NCGA Calls Bipartisan RFS Legislation a Major Step Toward Sound Energy Policy (03-17-05)

The National Corn Growers Association (NCGA) today hailed the introduction of S. 650, the Fuel Security Act of 2005 by a bipartisan group of 21 senators led by Dick Lugar (R-Ind.) and Tom Harkin (R-Iowa). The legislation would establish a national Renewable Fuels Standard (RFS) requiring 8 billion gallons by 2012.

"NCGA applauds this bill in which our nation's fuel supply would be blended by a domestic, clean, renewable fuel such as ethanol" said NCGA President Leon Corzine. "We hope this same bipartisan support will continue on the Senate floor during debate on a comprehensive energy bill."

The bill amends the 1990 Clean Air Act to increase use of domestic renewable fuels and to decrease the nation's dependency on foreign oil. The bill would require the use of 4 billion gallons of renewable fuels in 2006, increasing to 8 billion gallons by 2012.

The legislation also contains an escalation clause that would allow the U.S. Environmental Protection Agency, in coordination with the secretaries of energy and agriculture, to increase the renewable fuel requirement in 2013 and beyond based on an overall review of the program. The bill also creates a more appropriate credit trading program for refiners and blenders who exceed minimum obligations.

Corzine called the introduction of an escalation clause “forward thinking” for an industry that has really just begun to flourish.

Meanwhile, NCGA along with several renewable fuels and agriculture industry representatives sent a letter to Congress expressing their strong support for the Fuels Security Act of 2005 and encouraging the Senate to support this legislation as it considers a comprehensive energy bill. The organizations called the introduction of the RFS bill a landmark piece of legislation that would not only decrease U.S. dependence on foreign oil, but would protect air and water quality, stimulate rural economies and provide increased flexibility for refiners.

The letter also noted the 8 billion gallon schedule demonstrates a firm commitment to finding a solution to this nation's energy crisis.

Yesterday the Senate Environment and Public Works Committee passed S. 606, legislation that set the RFS at 6 billion gallons by 2012. Corzine believes the momentum achieved with passage of S. 606 paved the way to the bill introduced today.

"With the introduction of today's bill at 8 billion gallons, we now have language available for Congress to work with as comprehensive energy legislation is crafted over the next several weeks that more accurately reflects today's ethanol industry," he said.

Joining Lugar and Harkin in cosponsoring the Fuel Security Act of 2005 were Senate Majority Leader Bill Frist and Sens. Chuck Hagel (R-Neb.), Charles Grassley (R-Iowa), Tim Johnson (D-S.D.), Kit Bond (R-Mo.), Byron Dorgan (D-N.D.), Jim Talent (R-Mo.), Ben Nelson (D-Neb.), Norm Coleman (R-Minn.), Dick Durbin (D-Ill.), John Thune (R-S.D.), Barack Obama (D-Ill.), Ken Salazar (D-Colo.), Mark Dayton (D-Minn.), Kent Conrad (D-N.D.), Evan Bayh (D-Ind.), Debbie Stabenow (D-Mich.), Mike DeWine (R-Ohio), and Jim Bunning (R-Ky.).

To view the letter in its entirety, click.