EPA Proposes Renewable Fuel Standards

Renewable Fuels Standard Program to promote use of fuels produced by American crops.

The Bush Administration proposed Thursday a Renewable Fuels Standard (RFS) Program designed to reduce the nation's dependence on foreign oil by doubling 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 largely produced by American crops.

The new regulation proposes that 3.71 percent of all the gasoline sold or dispensed to U.S. motorists in 2007 be renewable fuel. The goal of the RFS program is to cut petroleum use by approximately 3.9 billion gallons a year in 2012 and reduce greenhouse gas emissions by up to 14 million tons annually.

The standard includes compliance tools and a credit and trading system. The system allows renewable fuels to be used where they are most economical, while providing a flexible means for the fuel industry to comply with the standard.

In 2006, there will be about 4.5 billion gallons of renewable fuel 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.

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