Hyundai Asia Resources hopes to decide on plant expansion before end-2019

May 13, 2019 | 12:11 am

HYUNDAI Asia Resources Inc. (HARI) said it will decide by yearend whether or not it will push through with a P5-billion plant expansion.

“We don’t have any definite decision yet. We’re still conducting all the studies,” HARI Chief Executive Officer and President Ma. Fe Perez-Agudo said in a May 1 interview in Taguig City.

“Hopefully we’ll see by the end of this year what our final direction will be,” she added.

In early 2018, the Korean car maker’s official Philippine distributor said it has allocated P5 billion over the next five years for assembly operations. This was expected to boost HARI’s capacity to up to 50,000 units annually.

Last year, HARI sold 35,401 units, down 6% from 2017’s 37,678 units. The company expects 2019 sales to grow by 13-27% to 40,000-45,000 units, amid easing inflation rate, increased government spending, and higher consumer spending due to the elections.

In the first three months of this year, HARI saw a 12.5% sales increase to 9,949 units, driven by the commercial and light vehicles segments and new passenger car models.

The company launched its first assembly center in Sta. Rosa, Laguna last 2017.

Trade Undersecretary for Industry Development and Trade Promotion Group Ceferino S. Rodolfo said the Philippines had been trying to entice the South Korea-based Hyundai Group to establish an assembly plant for e-vehicles in the country.

Negotiations for a free trade agreement with South Korea is expected to attract more Korean investments, according to Mr. Rodolfo.

The two countries are targeting to conclude negotiations by November. — Janina C. Lim

How PSEi member stocks performed — May 10, 2019

May 13, 2019 | 12:10 am

Here’s a quick glance at how PSEi stocks fared on Friday, May 10, 2019.

ERC reviewing norms for allowable levels of power plant outages

May 13, 2019 | 12:08 am

THE Energy Regulatory Commission (ERC) said it is reviewing the number of unscheduled outages that power plants are permitted over a year, which will seek to benchmark against the outage rate allowed in other jurisdictions have adopted.

ERC Commissioner Catherine P. Maceda said the agency has reviewed existing power supply agreements (PSAs) and it has provisions on outage allowance under the contracts forged between generation companies and distribution utilities.

“But we feel na ’yung beyond the outage allowance na nakalagay sa mga kontrata ay ’yun ho siguro karapat-dapat lang na hindi i-charge sa consumer kun’di du’n sa genco na hindi nakapag-deliver,” she said.

(But we feel that those that exceeded the outage allowance under the contract should not be charged on consumers, but on the generating company that failed to deliver.)

At present, the obligation to provide replacement power depends on the provisions of the PSA between a distribution utility and a generation company, and on the kind of outage that occurred.

The duration of the outage allowance in a year is also agreed between the contracting parties, including those for planned and unplanned outages.

Based on the ERC review, the maximum outage allowance ranges from 45 to 60 days on an annual basis. The agreed PSAs also provide for the cost arrangements if the outage is within the agreed number or beyond.

“We’ve mapped out all these contracts,” Ms. Maceda said.

The result of the review will be used in the rules on competitive selection process, which the ERC is drafting. Annexed to that draft is a template on PSAs.

“[The template will have] the minimum provisions that we expect to find in a power supply agreement, including provisions for replacement power, including provisions for how much allowance should ideally be,” she said, adding that the rules will include provisions on penalties.

“It’s ERC actually that can impose such sanctions and penalties,” she said.

“Again this is a template. The parties concerned under a free market principle are free to negotiate the specific terms of their agreement. But definitely, hindi na po manghuhula kung ano ang outage allowance na dapat i-develop. (there will be no guesswork involved in estimating the outage allowance) There’s already a basis,” Ms. Maceda said. — Victor V. Saulon

Toyota unveils new Avanza

May 13, 2019 | 12:08 am

Words and photos by Kap Maceda Aguila

PUERTO PRINCESA, PALAWAN — Toyota Motor Philippines (TMP) unveiled last Thursday the refreshed version of its popular multi-purpose vehicle (MPV), the Avanza. The new iteration banners a sportier look, reworked dashboard with a new infotainment system, and more safety features.

In her speech delivered on the first night of Toyota’s annual Road Trek media ride and drive, TMP First Vice-President for Brand and Product Planning Cristina Arevalo said: “This year, TMP is among the first in the Southeast Asian region to launch the new Avanza,” and called it “a vehicle choice for the young, starting families, or those on the lookout for the best value without sacrificing style. These are two most important factors that we kept in mind when bringing together its new form.”

