BIO Asks Congress to Examine Regulatory Impact of Renewable Fuel Standard Provisions

WASHINGTON--Regulatory rules on land use change issued for the Renewable Fuel Standard could set a precedent for regulation of greenhouse gas emissions under future U.S. legislation and international treaties. The Biotechnology Industry Organization (BIO) thanked Tim Holden (D-Pa.), Chairman of the U.S. House Agricultural Subcommittee on Conservation, Credit, Energy and Research for holding a timely hearing last week on the impact of land use provisions of the National Renewable Fuel Standard. BIO today submitted testimony asking Congress to provide guidance to the Environmental Protection Agency on regulation of land use change emissions.

Jim Greenwood, BIO president and CEO, stated, “Climate change is an urgent global issue, and I commend Congress and the Obama administration for their leadership in addressing the contribution of transportation fuels to greenhouse gas emissions. BIO believes that biofuels can significantly reduce U.S. reliance on imported petroleum and carbon emissions associated with climate change. Implementation of the Renewable Fuel Standard and the life cycle assessment of greenhouse gas emissions for transportation fuels will establish an important precedent for future legislation, so it is imperative that we get it right.

“The EPA's proposed approach has profound implications not just for biofuels, but potentially for all agricultural activity and, arguably, climate policy the world over. By applying new, indirect land use change penalties to biofuels, the EPA is assigning to U.S. biofuel producers responsibility for land use decisions, and the resulting carbon emissions, of individuals and nations around the world. This is a sweeping policy decision that could well establish a precedent for all areas of economic activity. This approach could serve as an endorsement of the position of other nations who seek to shift the responsibility for at least a portion of their domestic carbon emissions to the United States and other developed nations.

“If land use change penalties are applied to biofuel feedstock producers, these penalties should arguably be applied to all agricultural producers and other land users. If this is the direction EPA seeks to pursue, it needs to approach this radical shift in regulatory policy very carefully, and with the greatest possible flexibility, to minimize economic harm and other unintended consequences. It is critical that EPA maintain the utmost care, open-mindedness, and flexibility in its continuing process of rulemaking for the National Renewable Fuel Standard. To deliver the maximum real greenhouse gas reductions, EPA's computation of lifecycle emissions must follow consistently applied and thoroughly vetted methodology, be based on contemporary and complete data, and account for and encourage a range of future technology advances to ensure continued reductions in the carbon intensity of transportation fuels and other related industries.”

BIO supports the production of biofuels from all feedstocks. Agricultural biotechnology is helping to increase crop yields, while industrial biotechnology is helping to convert crops, crop residues and other feedstocks into ethanol more efficiently. With ongoing advances in biotechnology, biofuels can help America meet nearly half its transportation fuel needs by the middle of this century.