Once More into the Blendwall Breach
by Anthony Adragna (Politico’s Morning Energy) The American Petroleum Institute is hoping that when the EPA sets final biofuel volumes later this year, it will reduce the percentage of ethanol required for blending with gasoline to something under 9.7 percent of total fuel. The EPA is widely expected to finalize a proposed rule in November, but the proposed rule set volumes that would work out to approximately 10.4 percent of fuel, a figure that the oil industry trade group says would breach “the blendwall” — the point API says the mandate starts making fuel prices do crazy things. “We expressed a concern of those volumes,” Frank Macchiarola, API’s downstream and industry operations director, said at a press event on Tuesday. He also said the industry group doesn’t expect a bill that would fix volumes at 9.7 percent will see any action in the lame duck session, but the group is playing a long game. “The most important thing is to continue the momentum,” he said.
The Biotechnology Innovation Organization sent a letter to congressional leadership and tax writers on Tuesday urging the extension of a host of advanced biofuel tax incentives currently slated to expire at the end of 2016. READ MORE and MORE (Inside Sources)