U.S. Seen Sticking To Blend Wall In Long-awaited Biofuels Mandates

U.S. authorities are set to shake up the nation's complex and contentious renewable fuels policy in the near-term, issuing requirements expected to affirm that use of ethanol in motor fuels has, for now, hit a saturation point.

The Environmental Protection Agency (EPA) has pledged by June 1 to release proposals for the amount of ethanol, biodiesel, and cellulosic fuels - made of plant waste - that must be mixed into motor fuel for the years 2014, 2015, and 2016, targets that are up to a year and a half behind schedule.

At stake, say lobbyists and industry groups, is the future of the Renewable Fuel Standard (RFS), a bedrock of two presidential administrations meant to reduce America's dependence on foreign oil and shift the nation toward cleaner, domestic energy sources.

For the corn lobby, which represents corn-based ethanol producers, the EPA's proposals will signal whether Big Oil is winning a battle over market share or whether the political tide can be turned back in ethanol's favor despite opposition from car manufacturers, among other industries.

Many biofuel advocates are bracing for bad news, according to lobbyists: they say the agency seems prepared to stick to its previous rationale for limiting ethanol use to the current ten percent of all blended motor fuel, the so-called "blend wall," setting targets that fall short of those set out in the original 2007 law.

For U.S. regulators and policymakers, the proposals will likely seek to walk a middle ground, pleasing few but hopefully keeping the RFS intact and holding off a legislative overhaul that some critics say is overdue.

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