Tuesday, August 21, 2007

Kiplinger reporting on Biofuels

I haven't seen this tidbit anywhere else. By Jim Ostroff at Kiplinger:

...Lawmakers are taking a reality check on an ethanol fuel mandate. Congress was mulling a requirement for at least 36 billion gallons of ethanol and biodiesel to be used in motor vehicle fuels by 2022. But that goal is likely to be slashed to about 18 billion gallons, given limitations on the ethanol production side and the fact that Congress would probably have trouble raising enough revenue to cover the 51¢-per-gallon ethanol production credit. Even so, 18 billion gallons of biofuels will account for roughly 10% of estimated U.S. motor vehicle fuels demand in 2022.

However, lawmakers will approve a 50¢-per-gallon credit for making fuel from waste and other biomass -- known as cellulosic ethanol -- on top of the 51¢ credit available to all ethanol producers. Also, Congress will order automakers to have at least half of all vehicles able to operate on E-85 -- a blend of 85% ethanol and 15% gasoline -- by 2015. In addition, gas station owners will be eligible for a credit of up to $30,000 to help defray the cost of installing and adding ethanol fuel pumps....