Iowa native lobbies in D.C. in favor of renewable fuel standard

WASHINGTON - A congressional panel this week began a critical review of the eight-year-old Renewable Fuel Standard that is tied to the jobs of 63,000 Iowans, with substantial changes possibly coming soon.

The Republican-controlled House Energy and Power Subcommittee of the Energy and Commerce Committee heard testimony Wednesday from a variety of sources, including a key ethanol advocate - Iowa native Pam Johnson, president of the National Corn Growers Association.

The RFS, first implemented in 2005 and expanded in 2007, sets production mandates for four types of biofuels that eventually will total 36 billion gallons by 2022 for the nation's fuel supply - with 15 billion gallons coming from corn ethanol. The Environmental Protection Agency administers the standard, which has come under increasing fire from the oil and gas industries, as well as food and restaurant advocates who say it has caused higher retail food and fuel costs.

Johnson, a sixth-generation farmer who grows corn and soybeans in Floyd County, called the RFS “a critical piece of our nation's energy policy.” The group she heads was founded in 1957 and represents more than 39,000 corn farmers and includes 48 affiliated state organizations.

Johnson told the panel Wednesday that in 2012 alone, the RFS supported more than 300,000 jobs in the United States, eliminated the need for 465 million barrels of imported oil and helped lower gasoline prices by 89 cents per gallon.

“It has created jobs, lessened our dependence on foreign oil and improved the environmental footprint of our nation's transportation fuels,” Johnson said Wednesday. “In short, it is doing exactly what it was designed to do - spur the development of a significant alternative to petroleum that ignites economic development for those who produce these new fuels and for those who use it.”

Rep. Bruce Braley, D-Iowa, a member of the subcommittee, invited Johnson to testify Wednesday. He said the RFS has helped Iowa's economy more than those of any other state, noting that there are 39 ethanol plants across the state that produce 3 billion gallons annually and account for 63,000 jobs, according to the National Renewable Fuels Association.

Braley said the RFS is under fire mostly from oil interests and the livestock industry, which argues that the RFS is contributing to rising feed prices.

He said it is too early to predict whether the House will repeal the RFS, preserve it, or otherwise modify it.

“I intend to monitor this closely and continue to be a strong advocate for the benefits of the RFS not just to Iowa but for the entire country,” Braley said.