Additional EPA Review Likely to Delay Release of Proposed RVOs: Source

Source: By Jordan Godwin, OPIS • Posted: Thursday, June 22, 2017

EPA may delay the release of its 2018 volume targets under the Renewable Fuel Standard (RFS) until at least next week while it completes an additional review requested by Administrator Scott Pruitt, a source said Tuesday.

“We’ll be lucky to see anything this week,” the source said.

Market participants have been on high alert for weeks, awaiting the release of the 2018 Renewable Volume Obligations (RVOs). That is now expected to extend through this week, the source said.

The agency was said to be ready to release its proposed volume targets last Thursday, but pulled back after Pruitt raised some questions, the source said last week.

EPA sent its proposed numbers to the White House’s Office of Management and Budget (OMB) for review on May 11.

Last year, EPA sent its proposed 2017 RVOs to OMB on April 15, and the figures were released on May 18.

At a budget hearing on Thursday, Pruitt told Congressional appropriators that EPA planned to meet its Nov. 30 deadline for the finalized RVOs but offered no timeline on the proposed RVOs.

Prices of Renewable Identification Number (RINs) credits have been on the rise over the past month as obligated refiners brace for potentially bullish proposed targets.

Ethanol RINs for 2017 were discussed around 75cts/RIN on Tuesday morning, up from the month-ago OPIS assessment of 60.50cts/RIN. Similarly, biodiesel RINs for 2017 were discussed around $1.12/RIN, up from an OPIS assessment of $1.0575/RIN one month ago.