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EPA sets final 2017 biofuel blending mandate at 19.28 billion gallons: sources

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EPA sets final 2017 biofuel blending mandate at 19.28 billion gallons: sources

Washington — The US Environmental Protection Agency said Wednesday it will require refiners and blenders to mix 19.28 billion gallons of renewable fuel into the US transportation fuel supply in 2017, 480 million gallons more than it proposed in May.

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The 2017 Renewable Fuel Standard announced Wednesday requires that 4.28 billion gallons of the total must be advanced biofuels, including 2 billion gallons of biodiesel and 311 million gallons of cellulosic biofuels.

The requirement includes an implied 15 billion gallons of conventional ethanol.

The EPA also set 2018 biodiesel requirements at 2.1 billion gallons.

The EPA biofuels target announcement was supporting NYMEX RBOB futures Wednesday, which were the strongest element in the oil complex.

At 1501 GMT, NYMEX December RBOB was up 21 points at $1.4119/gal after having traded as high as $1.4226/gal on the news. The front-month RBOB crack against WTI was up 58 cents at $11.93/b.

The rule will go into effect 60 days after its publication in the Federal Register, which typically happens within weeks.

US biofuel blending mandate (million gallons)

Source: US Environmental Protection Agency

--Meghan Gordon,

--Joshua Pedrick,

--Geoffrey Craig,

--Brian Scheid,

--Edited by Jeremy Lovell,