The seven-seat Avanza was first introduced in the Philippines in 2006. Close to 100,000 units are currently in private and commercial use.

The newest Avanza receives a front-fascia reworking through new split-type LED headlamps and front fog lamps flanking its dark front grille. The Veloz and G variants are fitted with a pair of side mirror-integrated turn signal lamps. New alloy wheels, a sporty rear design, and a fin-type antenna complete the exterior changes.

A high-grade 6.8-inch touchscreen infotainment system, similar to the head unit found in the RAV4 and Camry, also finds its way to the new Avanza. It bears high-resolution K2 technology audio enabling two-phone hands-free and five-phone music streaming. Mirroring is also allowed with smartphones using the T-Link App; and accessory connectors are located in the front and back rows. The air-conditioning display is now digital.

“The best part is that in the 1.5-liter variants Veloz and G grade, customers will get the new features without any price increase,” added Ms. Arevalo.

The flagship Veloz model comes in an exclusive Dark Red Mica Metallic color. The Avanza is also available in Dark Blue SE, Black Metallic, Gray Metallic, Silver Mica Metallic, Beige Metallic, and White.

Suggested retail prices is as follows: 1.5 Veloz A/T (P1.065 million), 1.5 G A/T (P1 million), 1.5 G M/T (P957,000), 1.3 E A/T (P907,000), 1.3 E M/T (P864,000), and 1.3 J M/T (P731,000). The Avanza is available nationwide through TMP’s 69-strong dealership network.

Beverage industry to be audited over sugar tax collection shortfall

May 13, 2019 | 12:07 am

THE DEPARTMENT of Finance (DoF) said it will pursue an audit of the beverage industry after missing collection targets for Sugar-Sweetened Beverages (SSBs) in 2018, to validate whether users of highly-taxed corn syrup did indeed switch to sugar as claimed.

In a report on revenue performance under the Tax Reform for Acceleration and Inclusion (TRAIN) Act, the DoF said producers of SSBs have claimed that they stopped using High-Fructose Corn Syrup (HFCS) entirely since Jan. 1, 2018, with the effect that they paid the lower excise tax on sugar-sweetened products of 6% rather than the 12% prescribed for HFCS-sweetened products.

One way to verify whether such a shift to sugar took place, the DoF said in its report, is to check whether producers filed the necessary paperwork to reformulate their products to use sugar, the DoF said, adding that the Bureau of Internal Revenue (BIR) is currently auditing producers in cooperation with the Food and Drug Administration (FDA), with which reformulation applications must be filed before firms can legally market products after a switch in ingredients.

The DoF estimated the shortfall in SSB excise at P11.9 billion.

An even bigger drag on performance, the DoF said, was value-added tax (VAT), where the shortfall was P31.5 billion. It quoted the Bureau of Customs (BoC) as saying that only eight industries and government entities were the source of VATable imports. It identified the marginal sources of VAT as the power transmission and jewelry industries, as well as government entities like the Philippine Sports Commission, the Armed Forces of the Philippines, the People’s Television Network, the University of the Philippines, the National Museum, and the Bangko Sentral ng Pilipinas.

It said the main source of incremental VAT revenue was interest liabilities of the Philippine Deposit Insurance Corp.

It added than when “second-round consumption effects” are considered — the increased consumption caused by higher disposable income as a result of TRAIN — the DoF recouped more VAT from stores and restaurants, such that the VAT shortfall is effectively only P11.6 billion.

It said overall performance of VAT reflected the decline in marginal TRAIN-related items, missing targets by P68 billion in 2018.

Overall, the DoF said TRAIN-related revenue in 2018 beat the target by 8.1% at P68.4 billion, with the BIR beating its TRAIN target by P10.6 billion and the BoC missing the goal by P5.5 billion.

It said post-TRAIN income tax collections fell by less than expected — P111.7 billion, against the projected P146.6 billion, due to greater compliance, an increase in registered taxpayers and the creation of more jobs.

Also beating the targets were the auto excise tax, beating the goal by about P6.2 billion, tobacco excise, by P5.6 billion, and documentary stamp tax by P4.7 billion.

