Policy Analysis —- Regulation on biodiesel
Policy Analysis—- Regulation on biodiesel
To promote the sale of biofuels, the federal government and several states offer excise tax credits for biofuel blends. Domestically produced ethanol, for example, receives a 51cents per gallon federal subsidy.
On September 1, 2010, the government of Canada announced the finalization of Federal Renewable Fuel Regulations requiring an average of 5% renewable content in gasoline across Canada. This Renewable Fuel Mandate came into effect on December 15th, 2010. In addition, the Government of Canada announced a July 1, 2011 start date for an average 2% renewable fuel content in diesel fuel and heating distillate oil with the compliance period ending December 31, 2012.
Biodiesel can be blended with ordinary diesel fuel at any concentration. Most diesel vehicles can run on blends of up to 20 percent with few or no modifications, and a few engine warrantees allow for use of100-per-cent biodiesel. More than 600 vehicle fleets, ranging from school buses to National Park Service vehicles, now use biodiesel. The U.S. Navy, the largest diesel user in the world, has begun processing its used cooking oil into cleaner-burning biodiesel.
Biofuels have the potential to reduce many environmental problems associated with transportation. By the way,because the raw material of biofuel mostly comes from vegetable oils. So this regulation promotes vegetable oils production and better environment.
January 29th, 2013 at 9:23 pm
I gree with you that the Biofuels will solve some envieonmental issues including air pollution. While oil are becoming increasingly scarce, biofuel an environmental friendly alternative.