Critics Blast EPA’S Renewable Fuels Plan

EPA has proposed controversial new benchmarks for biofuels to be blended into the U.S. fuel supply. The Renewable Fuels Standard would boost, but not maximize, blending of corn-based ethanol and other biofuels into gasoline and diesel to reduce oil imports and shrink the U.S. carbon footprint. EPA cites fill-station and other distribution limitations in its call for 14 billion gal of biofuels by 2016—less than the 15 billion gal required by Congress. But EPA’s plan has sparked criticism by corn growers, ethanol makers, and the biotech sector, who charge it slashes demand for corn, chills investment in advanced biofuels, and favors the conventional fuel sector. “EPA shouldn’t scratch its head and wonder why the cellulosic biofuel industry is having increasing difficulty attracting capital to build additional new capacity,” says the Biotechnology Industry Organization, a biotech trade association. And automakers say that because of engine design, they may not be able to back car warranties if ethanol makes up more than 10% of gasoline. The EPA benchmarks may put ethanol at about 10.2% of gas and diesel. EPA plans to issue a final rule by Nov. 30.