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US biofuel organisations appeal to Obama to maintain Renewable Fuels Standard

The Biofuels Producers Coordinating Council (BPCC) has urged President Barack Obama to maintain the Renewable Fuel Standard (RFS), a series of regulations requiring the blending of renewable fuel into transportation fuel with a current target of 36 billion gallons by 2022.

The RFS is “the cornerstone of our efforts to reduce foreign oil dependence and create jobs and economic growth across America”, the council stressed. The BPCC warned any waiver of the RFS – which is not being considered in by US authorities - will not only have a minimal effect on grain prices but will also increase gas prices, potentially risk a freeze on investment in advanced biofuels and thus destabilise an important cornerstone of the US economic recovery.

“We understand that the Administration will be reviewing a range of options for providing relief to those impacted by the drought,” it said in a letter to the President. “With this deliberation in mind, we are writing to caution against granting a waiver for the federal Renewable Fuel Standard (RFS). A number of groups and some governors seem to believe that the RFS is a substantial part of the equation when it comes to grain prices, and waiving the programme this year or next will ease the impact of the drought on consumers. There is substantial evidence to the contrary.”

The second and current round of regulations, known as RFS2, forms the basis for a significant planned reduction in greenhouse gases, the reduction of imported fuel and the expansion of the US renewable fuel sector, it added.

The Biofuels Producers Coordinating Council includes representatives from the Advanced Biofuels Association; Advanced Ethanol Council; Algal Biomass Organization; American Coalition for Ethanol; Biotechnology Industry Organization; Growth Energy; National Biodiesel Board; and the Renewable Fuels Association.


Written by Robin Whitlock


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Bioenergy  •  Policy, investment and markets