The U.S. Environmental Protection Agency (EPA) last week set the 2022 biofuel blending requirement at 20.63 billion gallons, which is lower than the 20.77 billion gallons proposed by the agency in December. The reduction is due to lower cellulosic biofuel production.

The agency also revised its 2021 blending requirement to 18.84 billion gallons, up from 18.52 billion gallons proposed. The revised figure includes 13.79 billion gallons of conventional ethanol, tracking actual renewable fuel consumption for the year. Blending obligations for 2020 were unchanged from...