Will EPA reverse itself on ethanol mandate?
The U.S. Environmental Protection Agency (EPA) announced preliminary RFS rulemaking for 2014 on Nov. 15, 2013, and the proposal signaled a significant shift in EPA policy, Scott Irwin, University of Illinois ag economist. The most surprising and controversial aspect of the proposal was a write down of the renewable (ethanol) mandate from 14.4 to 13 billion gallons. The proposal has been the subject of heated debate since it was released and the EPA received over 15,000 comments before the official comment period ended on Jan. 28.
Biofuels groups have sent strong signals that they will mount a legal challenge if the final RFS rulemaking for 2014 includes the write down of the renewable mandate. The recent behavior of prices in the RINs market suggests the odds of the EPA reversing the proposed write down of the renewable mandate for 2014 in final rulemaking have increased sharply.
Continue reading here