U.S. renewable fuel credits climb to 3-yr high as EPA misses deadline

U.S. renewable fuel credits rose on Monday to a three-year high, traders said, after the Trump administration did not meet a deadline to propose rules on the amount of biofuels refiners must blend into their fuel mix this year.

The U.S. Environmental Protection Agency (EPA) had been aiming for Dec. 31 to propose a rule on so-called Renewable Volume Obligations for 2021, according to its agenda on the Office of Information and Regulatory Affairs’ website. The EPA previously missed a Nov. 30 deadline, after the coronavirus pandemic complicated the rulemaking process.

EPA is in charge of administering the U.S. Renewable Fuel Standard, which requires refiners to blend billions of gallons of biofuels into their fuel mix each year, or buy tradable credits from those that do.

The coronavirus pandemic has slammed both industries, sinking fuel demand and battering margins. The industries have called for EPA to propose the 2021 RVO to provide market certainty.

EPA did not immediately respond to a request for comment.

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