Corn Commentary

RFS Wars Heating up Energy Bill

With less than three weeks left for the 110th Congress, the Energy Bill is suddenly back in action and groups are mobilizing on both sides over the Renewable Fuel Standard (RFS).

With a vote in the House expected on Wednesday, House Ag Committee members are planning a morning press conference in support of increasing the RFS. Committee chairman Collin Peterson (D-MN) and Congressman Eliot Engel (D-NY) will host the press conference which will include representatives from the American Farm Bureau, National Farmers Union, National Corn Growers Association, American Soybean Association, National Grain Sorghum Producers, National Association of Wheat Growers, Renewable Fuels Association, National Biodiesel Board and the New Fuels Alliance.

That would be the people you would expect to support the RFS. Others who will be showing support for the RFS include AMVETS, the Jewish Council for Public Affairs and the Truman National Security Project.

Meanwhile, petroleum companies have joined forces with livestock producers to protest higher corn-based ethanol targets in the RFS. The American Farmland Trust has sent a letter to Congress opposing the Senate RFS and the proposed RFS amendment to the Farm Bill in the Senate on the basis of conservation concerns.

As if that were not enough, the White House is objecting to the RFS language and there are indications the president may veto the bill even if it does get passed.

The RFS under discussion would require 36 billion gallons of ethanol and other biofuels to be produced by 2022, with more than 20 billion of that to come from sources other than corn. The RFS for corn ethanol would be increased to 15 billion gallons.