US EPA PROPOSES 2012 ETHANOL USE AT 13.2 BLN GALLONS

EPA announced that it will slash the amount of cellulosic ethanol it requires to be produced in 2012 but leaves corn-based ethanol requirements effectively unchanged.

WASHINGTON, June 21 (Reuters) – The U.S. would have to use 13.2 billion

gallons of mostly corn-based ethanol in 2012 as mandated by Congress, the

Environmental Protection Agency proposed on Tuesday, but the agency

slashed the target for advanced cellulosic ethanol output.

The EPA proposed cutting the amount of cellulosic ethanol, which is made

from switchgrass and other agricultural waste, that must be produced next

year to between 3.45 million and 12.9 million gallons from the original goal

of 500 million gallons.

The EPA sets the renewable fuel standard every year as required by

Congress, based on gasoline and diesel demand projections from the U.S.

Energy Department.

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