NCGA Participates in EPA’s Renewable Fuels Standard Implementation Signing Ceremony (9-7-06)

National Corn Growers Association (NCGA) First Vice President Ken McCauley applauded U.S. Environmental Protection Agency (EPA) Administrator Steve Johnson for the EPA’s continued work and the signing of the EPA rule on implementation of the Renewable Fuels Standard (RFS) set out in the Energy Policy Act of 2005 (EPAct) today during the EPA signing ceremony. The default rule aims to implement a provision in the 2005 energy law requiring the EPA to issue regulations to ensure gasoline blended in the United States has a total of 2.78 percent renewable fuels such as ethanol for the rest of this calendar year. EPA’s new proposed rule will ensure that in 2007, 3.71 percent of all gasoline sold or dispensed will be renewable fuels. Additionally, EPA will release its proposed credit trading and compliance provision elements to the RFS.

NCGA was part of a small group attending the ceremony in Omaha, Neb. McCauley met with Johnson during the event to discuss a variety of corn growers’ issues. Nebraska Gov. Dave Heinemann and representatives from the Renewable Fuels Association, American Petroleum Institute and the American Soybean Association also attended the event.

“NCGA is extremely honored to be a part of this event today as we witness the next step in fully implementing the Renewable Fuels Standard,” said McCauley. “We applaud President George W. Bush for his continued push to secure a place for renewable fuels as part of this nation’s energy security plan, and we applaud EPA Administrator Steve Johnson for his hard work to ensure implementation of the RFS is timely and effective.”

McCauley also noted the RFS provides a stable demand for the use of renewable fuels such as ethanol and full implementation of the RFS will guarantee a continued robust future market for corn; continue to promote homegrown fuels and reduce dependence on oil; and support a diversified energy portfolio.

EPAct, signed one year ago included a 7.5 billion gallon RFS establishing a nationwide baseline for usage of renewable fuels. The RFS, which required that oil refiners use renewable fuels such as ethanol made from corn, continues to provide a robust future for corn and allows for continued opportunities for farmer investment in new ethanol plants. The RFS also contained a credit trading provision allowing producers, blenders or importers to sell biofuel "credits" to those in other regions. Traditional biofuels receive 1 credit, while cellulose biofuels and other non- traditional feedstocks receive 2.5 credits.

Last year, the EPA issued a default rule that allowed the Renewable Fuels Standard to take effect in January of this year. Given the limited time available to EPA to develop comprehensive rules regulating the RFS, and with the need to provide regulatory certainty for the marketplace for the coming year, EPA issued the limited set of regulations to implement the RFS for 2006. EPA spent most of this year meeting with various stakeholders on how to make a flexible, reliable credit trading program.

The announced rule today now opens up a public comment period. Full RFS implementation is expected early 2007.

For more information on EPA’s implementation and the rule, please click here.