Advanced Biofuels Makers Thankful for RFS

I wanted to point your attention to Jeff Johnson’s story today about why EPA will not wave biofuel blending requirements (known as the Renewable Fuels Standard or RFS). Nine governors and many members of Congress, prodded (no pun intended) by livestock producers, had asked EPA to waive the standard saying that ethanol demand was driving up the cost of corn.

What I found interesting is that EPA estimates that waiving the mandate would only reduce corn prices by approximately 1%. This year’s U.S. corn harvest was impacted by drought, and yields plummeted to a 17-year low, Johnson reports.

While the RFS was initially written into law in 2007 to enhance U.S. energy security, it is considered the main policy vehicle driving demand for advanced biofuels. These are biofuels made not from food grain like corn, but from other feedstocks like corn stover, sustainably harvested wood or waste products. These fuels, when commercialized, are expected to help lower the U.S. contribution to CO2 emissions.

The members of BIO, a trade group of advanced biofuels firms and biobased chemical makers, reacted with joy to the announcement.

“EPA has made the right decision and we thank them for making a careful and fully considered analysis,” said Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section. “Earlier studies by researchers at Purdue University, Iowa State University and the University of Missouri’s Food and Agricultural Policy Research Institute showed clearly that a waiver of the RFS would not undo the economic harm caused by the drought.

“However, a waiver of the RFS could have undercut ongoing investments in advanced biofuels. Renewable fuels are a significant contributor to our nation’s economy and energy security, creating jobs and directly reducing reliance on imported oil. This decision allows BIO member companies to continue to deliver innovative technologies to the market to expand our domestic production of biofuels, including fuels from agricultural residues, municipal solid waste, algae and purpose grown energy crops.”

Connecting those themes – the RFS, the drought, and CO2 emissions, NOAA recently reported that man-made climate change was an important contributor to the extent and duration of the 2011 drought in Texas.

Author: Melody Bomgardner

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