Like any acquisition, the purchase of a biofuels company should involve substantial due diligence so the buyer can best determine the value of the target’s assets and liabilities, assess the risks associated with its business operations, and identify areas that may require further investigation.
On December 7, 2021, the U.S. Environmental Protection Agency (“EPA”) released its proposed 2020, 2021, and 2022 Renewable Volume Obligations (“RVOs”). RVOs determine the amount of renewable fuel (typically, ethanol) certain fuel refiners and others involved in the transportation fuel supply chain (“Obligated Parties”) are required to blend into their own fuel production during a given year. Obligated Parties failing to meet their RVOs for any year must buy Renewable Identification Numbers (“RINs”) or other credits, or risk default under the Renewable Fuel Standard (“RFS”).
On November 16, 2016, the U.S. Environmental Protection Agency (EPA) published the proposed Renewables Enhancement and Support Growth Rule, which proposes changes to EPA’s Renewable Fuel Standard (RFS) program and other renewable fuel regulations designed to encourage market growth of ethanol and renewable fuels in the U.S. and provide