Biofuels Industry Welcomes RFS2 Standards

Ethanol industry reaction to the much delayed promulgation of rules and standards for the expanded Renewable Fuels Standard was mostly positive yesterday. Industry groups were mostly satisfied with the EPA’s new set of standards and benchmarks for the renewable fuels industry.

Among other provisions, the RFS will set mandatory blend levels for renewable fuels while implementing a framework for carbon emissions calculations that will be the basis for future carbon reductions from fuel. Disappointingly, however, EPA continues to rely on oft-challenged and unproven theories such as international indirect land use change (ILUC) to penalize U.S. biofuels to the advantage of imported ethanol and petroleum.

Despite the inclusion of ILUC in the final rule, grain based biofuels will qualify as a low-carbon fuel for the entire 36 billion gallon benchmark under the newly expanded RFS2.

“EPA was right to recognize that ethanol from all sources provides significant carbon benefits compared to gasoline,” said Renewable Fuels Association President Bob Dinneen. “As structured, the RFS is a workable program that will achieve the stated policy goals of reduced oil dependence, economic opportunity, and environmental stewardship.”

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