14 September 2012 21:11 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--The US Environmental Protection Agency (EPA) said on Friday gasoline refiners must use 1.28bn gallons of biodiesel next year.
The mandate under the Renewable Fuel Standard (RFS) program, which is meant to boost production of renewable fuels, is a 28% increase from the 1bn gallon requirement this year.
“This action, which meets goals designated by Congress, is another step that strengthens America’s energy security by reducing dependence on foreign oil,” EPA administrator Lisa P. Jackson said.
Refiners must produce biodiesel each year, with their contribution determined by their share of the fuel market, according to the federal law.
Under rules set by the EPA, instead of producing fuel themselves, those refiners can buy credits from other producers to fulfill their obligations.
The fate of the RFS standard is considered to be critical by most biodiesel producers.
US renewable industry groups celebrated the announcement on Friday.
"This was an incredibly important decision, and the Obama Administration got it right," said Joe Jobe, CEO of the National Biodiesel Board, an industry trade association.
"It will allow biodiesel plants across the country to invest and expand, creating thousands of jobs," he said.
“This announcement offers certainty throughout the biodiesel supply chain, will grow green collar jobs and enhances our nation’s energy independence,” said Renewable Energy Group’s CEO, Daniel Oh.
Biodiesel is a fuel produced from renewable resources. The most commonly used feedstocks are rapeseed, soy and palm oil.
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