BIO supports EPA denial of Renewable Fuel Standard waiver.
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Press Release Summary:
Designed to move nation toward production of advanced biofuels made from renewable resources, Renewable Fuel Standard specifies that 21 billion of 36 billion gallons of biofuels to be produced and used each year by 2022 will come from non-food sources. It also says that advanced biofuels must reduce emissions of greenhouse gases by 60% compared to petroleum gasoline. BIO supports U.S. EPA's decision not to grant Texas Gov. Rick Perry's petition to cut RFS.
Original Press Release:
BIO Supports EPA Denial of Renewable Fuel Standard Waiver
WASHINGTON, D.C. (Thursday, August 07, 2008) - The Renewable Fuel Standard (RFS) provides crucial support and incentives for companies to invest in new biorefineries to bring advanced biofuels to the pump. Biotechnology Industry Organization (BIO) President & CEO Jim Greenwood released the following statement expressing the industry's support for the U.S. Environmental Protection Agency's decision not to grant Texas Gov. Rick Perry's petition to cut the RFS:
"The EPA's decision today sends a strong message that we must continue moving forward toward sustainable production of advanced biofuels to reduce both our dependence on imported oil and greenhouse gas emissions from transportation, and to increase production of biofuels from non-food sources.
"The Renewable Fuel Standard was designed to move the nation as rapidly as possible toward production of advanced biofuels made from renewable resources. The RFS specifies that 21 billion of the 36 billion gallons of biofuels to be produced and used each year by 2022 will come from non-food sources. After 2015, all increases in production and use of biofuels will come from cellulosic raw materials.
"Beyond this, the RFS says that advanced biofuels must reduce emissions of greenhouse gases by 60 percent compared to petroleum gasoline.
"Moving backward to a time where supplies of corn outpaced demand is not a possibility. We applaud the EPA's decision not to grant the waiver."
Brent Erickson, executive vice president of BIO's Industrial & Environmental Section, added, "Many companies have been racing to develop and deploy the technology to meet those requirements. There are currently more than 30 facilities across the United States planned, under construction, or beginning operation to pioneer production of advanced biofuels made from renewable resources such as corn stalks, grasses, wood chips, and even trash. The U.S. has invested more than $1 billion into continuing research and building these facilities, and that investment has been matched by the industry. These facilities represent the first step toward building a large-scale biofuel industry that can meet growing U.S. transportation fuel needs.
"Meanwhile, many economists and studies agree that undoing the RFS would not reduce corn and food prices as claimed by those who requested the waiver.
"The Agricultural and Food Policy Center at Texas A&M University, in a study cited by advocates of the waiver, concluded earlier this year that relaxing the RFS would not significantly lower corn prices. A study by Purdue University economists shows that while biofuels have created a new demand for corn, about 75 percent of the current rise in corn prices can be attributed to the rapidly rising price of oil. Bruce Babcock, a professor of economics and the director of the Center for Agricultural and Rural Development at Iowa State University, has said that the price of corn will rise and fall in direct relation to the price of transportation fuel."
BIO supports the production of biofuels from all feedstocks. Biotechnology is helping to increase corn yields and convert corn starch and crop residues into biofuels more efficiently. With ongoing advances in biotechnology, biofuels can help America meet nearly half its transportation-fuel needs by the middle of this century.
The Advanced Biofuels & Climate Change Information Center presents the latest commentary and data on the environmental and other impacts of biofuel production. Drop in and add your comments, at http://biofuelsandclimate.wordpress.com/.
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BIO represents more than 1,200 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world's largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world.
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