Renewable fuel consumption fell by 519.5 million gallons, or 36 percent, as the pandemic slowed the US economy in April. The effects were much more obvious within the gasoline sector where ethanol consumption was off by nearly 44 percent from March. The diesel sector saw renewable diesel consumption fall 17 percent, as both domestic and imported volumes moved lower. Biodiesel consumption was largely unchanged, with domestic and imported volumes only moving fractionally lower.
The EPA received two additional small refinery exemption (SRE) requests. There are now 27 requests for waivers to the 2019 RFS standard and the first waiver request received against the 2020 RFS standard. In total, EPA has 28 SRE requests pending.
RINs are continuing to move higher. Whether it is coincidental or not, biodiesel RINs have been steadily creeping higher ever since CVR Energy CEO Dennis Lamp mentioned in an earnings call that RINs have nowhere to go but up. The statement came as Lamp was explaining CVR’s “capitulation” regarding renewable fuel production and their need to mitigate future RIN exposure. In that call, Lamp said CVR was looking to add renewable diesel production within their framework as a method to reduce RIN exposure. He went on to say that LCFS programs like those in California and Oregon are the wave of the future and will overtake the United States at some point and become the norm.