The Environmental Protection Agency said on Thursday that commercial production of cellulosic fuels would start this year (even though it said the same thing last year and in 2011 and was proved wrong). And it proposed to require that refiners use 11 million gallons of the material this year.
The agency also proposed a system to cut down on fraud in the renewable fuels system and to allow the victims, mainly the refiners, to avoid penalties in some cases.
The proposal comes a week after the United States Court of Appeals for the District of Columbia ruled that when the E.P.A. set a quota of 8.65 million gallons for last year, it improperly allowed its policy goal — getting such fuels to market — to cloud its projection of how much would be commercially available. (None was.)
The proposed new rule, on which the agency will seek public comment for 45 days, also sets standards for bio-diesel and other advanced biofuels.