US: Obama gamble on renewable fuels ready to backfire image

The White House administration decided to put on hold this year’s mandatory quotas for the use of renewable fuels and since we’re almost into 2015 the punt has sparked controversy in Congress.

More so, the fights were also taken to courts as the program has been fiercely contested from the get go. The delay for the quota was announced late on Friday by the U.S. Environmental Protection Agency, and comes on top of months of quarrels between oil refiners and ethanol producers. The two sides have been entrenched in a bitter battle ever since the agency unveiled a proposal to decrease the quotas for using ethanol, biodiesel and cellulosic fuels.

The Bush-era law saw the 2014 mandates already almost a year late and the EPA’s indecision triggered many headaches for fuel blenders who had no idea over how much of the additives they were supposed to be using. The law was unveiled back in 2005 and was set up as a way to encourage the production and usage of renewable fuel as the administration was looking into ways on how to ease US dependence on overseas oil. Now the EPA announced it aims to show the 2014 requirements under the Renewable Fuels Standard that is coming out in 2015, when the quotas for next year and 2016 should also be established.

Via Bloomberg