E10 plus blends, reduce RIN prices which will result in lower RFS compliance costs for refiners and preserve the ability for position holders at the rack to blend. 

PMAA Regulatory Counsel will have more details next week.