EPA Proposes Renewable Energy Goals

The Obama Administration made two major announcements yesterday concerning biofuels. First, President Obama issued a Presidential directive to Ag Secretary Tom Vilsack, Energy Secretary Stephen Chu and Environmental Protection Agency Administrator Lisa Jackson to aggressively accelerate the investment in and production of biofuels. The trio will co-chair the President’s Biofuels Interagency Working Group. Ag Secretary Vilsack followed with his own announcement, saying he will help lead an unprecedented interagency effort to increase America’s energy independence and spur rural economic development.

President Obama directed the Secretaries to expedite and increase production of and investment in biofuel development efforts by: refinancing existing investments in renewable fuels to preserve jobs in ethanol and biodiesel plants, renewable electricity generation plants, and other supporting industries; and making renewable energy financing opportunities from the Food, Conservation and Energy Act of 2008 available within 30 days.

According to Secretary Vilsack, - President Obama's announcement demonstrates the President’s deep commitment to establishing a permanent biofuels industry in America. He added, - expanding our biofuels infrastructure provides a unique opportunity to spur rural economic development while reducing our dependence on foreign oil - one of the great challenges of the 21st century.

Secondly, The Environmental Agency has announced a proposal that would require: 16 billion gallons of cellulosic biofuels; 15 billion gallons of conventional biofuels; 4 billion gallons of advanced biofuels; and 1 billion gallons of biomass-based diesel be utilized by the year 2022. The proposal would also, for the first time, require some renewable fuels to achieve greenhouse gas emission reductions compared to the gasoline and diesel fuels they displace. Also, refiners must meet the requirements to receive credit toward meeting the new standards.

The thresholds for the new categories would be 20 percent less greenhouse gas emissions for renewable fuels produced from new facilities, 50 percent less for biomass-based diesel and advanced biofuels, and 60 percent less for cellulosic biofuels. EPA also will conduct peer-reviews on the lifecycle analysis of the four renewable fuel categories. Lifecycle refers to the greenhouse gas emissions over the life of the fuels.

The 60-day comment period on this proposal will begin upon publication in the Federal Register. During the comment period EPA will hold a public workshop on lifecycle analysis to assure full understanding of the analyses conducted, the issues addressed and the options that are discussed.