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Archive for Saturday, June 16, 2007

Ethanol use intended to spur biofuel market

June 16, 2007

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— Gasoline sold in the Golden State will include up to 10 percent ethanol, California air managers have decided, a move the renewable fuels industry says will shift the burgeoning ethanol market into high gear.

All California refineries making gas sold in the state will have to blend 10 percent ethanol into their gas to meet new fuel standards set by Gov. Arnold Schwarzenegger starting Dec. 31, 2009, under the resolution adopted by the California Air Resources Board.

Industry groups said the ruling will almost double demand for the biofuel in California, which last year used about 1 billion gallons of ethanol, or nearly one-fifth of the total consumed nationwide.

A surge in demand will be created as large states like California, Texas and New York roll out legislation forcing gas stations to sell a more environmentally friendly mix, analysts said. That growth is aided by the Energy Policy Act of 2005, which gives small refiners a federal tax credit for using the biofuel.

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