Awake at the Wheel

Senators Obama and Lugar have reintroduced the American Fuels Act of 2006. This is essentially a federal RFS (Renewable Fuels Standard) that sets minimum consumption mandates to suport the biodiesel production industry. Read the bill here (new window). It will be interesting to watch this bill evolve as Big Oil attempts to broaden the definition of biofuels to include non-renewables and old petroleum technologies.

`(1) DEFINITION OF ALTERNATIVE DIESEL FUEL-

• • `(A) IN GENERAL- In this subsection, the term `alternative diesel fuel’ means biodiesel (as defined in section 312(f) of the Energy Policy Act of 1992 (42 U.S.C. 13220(f))) and any blending components derived from alternative fuel (provided that only the alternative fuel portion of any such blending component shall be considered to be part of the applicable volume under the alternative diesel fuel program established by this subsection).

• • `(B) INCLUSIONS- The term `alternative diesel fuel’ includes a diesel fuel substitute produced from–

• • • `(i) animal fat;

• • • `(ii) vegetable oil;

• • • `(iii) recycled yellow grease;

• • • `(iv) thermal depolymerization;

• • • `(v) thermochemical conversion;

• • • `(vi) the coal-to-liquid process (including the Fischer-Tropsch process); or

`                               (vii) a diesel-ethanol blend of not less than 7 percent ethanol.