Renewable Fuels Requirement Starts

Beginning on September 1, the first federal renewable fuels standard (RFS) program takes effect. Starting on Saturday, "major refiners, blenders, and importers must meet reporting, registration, and other key compliance requirements," according to the EPA, so it may be a busy weekend for paper-pushers.

So transportation fuel companies now have to document their renewable energy supplies, and the law will get some holdouts (hello ExxonMobil) to blend a bit of renewable fuels into their products. To help cross the T's and dot the I's in meeting the requirements, a hotline has been setup that will remain open during the holiday weekend.

For 2007, 4.02 percent of the fuel (approximately 4.7 billion gallons) sold in the U.S. will have to come from renewable sources, largely from corn-based ethanol. The renewable fuels rush has spiked corn prices, resulting in higher prices for milk and meat, which may not be a bad thing.

The RFS program requires that at least 7.5 billion gallons of renewable fuel be blended into fuel sold in the United States by 2012, but that increase is below the expected amount of biofuels based on current state portfolio standards.

Earlier this month, the House passed a bill HR (3221) that would require a national renewable portfolio standard that would include electric utilities. I've heard rumor that if the Senate approves a similar measure it challenged in court as being unconstitutional for infringing on state's rights. That could be an interesting battle.

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