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US agency proposes expanding biofuels policy

US agency proposes expanding biofuels policy

The Joe Biden administration on Thursday unveiled a three-year proposal to expand U.S. biofuel policy with higher-volume mandates and — for the first time — include a path for EV makers to generate lucrative credits. .

According to the plan, announced by the Environmental Protection Agency (EPA), oil refineries will be required to add 20.82 billion gallons of biofuels to their fuel in 2023, 21.87 billion gallons in 2024 and 22.68 billion gallons by 2025.

These volumes will include more than 15 billion gallons per year of conventional biofuels such as corn-based ethanol, with the remainder comprised of advanced fuels such as those made from biomass, animal fats or methane from dairy farms and landfills.

The US government estimates that biofuels’ lifecycle greenhouse gas emissions can be more than 40% lower than pure gasoline, meaning that adding them to the fuel mix can help combat climate change. weather.

electric vehicles

In addition to increasing mandatory volumes, the EPA hopes to use the reset to introduce a way for EV manufacturers to generate credits.

The measure can recognize the possibility of electric vehicles being charged in the energy network generated by biofuels such as landfills or methane from livestock.

The EPA proposal predicts that electric vehicle manufacturers – such as Tesla, for example – will generate up to 600 million credits called e-RINs in 2024, and 1.2 billion of them by 2025.

According to the scheme, one e-RIN would be generated for every 6.5 kilowatt hours produced by renewable fuel for an electric battery.

The idea received mixed reviews.

“We are encouraged that the Biden administration continues to recognize the powerful role that RFS can play in decarbonizing transportation,” said Brooke Coleman, executive director of the Advanced Biofuels Business Council.

But Geoff Moody, an executive at refinery trade group American Fuel and Petrochemical Manufacturers, said the EPA’s proposal was flawed.

“For the final rule, the EPA should go back and define conventional volumes that are in line with consumer demand and infrastructure realities,” he said. “It must also stay true to the legacy of the RFS as a liquid fuels program – not an electric vehicle program…”

The EPA’s biofuel mandate for the current year is 20.88 billion gallons, which includes the 20.63 billion annual volume requirement plus a 250 million gallon supplement for volumes that were not blended in prior years.

Renewable fuel credits traded between $1.65 and $1.70 each on Thursday, down from $1.84 in the previous session, traders said.

Source: CNN Brasil



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