Biofuel groups press White House on more than just 2014 targets

The U.S. biofuel industry is urging the Obama administration to go beyond simply raising proposed targets for use of the fuels, making the case instead for fundamental changes to the government's approach to the renewable fuel program.

 

There has been a flurry of meetings between biofuel backers and White House officials in advance of the release of the long-delayed targets for the use of renewable fuels this year, which are expected to reach the Office of Management and Budget for review within weeks.

 

The Renewable Fuel Standard requires increasing amounts of biofuels to be blended into gasoline and diesel supplies each year through 2022.

 

The targets for this year have been plagued by repeated delays amid outcry from biofuel producers, such as Abengoa Bioenergy, Green Plains Inc and Pacific Ethanol Inc, who say a draft plan slashing the 2014 standards could significantly harm the industry.

 

Biofuel industry sources said in May the Environmental Protection Agency would likely raise proposed levels.

 

Based on rising gasoline demand, the corn ethanol portion of the mandate is widely expected to be increased to about 13.6 billion gallons (49 billion liters) from 13 billion announced in November.

 

But the key message biofuel groups have delivered to the administration has been that their industry's future viability hinges on more than just tweaking volume requirements for the current year.

 

Meeting with senior White House adviser John Podesta last week, the Advanced Biofuels Association pressed the White House to speed up approvals of new fuels that can qualify as advanced and cellulosic fuels, known as pathways.

 

"We really tried to focus on how important it was to get pathways approved in a more expeditious way so we can actually bring more gallons to market," ABFA President Michael McAdams told Reuters. Seven top executives of companies waiting on approvals also attended the meeting.

 

More than 35 applications for new biofuel sources are pending at the EPA, with an average wait time of two years. The delays keep fuels off the market because would-be buyers cannot get credit under the biofuel mandate to purchase them.