EPA Proposes Strategy to Reduce Foreign Oil Dependency

U.S. Environmental Protection Agency Administrator Stephen L. Johnson recent announced a proposed Renewable Fuels Standard Program that would double the use of renewable fuels such as ethanol and biodiesel.

 The program, authorized by the Energy Policy Act of 2005, will promote use of fuels produced from American crops. The new regulation calls for 3.71% of all gasoline sold or dispensed to U.S. motorists in 2007 be renewable fuel. 

Last December, EPA issued a rule implementing the Energy Policy Act's default standard of 2.78% for 2006. Johnson projected that by 2012, the RFS would cut petroleum use by 3.9 billion gallons annually and greenhouse gas emissions by 14 million tons.
In addition to preliminary analyses of economic and environmental impacts, the proposed regulation explains how industry is likely to comply with the RFS for 2007 and beyond. The rule contains compliance tools and a credit and trading system integral to the overall program.
In 2006, about 4.5 billion gallons of renewable fuel will be consumed as motor vehicle fuel in the United States. The RFS program requires that this volume increase to at least 7.5 billion gallons by 2012.

 Contact: EPA, (202) 272-0167, www.epa.gov/otaq/renewablefuels.  (EIN STAFF: 9/11)