RFS Reactions Mixed

Depending on the biofuel of choice, industry reviews vary on EPA’s Final Rule for the Renewable Fuel Standard (RFS2). The new RFS includes indirect land use change (ILUC) requirements and also requires more biodiesel in the biofuels mix.

RFS2 implements the long-term renewable fuels mandate of 36 billion gallons by 2022 established by Congress. RFS2 requires biofuels production to grow from last year’s 11.1 billion gallons to 36 billion gallons in 2022, with 21 billion gallons to come from advanced biofuels. Agriculture industry organizations worked hard to educate EPA and policymakers on correcting flaws in the original RFS2 Proposed Rule issued in 2009.

In a written statement, the Renewable Fuels Association (RFA) applauded EPA’s efforts, calling RFS2 “a workable program that will achieve the stated policy goals of reduced oil dependence, economic opportunity, and environmental stewardship.”

But it’s the use of ILUC to determine greenhouse gas emission (GHG) levels that concerns RFA. The new RFS2 requires that some renewable fuels must achieve greenhouse gas emission (GHG) reductions — compared to the gasoline and diesel fuels they displace — in order to be counted towards compliance with volume standards.

RFA president Bob Dineen expressed concern that while EPA recognized that ethanol from all sources provides significant carbon benefits compared to gasoline, grain-based ethanol’s climate contributions are being “shortchanged” with the inclusion of ILUC.

“According to EPA’s modeling, corn-based ethanol achieves a 21 percent greenhouse gas (GHG) reduction compared to gasoline when dubious ideas of international indirect land use change (ILUC) are included,” RFA’s statement said.

RFA contends that without ILUC, corn-based ethanol achieves a 52 percent GHG reduction. Cellulosic ethanol achieves GHG reduction of 72 percent to 130 percent depending upon feedstock and conversion process. All GHG reductions for ethanol exceed those mandated by the RFS2.

“Disappointingly, however, EPA continues to rely on oft-challenged and unproven theories such as international indirect land use change to penalize U.S. biofuels to the advantage of imported ethanol and petroleum,” Dineen said.

According to the Dow Jones newswire, EPA says that some 12.95 billion gallons of biofuels will have to be added this year, as required by law. Some 6.5 million gallons must come from cellulosic ethanol. And 1.15 billion gallons must come from biomass-based diesel over the two years through 2010.

The Dow Jones newswire also reports that the mandate to use 1.15 billion gallons of biodiesel in 2010 could inject new life into the ailing industry. U.S. biodiesel producers were crippled by the lack of implementation of legislative requirements to produce more biodiesel; by the end of 2009, the industry was operating at 15 percent of its capacity. Total industry capacity — mostly built during the pre-recession rush to produce renewable fuels — is about 2.7 billion gallons a year.

The American Soybean Association (ASA) says RFS2 provides a positive outcome for biodiesel and soy biodiesel.
 

