EPA cuts 2013 cellulosic biofuel target

The US Environmental Protection Agency (EPA) has cut its 2013 target for the use of cellulosic biofuel to less than a million gallons.

The agency lowered the mandate to 810,185 gallons in a new rule, after the industry failed to meet goals for the fuel's production last year. The figure is significantly below the 6 million gallons required in the proposal it finalised last summer and is a small portion of the 1 billion gallons that Congress looked to achieve in a 2007 energy law.

In January this year, the EPA agreed to reconsider the mandate, which would have forced oil refiners to purchase millions of dollars’ worth of credits if cellulosic fuels were unavailable for petrol or diesel blending.

Bob Greco, API Downstream Group director said in statement: ‘EPA should base its cellulosic mandates on actual production rather than projections that - year after year - have fallen far short of reality.’

EPA said it reconsidered its rules ‘due to the reduced estimate of anticipated cellulosic biofuel production in 2013 that was announced shortly after EPA signed its final rule by one of two companies expected to produce cellulosic biofuel in 2013.’

EPA’s modified target will act as the final rule for 2013 regarding cellulosic fuel, unless the agency receives ‘relevant’ adverse comment.

In January 2013, the US Court of Appeals found that there was no cellulosic biofuel production in 2010 or 2011 and only 20,000 gallons were produced in 2012.