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EPA sets 2011 renewable fuel standard at 7.95 percent

Source:  Copyright 2010, Reuters
Date:  July 12, 2010
Byline:  Tom Doggett
Original URL: Status ONLINE

Ethanol and other renewable fuels must account for 7.95 percent of total gasoline sales in 2011 to meet Congress' mandate for 13.95 billion gallons of renewable fuels expected to be produced next year, the U.S. Environmental Protection Agency said on Monday.

In 2010, renewable fuels are expected to account for 8.25 percent of total gasoline sales to reach the mandate of 12.95 billion gallons.

As the American economy recovers, gasoline demand will increase and so will the amount of renewable fuels required to be produced. The higher gasoline demand, however, will make renewables a smaller share of total fuel sales.

At the same time, the government will require less cellulosic ethanol that is made from switchgrass, wood chips and other forest waste, which will see higher dependence on ethanol derived from corn to meet Congress' biofuels mandate.

Already, exporters, livestock feeders and ethanol makers are going through the U.S. corn ...

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