June 25, 2009 - Washington – Final details of the deal to bring the climate change bill to the floor of the House of Representatives were finalized overnight, clearing the path for a vote this week. The compromise struck between House Ag Committee Chairman Collin Peterson and House Energy and Commerce Committee Chairman Henry Waxman allows for the continued growth of America’s biofuels industry while also achieving carbon reduction goals.

“Good faith negotiations and old fashioned horse sense led to a deal that achieves both our energy security and environmental goals,” said Renewable Fuels Association President Bob Dinneen. “By ordering further review of the controversial theory of international indirect land use change, Congress can allow science to catch up with policy goals. When a full review is completed, the economic, environmental and energy benefits of domestically produced renewable fuels will be beyond refute.”

Dinneen continued, “Chairmen Peterson and Waxman and their staffs deserve a great deal of credit for getting this bill to a vote. While just the first step in a long process, the House should move quickly to pass this legislation.”

The RFA worked diligently with both committees and other stakeholders to help craft a compromise that achieves our goals and is workable for industry. Specifically, the compromise contains the following provisions:

• The definition of renewable biomass was harmonized with the 2008 Farm Bill language for private lands. Environmental safeguards for public lands were preserved.
   
• The Environmental Protection Agency is prohibited from imposing the unfair penalty of international land use change on biofuels for 5 years while research is conducted to determine the validity of such a theory. After that period, the Secretaries of Agriculture and Energy as well as the EPA Administrator must jointly decide to accept or reject the findings. Additionally, Congress will have one year following that decision to act, if it so chooses.
   
• Biodiesel facilities built before implementation of the 2007 energy bill while be grandfathered into the law in the same fashion as ethanol facilities of the same vintage.

“This is how sound science and good public policy can and must work together,” said Dinneen. “We believe that all fuel and energy sources should be treated equally with respect to measuring their carbon footprint. When this type of apples to apples comparison is made, ethanol and other renewable fuels will demonstrate remarkable benefits to our nation’s economy and energy security while helping tackle the challenges of climate change.”

In EPA’s proposed rule for the Renewable Fuels Standard, a direct comparison with gasoline showed ethanol reduces carbon emissions by 61%. It is only when this unproven theory of international land use change is used to penalize biofuels does that benefit get diminished. The legislation now going before the House will make sure science and public policy are in sync.