Environmental Activists Continue to Mislead About Ethanol

March 30, 2010

(March 30, 2010)  Washington – As is often the case, a new report from critics of biofuels promise immediate benefits from repealing current biofuel policies in favor of those that would take the world’s most productive cropland out of production. Moreover, the report seeks to castigate current biofuel technologies while giving fossil fuels and other dirty energy sources a free pass.

“Most disappointing about the continuous barrage of attacks by environmental activists is that we share many of the same goals,” said Matt Hartwig, Director of Public Affairs at the Renewable Fuels Association. “Ethanol producers remain steadfastly committed to developing new technologies that improve efficiencies and expand the basket of feedstocks from which ethanol is made. Unfortunately, many in the environmental movement choose to rely on disproven theories and partnerships with the oil lobby to mislead and misrepresent what American ethanol production is all about. Simply put, second and third generations of ethanol technology will not exist without a successful first generation.”

The report from the National Wildlife Federation makes a number of policy recommendations that would seem to undermine its stated goals, including:

NWF: The tax incentives for biofuels should be repealed as they are duplicative with the existing Renewable Fuels Standard.

Reality: The tax incentives for biofuels are critical to ensuring the existence of a domestic biofuels industry. The RFS mandates use, but does not require that those fuels be sourced domestically. Removing the tax incentives would lead to increases in imports, likely produced from feedstocks grown by nations on land where rainforests and savannahs once stood.

NWF: Congress should alter the RFS to replace grain-based biofuel with other biofuels down the road.

Reality: Seeking to replace corn-based ethanol and other grain-based biofuels would greatly reduce the impact of the RFS. Instead of building upon the energy security and environmental gains offered by these renewable fuels, such a revision would eliminate these gains and increase reliance on fossil fuels. Next generation biofuels are a critical evolution and addition to our renewable portfolio, not a replacement. Last year alone, corn-based ethanol displaced 364 million barrels of imported oil and reduced tailpipe emissions the equivalent of taking 2.4 million cars off the roads. This isn’t a case for robbing Peter to pay Paul.

NWF: Congress should remove the ‘grandfather clause’ for ethanol producers in the RFS. It should also revise the lifecycle analyses included in the RFS to more accurately reflect current ethanol production.

Reality: Based on EPA analysis, ethanol production achieves the required 20% reduction in greenhouse gases called for in the RFS. In fact, the majority of scenarios run by EPA suggest much greater GHG reductions than the 21% cited. And, the ethanol industry agrees that EPA needs to revisit its lifecycle analysis with more up-to-date and verifiable information. When the unproven theory of land use change is removed from the equation, corn-based ethanol achieves a 52% reduction in GHGs.  On this point, Congress should change the definitions of advanced biofuels to allow corn-based ethanol to qualify if it meets the GHG reduction requirements.  Today, corn-based ethanol is the only biofuel specifically excluded. 

“America’s ethanol producers are prepared to move ever-forward, commercializing the very technologies that groups like NWF espouse to support,” said Hartwig. “However, the increasing obstruction by environmental activists, often supported by those in the fossil fuel industry, makes it exceedingly difficult to achieve the kind of energy security, economic opportunity, and environmental improvements we are striving to achieve. “