RFS and Farm Bill Developments

Things are moving fast in the bioenergy field. Thursday saw intense lobbying by supporters and opponents of the Renewable Fuel Standard (RFS) during a day-long session organized by the Environmental Protection Agency (EPA). The meeting came three weeks after EPA proposed a lower mandate for the amount of renewable fuel that must be blended into the U.S. fuel supply, from the 18.15 billion gallons originally envisioned in the 2007 law to 15.21 billion gallons. EPA believes that the "blend wall" has been reached, the point past which ethanol would represent more than 10 percent of gasoline sold at the pump. Certain manufacturers and oil companies argue that engines are not designed to handle fuels whose ethanol content goes beyond 10 percent. EPA itself has declared, however, that 15 percent ethanol blends (E-15) are safe for cars, light trucks and SUVs built after 2001. The public comment period for the new rules will run through the end of January, and EESI will be submitting comments in support of the RFS.

Meanwhile, Farm Bill negotiators are increasingly confident that an agreement will be reached before the current bill expires in a little less than a month. A closed-door meeting on Wednesday saw major concessions made by both sides. The House stopped insisting that all commodity subsidies be a function of planted acres, rather than base acres. As for the Senate, it agreed to higher food stamp savings, though far less than the $40 billion over 10 years sought by the House.

Stay posted for more next week!