WASHINGTON -- Starting in 2006, Americans will be gassing up with nearly 3% of clean-burning, domestic renewable fuels such as ethanol under new standards issued by the U.S. Environmental Protection Agency (EPA). Authorized by the Energy Policy Act of 2005, the standard is the first step in EPA's Renewable Fuels Standard Program, which is designed to reduce vehicle emissions and strengthen U.S. energy security by doubling the use of fuels produced from American crops by 2012.
Under President Bush's leadership, we are addressing our nation's growing energy [image-nocss] demand in a way that supports our goals for a clean environment and healthy economy, said EPA Administrator Stephen L. Johnson. This investment in renewable fuels made from domestic crops will support American agriculture and replace fossil fuels with an increasing amount of cleaner-burning alternatives such as ethanol or biodiesel illustrating that environmental progress and economic development can, in fact, go hand in hand.
The regulation explains how industry will comply with the Energy Policy Act's default provision requiring that 2.78% of the gasoline sold or dispensed to U.S. motorists in 2006 be renewable fuel. The regulation is intended to provide market certainty for smooth implementation of the program in 2006 as EPA expands the program. Many of the act's other provisions regarding the Renewable Fuel Standard Program for 2007 and beyond will be implemented in subsequent regulations.
The program will significantly increase the volume of renewable fuels blended into motor vehicle fuels, EPA said. Various renewable fuels can be used to meet the requirements of the program, including ethanol and biodiesel. Under this standard, refineries, blenders and importers would collectively be responsible for meeting program requirements for 2006, where compliance would be calculated over the entire pool of gasoline sold to consumers.
For more information on the Renewable Fuel Standard Program, click here.
In other agency news, in mid-December, EPA completed an amendment to exempt refineries covered by California's Phase 3 reformulated gasoline (RFG) program from some federal enforcement provisions as part of efforts to streamline requirements.
The final amendment will prevent refineries, importers and blenders of RFG from having to comply with duplicative federal and state requirements.
Reformulated gasoline is blended to burn cleaner and reduce smog-forming and toxic air pollutants. This cleaner burning fuel is required to assist areas of the country in meeting EPA's National Ambient Air Quality Standards. The exemptions in this rulemaking will not excuse the industry from meeting federal RFG standards, said EPA; however, the final amendment will reduce compliance burdens on regulated industry without resulting in any negative environmental impact.
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