The US Environmental Protection Agency faces a dilemma with a final rule it is expected to issue soon on renewable fuel standards (RFS). If it proceeds with policy in place, it essentially imposes a fuel tax. If it adjusts policy, it implicitly condemns a calamitous approach to energy taken by the administration of which it is part.
The rule covers volumes of renewable fuels to be sold next year under mandates set by the Energy Independence and Security Act of 2007 (EISA). In June the agency proposed that the 15.2 billion gal RFS total include 3.45-12.9 million gal of cellulosic biofuel—which would be ethanol—and 1 billion gal of diesel from biomass.
Strong reasons exist t...