EPA's final rule for implementation of the expanded Renewable Fuels Standard, among other provisions, sets mandatory blend levels for renewable fuels while implementing a framework for carbon emissions calculations that will be the basis for future carbon reductions from fuel.

According to EPA’s modeling, corn-based ethanol achieves a 21% greenhouse gas reduction compared to gasoline when international indirect land use change is included. Without the land use consideration, corn-based ethanol achieves a 52% GHG reduction. Cellulosic ethanol achieves GHG reduction of 72-130% depending upon feedstock and conversion process. All GHG reductions for ethanol exceed those mandated by the RFS2.

Bob Dinneen, President of the Renewable Fuels Association, says - EPA was right to recognize that ethanol from all sources provides significant carbon benefits compared to gasoline. As structured, Dinneen says, - the RFS is a workable program that will achieve the stated policy goals of reduced oil dependence, economic opportunity, and environmental stewardship.

Farm Bureau President on RFS Rule

American Farm Bureau Federation President Bob Stallman says - America’s farmers and ranchers are encouraged by the RFS rule - in that it will help keep the nation’s renewable fuel standards on a path toward greater energy independence. Stallman says - by raising the volume of biofuels available for our nation’s transportation fuel supply, the administration is building on the strong bipartisan efforts that began years ago to provide a home-grown solution to the energy challenges facing our nation.

Stallman does have one concern - the so-called measurement of indirect land use. He says - continuing to utilize indirect land use changes to calculate greenhouse gas emissions is unfair to domestic biofuels. Using it as a measurement of biofuels’ carbon impact is still highly controversial and scientifically unproven.

NCGA Says EPA Regulations Confirm Ethanol’s Environmental Superiority Over Gasoline

The U.S. Environmental Protection Agency’s newly released regulations implementing an expanded federal Renewable Fuel Standard are significant because they provide further evidence of corn ethanol’s superiority over conventional gasoline when it comes to greenhouse gas emissions, the National Corn Growers Association said.

“We’re pleased the U.S. Environmental Protection Agency recognizes that corn ethanol provides a distinct advantage over conventional gasoline when it comes to greenhouse gas emissions, with a reduction of more than 21 percent in some cases,” said NCGA President Darrin Ihnen. “This means that all corn ethanol including existing grandfathered capacity and new production will qualify to meet the conventional biofuels targets in the RFS.

NCGA continues to be disappointed that EPA chose to use the flawed theory of international indirect land use change in their calculations. Ihnen stressed that the EPA should reject the unproven theory of international indirect land use change, which assumes that growing more corn means planting corn on a proportionately greater amount of acreage and will impact other crops or natural resources on a global basis. Today’s yield trends show this to be false. 2009’s record corn yield was 165.2 bushels per acre, according to the U.S. Department of Agriculture, more than 11 bushels higher than 2008 and nearly 15 bushels higher than 2007.

“In 2009, corn growers were challenged with one of the worst growing season in generations, and we still brought in a record crop and yield,” Ihnen, a corn grower in Hurley, S.D., said. “We grew more corn than we did in 2007, the last record year, and we did so on nearly 7 million fewer acres.”

Further, the idea of international indirect land use is applied only in the case of corn ethanol. “This is the perfect example of bad science being applied unfairly, “ Ihnen said. “Removing the impacts from the international indirect land use theory means that corn ethanol actually provides a 52 percent reduction in greenhouse gas emissions, compared to gasoline. The EPA is not considering similar indirect impacts of petroleum-based fuels, so why are they so stringent when it comes to green, renewable corn ethanol?”

NCGA works closely with all interested parties in promoting the importance of corn ethanol as a market for its members and an important part of our nation’s domestic energy sector, Ihnen added.

“U.S. corn growers are committed to continuing to meet all needs for their product in a sustainable fashion and we’re committed to providing a domestic, renewable fuel that supports our nation’s economy and helps reduce our dependence on foreign oil.”

Growth Energy Supports President's Move

Tom Buis, CEO of Growth Energy, says the President understands the need for enhanced support for the existing ethanol industry and greater investment to create jobs, improve our environment and increase our national security. According to Buis, the President is adding muscle to the bone by investing in new technologies, reforming the loan guarantees for cellulosic ethanol to encourage the development of this cutting-edge fuel, and equipping government facilities with Flex Fuel Vehicles.

As for the RFS rules, Buis says there are several improvements from when EPA first proposed the expanded RFS last year. We’re pleased with the decision to make volume levels of domestic ethanol retroactive to the first of the year – this is a significant step toward reducing dependence on foreign oil, creating U.S. jobs, and improving the environment.

Further, by using skewed ILUC calculations, the RFS gives Brazilian sugarcane ethanol preferred status as an advanced biofuel. Buis adds, - I don’t think that was the intent of Congress when it passed the Energy Independence and Security Act. It won’t make the U.S. any more energy independent by switching our addiction from foreign oil to foreign ethanol.

Peterson Targets Problems in RFS

House Ag Committee Chairman Collin Peterson says - typical of most decisions made in Washington, there is some good and some bad in the Renewable Fuel Standard final rule. While he is pleased that ethanol and biodiesel will qualify as advanced biofuels, Peterson says, - I am concerned about some provisions in the final rule that fail to use science-based standards.

According to the Committee chair, - to think that we can credibly measure the impact of international indirect land use is completely unrealistic, and I will continue to push for legislation that prevents unreliable methods and unfair standards from burdening the biofuels industry.

Peterson, House Armed Services Chairman Ike Skelton and Representative Jo Ann Emerson have introduced a bill to prevent EPA from regulating greenhouse gas emissions under the Clean Air Act. The bill, H.R. 4572, also includes provisions that would stop the EPA from using international indirect land use calculations in biofuels regulations and would expand the definition of renewable biomass.