The Environmental Protection Agency is all hyped-up about implementing the Energy Policy Act’s new Renewable Fuels Standard. According to a press release issued by the agency today, the first step of the program is an almost three-percent standard for 2006.
“Under President Bush’s leadership, we are addressing our nation’s growing energy 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 announced today explains how industry will comply with the Energy Policy Act’s default provision requiring that 2.78 percent 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. 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, the EPA suggests you visit http://www.epa.gov/otaq/renewablefuels/