Recently, the US Environmental Protection Agency (EPA) proposed to increase the mandatory blending of biofuels from 19.22 billion gallons in 2019 to 20.04 billion gallons in 2020. It is currently proposed that the mandatory blending volume is still awaiting consideration by other government agencies. The proposal also includes 5.04 billion gallons of advanced biofuels, such as those made from agricultural waste, which will be 120 million gallons higher than the 4.92 billion gallons in 2019.
The EPA’s refinery biofuel blending requirements are part of the Renewable Fuel Standard (RFS), a US regulation that has been in place for more than a decade to help farmers increase their income and reduce US dependence on oil. It is reported that the US Environmental Protection Agency also proposed a mandatory biodiesel blend of 2.43 billion gallons in 2021, which is the same as in 2020. The agency has set a mandatory biodiesel blending requirement one year ahead of schedule. If small refineries demonstrate compliance with this regulation, which can lead to financial constraints, they can get a biofuel blend exemption.