Texas may seek Renewable Fuel Standard waiver over food prices, cattle industry impact

In Texas, the office of the Governor indicated that the state is expected to seek a waiver from implementation of the Renewable Fuel Standard due to rising food costs. “Ultimately, food prices are reaching high levels, so we’re looking at this as an option for reducing that burden,” said Allison Castle, a spokeswoman for Gov. Perry, told cattlenetwork.com. State have sought temporary waivers from EPA mandates in the past, but this is one of the first permanent waivers, and may cause ethanol quotas for other states to increase.

The Renewable Fuel Standard, and state biofuels mandates, have come under increasing scrutiny since the passage of the Energy Security and Independence Act over food price concerns.

At the time of the Act’s passing, four months ago, industry leaders said:

Don Endres, chairman and CEO of VeraSun Energy Corporation:
“We applaud the work of our leaders in Washington, D.C., for their vision in putting our country on a path toward greater energy diversity and sustainability. The expanded Renewable Fuels Standard will significantly reduce our country’s dependence on foreign oil and extend our nation’s fuel stream. At VeraSun, we are committed to meeting the challenges ahead and producing renewable fuels that benefit the environment and our economy.”
“The Renewable Fuels Standard underpins the growth of the industry by providing a clear and positive market signal for investment in new technologies, production, distribution and storage infrastructure. We also believe the demand for ethanol will continue to be driven by market factors as refiners and marketers are economically incented to blend ethanol because of its value as a high-octane, clean-burning fuel component.”

Patricia Woertz, Chairman and CEO, Archer Daniels Midland Company:
“This legislation is an important step towards a stronger, more diverse energy future for our nation and our world. The expansion of the Renewable Fuel Standard recognizes that the promise of tomorrow’s biofuels can only be fully realized by supporting the here-and-now solutions provided by today’s ethanol and biodiesel. ADM is dedicated to continued leadership in the development of renewable biofuels, and is optimistic about the expanded role they will play in improving energy security, strengthening rural economies and helping to improve our environment.”

Bob Dineen, President, Renewable Fuels Association:
“History will look back upon the enactment of the Energy Independence and Security Act of 2007 as the moment America chose a new energy policy path. By coupling increases in vehicle efficiency and renewable fuel use, America is taking the most immediate steps available that will have the greatest impact in securing a more sustainable energy and environmental future. This bill takes historic steps toward a new energy dawn.”

Fortune Magazine:
Andy Karsner (Assistant Secretary of Energy) would have written the bill differently, he told Fortune. He has supported tax credits for the solar and wind power industries - they were eliminated from the legislation, because they were linked to revenues that would have come from repealing of oil-industry tax credits. He also has some doubts about the biofuels mandate, which is massive. But Karsner calls the need for clean energy “the moral imperative of our time” and says federal action is required to develop a long-term, national energy strategy that will stimulate the market forces needed to drive change. “We need disruptive organizational and institutional change,” he says, “…in order to ultimately evolve disruptive technologies at a rate and in a time frame that matters.”

Carl Pope, Executive Director, The Sierra Club:
“This bill is a clean break with the failed energy policies of the past and puts us on the path toward a cleaner, greener energy future.”

Andrew Schuyler, Director, Northeast Biofuels Collaborative:
“The 2007 federal energy bill represents a critical first step toward reducing U.S. dependence on foreign oil. New fuel efficiency standards ensure that U.S. cars and trucks will burn less fuel – saving consumers billions of dollars every year — and the Renewable Fuel Standard (RFS) requires that different kinds of fuels be utilized as vehicles become more efficient.

“The RFS sends a clear signal that Congress understands that diversified fuel markets will lead to U.S. economic development, more stable gas prices, greater energy security and reduced global warming emissions. While the final energy package does not address tax reform for petroleum companies, which continue to skew energy markets in their favor, this bill is a major step in the right direction.”

Joe Jobe, CEO, National Biodiesel Board
“We congratulate the House and the Senate for the bipartisan efforts of policymakers who worked together to pass this landmark legislation that will help America depend less on foreign oil and more on clean-burning, domestically produced biodiesel. Biodiesel producers across America stand ready to meet the aggressive renewable goals provided for in this bill.”

Nancy Pelosi, Speaker, US House of Representatives:
“This legislation includes an historic increase in fuel efficiency standards to 35 miles per gallon by 2020 – the first such action in 32 years. It makes a major commitment to homegrown biofuels, sending our energy dollars to the Midwest, not the Middle East. It sets our nation on a new course – a new direction for energy security.”

Gregory Wetstone, Senior Director of Governmental & Public Affairs, American Wind Energy Association:
“The passage of energy legislation substantially improving automobile fuel efficiency is an important step forward. However, as Congressional leaders have pointed out in recent days, critical work remains undone. An effective energy policy for the 21st Century must include a strong commitment to renewable energy sources like wind and solar power. Promotion of clean, domestic renewable energy through tax incentives and a national renewable electricity standard is crucial to our economy, our national security and the protection of our planet’s climate. We look forward to working with Congress and the President in the New Year to move these vital policies forward.”