A coalition of U.S. oil and biofuel groups met with the Environmental Protection Agency this week to push for higher federal mandates for biomass diesel blending. Three sources familiar with the plans told Reuters that the EPA meeting may signal that the agency is getting closer to releasing fresh biofuel blending quotas for the Renewable Fuel Standard.
The forthcoming proposal is predicted to cover two years’ worth of mandates. Two sources familiar with the matter say the EPA could release the proposal as early as this month. Big Oil and the Farm Belt’s biofuel makers haven’t worked well together in the past. The two sides are traditionally competitors in the multi-billion-dollar U.S. fuel market. A document viewed by Reuters shows the coalition pushed for biomass diesel blending mandates of 5.5 billion to 5.75 billion gallons. The current level is 3.35 billion gallons, which the industry says is far below production capacity.
