Critics pounce on US EPA biofuel delay, call for action

The Obama administration on Friday postponed a decision on 2014 biofuel-use targets until next year, prompting opponents to call on Congress to reform the highly contested federal program to promote renewable fuels like corn ethanol. The administration said it would get the program's targets back on track in 2015, but critics said Friday's delay was one too many on 2014 quotas that are already a year behind schedule.
The Environmental Protection Agency announced the delay after months of disputes between refiners and ethanol producers over the agency's proposal to cut 2014 quotas on how much biofuel should be blended with oil-based fuels. "What more evidence does the administration and Congress need to prove the Renewable Fuel Standard, and the administration of it, is broken beyond repair?" said National Chicken Council President Mike Brown.
Brown's call for Congressional action was echoed by livestock groups and oil industry advocates who have been fighting for repeal or reform of the renewable fuel mandate for years. The law is designed to encourage use of renewable fuel and lessen US dependence on imported oil by requiring refiners to add a certain amount of biofuel to gasoline and other products.
The EPA blamed the substantial delays for this year's targets on the "significant" amount of comments it received following its proposal to lower 2014 biofuel quotas. The EPA proposed the cuts on grounds ethanol was bumping up against a so-called blend wall, or the maximum amount of biofuel that can be mixed with gasoline without damaging engines. Ethanol producers say the blend wall is an imaginary creation of oil refiners who do not want their products substituted by renewable fuels.
With the 2014 quotas long overdue, and the final 2015 targets approaching at the end of the month, EPA said it would attempt to get caught up on the annual mandates by releasing targets for 2014 to 2016 in the new year. "Persistent uncertainty associated with EPA's annual percentage-setting exercise ... may ultimately force Congress to revisit the RFS as soon as next year," said Patrick Hughes, of Height Securities. The House Energy and Commerce Committee attempted to craft legislation to change the renewable fuel program last year, but lawmakers were unable to overcome regional divisions regarding the mandate.