January 10, 2012

Companies Fined for not Using a Biofuel that Doesn't Exist

Here is a true regulatory gotcha.  The 2007 Energy Independence and Security Act required, inter alia, the use of diesel fuel made from biomass, setting a goal of 250 million gallons in 2011 and 500 million gallons in 2012.  However, such cullulosic fuel does not exist.  It has  never been made commercially.  Nevertheless, the EPA will fine refiners for failing to include this product in their gasoline.  The New York Times has covered this folly in detail in today's paper.

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