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Tuesday, August 27, 2019

Rescinding Prior Small Refiner Exemptions Now Not Expected

President Donald Trump and Cabinet officials decided to retain the biofuel blending waivers granted to small refineries but take steps to make up for lost biofuel volumes, according to contacts.

The plan under development would encourage the use of gasoline that contains 15% ethanol and would increase by 500 million gallons the amount of conventional renewable fuels that have to be used in mandates, presumably for 2020.

A separate quota for biodiesel, typically made from soybeans, would get a 250 million gallon increase for 2021.

Additionally, the administration will enhance a program meant to expand U.S. fueling infrastructure and get more ethanol into the system. EPA will adopt a USDA assessment of the greenhouse gas emissions associated with renewable fuel and will expand environmental credits encouraging automakers to produce “flex-fuel” vehicles that can run on high-ethanol gasoline.

However, details could still change as the plan has not yet been finalized.