Electric vehicles are all the buzz in the U.S., with policy leaders in some states searching for the press-to-start on electric while others are rooting for renewable fuels.
The Senate Environmental and Public Works (EPW) Committee held its first hearing on the Renewable Fuel Standard (RFS) for the first time since 2016.
“More Litigation, Increased Uncertainty”
Ranking member Shelley Moore Capito (R-W.Va.) noted a “need for accountability” in the Environmental Protection Agency, further sharing two concerns rooted in the agency’s blending proposals in the past year that counter Congress’ intentions for the Clean Air Act:
• An all-time high Renewable Volume Obligation for 2022
• Denial of all pending small refinery exemptions
“This unprecedented and drastic step to propose a blanket denial of outstanding small refinery hardship petitions is especially puzzling as we see increasing gasoline prices and several small refinery closures around the nation,” Capito says. “This proposal will only lead to more litigation and increased uncertainty under the RFS, with American consumers bearing the costs amid already record high inflation.”
Sen. Joni Ernst (R-Iowa) mirrored Capito’s remarks, pointing to the reason RFS was created - “to help reduce America’s dependence on foreign nations.” She believes President Biden is shying away from the RFS in a move to favor electric vehicles, in turn increasing U.S. dependence on China.
Weigh the Options
EPW Chairman Tom Carper (D-Del.) also touched on the Clean Air Act, noting the original legislation created and expanded the RFS to provide economic opportunities for farmers. He says there are several challenges in implementing the RFS program.
In 2007, Congress mandated 36 billion gallons of renewable fuels be used by 2022—a goal that wasn’t reached. Carper points to market challenges and the EPA’s delay in approving new fuels as the reason for shortcomings.
Carper suggests EPA consider California and Oregon technology-neutral low carbon fuel standards as a model for a cleaner future.
“These standards have successfully advanced cleaner fuel usage, kept consumer and compliance costs low, all while fostering local clean fuel investment and job creation,” Carper says. “The state programs have fuel flexibilities, long-term predictability, and cost-containment provisions that are not included in the Renewable Fuel Standard today, but perhaps should be.”
According to
Oregon’s Department of Energy, ethanol, renewable diesel and biodiesel are the avenues to energy security. The state touts a few notable renewable fuel advancements:
• RFS standard requires nearly all gasoline be sold at a 10% ethanol blend.
• Numerous state fleets strictly use renewable fuels.
• Renewable Natural Gas is sold as either stationary fuel or transportation fuel.
Many midwestern states boast similar ethanol blends, offering 15% and 85%, known as E15 and E85, respectively, at most pumps.
What’s at Stake?
The EPW hearing follows release of the U.S. National Wildlife Federation and Department of Energy’s joint-funded study on ethanol. Results from the study show ethanol is likely 24% more carbon-intensive than gasoline due to land-use changes to growing corn, coupled with processing and combustion.
Scott Richman, Renewable Fuels Association (RFA) chief economist, says the study uses worst-case assumption with cherry-picked data.
“It doesn’t take into consideration higher corn production over the time the Renewable Fuels Standard has been in place, or the higher corn to ethanol conversion rates,” Richman says. “It’s obvious the petroleum industry is just trying to sway EPA to undermine the RFS.”
Read more:
> Chip Flory: What’s Ahead for the Grain Markets?
> United Just Completed First Flight Fueled by SAF, Soybean Growers Should Take Note
> Supreme Court Rejects Appeal to Reinstate Year-Round E15 sales
