Biofuel Use Mandates, regulation across time and Industry Impact

An article in the Wall Street Journal (Dec 28, 2011) describes the Congressional mandate to have 500 million gallons of cellulosic fuel by 2012, the EPA volume set at  8.65 million for 2012, and a plan to reach 16 billion gallons by 2022.  Given that small fraction of the planned output in 2012, and the need to have significant technological development, should the long term mandates be eliminated as unrealistic ? Should the refining industry that cannot satisfy the original mandates, but have to comply with the lower levels, and buy credits from the EPA if they do not comply, be let off the hook ? Will the mandates provide the necessary bank funding and incentives to guarantee a market and thus increase the odds of success for the cellulosic fuel industry ?

About aviyer2010

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