December 10, 2007

 

Mandated US feed-based biofuel production draw ire of cattle producers
 

 

US cattle producers are scorning the new House energy bill, which mandated a specific production of biofuels from feedgrains last week.

 

The bill which was passed by Congress 235-181, would require a 15 billion gallon mandate for feedgrain-based fuel by 2016 and production of 36 billion gallons of renewable fuels by 2022.

 

The ''new'' bill, H.R. 6, the Energy Security and Independence Act of 2007, now heads to the Senate for consideration.

 

The National Cattlemen's Beef Association (NCBA) said the bill turns a blind eye to the concerns of livestock and food producers.

 

Cattle producers have called for a market-based approach to renewable fuels development rather than one directed by legislation.

 

Lawmakers have insisted on an increase to the Renewable Fuel Standard (RFS), which currently calls for the production of 7.5 billion gallons by 2012. 

 

NCBA member policy is specifically opposed to increasing the government mandate for feedgrain-based ethanol. 

 

The bill does not provide any mechanism to reduce the mandate if adverse weather conditions or infrastructure bottlenecks, affects corn production, something which happened before, said Jason Jordan, NCBA's manager of legislative issues. 

 

If passed by the Senate, it is likely that President Bush will veto the bill. 

 

A Statement of Administrative Policy issued by the White House said the bill would fragment the market by picking and choosing among fuel types instead of relying on market forces to develop new, more advanced technologies and the next generation of fuels with lower greenhouse gas emissions. 

 

Additionally, a new alternative fuel standard should include an effective safety valve, should be technology neutral, and should rely on market innovation instead of excessive statutory prescription. The statement continued that if H.R. 6 were presented to the President in its current form, his senior advisors would recommend that he veto the bill.

 

Meanwhile, the Farm Bill continues to be mired in debate as the Senate has yet to agree on how many and what types of amendments may be considered as part of their version of the bill - more than 260 amendments were filed. Little progress on the Farm Bill is expected until early 2008.