EPA boosts use of biofuels

The Biden administration increased the amount of biofuels that must be blended into the nation’s fuel supplies over the next three years, but held production totals steady for corn-based ethanol, disappointing the biofuel industry and farm advocates. Michael Regan, administrator of the Environmental Protection Agency, said the final rule would reduce U.S. reliance on oil and support continued growth of biofuels that help combat global warming. The plan represents a decline from a proposal announced last year and drew immediate criticism from the biofuels industry. Environmental groups also were disappointed, saying EPA’s continued push for ethanol and other biofuels push will hamper U.S. climate efforts rather than bolster them.

A plan finalized by the Environmental Protection Agency sets biofuel blending volumes at 20.94 billion gallons in 2023, 21.54 billion gallons in 2024 and 22.33 billion gallons in 2025. The totals under the federal Renewable Fuel Standard are higher than levels set for 2022 and earlier years, but include just 15 billion gallons of corn-based ethanol in all three years.

Most gasoline sold in the U.S. contains 10% ethanol, and the fuel is a key part of the economy in Iowa, Nebraska and other Midwest states.

EPA Administrator Michael Regan said the final rule would reduce reliance on foreign sources of oil by up to 140,000 barrels per day and support continued growth of biofuels that produce fewer greenhouse gas emissions than traditional gasoline or diesel.

The final figures represent a decline from a proposal announced last year and drew immediate criticism from the biofuels industry.

Environmental groups also were disappointed, saying the EPA’s continued push for ethanol and other biofuels push will hamper U.S. climate efforts rather than bolster them.

The proposal announced includes new incentives to encourage use of biogas from farms and landfills, and renewable biomass such as wood. It’s the first time the EPA has set biofuel targets on its own instead of using numbers from Congress.