Ag and Biofuels Industry React to Renewable Fuel Rule

Cindy Zimmerman

epaOrganizations representing both biofuels and agriculture are pretty happy overall with EPA’s release of final rules for the implementation of the second phase of the Renewable Fuel Standard, or RFS2.

“We’re pleased the U.S. Environmental Protection Agency recognizes that corn ethanol provides a distinct advantage over conventional gasoline when it comes to greenhouse gas emissions, with a reduction of more than 21 percent in some cases,” said National Corn Growers Association (NCGA) President Darrin Ihnen. “This means that all corn ethanol including existing grandfathered capacity and new production will qualify to meet the conventional biofuels targets in the RFS.”

American Farm Bureau Federation president Bob Stallman says that they are encouraged by the rule because it “will help keep the nation’s renewable fuel standards on a path toward greater energy independence. By raising the volume of biofuels available for our nation’s transportation fuel supply, the administration is building on the strong bipartisan efforts that began years ago to provide a home-grown solution to the energy challenges facing our nation.”

Ethanol and biodiesel organizations were also pleased with the rule, which was changed from the initial proposal to be more favorable to first generation biofuels. See all their reactions on our sister site Domestic Fuel.com including a podcast with details from administration officials and comments from major biofuels groups.

However, while overall reaction has been favorable, all organizations are expressing concern about EPA’s continued reliance on the unproven theory of indirect land use change, which penalizes domestic biofuels production on the basis that it results in more land put into production globally in areas like the Amazon rain forest. “Removing the impacts from the international indirect land use theory means that corn ethanol actually provides a 52 percent reduction in greenhouse gas emissions, compared to gasoline,” said NCGA’s Ihnen. “The EPA is not considering similar indirect impacts of petroleum-based fuels, so why are they so stringent when it comes to green, renewable corn ethanol?”

Read the EPA announcement here.

AFBF, Biodiesel, Biofuels, Ethanol, NCGA