Photo by qthrul. Licensed under Creative Commons license 2.0.

Since the Energy Policy Act of 2005 went into effect, there has been a nationwide renewable fuels standard (RFS) in the U.S. The amount of biofuels required by the bill were increased by the Energy Independence and Security Act in December of last year. As we all know, the economic realities of corn ethanol have been quite the topic of discussion since then, and the state of Texas is looking to take advantage of a provision of the the 2005 Energy Policy Act that allows the Environmental Protection Agency (EPA) to change the RFS "if implementation of the RFS would severely harm the economy or environment of a state, region, or the entire country, or if EPA determines that there is inadequate domestic supply of renewable fuel." An economic hit is exactly what Texas governor Rick Perry is worried about, and wrote a letter to the EPA on April 25 asking the Agency to halve the nationwide renewable fuels standard mandate (2008, the RFS is nine billion gallons). The EPA is accepting comments for 30 days here and will decide within 90 days of the April 25 receipt. Read the EPA's call for comments after the break.

The vice chairman of Toyota's Thai business unit, Ninnart Chaithirapinyo, has been quoted as saying that biodiesel production and quality in Thailand isn't ready for blending mandates, "the government should not compel refiners to mix B100 formula biodiesel in diesel, not until it is ready in terms of raw materials and the standards of biodiesel are improved."

Instead, Chaithirapinyo said that the government should move to promote sustained biodiesel production and improve biodiesel quality in case the fledgling industry is overwhelmed by demand.

Analysis: Production of biofuels in emerging economies like Thailand is less regulated and more likely to result in off-spec fuel that could damage vehicles. Promotion can obviously take place without mandates, so perhaps a "one step at a time" approach might gain a better result in Thailand than compulsory blend ratios.

Related:

• Thailand has to import more palm oil to support biodiesel production
• Washington Times' Fred Reed: energy use is a problem, and Thais aren't people
• Diesel displacement technology operates engines on CNG, LNG and diesel

[Source: Bangkok's The Nation]

New Mexico has voted a through a House Bill that would require all diesel fuel sold in the state to be B5 by 2012. The bill, which passed the House in a 47-8 vote, moves to make diesel fuel containing five percent biodiesel compulsory for all state agencies and public schools from July 2010 onwards. All diesel fuel would move to a B5 blend by July 2012. In case of poor product availability or excessive price however, the measure could be suspended by officials.

Analysis: Politically, moving to introduce locally produced, renewable biofuels and reduce "dependency on foreign oil" has become a good move. Of course, we all win when the politicians move to legislate for biofuel use and I don't doubt that five percent across the annual usage of a state like New Mexico would really add up. Let's hope it passes through the senate as easily.

Related:

• Minnesota passes legislation to generate 25 percent renewable energy by 2020
• New Congress sets energy strategy; will address issues with piecemeal approach
• Congress loves biofuels forever. Will biodiesel and ethanol credits become permanent?

[Source: Las Cruces Sun-News]