Bill introduced directing EPA to focus on direct lifecycle GHG emissions

Meant to head off possible U.S. EPA action on the proposed rules for the expanded renewable fuels standard (RFS), U.S. Sen. John Thune (R-S.D.) introduced legislation on Oct. 29 that would direct EPA to only focus on the direct lifecycle greenhouse gas emissions in its regulation.

The 36-billion gal/yr RFS contains several carve-outs to promote different types of biofuels, and requires conventional biofuels to emit 20 percent fewer lifecycle greenhouse gas emissions compared to gasoline, while "advanced biofuels" would be required to emit 50 percent fewer lifecycle greenhouse gas emissions.

It's still unclear how EPA officials will tackle the lifecycle requirements. What has most concerned biofuel groups is how EPA will address emissions from indirect land use changes (ILUC). Biofuel groups,agricultural academics and some lawmakers have asked EPA to delay the ILUC requirements until there is a generally accepted method for determining the regulation, while environmental groups believe that EPA needs to follow congressional intent and include ILUC restrictions in the expanded RFS rulemaking.

EPA is poised to issue its notice of proposed rulemaking for RFS2 in the next week, and at least several biofuel sources believe EPA is likely to include ILUC in its proposed rulemaking, following on the heels of the provision's inclusion in last week's California Air Resources Board final rule on its low carbon fuel standard.

"Following California's recent decision to use flawed models to estimate ethanol's environmental impact, I am concerned that the EPA could soon apply similar standards that will handicap renewable fuel relative to regular gasoline," said Thune. "Congress has asked EPA to apply greenhouse gas emission standards that reflect ethanol's proven environmental benefits. However, with the EPA's current decision that is pending at the White House, I am concerned that EPA's action could have a detrimental impact on our renewable fuel industry and efforts to reduce our dependence on foreign oil," he added.

Specifically, Thune's bill directs EPA to focus on direct lifecyclegreenhouse gas emissions, "which would level the playing field between ethanol and regular gasoline and bring more regulatory certainty to the ethanol industry. Additionally, the bill would require EPA to publicize the model for measuring lifecycle greenhouse gas emissions before taking any regulatory action. The bill would also allow individual ethanol producers with a unique production method to apply to the EPA for a lower carbon score, which would provide an incentive for ethanol companies to develop innovative ways to produce ethanol," Thune added.

However, copies of Thune's bill (S. 943) were not immediately available, and so it was unclear what language was in the legislation beyond what was outlined in the senator's press release.

According to Thune, "[t]he bill would also establish a waiver process for the greenhouse gas reduction requirements in the new RFS. This provision would allow ethanol producers to petition the EPA to waive the greenhouse gas reduction requirements of the RFS if the requirements are preventing the industry from meeting the RFS requirements, contributing to our dependence on foreign oil or creating an undue economic burden on the ethanol industry," he said.

"The activist nature of the current EPA may undercut the environmental benefits of ethanol. I will continue to work with my colleagues in Congress to make sure those efforts are unsuccessful and we do everything we can to grow and expand the ethanol industry," Thune added.

Meanwhile, reaction to the bill from those affected by the land use issue was not immediately clear.

S. 943 was referred to the Senate Environment and Public Works Committee.

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