“Overall, TRAIN revenue exceeded its targets, providing additional public resources for infrastructure and human capital development programs. We expect the performance to be sustained in the coming years,” the DoF said.

BWORLD TEST: MG ZS AT Alpha

May 13, 2019 | 12:07 am

By Manny N. de los Reyes

MG is a British sports car maker that dates back to 1924. Its halcyon years were the 40’s through the 70’s, when it came out with some of the most iconic roadsters of the time. These included the immortal MG TC, TD and TF of the 40’s and 50’s, followed by the MGA, MGB, MGB GT coupe, and MG Midget from the 60’s through the 80’s.

Financial troubles saw the brand being transferred from one new owner to another in the 90’s, with various British companies (and even BMW in 1994) stepping in to try to save the marque with the octagon badge from insolvency.

It wasn’t until Chinese conglomerate Shanghai Automobile Industry, Inc. (SAIC) took over the brand in 2005 that MG experienced a renaissance. In 2011, the company, now called MG Motor, launched a new model, the MG 6, which became the first new-generation MG available in the UK since the MG TF more than half a century ago.

MG is now sold in Australia, China, South America, Thailand (where it quickly became a best-seller), South Africa, the UK — and now the Philippines, by Chevrolet’s local distributor, The Covenant Car Company. And the model that’s spearheading the British brand invasion is the MG ZS — a compact front-wheel drive crossover tailor-made for SUV-crazy Filipinos.

The MG ZS sports contemporary styling that features “London Eye” headlights with LED daytime running lights, a Mercedes-Benz-like “Stardust” grille, and LED taillights. Size-wise and in silhouette, the ZS is closest to the previous-generation Hyundai Tucson and the current Mazda CX-5, especially in the execution of the large upright grille and the rearward-pointing arrowhead-shaped quarter windows. Handsome alloy wheels are generously sized 17-inchers wrapped by 215/50 tires.

The ZS is powered by a smooth and vibration-free 1.5-liter naturally aspirated engine that produces 114 horsepower and 150 Nm of torque. Modern driver-assist features include a reverse camera, ABS, Cornering Brake Control, Brake Assist, Electronic Brakeforce Distribution, Hill Start Assist, Tire Pressure Monitoring System, and a Traction Control System.

Some might rue the use of a four-speed automatic instead of the more advanced five- or six-speed automatics, but given the sub-P1 million-peso price point, it’s an acceptable compromise. Besides, with traffic nowadays, it’s very rare we even reach fourth gear (in both manual and automatic gearboxes). And I’d take a four-speed auto over a droning and boring CVT or jerky dual-clutch manumatic (like in the old Ford Ecosports).

Inside, the ZS is liberally covered in soft-touch materials. The interior is comfortable and ergonomic, featuring easy-to-reach controls and abundant storage areas. It also sports an 8-inch LCD infotainment system with Apple CarPlay so you can stay connected while keeping both hands on the wheel. Build quality as well as fit and finish are surprisingly very high. There is absolutely no evidence (or even a hint) of cheap manufacturing or craftsmanship.

The top-of-the-line AT Alpha variant that we tested might represent a ton of value at P998,888 (the midrange AT Style goes for P868,888), but the ZS range actually starts at an irresistible P818,888. This is solid value for the money, even for a relatively new and unproven brand.

MG owners should have easy access to after-sales services, even as the dealer network is established, to ensure that all their needs are met. A string of independent, MG Philippines-accredited service outlets will be made readily accessible for MG owners, while a “Mobile Garage” service caravan, which comes online this January, will offer regular preventive maintenance servicing in the convenience of your garage.

MG Philippines is also implementing a host of other innovative service platforms including “One-Hour Max and Go,” which refers to a speedy, one-hour basic maintenance service procedure; a customer care hot line that is available 24/7; “MG HERO Services,” which offers 24/7 roadside assistance; and “Mobile Gadget,” which allows users to pair their MG to a proprietary smartphone app so that they can closely monitor their car’s running stats, and allow them to schedule an appointment online from the convenience of their phone for periodic maintenance. And on top of that, and every brand new MG car will come with a 5-year or 100,000-km warranty.

Priced like a subcompact crossover but sized closer to a compact SUV, the MG ZS has the space, performance, build quality, styling, and equipment to take on any of its size and price rivals — and come out the winner.

PHL rice imports seen dropping on strong inventories, production

May 13, 2019 | 12:06 am

THE PHILIPPINES is expected to reduce its rice imports due to ample inventories and increased production forecast for 2019/2020, the US Department of Agriculture (USDA) said.