Topics: ,

Leave a Reply

Management Stories

Southern States Cooperative
glyphosate
Crop InputsWHO: Glyphosate ‘Unlikely’ To Cause Cancer
May 16, 2016
Via Reuters.com reporter Kate Kelland: The weed-killing pesticide glyphosate, made by Monsanto and widely used in agriculture and by gardeners, Read More
dicamba, Roundup Ready 2 Xtend
Crop InputsASA: No Dicamba On Roundup Ready 2 Xtend In 2016
May 16, 2016
While Roundup Ready 2 Xtend (RR2X) are tolerant to dicamba and glyphosate herbicides, no dicamba herbicides will be approved for Read More
CPP, glyphosate, dicamba, atrazine,
Crop InputsReport: Congress Pressing EPA On Glyphosate Review Handling
May 16, 2016
Via Reuters.com reporter P.J. Huffstutter: U.S. lawmakers have asked EPA to explain why it published – and then withdrew – Read More
Trending Articles
Monsanto Luling Plant
Crop InputsReport: Bayer Eyeing Monsanto For Possible Mega-Merger
May 16, 2016
Bayer AG is exploring a potential bid for U.S. competitor Monsanto Co. in a deal that would create the world’s Read More
Aerial Drone
Precision AgA Deeper Dive Into The Future Of Precision Ag
May 9, 2016
For about two decades now, through the good and the bad times, the ups and the downs inherent in agriculture, Read More
Palmer amaranth in soybean stubble
HerbicidesWSSA: Billions In Potential Economic Losses From Uncontrolled Weeds
May 4, 2016
What losses would corn and soybean growers experience if they were forced to eliminate herbicides and other control techniques from Read More
Eric SfiligojReasons For Hope In Commodity Prices
May 2, 2016
For many months now, the doomsayers have ruled the day in agriculture. Too much supply with too little demand would Read More
Eric SfiligojMissing The Family Ties In Agriculture
April 25, 2016
By its nature, the agriculture market is cyclical. Up and down cycles come and go with a regular pattern. For Read More
HerbicidesHerbicide Resistance In Waterhemp Continues To Grow
April 22, 2016
Twenty-five years ago, waterhemp was virtually unknown to Illinois farmers. Today, the broadleaf weed blankets corn and soybean fields across Read More
Latest News
Southern States Cooperative
Corn Field
Industry NewsTiger-Sul Names Veteran Account Manager To Lead Central…
May 23, 2016
With the continuing growth of the sulphur bentonite and precision crop nutrient industry, global agriculture firm H.J. Baker has announced that Read More
Bayer sign
Industry NewsReuters: Bayer Defies Critics With $62 Billion Monsanto…
May 23, 2016
German drugs and crop chemicals group Bayer has offered to buy U.S. seeds company Monsanto for $62 billion in cash, Read More
Eric SfiligojPity The Monsanto Haters
May 23, 2016
An old saying goes thus: “Be careful what you wish for. You just might get it.” Given current events, there Read More
Industry NewsCompass Minerals Hires Industry Veteran To Lead Plant N…
May 19, 2016
Compass Minerals has hired plant nutrition industry veteran Vatren Jurin to steer the company’s portfolio expansion into specialty liquid micronutrient Read More
ASMARK Retailers LIVE! Tour 2016 Group shot The Andersons
CropLife 100The Andersons Rejects Unsolicited Proposal From HC2
May 19, 2016
The Andersons, Inc. has announced that its Board of Directors has rejected two non-binding, highly conditional, unsolicited proposals from HC2 Read More
glyphosate
Crop InputsWHO: Glyphosate ‘Unlikely’ To Cause Cancer
May 16, 2016
Via Reuters.com reporter Kate Kelland: The weed-killing pesticide glyphosate, made by Monsanto and widely used in agriculture and by gardeners, Read More
dicamba, Roundup Ready 2 Xtend
Crop InputsASA: No Dicamba On Roundup Ready 2 Xtend In 2016
May 16, 2016
While Roundup Ready 2 Xtend (RR2X) are tolerant to dicamba and glyphosate herbicides, no dicamba herbicides will be approved for Read More
CPP, glyphosate, dicamba, atrazine,
Crop InputsReport: Congress Pressing EPA On Glyphosate Review Hand…
May 16, 2016
Via Reuters.com reporter P.J. Huffstutter: U.S. lawmakers have asked EPA to explain why it published – and then withdrew – Read More
Monsanto Luling Plant
Crop InputsReport: Bayer Eyeing Monsanto For Possible Mega-Merger
May 16, 2016
Bayer AG is exploring a potential bid for U.S. competitor Monsanto Co. in a deal that would create the world’s Read More
ManagementAsmark Institute Tour Observations
May 12, 2016
Special Guest CropLife Field Editor Matthew Grassi discusses his week-long visit with 45 ag retailers as part of the Asmark Read More
MicronutrientsCompass Minerals Expands Trial Work For Wolf Trax Innov…
May 12, 2016
Fertilizer manufacturer Compass Minerals continues to expand the evaluation program for its Wolf Trax micronutrient fertilizer products, according to a Read More
Young Corn Closeup
Industry NewsArysta Adds To Marketing Team
May 12, 2016
Arysta LifeScience North America recently announced the addition of David Davies to its marketing team. As marketing manager, Davies will Read More
Photo credit: The United Soybean Board/The Soybean Checkoff.
Crop InputsSyngenta Launches New Biological Seed Treatment
May 12, 2016
Syngenta has announced the launch of the EPIVIO brand family, a range of new biostimulants which address abiotic stresses through seed Read More
Crop Inputs2013 West Texas Tragedy Ruled A ‘Criminal ActR…
May 11, 2016
A 2013 fertilizer plant blast in West, TX, that killed 15 people and injured 160 others was caused by a Read More
Crop InputsLariat Partners Invests In Willowood USA
May 11, 2016
Lariat Partners, a Denver-based private equity firm, has made a significant investment in Willowood USA, a leading manufacturer of generic Read More
Anhydrous Ammonia tanks
LegislationARA: OSHA Announces PSM Formal Rulemaking Intentions
May 11, 2016
In separate communications earlier this week, the Occupational Safety and Health Administration (OSHA) announced plans to conduct formal rulemaking to Read More
The Andersons Fostoria
StewardshipThe Andersons Facilities In Fostoria And Gibsonburg, OH…
May 11, 2016
The 4R Nutrient Stewardship Certification Program has announced that The Andersons, Inc.’s facilities in Fostoria and Gibsonburg, OH, have been added to its Read More