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http://en.wikipedia.org/wiki/Cellulosic_ethanol#Cellulosic_e...

Fox News rubbish as usual. It appears that the mandate was made with a view to reforming a part of the energy industry and achieving cleaner emissions, as well as more sustainable fuel. It's not odd for a government to declare targets with tax incentives to bring about change.

As the wiki pages states (with citations) there are over a dozen refineries producing this stuff now. Far from none, and far the mandate is from ludicrous. It's progress.