ENERGY/EPA/SCOTT PRUITT: “The U.S. Environmental Protection Agency has backed off a series of proposed changes to the nation’s biofuels policy after a massive backlash from corn-state lawmakers worried the moves would undercut ethanol demand, according to a letter from the agency to lawmakers seen by Reuters.
EPA Administrator Scott Pruitt said in the letter dated Oct. 19 that the agency will keep renewable fuel volume mandates for next year at or above proposed levels, reversing a previous move to open the door to cuts…
The letter could end uncertainty about the future of the U.S. Renewable Fuel Standard that has roiled commodity and energy markets for months. The program, which requires refineries to blend increasing amounts of ethanol and other biofuels into the nation’s fuel supply or buy credits from those who do, appeared on the verge of a massive overhaul.
The most popular form of program credits hit two-month highs on Friday on the EPA news, traders said…
Pruitt said the EPA would not pursue another idea floated by EPA leadership that would have allowed exported ethanol to be counted toward those volume quotas.
Pruitt also said the EPA did not believe a proposal to shift the biofuels blending obligation away from refiners was appropriate.”
-Jarrett Renshaw, “EPA abandons changes to U.S. biofuel program after lawmaker pressure,” Reuters, Oct. 20, 2017 05:07am