EPA Ready to Scrap Biofuel Market Reform in Bid to Boost Ethanol
- Agency initially planned to bar some traders and cap positions
- Rush to propel high-ethanol fuel by June 1 complicated effort
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The Environmental Protection Agency is poised to jettison proposed trading restrictions on a $5.2 billion market for biofuel compliance credits in a coming rule, casting aside changes sought by independent refiners complaining of hoarding and wild price swings.
The EPA’s shift comes as the agency races to meet a May 31 rulemaking deadline amid pressure from large oil companies and fuel distributors that oppose the market overhaul. It was described by people familiar with the internal deliberations who asked not to be identified before a formal announcement.