binance left Coinmarketcap net_left adver left
Detail

Exclusive-Biden weighing cuts to 2022 ethanol blending mandate proposal -sources

By Jarrett Renshaw and Stephanie Kelly (Reuters) - The Biden administration is considering lowering the 2022 ethanol blending mandate below the proposed 15 billion gallons amid...
Exclusive-Biden weighing cuts to 2022 ethanol blending mandate proposal -sources © Reuters. FILE PHOTO: An ethanol plant with its giant corn silos next to a cornfield in Windsor, Colorado July 7, 2006./File Photo

By Jarrett Renshaw and Stephanie Kelly

(Reuters) - The Biden administration is considering lowering the 2022 ethanol blending mandate below the proposed 15 billion gallons amid backlash from the oil refining lobby and unions arguing the shrinking U.S. ethanol industry can no longer support the target, according to two sources familiar with the administration’s thinking.

U.S. President Joe Biden vowed to bring some normalcy back to laws requiring refiners to blend biofuels like corn-based ethanol into the nation’s gasoline pool after his predecessor, Donald Trump, took unprecedented steps to relieve refiners from the requirement.

But Biden is finding it difficult to live up to his promise. The COVID-19 pandemic has dampened fuel consumption and triggered a handful of ethanol plant shutdowns. Higher regulatory costs have refiners threatening to close refineries and shed high-paying union jobs.

In December, the Environmental Protection Agency issued a long-awaited biofuel blending mandate proposal that cut ethanol requirements for 2020 and 2021 but restored them to 15 billion gallons for 2022. Farmers and biofuel producers criticized the rollbacks but welcomed the restoration this year.

But, in recent weeks, administration officials have considered rolling back the 15 billion gallon mandate when the final rule is issued later this year, the two sources told Reuters.

"EPA remains committed to the growth of biofuels in America," said Nick Conger, an EPA spokesperson. "We look forward to reviewing the robust comments that we receive from all stakeholders before finalizing our rulemaking later this year."

The administration had initially planned to set the 2022 ethanol mandate at 14.1 billion gallons, Reuters previously reported https://www.reuters.com/business/energy/exclusive-us-epa-considering-cuts-biofuel-blending-obligations-2020-2021-2022-2021-09-22, but went with 15 billion gallons under pressure from Farm-Belt Democrats like Senator Tammy Duckworth of Illinois.

“The White House is caught between a rock and a hard place. On one hand, they want to support the agricultural and biofuel industry, but they have been bombarded by unions and refiners who say there’s not enough ethanol and they are listening,” said one of the sources familiar with the discussions.

Under the Renewable Fuel Standard, refiners must blend biofuels like ethanol into their fuel pool or buy tradable credits, known as RINs, from refiners who do. Merchant refiners like PBF Energy (NYSE:PBF) and Monroe Energy have long complained that the cost of purchasing RINs threatens their plants.

While cuts to the 2020 and 2021 ethanol mandate briefly lowered RIN costs, they have since rebounded. RINs are trading about 50% higher from the around 80 cents after the mandates were announced in December.

After Reuters reported the news on Wednesday, RIN prices fell about 6% to $1.20 each. Margins to produce gasoline fell to an intraday low of $17 per barrel, before recovering.

Mike Burnside, Policy Analyst at the American Fuel & Petrochemical Manufacturers, a leading refining trade group, told the EPA during a hearing on the blending mandate proposal that its 2022 targets are out of step with demand.

"EIA (the Energy Information Administration) projects that gasoline consumption in 2022 will be below 2019 demand, so it is unreasonable to propose 15 billion gallons for conventional biofuel in 2022 as if the pandemic never happened and we are back to normal," Burnside said.

ETHANOL PLANTS SHUT

The U.S. ethanol industry has seen a number of facilities shut down in the last few years, and the industry had to deal with reduced fuel demand because of the coronavirus pandemic. There were 197 U.S. ethanol plants at the beginning of 2021, down from 201 a year earlier, EIA data showed.

Some ethanol companies have strayed from production of the corn-based fuel.

For instance, a company formerly known as Pacific Ethanol (NASDAQ:ALTO) Inc said in 2020 it would change its name to reflect its focus on specialty alcohols used in beverages and sanitizers instead of fuel. It is now Alto Ingredients Inc.

"I don't see anyone running to invest more," said Ed Hirs, who teaches energy economics at the University of Houston.

Still, the ethanol industry enjoyed higher margins and increased production in the later half of 2021.

In November, margins to produce ethanol in the Corn Belt increased to $1.82 per gallon, the highest since 2014, Refinitiv Eikon data showed. They have since fallen to about 37 cents per gallon.

U.S. ethanol production in October rose to the most since 2017, according to the EIA.

