The US Environmental Protection Agency (EPA) sent its proposed 2018 and 2019 renewable volume obligations under the Renewable Fuel Standard (RFS) to the White House’s Office of Management and Budget for review. (Click here to view 2017 finalized RVO)
The proposal, which contains the volume of three categories that were set to be finalized including cellulosic biofuels, advanced biofuels and all other renewable fuels, was sent to the government office on Thursday.
The statute requires the standards be finalized by 30 November of the year prior to the year in which the standards would apply. In the case of biomass based diesel, the statute requires applicable volumes to be set no later than 14 months before the year for which the requirements would apply.
While the proposal has yet to be published by other entities, some market participants are speculating positive impacts on RIN prices from the proposed volume for advanced biofuels category. This has seen D4 RINs traded as high as $1.07/RIN early in the morning, backing down to $1.035 level currently supported by a domestic list of players. After Wednesday’s D6 RINs started to show signs of support from refiners, D6 RINs in the morning have surged to a 47 cents/RIN level from the gloomy low 40 cents/RIN level of the past several weeks, despite some market talks focusing on an anticipation of unchanged volume for this category.
EPA looks like it has not fallen significantly behind the pace in terms of delivering a 2018 RVO to a timeline recognizable from previous years. Last year EPA sent its proposed RVO to the Obama White House on 15 April, allowing the proposed rule to be published by 18 May.
TZ May 12, 2017