With Republicans holding majorities in both the US Senate and House, US Environmental Protection Agency officials may be growing used to congressional committee members saying the federal regulator is moving ahead too aggressively. A June 18 Senate Homeland Security Subcommittee hearing on EPA's management of the federal Renewable Fuels Standard program was notably different.
Essentially, Janet McCabe, EPA's acting assistant administrator for air and radiation, said the agency would try to be more flexible as it develops new biofuel quotas under the RFS as required under the 2007 Energy Independence and Security Act. The law also gives EPA authority to issue waivers if it determines statutorily established volumes can't be met, she added.
Refiners and other "obligated parties" under EISA's provisions have complained the biofuel volume goals don't reflect declining US motor fuel demand or actual biofuel manufacturing capacity.
"Our proposal aims to balance two dynamics: Congress' clear intent to increase use of renewable fuels over time to address climate change and increase energy security; and real-world circumstances-such as the E10 blend wall-that have slowed progress towards such goals," McCabe told the Regulatory Affairs and Federal Management Subcommittee.
Heidi Heitkamp (D-ND), the subcommittee's ranking minority member, conceded EPA has authority to issue RFS waivers. It also has created an uncertain cellulosic ethanol investment climate, she added. "I don't think we know what the amount of cellulosic ethanol volumes will be because we haven't given the market a chance," she said. "Let's do that first before making predictions."
"Biodiesel has advanced a long way in Iowa," said Jodi Ernst (R-Iowa). "Innovation has facilities up and running, but investors are hesitant to engage when there's so much uncertainty. They need to know there's a set volume for those products and the necessary infrastructure to support it."
'Disrupted investment'
"We've disrupted the investment in biorefineries," said Heitkamp. "We need to get back on track and make certain the RFS is implemented as intended. We can debate its wisdom here in Congress, but it's equally important not to assume we're going to have a cellulosic or biofuel crisis so far in advance."
James Lankford (R-Okla.), the subcommittee's chairman, was not quite as adamant. "Cellulosic was great theory, and a lot of people have tried to make it. They simply haven't been able to reach the volumes to make it work," he said.
"The largest cellulosic producer went bankrupt in the past year," Lankford noted. "Nobody has been able to crack the code to make the technology to make it work. A declaration in Congress setting a number doesn't necessarily mean the industry will be able to reach it."