By DOUG SCHMITZ Iowa Correspondent
WASHINGTON, D.C – On Aug. 8, the U.S. biofuels industry marked the 20th anniversary of the Renewable Fuel Standard (RFS), created to promote biofuels, especially ethanol, as a sustainable alternative to traditional gasoline, according to industry officials. “The RFS is the foundation of America’s bioeconomy,” said Emily Skor, CEO of Growth Energy, the nation’s largest biofuels trade association, based in Washington, D.C. “It supports hundreds of thousands of rural jobs, and has shielded an entire generation of drivers from volatility in global oil markets. More than 10 percent of U.S. fuel supplies now come from renewable sources like ethanol, representing billions of gallons in savings. And it’s still fueling growth. “As part of a drive toward U.S. energy dominance, the U.S. EPA recently proposed to set biofuel blending at the highest volume in the history of the program,” she added. “Those numbers aren’t yet final, and the EPA still needs to address petitions from refiners seeking to skirt the RFS, but if we remain on a growth trajectory, the benefits to American motorists and farmers are overwhelming.” According to the USDA, the RFS is a program developed by the EPA to comply with the Clean Air Act and the Energy Independence and Security Act and signed into law in August 2005. The second, known as RFS2, came about in 2007. The USDA added the RFS is designed to increase the amount of renewable fuels used in the United States to reduce air pollution and greenhouse gas emissions. The RFS requires petroleum refiners and importers to blend a certain percentage of biofuels into their fuels. The first RFS applied mainly to gasoline and ethanol. RFS2 mandates the inclusion of other biofuels, such as biodiesel, into the country’s petroleum fuel supply. According to Growth Energy, since the RFS was signed into law, American biorefineries have produced more than 250 billion gallons of ethanol. In that same time period, American ethanol plants have purchased 92.7 billion bushels of corn, driving more than $425 billion of revenue to American farmers. Brian Glenn, American Farm Bureau Federation (AFBF) director of government affairs, told Farm World, “On the 20th anniversary milestone of the Renewable Fuel Standard, the AFBF reflects on the tremendous success story that the RFS has been for the country, and the rural economy. The RFS has reduced our country’s dependence on foreign oil, reduced air pollution, increased farm incomes, and provided good-paying jobs in rural America. “Since its inception, the RFS has played a vital role in fostering a strong and consistent demand for domestically grown feedstocks, and expanding commodity markets,” he added. “The AFBF recognizes the importance of the RFS to farmers and rural communities. “Following the implementation of the RFS2 in 2007, the U.S. experienced tremendous growth within the agricultural sector,” he added. “U.S. farmers answered the call to contribute to the country’s energy independence by expanding corn and soybean production.” He said, “For 2025, farmers are estimated to produce 15.8 billion bushels of corn, 5.5 billion of which will be used for ethanol. Farmers are also estimated to produce 4.3 billion bushels of soybeans this year, with 2.5 billion of that being crushed into soybean oil. The USDA estimates that over half of the soybean oil will be used for biofuels.” Monte Shaw, Iowa Renewable Fuels Association (IRFA) executive director, told Farm World, “The Renewable Fuel Standard has played a pivotal role in reducing emissions, bolstering American energy independence, and revitalizing rural economies nationwide. It transformed U.S. agriculture from decades of government reliance into a dynamic, market-driven powerhouse. “In Iowa, the RFS has been especially impactful, propelling the state to become the nation’s top producer of both biodiesel and ethanol,” he added. “According to the latest study (by the IRFA), renewable fuels production in Iowa accounted for more than $5.7 billion of Iowa GDP (Gross Domestic Product), generated $2.6 billion of income for Iowa households, and supported over 34,000 jobs through the entire Iowa economy.” Bill Couser, a Nevada, Iowa, farmer who grows commercial corn he sells to local plants to be processed into fuel ethanol, said, “The RFS is more than a law. It’s a vital outlet for surplus grains that provides stability and prosperity to American farmers facing higher input costs and uncertain export markets. I don’t know that our family’s farm would be as strong as it is today if it weren’t for the RFS, and the American biofuels industry.” |