The House Energy and Commerce Committee’s Energy and Air Quality Subcommittee convened a hearing yesterday to examine the Renewable Fuels Standard (RFS) provisions of the Energy Independence and Security Act of 2007 (EISA). The RFS requirements in EISA substantially increase those contained in the Energy Policy Act of 2005, mandating renewable fuel use of 9 billion gallons by the end of 2008 and 36 billion gallons by 2022. Subcommittee Chairman Rick Boucher (D-VA) opened the hearing by noting recent calls for a “reexamination” of the RFS in light of rising food prices and the national debate on carbon emissions.

Full Committee Ranking Member Joe Barton (R-TX) contended that the higher RFS mandate contained in EISA “cannot be met” and said he will introduce a bill to repeal the RFS mandate contained in the new law. Full Committee Chairman John Dingell (D-MI) did not attend the hearing, but submitted a statement for the hearing record suggesting, in part, that amending the RFS “would be unwise and could lead to unintended consequences.”

Subcommittee Democrats, joined by Rep. John Shimkus (R-IL), generally characterized the RFS as a success, suggesting that greater ethanol use was helping to lower gas prices and increase U.S. energy supplies. Republican Members of the Subcommittee generally advocated revisions to the RFS mandate.

EPA testified that it is conducting broad outreach with industry stakeholders to develop implementing regulations for the RFS, and that the agency would apply life-cycle greenhouse gas performance standards to all new renewable fuels. While the EPA witness did not answer definitively when asked whether the 9 billion gallon renewable fuels mandate for 2008 would be met, he suggested that EPA has sufficient authority to grant RFS waivers if they are justified. Chairman Boucher encouraged EPA to meet the 90-day deadline for decisions on recent waiver requests from Texas and Connecticut.

Other witnesses appearing at the hearing were the Natural Resources Defense Council, voicing concern about the environmental risks posed by large-scale biofuels production, but characterizing the new RFS as a step forward; the Renewable Fuels Association emphasizing that the RFS has helped reduce gasoline prices up to 15%; the Grocery Manufacturers Association, suggesting that jobs are being lost in rural communities due to high animal feed prices attributable to increased ethanol use for fuel; the National Corn Growers Association, calling the RFS “sound energy policy” and suggesting that record high corn exports demonstrate that the U.S. does not face a choice between food or fuel; and Oxfam America, recommending appointment of a blue ribbon commission to explore the link between biofuel mandates and food prices.

Yesterday’s proceeding was one in a series of hearings the Subcommittee will be holding to examine provisions enacted as part of EISA.

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