The US Environmental Protection Agency has sent its proposal for 2018 ethanol blending volumes and 2019 biodiesel volumes under the Renewable Fuel Standard to the White House for review, signaling the policy could be on track for final release by November 30.
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Renewable Identification Number, or RIN, markets reacted bullishly to the news as 2017 D6 RINs, commonly called ethanol RINs, traded up to 48.5 cents/RIN in morning trading before backing off and trading at 47.5 cents/RIN.
S&P Global Platts assessed 2017 D6 RINs at 44.25 cents/RIN on Thursday.
The notice that the EPA has sent the proposal to the White House's Office of Management and Budget does not include any detail about the volumes under consideration.
But it signals to the refining and biofuel industries that the next set of RFS targets may not be significantly delayed as in past years.
Industry sources expect the EPA to propose volumes publicly in June, and the agency has until November 30 to issue a final rule.
For 2017, obligated parties must blend 19.28 billion gallons of biofuels into the nation's transportation fuel, including 4.28 billion gallons of advanced biofuel, 2 billion gallons of biodiesel and 311 million gallons of cellulosic biofuel.
The EPA set the 2018 biodiesel blending mandate at 2.1 billion gallons.
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