"The administration has indicated blending requirements will remain strong and at 15 billion gallons for 2022, and we have every expectation that they will deliver on that promise," said Growth Energy Chief Executive Emily Skor, in response to the news on Wednesday.

ig right nyse right Neteller adver right
APPROVED BROKERS
rakuten_main right top net_home_top ig_main right top Binance _ main right top fbs_main right top tifia_main right top
18-01-2022 11:05:49 (UTC+7)

EUR/USD

1.1342

-0.0066 (-0.57%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (8)

EUR/USD

1.1342

-0.0066 (-0.57%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (8)

GBP/USD

1.3582

-0.0063 (-0.47%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (1)

Sell (9)

USD/JPY

114.57

-0.03 (-0.02%)

Summary

↑ Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (7)

Sell (1)

AUD/USD

0.7189

-0.0022 (-0.30%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (0)

Sell (9)

USD/CAD

1.2524

+0.0006 (+0.04%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (10)

Sell (1)

EUR/JPY

129.95

-0.77 (-0.59%)

Summary

↑ Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (1)

Sell (6)

EUR/CHF

1.0396

-0.0027 (-0.26%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (2)

Sell (7)

Gold Futures

1,818.55

+2.05 (+0.11%)

Summary

Neutral

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (2)

Sell (5)

Silver Futures

23.617

+0.699 (+3.05%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

Copper Futures

4.4130

-0.0075 (-0.17%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

Crude Oil WTI Futures

84.50

+1.20 (+1.44%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

Brent Oil Futures

87.22

+0.74 (+0.86%)

Summary

↑ Sell

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (0)

Sell (9)

Natural Gas Futures

4.327

+0.065 (+1.53%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

US Coffee C Futures

239.43

-0.22 (-0.09%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (9)

Sell (0)

Euro Stoxx 50

4,267.85

-34.29 (-0.80%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (6)

Sell (2)

S&P 500

4,593.09

-69.76 (-1.50%)

Summary

↑ Sell

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (2)

Sell (8)

DAX

15,812.01

-121.71 (-0.76%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (5)

Sell (2)

FTSE 100

7,574.75

-36.48 (-0.48%)

Summary

Sell

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (1)

Sell (5)

Hang Seng

24,112.78

-105.25 (-0.43%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

US Small Cap 2000

2,114.95

-46.60 (-2.16%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (8)

IBEX 35

8,787.08

-51.62 (-0.58%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (7)

Sell (0)

BASF SE NA O.N.

68.085

-0.055 (-0.08%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (10)

Sell (1)

Bayer AG NA

51.97

-0.85 (-1.61%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (8)

Sell (0)

Allianz SE VNA O.N.

225.97

-1.08 (-0.48%)

Summary

↑ Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (7)

Sell (2)

Adidas AG

255.90

+3.25 (+1.29%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (0)

Sell (8)

Deutsche Lufthansa AG

7.152

-0.089 (-1.23%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

Siemens AG Class N

143.03

-2.97 (-2.03%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (1)

Deutsche Bank AG

11.950

-0.068 (-0.57%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (6)

Sell (1)

 EUR/USD1.1342↑ Sell
 GBP/USD1.3582↑ Sell
 USD/JPY114.57↑ Buy
 AUD/USD0.7189↑ Sell
 USD/CAD1.2524↑ Buy
 EUR/JPY129.95↑ Sell
 EUR/CHF1.0396↑ Sell
 Gold1,818.55Neutral
 Silver23.617↑ Buy
 Copper4.4130↑ Sell
 Crude Oil WTI84.50↑ Sell
 Brent Oil87.22↑ Sell
 Natural Gas4.327↑ Buy
 US Coffee C239.43↑ Buy
 Euro Stoxx 504,267.85↑ Buy
 S&P 5004,593.09↑ Sell
 DAX15,812.01↑ Buy
 FTSE 1007,574.75Sell
 Hang Seng24,112.78↑ Buy
 Small Cap 20002,114.95↑ Sell
 IBEX 358,787.08↑ Buy
 BASF68.085↑ Buy
 Bayer51.97↑ Buy
 Allianz225.97↑ Buy
 Adidas255.90↑ Sell
 Lufthansa7.152↑ Buy
 Siemens AG143.03↑ Buy
 Deutsche Bank AG11.950↑ Buy
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank6,115/ 6,155
(-5/ -5) # 1,167
SJC HCM6,110/ 6,170
(0/ 0) # 1,183
SJC Hanoi6,110/ 6,172
(0/ 0) # 1,185
SJC Danang6,110/ 6,172
(0/ 0) # 1,185
SJC Nhatrang6,110/ 6,172
(0/ 0) # 1,185
SJC Cantho6,110/ 6,172
(0/ 0) # 1,185
Cập nhật 18-01-2022 11:05:52
Xem lịch sử giá vàng SJC: nhấn đây!
ↀ Giá vàng thế giới
$1,819.92+0.590.03%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-IV2400024480
RON 95-II,III2390024370
E5 RON 92-II2291023360
DO 0.05S1838018740
DO 0,001S-V1873019100
Dầu hỏa1719017530
ↂ Giá dầu thô thế giới
WTI$85.06+0.330.39%
Brent$86.74-0.65-0.76%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD22.560,0022.870,00
EUR25.241,6226.656,50
GBP30.202,2531.491,85
JPY191,95203,20
KRW16,5120,11
Cập nhật lúc 18:54:36 18/01/2022
Xem bảng tỷ giá hối đoái
binance main right Fxpro Main Right aetos main right adver main right