EPA proposal details causes backlash in the biofuel industry

EPA proposal details causes backlash in the biofuel industry

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The Environmental Protection Agency released details on its latest proposal to offset biofuel waivers and the plan has sparked backlash from the industry.

Biofuel groups condemn the White House's latest waiver fix. EPA promised 15 billion gallons of ethanol to be blended into the fuel supply in 2020. According to ethanol advocates, the latest proposal offers no guarantees.

The method to reach the blending goal could send a ripple effect through the industry, and they say farmers will pay the price. The revamp puts more pressure on an already stressed farm sector.

Oil refiners and gasoline retailers maintain partial exemptions and reallocations are unlawful. EPA will hold a public hearing on the RFS proposal October 30th followed by a 30-day comment period.

According to USDA, 35 to 40 percent of the U.S. corn crop is used each year to make ethanol and dried distillers grains. In recent years, the number continues to drop as production declines.

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