Fuels

EPA Establishes Renewable Fuel Standard Program

Seeks to reduce foreign oil dependency, more

WASHINGTON -- In step with the Bush Administration's call to increase the supply of alternative and renewable fuels nationwide, the U.S. Environmental Protection Agency (EPA) has established the nation's first comprehensive Renewable Fuel Standard (RFS) program.

At a press conference earlier this week, EPA Administrator Stephen L. Johnson, joined by Energy Secretary Samuel Bodman and National Highway Traffic Safety Administrator Nicole Nason, discussed the RFS program, which increases the use of alternative fuels and modernizing Corporate Average Fuel [image-nocss] Economy (CAFE) standards for cars.

The Renewable Fuel Standard offers the American people a hat trickit protects the environment, strengthens our energy security and supports America's farmers, said Johnson. Today, we're taking an important first step toward meeting President Bush's 20 in 10 goal of jumping off the treadmill of foreign oil dependency.

Bodman added, Increasing the use of renewable and alternative fuels to power our nation's vehicles will help meet the president's 20 in 10 goal of reducing gasoline usage by 20% in 10 years. The Administration's sustained commitment to technology investment will bring a variety of alternative fuel sources to market and further reduce our nation's dependence on foreign sources of energy.

And Nason said, While we must look at increasing the availability of renewable and alternative fuels, we must also continue to improve the fuel efficiency of our passenger cars and light trucks. As a part of the resident's 20 in 10 energy security plan, we need Congress to give the Secretary of Transportation the authority to reform the current passenger car fuel economy standard.

Authorized by the Energy Policy Act of 2005, the RFS program requires that the equivalent of at least 7.5 billion gallons of renewable fuel be blended into motor vehicle fuel sold in the United States by 2012. The program is estimated to cut petroleum use by up to 3.9 billion gallons and cut annual greenhouse gas emissions by up to 13.1 million metric tons by 2012, the equivalent of preventing the emissions of 2.3 million cars.

The RFS program will promote the use of fuels such as ethanol and biodiesel, which are largely produced from American crops. The program will create new markets for farm products, increase energy security and promote the development of advanced technologies that will help make renewable fuel cost-competitive with conventional gasoline. In particular, the RFS program establishes special incentives for producing and using fuels produced from cellulosic biomass, such as switchgrass and woodchips.

The RFS program requires major American refiners, blenders and importers to use a minimum volume of renewable fuel each year between 2007 and 2012. The minimum level or standard which is determined as a percentage of the total volume of fuel a company produces or imports, will increase every year. For 2007, 4.02% of all the fuel sold or dispensed to U.S. motorists will have to come from renewable sources, roughly 4.7 billion gallons.

The RFS program is based on a trading system that provides a flexible means for industry to comply with the annual standard by allowing renewable fuels to be used where they are most economical. Various renewable fuels can be used to meet the requirements of the program. While the RFS program establishes that a minimum amount of renewable fuel be used in the United States, more fuel can be used if producers and blenders choose to do so.

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In other government news, the EPA is asking the public to comment on draft grant guidelines for states for operator training on underground storage tanks (USTs). The draft guidelines establish three distinct classes of underground storage tank operators, describe how and when states will implement the guidelines, and discuss when operators must be trained. The EPA will accept public comments on the draft guidelines until May 10, 2007.

The EPA worked with states and other partners to develop the grant guidelines and, when final, will incorporate them into grant agreements between EPA and states. In summer 2007, EPA plans to issue the final grant guidelines, which will provide states with requirements they must meet in order to comply with the operator training provision of the Energy Policy Act of 2005. Grants provide resources to help states implement the underground storage tank program.

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