Winning the Biden-only administration for the oil industry will result in significant reductions in biofuel missions. -Document

US President Joe Biden will hold an imaginary coronavirus (CV-19) meeting at the United Nations General Assembly (UNGA) on September 22, 2021, at the South Court of the United States. USA

NEW YORK, Sept. 22 (Reuters) – The administration of US President Joe Biden is considering a major reduction in the country’s biofuel requirements, according to a Reuters report.

If approved, the idea would argue that biofuel integration is expensive for the oil industry, especially for PBF Energy (PBF.N) and CVR Energy (CVI.N).

The reductions will anger ethanol producers such as Archer-Daniel-Midland Co. (ADMN) and the country’s maize farmers who produce raw materials for ethanol – the most widely used biofuel so far.

According to Reuters, traders said the credits used to comply with the RINs fell to 92 cents each, down from $ 1.07 last season.

According to the document, the Biden Environmental Protection Agency, which administers the country’s biofuel policy, will reduce its mixing obligations to 17.1 billion gallons and 18.6 billion gallons for 2020 and 2021. That is less than the 20.1 billion gallons completed by 2020 before the cholera epidemic.

The agency estimates that by 2022, the standard will be around 20.8 billion gallons.

EPA is reorganizing its 2020 and 2021 missions.

Ethanol takes the biggest blow. According to the document, ethanol will be reduced from 15 billion gallons to 12.5 billion gallons by 2020, 13.5 billion gallons by 2021 and 14.1 billion gallons by 2022.

The EPI did not comment on the story, but warned that the numbers were not final and that they were still subject to reviews before they cleared the relationship. The agency submitted a proposal to the Office of Administration and Budget in August to begin the review process.

According to the US Renewable Petroleum Standard, oil refineries must integrate biofuels with the country’s oil blends or purchase them from RINs.

The policy is intended to help the country’s farmers and reduce US oil imports.

But the policy has been a political lightning rod for years. The farm is very supportive, helping to grow the corn market. But oil refineries say the missions are so expensive that they threaten to put the refineries and their staff out of business.

The Coronavirus epidemic has further complicated the fight between missions by reducing the demand for oil and damaging oil refineries and biofuels.

Meanwhile, RINS prices have risen this year, and filter advocates cite these prices as a reason to lower some of the industry’s standards.

RINs rose to $ 2 each in May this year, but speculation about future futures fell last month.

Proponents of her case have been working to make the actual transcript of this statement available online.

“If these rumors are true, this is to protect the RFS,” said Emily Score, chief executive of Growth Energy. It is difficult for any administration to take such action.

Republican candidate Randy Fenstra from Iowa, the country’s largest corn producer, condemned the idea.

“I will fight this tooth and nail,” he wrote on Twitter.

Reported by Stephanie Kelly and Jarrett Rencho; Edited by Richard Walmanis and Lisa Schumacher

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