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TSCRA Daily News Update, May 2, 2008
Rethinking renewable fuels mandates? Policy makers at both the state and national level are showing increasing signs of "buyer's remorse" with regard to the massive renewable fuels mandates passed in the Energy Independence and Security Act of 2007, which passed last December. Texas Governor Rick Perry has petitioned the EPA to issue a 50 percent waiver of the new Renewable Fuels Standard (RFS), which mandates 9 billion gallons of feedgrain-based fuel production this year and 15 billion gallons by 2015. "We appreciate the good intentions behind the push for renewable fuels. In fact we're diversifying our state's energy portfolio at a rapid rate," said Gov. Perry. "But this misguided mandate is significantly affecting Texans' family food bill." Sen. Kay Bailey Hutchison (R-Texas) is planning to introduce legislation that would freeze the RFS at its 2008 mandated level of 9 billion gallons. Formal introduction of Sen. Hutchison's bill is expected within the coming week. In other Congressional action, the Joint Economic Committee held a hearing May 1 to focus on the issue of rising food costs. "The prices families are paying to fill their shopping carts have gone up – a lot," said Sen. Charles Schumer (D-N.Y.), who chairs the committee. "While we have been cringing at gas stations as gas prices have more than doubled since 2001, now it's a double whammy. We pay more to drive to the supermarket, and then get hit with higher prices when we get there." While consumers of certain food products are feeling a considerable burden from higher grain prices, livestock producers are bearing the brunt of the impact when it comes to meat production. And while renewable fuels policy is not solely to blame for this situation, it is animportant contributor. Consistent with its member-developed policy, NCBA isurging members of Congress to reevaluate the dramatic increase in the RFS, especially in light of current commodity and food price concerns.
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