The Environmental Protection Agency (EPA) has announced a proposed rule that would require corn-based ethanol or other renewable fuels to comprise at least 3.71 percent of the nation's gasoline supply in 2007. The proposal would implement the renewable fuels standard enacted by Congress as part of the Energy Policy Act of 2005. The act mandates that the United States use 4.7 billion gallons of ethanol or other cleaner-burning biofuels in 2007, and to increase the production requirement steadily to 7.5 billion gallons by 2012.

EPA says that the renewable fuels standard "will expand the use of biodiesel and ethanol, creating new markets for farm products and greater energy security." The agency also predicts that the proposal will promote the development of advanced technologies to produce ethanol from agricultural and industrial waste at a cost that is competitive with current gasoline prices.

The proposal would also establish a program to allow fuel producers to trade credits in order to help implement the renewable fuels standard. Producers would generate credits by blending renewable fuels into their product. The credits could be purchased by other producers that do not meet their renewable fuels mandate.

EPA contends that the proposal would reduce carbon monoxide emissions from vehicles by as much as 3.6 percent and benzene emissions by up to 6.2 percent. However, emissions of other pollutants such as nitrogen oxide, formaldehyde, acetaldehyde and emissions of ozone-forming volatile organic compounds would increase.

For more information of the proposed rule, visit the Environmental Protection Agency's Web site at www.epa.gov/otaq/renewablefuels.