The Need for the Renewable Fuel Standard

by Senator Charles Grassley (R-Iowa) ...The state of Iowa is proving that our farmers can simultaneously produce the food, feed, fuel and fiber that our country needs.
During the past 30 years, we’ve witnessed tremendous growth in the renewable biofuel industry. It has developed from almost non-existent in 1980 to a significant contributor to our transportation fuel today.
Because of the success of America’s biofuel producers, renewable fuels now account for ten percent of our nation’s transportation fuel supply.
Homegrown biofuels are extending our fuel supply and lowering prices at the pump for consumers.
Biofuels are reducing our dependence on finite fossil fuels. They keep more money at home rather than sending it to Persian Gulf countries that may wish to do us harm.
And, it’s primarily due to the success of the Renewable Fuel Standard.
There are important facts about this program that need to be mentioned at every opportunity.
First, biofuels and the RFS are not increasing prices at the pump for consumers. The opposite is true – they’re saving consumers’ money.
Numerous academic studies have concluded over the past few years that the increasing use of ethanol and biofuels reduces prices at the pump for consumers.
Second, the argument that we’re diverting food to fuel and subsequently driving up the cost for groceries has been proven to be what I’ve known all along -- hogwash.
The farm value of corn in retail food prices is so insignificant that it’s hard to believe this argument was ever made with a straight face.
Third, biofuels are contributing to cleaner air and a cleaner environment. Today’s biofuels are reducing greenhouse gas emissions compared to petroleum.
Fourth, today’s biofuels are not “diverting” commodities from animal or livestock use. The fact is, grain production today is as efficient as it has ever been.
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The threat to the RFS has been consistent and well-funded by industries threatened by the success – primarily Big Oil.
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Opponents argue that the RFS never envisioned biofuel blends above 10 percent. That premise is completely wrong.
Everyone who supported the creation of the RFS had to know, that at some point, blending of biofuels would necessarily be greater than 10 percent.
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Big Oil and petroleum refiners have also known since 2007 that higher blends would be necessary to meet the mandate.
But instead of making the necessary investments in infrastructure, they’ve used every avenue to fight higher blends. While they’ve put up every roadblock possible to higher blends, they now blame the inability to handle higher blends as a reason to repeal the RFS.
The oil industry created this problem. Now they’re trying to use this problem to undermine the RFS. I won’t let them get away with it.
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Most experts agree -- without the RFS, there would be no cellulosic and advanced biofuels.
That’s why I’ve fought to maintain the RFS, whether the threat comes from Big Oil, Big Food, oil refiners and sometimes even the EPA.
This new generation of biofuels will be coming online soon. It will have even greater environmental benefit. It’ll come from sources like algae, wood wastes, crop residues and grasses. It’ll produce drop-in fuels, butanol, renewable diesel and jet fuel.
But it won’t materialize if we abandon the RFS. Even the discussions of modifying the RFS have had a chilling effect on those developing innovative new technologies.
The RFS has already led to significant environmental, economic and national security gains. The promise of the next generation of biofuels will add even more.
But that’s only if we protect the existing supportive policies and work to provide greater certainty for this burgeoning industry. I intend to do just that.
I know that repealing the RFS would harm the environment, our balance of trade, and rural economies.
It would surely cost jobs.
Once the facts are made abundantly clear, I hope that efforts to undermine the Renewable Fuel Standard will fail. READ MORE and MORE (Advanced Biofuels USA) Listen to Senator Grassley's comments at Biomass 2013