Senate Energy Committee chair holding hearings over possible delay in implementing Renewable Fuel Standard over infrastucture issues

In Washington, Senator Jeff Bingaman (D-NM), chairman of the Senate Energy and National Resources committee, is holding hearings on the rule-making associated with implementation of the Renewable Fuel Standard. The Committee will decide whether to recommend a delay in the implementation schedule of the RFS, which calls for 8.5 billion gallons of ethanol to be blended with conventional gasoline in 2008.

Bingaman said he was confident that the ethanol industry could produce the 8.5 billion mandated gallons, but less sure that the infrastructure was in place for ethanol distribution to bring it to market.

Charles Drevna, president of the National Petrochemical and Refiners Association, told the Committee that the Senate should have considered these issues before passing the Renewable Fuel Standard, and predicted that the cost of transporting biofuels could reach 13 to 18 cents per gallon.

The American Coalition for Ethanol’s executive vice-president, Brian Jennings, also testified before the Committee.

“Enactment of this bill may be the most profoundly important shift toward renewable fuels and away from our risky and expensive reliance on fossil fuels ever taken in the U.S.,” Jennings said. “This ambitious 36 billion gallon per year RFS will unleash the ability for corn and cellulosic ethanol to provide the nation with a stable supply of clean-burning, homegrown, renewable fuel for years to come.”

During the testimony, ACE cited concerns about some aspects of the Renewable Fuels Standard implementation, especially the proposed penalizing of corn-based ethanol for so-called “indirect land use changes” that are against the fuel’s lifecycle emissions analysis.

Some models being developed assume that increased demand for corn in the U.S. is causing previously uncultivated land in developing nations to be cleared for agricultural production. It then calculates the greenhouse gas emissions resulting from land clearing in Brazil and unfairly assigns those estimated emissions to the lifecycle emissions analysis of corn-based ethanol in the U.S.

“It is unmistakable – decreasing petroleum use and greenhouse gas emissions will require both grain and cellulosic biofuels. Implementation of the new RFS needs to recognize this fact,” Jennings said. “If the EPA applies arbitrary indirect land use modeling and penalizes grain-based ethanol in the RFS rulemaking, ACE will be forced to oppose the rule change and encourage Congress to help provide a common sense remedy.”

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