The 2014 federal biofuel use targets from the Environmental Protection Agency (EPA) are nine months overdue and the delays are causing difficulties for U.S. biofuel producers who are contending with falling prices and preliminary plans by the U.S. government to cut use requirements. Until the final use targets are released, refiners and blenders are delaying purchases. The preliminary target for 2014 was announced in November 2013 keeping the 2014 mandate the same as 2013 at 1.28 billion gallons but producers asked for the target to be bumped to 1.7 billion gallons after production in 2013 reached 1.8 billion gallons. A recent survey by the National Biodiesel Board (NBB) found that more than half of U.S. producers have idled production or shut down a plant for a period of time this year, and more than 80% have reduced production. The new mandate from the EPA could be announced in September at the earliest meaning that production will need to be ramped up in the ending weeks of the year which will disrupt the market.
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