The mandate stipulates the use of 14 million gallons of cellulosic biofuels made from grasses and woody material, up from the 8.7 million gallons in 2012.

Other volumes and standards for 2013 include – biomass-based diesel usage to reach 1.28 billion gallons; advanced biofuels usage pegged at 2.75 billion gallons and the total renewable fuels usage to increase to 16.55 billion gallons.

EPA’s revised mandate has been issued despite an adverse ruling in a US court of appeals over the 2012 mandate.

The court had remarked that oil refiners could not adhere to the stipulations when production levels of cellulosic biofuels were at zero.

"Apart from their role as captive consumers, the refiners are in no position to ensure, or even contribute to, growth in the cellulosic biofuel industry," the court ruled earlier this week.

The standards will be open for a 45-day period for public comments and feedback which the agency will look to incorporate into the final draft of the proposal.

The RFS2 initiative was launched under the Energy Independence and Security Act of 2007 and envisages the total increase in bio-fuel usage to reach 36 billion gallons by 2022.