It's not just a victory for the oil companies, it's a victory for most of us. Those who were getting federal grants and subsidies may not be happy.
One unreasonable part of EPA's ethanol mandate was a minimum requirement for cellulostic ethanol, which is made from non-grain cellulose, such as grass, wood chips, bagasse (sugar cane stalks), etc. The EPA specified large fines if the oil companies didn't blend in enough of it. However, no one has been able to make it in commercial quantities. I did engineering on two entirely different pilot scale cellulostic ethanol plants (fortunately, not developing the process) 3 to 5 years ago and the word I have now is that neither one works. EPA was planning to still impose the fines, but they have now apparently backed off of that.
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