Ag Policy Blog

Everyone is Lobbying on the RFS

Chris Clayton
By  Chris Clayton , DTN Ag Policy Editor
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All sides are working to influence EPA on the Renewable Fuels Standard.

Several groups are making their position known through time with EPA officials, congressional hearings or events set up exclusively for press.

Earlier this week, biofuel supporters got to offer testimony before the Senate Agriculture Committee in a hearing seeking to tout the prospects of advanced biofuels. They stressed the need for EPA to keep the 2014 volume levels for biofuels at the numbers set in the legislation. EPA's proposal would set the 2014 blend requirements for all renewable fuels at 15.2 billion gallons, a reduction of 3 billion gallons from the standard set in the RFS. Petroleum companies would have to use 2.2 billion gallons of advanced fuels, which is scaled back from 3.75 billion that had been mandated under the RFS. The proposal reduces cellulosic ethanol projections from 1.7 billion gallons down to 17 million.

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Several farm and renewable-energy groups got some face time Wednesday with and EPA official in the office of Air and Radiation. According to the group 25x25, "The groups stressed the economic, environmental, national security and human health benefits of biofuels, urging EPA to stay the course and drop its proposal to reduce RFS blending targets."

25x25 added that Carol Werner, executive director of the Environmental and Energy Study Institute, cited a lifecycle analysis done by researchers at DOE's Argonne National Laboratory. The study found corn ethanol produced in 2008-2012 reduced greenhouse gas emissions by an average of 34 percent compared to gasoline, even after factoring in hypothetical indirect land use change.

"We urge EPA not to take any steps that would compromise efforts to reduce emissions that contribute to a changing climate," Werner said. "We ask you to ensure that the full potential of biofuels can be realized."

On Thursday, opponents of the RFS are going to explain their push to cut renewable fuels for 2014 and beyond. The National Council of Chain Restaurants and Environmental Working Group will be part of that event. Rep. Peter Welch, D-Vt., will speak. Welch has complained about the RFS driving up feed prices for dairy producers. The fast-food restaurants have seen declining profits because of higher protein costs.

A group of well-known folks opposed to doing anything about climate change also held an event Wednesday morning at the National Press Club. The Heartland Institute had a handful of researchers explaining that that the planet isn't warming, but if it were warming it would be good for the planet anyway. When asked what should be done since climate change is a scientific falsehood, Heartland Institute's Joe Bast immediately said, "We need to stop subsidizing ethanol."

This relationship between ethanol, climate change and agriculture is indeed one of strange bedfellows.

As a side note, the American Petroleum Institute indicated last month the group had 205 House members willing to repeal or change the RFS. That was before the lastest Supreme Court ruling on campaign finances allowing wealthy donors more opportunities to write big checks. I wonder how the needle has moved?

Follow me on Twitter @ChrisClaytonDTN

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Chris Clayton