The transition team from president-elect Joe Biden is in talks with biofuel groups on topics that include the blending laws and the relevance of the Renewable Fuel Standard, in the face of the energy transition efforts by both parties.
One of those companies in POET, a south Dakota-based company that specializes in the blending of biofuels and ethanol-based fuels. POET is likely to become a key player in Biden’s efforts for energy transition, as well as the positioning of the industry as a whole.
According to sources quoted by Reuters, the upcoming administrator of the Environmental Protection Agency, Michael Reagan, has also held talks with the company, as well as with other agricultural players in the U.S.
“A Biden-Harris Administration will promote and advance renewable energy, ethanol, and other biofuels to help rural America and our nation’s farmers; and will honor the critical role the renewable fuel industry plays in supporting the rural economy and the leadership role American agriculture will play in our fight against climate changes,” Jeff Broin, POET’s CEO has said upon the subject.
As we have reported previously, the industry has been at suspense, as the Trump administration has failed to tackle the RFS issue, with refiners and biofuel blenders. Under the RFS small and major refiners are obligated to blend certain amounts of biofuels into their mix.
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Biofuel, key for energy transition
Nevertheless, refiners can ask for waivers if they prove that blending the green fuels has an economic impact on their companies. During the Trump administration those waivers have quadrupled, which has angered farmers and industry groups. They argue that waivers hurt the entire demand and chain of value of their product.
During the last couple months, there has been a battle in court over a resolution of the Tenth Circuit Court over conceding waivers only as extensions of previously existing ones. The resolutions angered refiners and asked the Supreme Court to review the case, to what the Department of Justice stood against.
Now, the biofuel groups are in talks with the Biden transition team, which casts a light of hope for the resolution of the debate; and a reinforcement of the industry amid energy transition efforts and climate change actions.
“We are hopeful that President-elect Biden will continue to be a strong leader for homegrown biofuels and rural America; that his choice to lead the EPA will reflect his campaign promises to faithfully administer the Renewable Fuel Standard; and end the abuse of small refinery exemptions that destroy demand for biofuels and shortchange farmers. We also hope that our new president will work to make E15 America’s standard fuel and continue to modernize regulations that will allow Unleaded88 to flow freely in the marketplace,” concluded Broin; in one of his columns.