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Governors make another plea on RFS

The leaders of the Governors’ Biofuels Coalition are once again calling on the Obama Administration to restore the 2014 production levels in the Renewable Fuels Standard (RFS).

In a letter to the administration, Illinois Governor Pat Quinn and Iowa Governor Terry Branstad—chair and vice chair of the coalition–say that the EPA’s proposed volume cuts will have a negative economic impact on the biofuels industry, especially biodiesel and cellulosic ethanol.

The governors say the proposed cuts have already created turmoil for biodiesel producers, resulting in production cutbacks and layoffs.  And they argue that the proposed rule has also discouraged investment in the newly emerging cellulosic ethanol industry and threatens the many new cellulosic plants about to go into commercial production.

The biofuels and oil industries has been waiting for several months for the final rule to be announced.   Now there’s speculation that it may not come until after the November elections to avoid any political fallout.