US lawmakers seek to lower biofuel blending compliance costs
US lawmakers seek to lower biofuel blending compliance costs Reuters
sdgtalks
Legislation Introduced to Reduce Compliance Costs for U.S. Oil Refiners
NEW YORK, July 12 (Reuters) – A bipartisan group of U.S. lawmakers introduced legislation this week directing the Biden administration to allow oil refiners to purchase compliance credits for U.S. biofuel blending laws at a lower, fixed cost compared to the open market.
The proposal aims to reduce the rising compliance costs associated with the U.S. Renewable Fuel Standard (RFS) and help struggling refineries stay afloat amidst the current volatility in global energy markets, lawmakers said.
Background on the Renewable Fuel Standard (RFS)
As part of the RFS, oil refiners are required to blend billions of gallons of biofuels into the nation’s fuel mix or purchase tradable credits from those that do. Oil refiners argue that these mandates are expensive, while biofuel proponents, such as ethanol producers and corn farmers, support the obligations as it increases the market for their products.
The Proposed Bill
The proposed bill would allow refiners to purchase credits for conventional biofuel blending, including corn-based ethanol blending, at a fixed price if they are unable to obtain them in the market at cost-effective levels.
“We can and must do more to address volatile and soaring compliance costs driven by fuel mandates that are out of step with domestic fuel demand,” said Chris Coons, who introduced the bill along with fellow Democratic Senator Bob Casey and Republican U.S. Representative Brian Fitzpatrick.
It is uncertain whether the measure will pass, as issues surrounding the RFS typically attract strong lobbying efforts from both oil refining advocates and biofuel advocates. The bill would need to pass both the Democratic-controlled Senate and the Republican-led House of Representatives before it could reach President Joe Biden’s desk for approval.
Impact on Renewable Fuel Credits
Following the announcement of the bill, prices for the credits, known as RINs, dipped. Renewable fuel credits traded at $1.54 each on Tuesday after the bill was introduced, down from $1.56 prior.
Traders reported that credits traded between $1.55 and $1.56 each on Wednesday following the release of U.S. government data.
Reporting by Stephanie Kelly; Editing by Susan Heavey
Our Standards: The Thomson Reuters Trust Principles.
Contact: Stephanie Kelly, Thomson Reuters
Email: [email protected]
Phone: 646-737-4649
SDGs, Targets, and Indicators
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 7: Affordable and Clean Energy
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 12: Responsible Consumption and Production
The article discusses the U.S. Renewable Fuel Standard (RFS) and the proposed legislation to reduce compliance costs for oil refiners. This is connected to SDG 7 as it addresses the issue of affordable and clean energy by promoting the use of biofuels. It is also connected to SDG 9 as it relates to industry and infrastructure, specifically the oil refining industry. Additionally, it is connected to SDG 12 as it involves responsible consumption and production of biofuels.
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 7.3: By 2030, double the global rate of improvement in energy efficiency
- SDG 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable
- SDG 12.2: By 2030, achieve sustainable management and efficient use of natural resources
The article highlights the need to reduce compliance costs for oil refiners in order to promote the use of biofuels. This aligns with SDG 7.3, which aims to improve energy efficiency. It also relates to SDG 9.4, which focuses on upgrading infrastructure and making industries sustainable. Additionally, it is connected to SDG 12.2, which emphasizes the sustainable management and efficient use of natural resources.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
Yes, the article mentions the Renewable Fuel Standard (RFS) compliance costs and the prices of tradable credits known as RINs (Renewable Identification Numbers). These indicators can be used to measure progress towards the identified targets. By monitoring the compliance costs and the prices of RINs, it can be determined whether the proposed legislation is effective in reducing costs and promoting the use of biofuels.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 7: Affordable and Clean Energy | 7.3: By 2030, double the global rate of improvement in energy efficiency | – Renewable Fuel Standard (RFS) compliance costs – Prices of Renewable Identification Numbers (RINs) |
| SDG 9: Industry, Innovation, and Infrastructure | 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable | – Renewable Fuel Standard (RFS) compliance costs – Prices of Renewable Identification Numbers (RINs) |
| SDG 12: Responsible Consumption and Production | 12.2: By 2030, achieve sustainable management and efficient use of natural resources | – Renewable Fuel Standard (RFS) compliance costs – Prices of Renewable Identification Numbers (RINs) |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: reuters.com
Join us, as fellow seekers of change, on a transformative journey at https://sdgtalks.ai/welcome, where you can become a member and actively contribute to shaping a brighter future.
