AreaUnited States of America

Commodity GroupBiofuels

CommodityBiodiesel

Date01/07/2017

Policy CategoryRenewable energy

Policy InstrumentBiofuel policy

DescriptionReleased a US court rule establishing that the methodology used by the country\'s Environmental Protection Agency to justify past reductions in biofuel consumption mandates was incorrect.

NotesDirectly related to the above, in July 2017, a US court ruled that the methodology used by EPA to justify past reductions in biofuel consumption mandates (relative to the statutory targets set by Congress) was incorrect. The ruling was made in response to a petition filed in 2016 by an alliance of biofuel advocacy groups. According to the court ruling, rather than taking into account renewable fuel supplies available to refiners and importers, EPA primarily considered biofuel demand expressed by consumers – a consideration not allowed under the relevant law. The ruling could force EPA to revise upward the consumption targets set for 2016. Reportedly, the court decision resulted in US renewable fuel credits climbing to multi-month highs, while share prices of mineral oil refiners dropped.