EPA Proposes 2012 RFS-2 Targets Applicable To Cellulosic Biofuels

U.S. cellulosic biofuel obligations for 2012 will once again fall dramatically short of statutory targets. The United States Environmental Protection Agency (the "EPA," or the "Agency") recently proposed cellulosic biofuel obligations for 2012 under the RFS-2 renewable fuel standard program. The proposed obligations fall well short of the statutory targets set out in the 2007 Energy Independence and Security Act (the "EISA").

Cellulosic biofuels are chemically identical to conventional, grain-based biofuels, but are made by processing non-food sources. Producing the most popular conventional biofuel, corn-ethanol, requires diverting corn that would otherwise be used for food or animal feed to energy production, which may increase food costs. In the alternative, conventional feedstock producers could acquire more land to plant, water, fertilize, and harvest corn specifically for use as fuel, but the additional commitment of natural resources and fossil fuels required