U.S. Reducing Biofuel Target Controversies

A few days ago, because the US Environmental Protection Agency Director Gina McCarthy stated that because the US energy market can not fully digest the legal requirements of biofuel use, the US Environmental Protection Agency proposed a draft plan to reduce the 2014 biofuels.

Following the proposal to reduce federal ethanol production targets in November last year, the US Environmental Protection Agency is finalizing its 2014 biofuel utilization target. According to the draft regulations, the statutory production target for biofuels will be reduced from 18.15 billion gallons to 15.21 billion gallons in 2014, a move that has led to opposition from biofuel producers. However, McCarthy's remarks indicate that the US Environmental Protection Agency may insist on its position or reach a certain level of compromise with the industry on the biofuel target. (1 gallon is about 3.79 liters)

The official version of the draft will be released in June this year. McCarthy said that after recognizing the pressures on infrastructure and failing to complete the ethanol production targets set by the law, the US Environmental Protection Agency will take into consideration the views of all parties and issue reasonable measures.

According to the United States "renewable fuel standards" requirement, the United States should increase the annual biofuel use by 2022. However, due to the recent declining fuel consumption in the United States, breaking this "mixed limit" has been mentioned by people. According to the level of most fuel infrastructure in the United States, only 10% of ethanol can be mixed into a gallon of fuel, but the statutory biofuel target requires more ethanol to be mixed with the fuel. This creates a “mixed limit” problem.

Due to possible damage to older vehicles, refiners are reluctant to increase the mix of ethanol in gasoline to more than 10%. If the federal biofuels regulations are not modified, refiners will be forced to use more fuel for export or reduce fuel production.

In contrast, biofuel producers said that the problem of “mixed restrictions” has been exaggerated because refiners have refused to adopt the higher ethanol blending standard E15, which means that 15% of ethanol can be mixed with each gallon of fuel. In addition, some flex-fuel vehicles can even use fuels that are compliant with the E85 standard and are mixed with 85% ethanol.

For vehicles produced after 2001, which account for two-thirds of the vehicles traveling, the United States Environmental Protection Agency has approved the use of fuel with a maximum of 15% ethanol.

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