In its Grain: World Markets and Trade report for May 2019, the USDA noted that it expects Philippine rice inventories to rise with better production, forecasting that in 2020, rice imports will decline by 100,000 tons to 2.7 million metric tons (MT).

“The quantitative restrictions on rice imports have been replaced with tariffs, with a tariff advantage for the Association of Southeast Asian Nations member countries,” it said.

This year, the Rice Tariffication act was signed into law. It aims to bring down the price of rice by importing foreign grain more freely. Tariffs that will be collected from the scheme will be used to fund upgrades to the rice industry.

According to the Philippine Statistics Authority (PSA), in the third week of April, the average farmgate price of palay, or unmilled rice, fell 1.12% from the previous week to P18.48/kg.

The average wholesale price of well-milled rice fell 0.25% week-on-week to P39.91/kg, while the average retail price of well-milled rice fell 0.25% from a week earlier to P43.68/kg. Expectations of cheap imports are pressuring domestic prices, affecting farmer incomes ahead of full-on importation.

In March, the agency estimated imports of rice of $82.860 million, up 668% from a year earlier.

The USDA said wheat imports to the Philippines are “projected unchanged at 7.0 million tons and remain at record-large (levels) with strong growth in both food and feed use.”

In March, the PSA estimated wheat imports of $148.479 million, up 51.3% from a year earlier. — Vincent Mariel P. Galang

CTA upholds Air PHL refund ruling

May 13, 2019 | 12:06 am

THE Court of Tax Appeals (CTA) affirmed a May 2017 decision ordering the refund of excise taxes paid by Air Philippines Corp. (APC) on its importation of aviation fuel worth P235.6 million.

In a 36-page decision on May 2, the CTA, sitting en banc, denied the appeal of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) seeking to overturn a 2017 decision by the CTA second division, which ruled that APC is entitled to the refund of the excise taxes it paid between May 2003 and December 2004 for Jet A-1 fuel.

“After a judicious review of petitioners’ arguments and the record of the case, the Court En Banc finds no reason nor rhyme to modify much more reverse the assailed Amended Decision and Resolution of the Court in Division,” it ruled.

“It is evident that the arguments raised by both the CoC (Commissioner of Customs) and the CIR (Commissioner of Internal Revenue) have already been adequately addressed and passed upon by the Court in Division in the assailed Amended Decision and Resolution,” it added.

The court’s second division on May 8, 2017 ruled in favor of APC, saying the company satisfied all requisites for exemption from taxes pursuant to its franchise as it proved that the imported fuel was used for flight operations and other activities and that during the time of the importation, the Jet A-1 fuel was not locally available in reasonable quantity.

The CTA, in the decision, discarded the claim of the BIR and the BoC that APC failed to prove that the imported Jet-A fuel was not locally available in “reasonable quantity, quality, or price,” as the company submitted certifications issued by the Air Transportation Office (ATO) to support its claim.

ATO, according to its charter, is tasked to cooperate on any research and technical studies on “air navigation facilities including aircraft fuel and oil,” among others.

“The foregoing mandate negates the CIR’s contention that only the DoE (Department of Energy) could best determine the local availability in reasonable quantity, quality and price of the subject Jet A-1 aviation fuel,” the court said.

It also rejected the claim of the BoC that the court does not have jurisdiction over the allegedly erroneously-paid excise taxes of APC as the customs bureau has authority over matters involving duties and taxes on imported goods.

The CTA said that under the Tax Code, a taxpayer should file a claim for refund with the BIR within two years after its payment and no claim should be entertained in the specialized court unless the claim has been filed with the commissioner.

“Anent CoC’s contention that respondent committed intentional forum shopping, suffice it to say that the CoC is merely acting on a delegated authority given by the CIR. In fact, when the CoC failed to render a decision on respondent’s protest, and the 2-year prescriptive period under Section 229 of the NIRC (National Internal Revenue Code) of 1997, as amended, was about to end, that respondent filed its administrative claims for refund with the BIR, and subsequently with the CTA,” it said.

It also said that the Supreme Court previously said that when the two-year prescriptive period is about to expire, a taxpayer may not wait for the decision of the BIR “for purposes of judicial intervention.” “In fine, respondent cannot be faulted for complying with the mandated requisites under the law and taking the appropriate action to avoid the lapse of the 2-year prescriptive period.”

