U.S. biofuel laws equate to 2.3 million cars off the road
by David Masters
February 19, 2008
U.S. petrol stations will be serving even more biofuel this year as the country’s renewable fuel regulations become more stringent.
In order to comply with the Energy Independence and Security Act signed by President Bush in December, the Environment Protection Agency (EPA) has announced that the 2008 Renewable Fuels Standard (RFS) will be raised from 4.66% to 7.76%. The RFS determines how much non-petroleum fuel must be blended in with other fuels sold in petrol stations.
This RFS standard equates to 9 billion gallons of renewable fuel for the year. This will rise annually to reach 36 billion gallons by 2022.
These annual increase are expected to have saved 13.1 million tonnes of greenhouse gas emissions by 2012. This is the same as taking 2.3 million cars off the road.
The increase in the use of ethanol resulting from these regulations may cause petrol prices to drop, as ethanol receives a tax credit.
Director of Government Affairs at ethanol ICM Inc, Greg Krissek, said: “The Energy Independence and Security Act represents a significant milestone in our nation’s drive for a secure energy future.
“An energy policy that reduces our dependence on fossil fuels is critical. We stand ready to meet these goals.”
However, the use of biofuels is increasingly attracting criticism and is being blamed for the rise in food prices.
Krissok disagrees, contending that rises in petrol prices and other factors are to blame for the rise in food prices. He concluded: “The ethanol industry is poised to help meet America’s growing energy need while ensuring that we are good stewards of the environment and continuing to help improve rural America’s economic health.”
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