Industry Says Congress Should Scale Back Renewable Fuel Rule

Date: May 13, 2011

Source: News Room

California regulators and oil industry representatives, at a May 11 meeting of the California Energy Commission's (CEC), say that Congress will likely have to relax requirements under EPA's renewable fuel standard (RFS2), since data shows a future shortage of cellulosic ethanol and advanced biofuels needed to meet the standards. The officials say EPA may have to issue rule waivers to refining companies this year and in 2012 exempting them from compliance with RFS2. Moreover, California industry officials say the same problems with biofuel supplies will likely prevent retailers from meeting the state's landmark low carbon fuel standard (LCFS), which requires a 10% reduction in the carbon intensity of gasoline and diesel by the end of 2020.

For 2011, the current EPA regulation requires refiners to produce 6 million gallons of cellulosic biofuel, 1.2 billion gallons of biomass-based diesel, 1.35 billion gallons of "advanced" biofuel, and a total of 13.95 billion gallons of renewable fuel. Advanced biofuels are considered those that reduce greenhouse gas (GHG) emissions by at least 50% compared with conventional gasoline.

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