EPA Proposes 2012 Fuel Standards

EPA has proposed new standards for the incorporation of renewable and alternative fuels into the U.S. energy infrastructure for 2012. These standards are part of the agency’s Renewable Fuel Standard program, which encourages greater use of renewable fuels, including advanced biofuels. The Energy Independence & Security Act of 2007 (EISA) established annual renewable fuel volume targets, which are mandated to reach a total of 36 billion gal by 2022. To achieve these volumes, EPA calculates a percentage-based standard for each year. Every refiner, importer, and nonoxygenate blender of gasoline or diesel then determines the minimum volume of renewable fuel it has to have in its transportation fuel. For 2012, EISA is mandating to blend at least 1.25 billion gal of renewable fuels over the amount it mandated for 2011. The proposed 2012 standards include 0.91% of biomass-based diesel, 1.21% of advanced biofuels, and up to 0.010% of cellulosic biofuels. EPA must finalize the standards by November.