The U.S. is expected to launch the new mandates in order to process the non-stop lobbying battle for the powerful oil and corn lobbies. Recently the lobbying situation has been concerning the rulemaking process for effective energy management. According to the local oil industry, they believe that the requirements are too costly. Moreover, they also argue that it could endanger blue-collar refinery jobs. Because, the agriculture industry likes the mandates more if it could boost demand. The demand is from particular products like corn-based ethanol.
The two sectors actually have the same goal. They are expecting the multi-year rulemaking to increase market certainty and confidence. However, there are also concerns like it could distort the market if the long-term mandates are over. Learning from the past, there was a huge slump in energy demand following Covid pandemic. This situation allows EPA to cut biofuel blending mandates for as long as a year.
However, biofuel advocates argue that rising public subsidies could somehow increase production in unexpected ways. The Inflation Reduction Act also has the urge to reduce emissions especially from the airline industry for powerful oil. The Inflation Reduction Act is a massive climate legislation deal. The agency covers extended credits for biodiesel and incentives for sustainable aviation fuel. So far these fuels have already applied for credits qualification under the RFS.
Meanwhile, the RFS (Renewable Fuel Standard) is a program requiring transportation fuel traded in the United States. This act is to contain a minimum renewable fuels volume. Previously, in 2005 the agency was from the Energy Policy Act. Later in 2007, RFS expanded and extended from the Energy Independence and Security Act or EISA.
