Nebraska Ag Connection - EPA Issues Renewable Fuels Standard; Reactions Mixed

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EPA Issues Renewable Fuels Standard; Reactions Mixed
Nebraska Ag Connection - 02/04/2010

U.S. Senators Chuck Grassley of Iowa, John Thune of South Dakota, and Mike Johanns of Nebraska reacted to the Obama administration's approval of the final rule issued by the Environmental Protection Agency (EPA) to implement the new Renewable Fuels Standard (RFS) following Congressional passage of the 2007 energy bill. Sadly, the final rule includes flawed indirect land use models in an attempt to discredit the positive environmental impacts of domestically produced corn-based ethanol.

"This action will provide much needed certainty for today's ethanol and biodiesel producers, as well as for those developing next-generation and advanced biofuels, but it's irresponsible for the EPA to ignore the intent of Congress concerning the inclusion of 'international' land use changes in calculating the indirect greenhouse gas emissions from biofuels," said Grassley. "By using this unproven and murky theory, the EPA has done a disservice to America's renewable fuel producers by diminishing their benefit to the environment. It's especially disheartening that the EPA is using this modeling because it's contrary to President Obama's numerous pledges to base all decisions on sound science."

"EPA is penalizing domestic ethanol production by insisting on quantifying international indirect land use changes that may be associated with ethanol production," said Thune. "Congress wrote the RFS with the intention of elevating the importance of biofuels, but punishing domestic fuels for land use decisions in other countries based on erroneous models is a step back for our country's effort to reduce its reliance on oil imports. South Dakota is in a unique position to help meet our nation's energy needs while creating jobs with homegrown fuels, but the EPA regulators are putting the brakes on necessary development. I am committed to working with my colleagues to ensure that domestic biofuels are treated fairly relative to imported oil under the new RFS rules, and that the biofuels industry continues to be an economic pillar of rural America."

Johanns said, "I am deeply disappointed that the Administration remains fixated on their flimsy, untested, and unreliable theory that holds our farmers and ethanol producers responsible for land use decisions made half way around the world. I am additionally disappointed that with all of today's announcements, there was no mention of E-15. Increasing the percentage of ethanol in gasoline to as much as 15 percent is the next logical step in the expansion of this nation's ethanol production capacity. It would not only benefit the economy, but also our nation's energy security."

The RFS in the 2007 Energy Bill mandates the use of 36 billion gallons of biofuels by 2020. To qualify for the RFS, fuels must meet various goals for greenhouse gas reduction.

The EPA's indirect land use rules count the emissions of greenhouse gasses resulting from land use decisions in other countries against domestic biofuels. With international indirect land use factored into ethanol's greenhouse gas score, it dramatically reduces the overall environmental benefit of domestic ethanol production.

U.S. Senator Tom Harkin, also of Iowa, said: "We must continue to do all we can to promote the production and use of biofuels in Iowa and across the county. This industry is not only good for our economy, it reduces our dangerous dependence on foreign oil, helps prevent global climate change and conserves our natural resources. I am very encouraged that the Obama Administration continues to push forward on this critical issue."

"I am very pleased that at long last the Administration has issued this rule," said Harkin. "This keeps the nation on its trajectory of strongly expanding production and use of biofuels, including biodiesel, and gives the biofuel industry the assurance that the nation does support their efforts," said Harkin. "I am also very pleased that the RFS2 specifically requires 1.15 billion gallons of biodiesel to be used in the nation over the two year period of 2009 and 2010.

"EPA has concluded that the existing biofuels do meet the lifecycle greenhouse gas emission limits imposed as a part of the RFS2 in the 2007 Energy Independence and Security Act. This clarity is very important given the uncertainty over whether indirect land use change emissions calculations that had been included in the proposed rule issued last spring might make some biofuels ineligible for inclusion under the mandate.

"Despite this, I am disappointed that the Environmental Protection Agency continues to use questionable data and methods for calculating 'indirect land use changes' at all. These methods are not adequately developed, and thus should not be used in ways making it harder for ethanol and biodiesel to meet requirements of the Energy Independence and Security Act of 2007. If we continue to do this, we'll exclude some good biofuels and stifle the investment that is so essential to our national renewable fuels strategy."

The South Dakota Soybean Association (SDSA) and the National Biodiesel Board (NBB) welcomed the Environmental Protection Agency's (EPA) issuance of the final rule to implement the expanded Renewable Fuels Standard (RFS2) provided for in the Energy Independence and Security Act of 2007(EISA) .

"The SDSA is pleased that the EPA has issued the final RFS2 rule," said Dan Feige, SDSA Biodiesel chairman and board member of the NBB. "There are significant job creation, energy security and environmental benefits associated with expanded biodiesel use. Today's rulemaking - in particular implementation of the Biomass-based Diesel program - will allow America to reap these benefits."