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EPA backs 2017 biofuel hikes, rallying RINs

The US Environmental Protection Agency (EPA) on Thursday proposed increases in renewable fuel volume requirements across all types of biofuels under the Renewable Fuel Standard (RFS) program. EPA said its new proposed targets are ambitious but achievable.

RINs reacted strongly to this announcement, with D4 and D5 both surging by 5.25cents/RIN from the previous trading session to hit 85 cents/RIN and 83.75 cents/RIN respectively. D6 RINs rallied even more, gaining 6.25 cents to hit 81 cents/RIN before Wednesday’s close.

Total renewable fuel volumes would grow by nearly 700mn gal between 2016 to 2017 under the proposal, up 3.81% YoY. Blending requirements for cellulosic biofuel achieving a 60% carbon emission saving relative to baseline fossil fuel would grow by 82mn gal, up 35.65%. Requirements for biomass-based biodiesel and other advanced renewable fuels achieving a 50% lifecycle GHG saving would grow respectively by 100mn gal, up 5.26%, and 390mn gal, up 10.8%.

The conventional fuels category of the overarching renewable fuels requirement, which demands a minimum 20% GHG saving to qualify, would increase by 300mn gal under the proposal, up 2.07% from 2016.

Finally, EPA also proposed the RVO for bio-mass based diesel would grow by 100mn gal between 2017 and 2018, to 2.1bn gal in total.


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