Biofuels potentially under fire – again

The Biden administration is looking at whether waiving biofuels blending requirements under the Renewable Fuel Standard (RFS) could help fend off food inflation, according to Reuters, who cited two sources familiar with the situation. An administration official told Reuters “there is no serious consideration of this” right now, but given surging food inflation, it was just a matter of time until the food vs. fuel debate was rekindled – again. 

It is not clear any such waiver would impact food prices as it would most likely provide only a psychological impact for prices. And waiving biofuel requirements, if it were to happen, likely would only be a one-year situation. Any waiver would also likely bring sharp pushback from farm-state lawmakers.

The Biden administration has yet to finalize RFS levels for 2021 and 2022, proposing to move the corn ethanol requirement back to 15 billion bu. as specified by law.

Perspective: Remember... EPA was already asking about food vs. fuel relative to renewable diesel. Early last August, Reuters reported a trade group representing some of America’s biggest baked goods companies was urging the Biden administration to ratchet back its biofuel ambitions, arguing that using fuel made from crops could raise the cost of donuts, bread and other foods. At the time it appeared they were also taking on biodiesel because of a lack of oilseed supplies.