The Environmental Protection Agency has increased the amount of renewable fuels that must be blended into the nation’s fuel supply next year by nearly 6 percent.
Every year, the EPA adjusts the amount of renewable fuel it requires oil refiners to pump our gas. After initially signaling lower renewable fuel goals, the agency reversed course.
Economist Scott Irwin at the University of Illinois says the EPA’s decision to up the number of gallons in the renewable fuel standard is good news for corn producers—maintaining demand for ethanol creates stability.
But the ruling is even better for growers of soybeans, which are often turned into advanced biofuels.
"The advanced component of the RFS standards is growing rapidly right now," Irwin said. "Whereas the convention ethanol is capped out."
Oil industry group the American Petroleum Institute calls the ruling a bad deal for consumers.