The U.S. biofuel industry gets a potential boost and some new rules from the federal government this week.
First, the White House – which sort of passed over biofuels with nothing more than a tiny shout-out in the State of the Union speech last week – said in a 14-page report that the government needs to set targets for fuel crop production in a way that makes sense by region. The report also mentions "guaranteed markets" for biofuel producers, but doesn't take a stand on the E15 issue (more information on this is expected later this spring).

As for the new rules, known as the Renewable Fuels Standard (RFS2), these are expected to be released by the EPA sometime today after being pushed back late last year. The most controversial part of these rules are that:
The standard could include a requirement that corn-based ethanol produce less carbon dioxide over its life cycle than gasoline. The ethanol industry opposes the life-cycle emissions requirement, which would include emissions from land cleared abroad resulting from growth of biofuel crops in the U.S. -- the so-called "indirect land use" effect.
The ethanol industry says any rule like this would be unfair.

[Source: Des Moines Register, Clean Skies, Reuters | Image: diaper - C.C. License 2.0]

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