US EPA Cuts Target for Cellulosic Biofuel

WorldEnergyNews.com
Tuesday, April 22, 2014

The U.S. Environmental Protection Agency (EPA) on Tuesday slashed its target for 2013 use of cellulosic biofuel to less than a million gallons, after the industry failed to meet goals for production of the fuel last year.

The agency lowered the mandate to 810,185 gallons in a new rule, well below the 6 million gallons it had required in the plan it finalized last August.

Oil groups challenged the previous plan after one of the two companies slated to make cellulosic biofuel in 2013 dramatically reduced its production estimates after the final rule was issued. Cellulosic biofuel is made from grasses, trees and crop waste.

In January, the EPA agreed to reconsider the mandate, which would have required oil refiners to buy millions of dollars worth of credits if cellulosic fuels were not available to be blended into gasoline or diesel.

The agency's newest target will serve as the final rule for 2013 regarding cellulosic fuel, unless the agency receives "relevant" adverse comment.

When Congress passed the Renewable Fuel Standard in 2005 with the goal of reducing U.S. reliance on oil, it expected cellulosic fuels would make up a significant portion of its mandated use of 36 billion gallons of biofuel by 2022.

But development of the innovative fuel sources has lagged and refiners successfully argued in court that they should not be responsible for using fuel that was not commercially available.

Every year refiners have to prove they have used a certain amount of advanced biofuels or have bought credits representing use of the fuel by others in an open market. If they do neither they are subject to fines.

A U.S. federal court ruled in 2013 that the department could not inflate the target for cellulosic fuel use to help spur development of the fuel. Instead, the court said the agency should set its target based on realistic production assessments.

(Reporting by Ayesha Rascoe; Editing by Lisa Shumaker)

Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Environmental

Steven Palazzo Visits HII, Newport

Huntington Ingalls Industries today hosted Rep. Steven Palazzo, R-Miss., for a tour of the company's Newport News Shipbuilding division. Palazzo represents the fourth district of Mississippi,

Environmental Groups: IMO Polar Code Too Weak

The International Maritime Organization (IMO) today adopted the Polar Code aimed at regulating shipping in Polar Regions. Several environmental groups have criticized

Bouchard Vessels Honored by SCA

Forty-three Bouchard Transportation Co., Inc. vessels have been honored by The Chamber of Shipping America (CSA) with Certificates of Environmental Achievement.

Energy

Gazprom Transgaz Ufa Organizes Arts Festival

Over 200 healthy children and children with disabilities from Bashkortostan as well as the Volga Region participated in the Breaking the Barriers second interregional children’s arts festival,

Time-out for Kwanza Drilling

Statoil has decided to cancel the Stena Carron rig contract after fulfilling the work commitments in the Statoil-operated blocks 38 and 39 in the Kwanza basin offshore Angola.

President Pryor Retires from ExxonMobil Chemicals

Stephen D. Pryor, president, ExxonMobil Chemical Company and vice president of Exxon Mobil Corporation, has elected to retire on January 1, 2015, after more than 44 years of service.

Government Update

Nigeria to Cut Petrol Subsidy by Half

Nigeria plans to cut subsidies on petroleum products by half next year after sharp falls in global crude prices, spurred the government to revise its 2015 budget downwards,

Venezuela Ships First Crude Mixed with Algerian Oil to China

Venezuela is sending its first shipment of crude mixed with Algerian light oil to China, according to state oil company PDVSA and traders.   Venezuela recently

China Building Island Big Enough for Airstrip

Satellite images show China is building an island on a reef in the disputed Spratly Islands large enough to accommodate what could be its first offshore airstrip in the South China Sea,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Pipelines Port Authority Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1513 sec (7 req/sec)