WASHINGTON (Reuters) - The U.S. Environmental Protection Agency issued its proposed changes to the renewable fuel standard on Tuesday.
The draft rule is slated to ramp up production of advanced biofuels while also taking steps to reduce alternative motor fuels’ carbon footprint, Lisa Jackson, the agency’s administrator, said during a White House teleconference with reporters.
Biodiesel Cellulosic Advanced Renewable
(#) Biofuel Biofuel Fuel
(in billion gallons)
# - The biodiesel requirement after 2012 will be at
least 1 billion gallons but the EPA will determine the
target in a future rule.
* For the first time, the renewable fuel standard will mandate greenhouse gas emissions cuts for alternative fuels.
* Carbon dioxide emissions would be measured over the full life cycle of a renewable fuel, from the production of its feedstock to the production and use of the fuel.
* Indirect land use changes created by farmers around the world who make room for food crops that U.S. farmers abandoned to grow more fuel crops will be considered part of a fuel’s carbon footprint.
* Renewable fuels would need to cut emissions by 20 percent from 2005 levels; advanced biofuels and biodiesel would need to cut emissions by 50 percent; and emissions from cellulosic biofuels would need to be cut by 60 percent from 2005 levels.
* Displace 11 percent of gasoline and diesel consumption annually, leading to fewer petroleum imports.
* Save the U.S. government $16 billion in 2022, the value of the petroleum imports that the country will no longer need.
* Create energy security benefits from less dependence on foreign oil, which would total $3.7 billion in 2022.
* Price increase of 10.9 cents a gallon by 2022 for U.S. gasoline if crude oil costs around $53 a barrel.
* Reduce greenhouse gas emissions by an equivalent of 160 million tonnes of carbon per year, the same as taking 24 million cars off the road.
* Spur commodity price increases of 15 cents a bushel for corn, 29 cents a bushel for soybeans, $13.34 a tonne for sugarcane and 93 cents per hundred lbs. of beef.
* U.S. food costs would increase $10 per person per year by 2022, and net farm income would jump 10.6 percent, or $7.1 billion.
Compiled by Jasmin Melvin; Editing by Lisa Shumaker