The decision was written by Associate Justice Esperanza R. Fabon-Victorino and concurred in by Presiding Judge Roman G. Del Rosario and Associate Justices Juanito C. Castañeda, Jr., Erlinda P. Uy, Cielito N. Mindaro-Grulla and Ma. Belen Ringpis-Liban. — Vann Marlo M. Villegas

Lamborghini Huracán GT3 Evo makes winning debut in British GT

May 13, 2019 | 12:06 am

LAMBORGHINI began its 2019 British GT campaign in victorious fashion as Jonny Cocker and Sam De Haan came out on top in Race 2 at Oulton Park in Cheshire. The Barwell Motorsport duo, who completed a spectacular recovery to finish fourth in Race 1, brought the Italian marque its first continental success for the brand-new Huracán GT3 Evo.

The sister Barwell No.72 Huracán of Phil Keen and Adam Balon started the race from pole and opened up a healthy lead either side of safety car interventions — first for the No.77 Mercedes of Michael Broadhurst and then for the No.2 Aston Martin driven by Mark Farmer.

De Haan emerged from the regulation pitstop in front of the No.72 after Balon, taking over from Keen just after the halfway marker, served his seven-second time penalty for its Race 1 result, and maintained its advantage over the second Lamborghini until the end of the one-hour race.

Lying second at the restart of the second safety car period, De Haan immediately piled the pressure on race leader Richard Neary in the Mercedes and feinted a move on the first racing lap after resumption.

De Haan’s pressure ultimately paid off next time around, forcing Neary into running deep at Knickerbrooke Chicane, with the Lamborghini snatching the lead round the outside with just 10 minutes of the race left to run.

From then on, De Haan opened up a four-and-a-half second advantage over Neary, who had to fend off the attentions of Andrew Howard’s Aston Martin and the No.72 Huracán of the recovering Balon.

Despite a late surge from Neary in the closing laps, De Haan comfortably came across the line the winner by just over two seconds from the Mercedes, with Balon unlucky to miss out on the final podium position in fourth place.

Nevertheless, the opening round of the 2019 season proved more than a success for the pair of Huracáns with both cars finishing inside the top five in each race.

The Oulton Park victory was the third this year for the Lamborghini Huracán GT3 Evo, following the GTD triumphs at 24H Daytona and 12H Sebring.

Speaking of his race victory, Sam De Haan said post-race: “[I am] delighted with that one, it couldn’t have gone any better. We got really lucky at the start and in the pitstops and I worked really hard to get past Richard in the Merc, but really happy with it.”

For more information, contact Lamborghini Manila at 0917-555-3771 or visit our showroom at 28^th Street cor. 11^th Avenue, Bonifacio Global City.

Bringing a tradition back

May 13, 2019 | 12:05 am

THE 1970s were a dark time for the Philippines, mostly due to the atrocities of the Marcos regime. For better or for worse, there were some bright spots in the arts during that period, mostly due to the spendthrift former First Lady, Imelda Marcos. Fashion-obsessed Mrs. Marcos nurtured fashion designers and wore their clothes on the world stage, lending her very visible visage to Filipino designers. Galas for this and that ran every evening, and in 1979, Filipino designer Ben Farrales, known as The Dean of Philippine Fashion, organized a Flores de Mayo parade at the Manila Hotel, under the Congregacíon del Santissimo Nombre del Niño Jesus. Beauty queens and celebrities participated in the parade that honored the Virgin Mary, part of the Catholic devotions to Mary during May.

The Manila Hotel tradition eventually ended after a run of about 20 years.

This year, the Manila Hotel revived the tradition with its own Flores de Mayo, staged on Labor Day. This time, the parade was populated with models and pageant personalites. The clothes were furnished by members of the Designers Circle of the Philippines, with an underlying theme of 19^th-century traje de mestiza, otherwise known as the Maria Clara.

The traje de mestiza is an east-meets-west amalgamation of the influences that shaped colonial Filipino society. The base of the dress is the traditional baro’t saya (blouse and skirt) and a continuing evolution since the 1700s can be seen in the gown’s components: the panuelo (fichu), for example, is a relic from the 1700s, while the wide sleeves are a bequest from the Victorian Era of the 1800s.

