EPA Ups 2012 Biofuel Mandate to 15.2 Billion Gallons

On Wednesday the Environmental Protection Agency proposed mandating the blending of 15.2 billion gallons of renewable fuel into the U.S. fuel supply, upping the proposed mandate for advanced biofuels by 48 percent to 2 billion gallons under the EPA's 2012 requirements for the Renewable Fuel Standard.

The EPA proposals include biomass-based diesel (1.0 billion gallons; 0.91 percent), advanced biofuels (2.0 billion gallons; 1.21 percent), cellulosic biofuels (3.45 - 12.9 million gallons; 0.002 - 0.010 percent) for a total renewable fuels mandate of 15.2 billion gallons or 9.21 percent, Biofuels Digest reported.

The EPA's RFS2 program encourages greater use of renewable fuels, including advanced biofuels, which for 2012 proposes to implement the Department of Energy's "Energy Independence and Security Act" requirement to blend more than 1.25 billion gallons of renewable fuels over the amount mandated for 2011.

Under the ruling the EPA is creating a two billion gallon pool of advanced biofuels, which must meet a 50 percent carbon reduction target from both indirect and direct emissions, but the EPA pronouncement will allow market forces to determine which fuels are most efficient to manufacture  as well as whether under market conditions it is more effective to import or domestically manufacture fuels to meet the standard.

By. Charles Kennedy, Deputy Editor OilPrice.com