Scott Pruitt's Parting Shot At U.S. Ethanol Producers

EPA Administrator and refining industry ally Scott Pruitt resigned earlier this month after losing the support of the White House. Shortly before his departure, the EPA implemented substantial reductions to biofuel blending volumes under the national blending mandate. Recently-released EPA documents show that the reductions were implemented in a way that will keep ethanol blending at roughly 10 vol% of gasoline consumption. The EPA documents also show that the reduction decision occurred shortly before Mr. Pruitt's departure. If finalized later this year, the reduction to future blending volumes will continue to put downward pressure on ethanol operating margins.