In any case, the 30 pairs of attractive people dressed in their Filipiniana best went down the same route as in the 1979 parade, going along the hotel’s facade and circling back for a dinner at the Maynila Ballroom, but not before offering flowers at a statue of the Virgin Mary. It was a spectacular show, with these bejeweled young ladies in their fussy ternos, making the wearing of the heavy garments a worthy sacrifice for a good spectacle.

Awards for Magandang Paraluman (Beautiful Muse) and Natatanging Ginoo (Oustanding Gentleman) were given to Sheena Dalo (Ms. Philippines Earth 2016) and Aaron de Tommaso. The Bestido Pilipino Award was given to Santa Emmanuelle for a sequinned black number with feathers on the skirt, topped with a veil. The Bituin ng Gabi (Star of the Night) award was given to designer Edwin Uy and his model, Samantha Lo, for a lovely pink traje de mestiza, both opulent and innocent, topped with a pink veil, golden tassels, and a gold-embroidered train.

Manila Hotel President Joey Lina said, “The present management deems this [as] a very good tradition to revive.”

“Manila Hotel symbolizes what is truly Filipino.” — Joseph L. Garcia

OFWs remittances increase markedly for Mother’s Day — WorldRemit

May 13, 2019 | 12:05 am

ONLINE MONEY transfer service WorldRemit said remittance activity from Overseas Filipino Workers (OFWs) tends to increase in the run-up to Mother’s Day.

WorldRemit Managing Director for Asia-Pacific Michael Liu said Filipino customers tend to increase their remittance activity shortly before Mother’s Day.

“We do see remittance activity increase during events like Mother’s Day. Last year, WorldRemit saw an increase of remittances in the week leading up to Mother’s Day of 13%,” he told BusinessWorld on Friday.

According to a WorldRemit survey, 99% of OFWs observe Mother’s Day and 82% celebrate the holiday by sending money to their mothers. More than half of WorldRemit’s OFW customers have transferred money online for Mother’s Day.

“We conducted a survey of our Filipino customers in connection to Mothers Day activities — 62% said they send money to their Mothers for Mother’s day… Our conclusion (is that) Mother’s day is an important day for our OFWs,” he added.

The survey also shows that 78% call their mothers on the phone to mark the occasion and 52% send gifts. Mr. Liu added that WorldRemit also observes “an increase in value” in money sent during Mother’s Day from the usual amount OFWs typically send.

“We see an increase in average amount sent. Not only do OFWs send on a more regular basis in the period leading up to these events but they do send more. We do see an increase in transaction value, transaction output (during these periods),” he said. — Gillian M. Cortez

US EPA proposes hike in biofuel mandate to 20.04 B gallons in 2020

May 13, 2019 | 12:05 am

WASHINGTON/NEW YORK — The US Environmental Protection Agency (EPA) has proposed increasing the volume of biofuels refiners must blend into their fuel annually to 20.04 billion gallons in 2020, from 19.92 billion gallons in 2019, according to two sources familiar with the matter.

The proposed mandate, now under review by other government agencies before being finalized, includes 15 billion gallons of conventional biofuels like ethanol, unchanged from 2019. It also includes 5.04 billion gallons of advanced biofuels, like those made from agricultural wastes, up from 4.92 billion in 2019, the sources said.

The EPA is charged with setting biofuel blending requirements for the refining industry as part of the Renewable Fuel Standard (RFS), a more than decade-old regulation that is aimed at helping farmers and reducing US dependence on oil.

The policy has helped farmers by creating a huge market for ethanol and other biofuels, but oil refiners say compliance can cost a fortune.

EPA spokesman Michael Abboud confirmed the agency submitted a proposal for review, but did not comment on its contents.

“The proposal is currently under interagency review, which places the Trump administration on track to release the Renewable Fuel Standard Renewable Volume Obligations (RVOs) on time for the third consecutive year,” he said.

As part of the advanced biofuel proposal, the agency set mandates for cellulosic fuel at 540 million gallons and non-cellulosic at 4.5 billion, according to the sources.

It also proposed a biodiesel mandate of 2.43 billion gallons for 2021, unchanged from 2020, they said. The EPA sets biodiesel mandates a year in advance.

Small refineries can be exempted from biofuel blending if they prove that complying would cause them financial strain, and the Trump administration made extensive use of such exemptions in the last two years.

That has saved refiners money but angered the corn lobby, which argues the practice erodes biofuel demand. — Reuters