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EPA Announces Renewable Fuel Mandate Level for 2008: Food-based Biofuel will be More Than Seven Percent of Gasoline

Thursday, February 14, 2008

(American Meat Institute)The U.S. Environmental Protection Agency (EPA) issued guidelines for achieving the nine billion gallon ethanol mandate required by the Energy Independence and Security Act of 2007 (EISA).  EISA amends section 211(o) of the Clean Air and Water Act (the Act) to require the EPA Administrator to annually determine a renewable fuel mandate which is applicable to blenders, importers and certain refiners of gasoline.  This guideline provides that fuel blenders, refiners, and importers are required to incorporate 7.76 percent of the nation’s gasoline supply with ethanol.  This notice was published in the Federal Register.
The mandate is calculated as a percent, by dividing the amount of renewable fuel that EISA requires to be blended into gasoline in a given year by the amount of gasoline expected to be used. 
This mandate is intended to lead to the use of nine billion gallons of renewable fuel by 2008.  Nine billion gallons is two billion gallons more ethanol that was produced in 2007.  Estimates indicate that it will require more than 22 million acres of corn to meet this target.
On February 7th, AMI President and CEO J. Patrick Boyle expressed concern about the economic consequences of burning more feed and food as fuel on the meat and poultry industry and shared a number of policy recommendations in testimony submitted to the Senate Energy and Natural Resources Committee.  Boyle said that the goal of energy security is commendable and should be considered in relative context to risk posed to domestic and international food security. By utilizing a key food ingredient as the dominant input for biofuels, the program has coupled food prices to fuel prices, Boyle’s testimony states.
To view the Federal Register notice, click here:  http://www.epa.gov/fedrgstr/EPA-AIR/2007/November/Day-27/a23095.htm

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