Federal Renewable Fuels Mandate Begins Sept. 1, Refiners Ahead of Targets

The federal Renewable Fuels Standard Program, which promotes the use of fuels largely produced from American-grown crops, begins on September 1, but gasoline refiners are already ahead of the goals established in the program.

The RFS program requires that at least 7.5 billion gallons of renewable fuel be blended into motor vehicle fuel sold in the United States by 2012. It also requires the obligated parties to use a minimum volume of renewable fuel each year between 2007 and 2012. That minimum volume is determined as a percentage of the total volume of fuel a company produces or imports. The minimum volume will increase every year through 2012.

Refiners sold over 5.4 billion gallons of renewable fuels in 2006, exceeding the goal for that year which was 4.5 billion gallons. The U.S. Energy Information Administration predicts that by the end of 2007, refiners will surpass the 2012 goal of 7.5 billion gallons.

The RFS is also serving as one of the many pieces to help inform the greenhouse gas regulation that EPA and federal partners are developing under an Executive Order issued by President Bush in May. A proposal is expected by year's end.

For more information, visit the RFS rule webpage.

NewsClip: Commonwealth Renewable Ethanol Plans Delayed

Links: Increased Ethanol Production: Hurdles on the Road to Energy Independence

Thirst for Ethanol Could Leave Chespeake Bay With Hangover

Ethanol-Driven Commodity Prices Drive Up Costs for PA Farmers


8/31/2007

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