Subcommittees Discuss the Renewable Fuel Standard

Press Release

Today the Subcommittees on Energy and Oversight held a joint hearing titled, "The EPA Renewable Fuel Standard Mandate" to discuss the economic and environmental impacts of the Renewable Fuel Standard (RFS). The RFS requires that the total amount of transportation fuel sold or introduced in the U.S. must include a minimum volume of biofuels. It was signed into law in 2005 and expanded in 2007 under the Energy Independence and Security Act.

Ranking Member of the Energy Subcommittee, Congressman Alan Grayson (D-FL), said, "The sheer volume of America's oil use means we are constantly furthering global climate change and its disastrous effects. Further, our oil consumption leads America to be heavily dependent on the global market for oil, and this reliance makes our economy vulnerable. Any significant supply disruption has the potential to be a catastrophic economic event. These concerns, however, can begin to be addressed by the sustainable use of biofuels and long-term policies like the Renewable Fuel Standard."

He continued, "We need to ensure that efficient and sustainable practices for producing corn-based ethanol are sufficiently incentivized and enforced. We must also ensure that the market for these first-generation fuels is establishing the necessary infrastructure and investments that will lead to truly sustainable advanced biofuels."

Mr. Chuck Red, Vice President of Fuels Development for Applied Research Associates (ARA), testified on the importance of the RFS in fostering the development of advanced biofuels. He noted that commercializing second generation renewable fuels is an important step in reducing U.S. dependence on the global crude oil market, while also providing fuel alternatives with lower greenhouse gas emissions. ARA has focused on the research, development, and commercialization of second generation alternative fuels and produces two renewable drop-in biofuels. The U.S. Navy is purchasing drop-in fuels from ARA and has successfully integrated these fuels into military platforms.

Mr. Red said, "The Renewable Fuel Standard has been the main tool of U.S. biofuels policy. It can continue to play that role in scaling second generation renewable fuels and feedstocks by continuing to increase volumetric obligations and by providing consistent policy which spurs investment in second generation fuel production facilities. We encourage Congress to continue to provide support for the Renewable Fuels Standard as it contributes to the investment in production and distribution of domestic, low-carbon, advanced biofuels."

Ranking Member Eddie Bernice Johnson (D-TX) said in her statement for the record, "The panel today is not fully representative of the views on this topic. The Renewable Fuel Standard is a major policy enacted by Congress with complex implications for many businesses, the environment, and the economy as a whole. Most importantly, we are not hearing from either the EPA, the agency responsible for implementing the standard, or the Department of Energy, the lead agency for the federal government that conducts research into advanced biofuels. There are real concerns about how the RFS is being implemented, and we will need to hear from both EPA and DOE if we are to fulfill our oversight responsibilities… The Renewable Fuel Standard is a complicated issue, and I hope that this hearing today is not the end of our discussions on this matter."

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