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Michael Regan also said he has had
conversations with other members of the Biden administration,
including Biden's pick for the Agriculture Department, to
discuss the role biofuels can play in combating climate change,
according to written responses from Regan to questions submitted
to him by Republican Senator Joni Ernst of Iowa.
Under the U.S. Renewable Fuel Standard (RFS), oil refiners must
blend billions of gallons of biofuels into their fuel mix or buy
credits from those that do. Refiners can apply for an exemption
if they can prove the requirements harm them financially.
The RFS includes volume mandates up to 2022 that grow each year.
The law is a hot-button issue across the U.S. Farm Belt, as the
requirements have created a huge market for corn. The oil
industry follows it closely as well, as the obligations are
expensive for refiners and the mandate represents increased
competition for fossil fuels.
Both industries will watch how the administration will handle
the RFS after 2022, when the EPA will determine annual volumes.
"I will confer with my legal and policy team to understand all
of the options before me regarding the RFS program, and in this
specific case, how to set the RFS volume requirements beyond
2022," he said, in response to a question from Ernst asking
whether he will try to grow the use of advanced biofuels like
biomass-based diesel.
If confirmed, Regan will have a number of outstanding issues
surrounding the RFS to deal with, including setting renewable
volume obligations for 2021.
(Reporting by Stephanie Kelly in New York; Editing by Lisa
Shumaker)
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