NCGA
Applauds Adoption of 8-Billion-Gallon RFS by Senate Committee (5-25-05)
The Senate
Energy and Natural Resources Committee’s adoption of an 8-billion-gallon
renewable fuels standard (RFS) today is a “major step in the
right direction not only for corn growers and rural America but
for all American consumers,” said National Corn Growers Association
(NCGA) President Leon Corzine.
The amendment, which was adopted by a voice vote, creates an 8-billion
gallon national RFS to be phased in by 2012, beginning with a 4-billion-gallon
standard in 2006. The amendment was cosponsored by Sens. Jim Talent
(R-Mo.), Tim Johnson (D-S.D.), Byron Dorgan (D-N.D.) and Ken Salazar
(D-Colo.).
“We congratulate Sen. Talent and the committee members who
have been long standing advocates for domestic renewable fuels,”
said NCGA President Leon Corzine. “Their commitment to our
nation’s renewable fuels industry was evident this morning.
We also congratulate the Committee for understanding the need for
domestic renewable fuels and the importance of this great nation
moving away from its dangerous dependence on foreign oil. It is
important not only as a national security issue, but for its benefits
to our environment and our economy.”
“NCGA has worked toward a comprehensive energy bill that includes
a robust RFS,” he said. “This is definitely the
positive next step we needed,” Corzine said. “This action
shows an understanding of what high and unstable gas prices are
doing and demonstrates the political will to put an energy policy
in place that accomplishes what this country needs.”
The amendment also establishes a one-year credit trading program
for refiners and blenders who exceed minimum obligations, and includes
an escalation clause that would allow the U.S. Environmental Protection
Agency (EPA), 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. A Loan
Guarantee Program of $250 million per cellulosic biomass facility
was also included in the amendment, as well as three sugars to ethanol
program provisions. The final amendment, approved by a voice
vote, included three second degree amendments – two by Sen.
Maria Cantwell (D-Wash.) and one by Sen. Diane Feinstein (D-Calif.).
Cantwell’s second degree amendment establishes cellulosic
ethanol to be counted as 2.5 credits toward the RFS. In addition,
a provision to set aside up to 250 million gallons of RFS demand
for cellulosic ethanol beginning in 2013 was also adopted. The amendment
also establishes an “Advanced Biofuel Technologies Program,”
to demonstrate advanced technologies for the production of alternative
transportation fuels, giving priority to projects that enhance the
geographic diversity of alternative fuels production and utilizes
feedstocks that represent 10 percent or less of ethanol or biodiesel
fuel production in the United States during the previous year.
Feinstein’s seasonal variation amendment was adopted by a
12 -10 vote, which exempts California from the seasonal variation
provision requiring EPA to issue regulations ensuring more regular
use of renewable fuels should less than 35 percent of the RFS requirement
be used in any season. The seasonal variation provision is
intended to ensure year-round use of renewable fuels.
The committee is expected to complete its work on the energy bill
on May 26. During the first part of June, the committee is
expected to consider the tax title to be included in the comprehensive
energy bill. Comprehensive energy legislation is expected to be
on the Senate floor the last two weeks of June.