U.S. Governors Lobby for Higher Biofuel Mandate

The governors of ethanol-producing states of Iowa, Kansas, North Dakota, Minnesota, South Dakota and Nebraska have sent a joint letter to the White House, the Environmental Protection Agency (EPA) Administrator and the Secretary of Agriculture saying that a cut to the U.S. biofuel mandate would hurt efforts to create jobs, grow family incomes and revitalize their local economies.

The EPA proposed to cut the biofuel requirement in 2014 to 15.2 billion gallons - 3 billion gallons less than what Congress required in a 2007 law. The governors said if the proposed cut becomes final, the negative impact would be disproportionately felt by rural America.

The governors said more than 400,000 Americans depend on renewable fuels for good-paying jobs in their states and as many as 44,500 jobs related to biofuels are at risk if the RFS is lowered as planned by the EPA. They also cited a study from Iowa State University that estimated a reduction in the Renewable Fuel Standard (RFS) could cause corn prices to drop by 19 cents a bushel, below the average cost of production for many farmers.

The governors urged the Obama administration to increase the biodiesel volume level to reflect current production levels, modify the cellulosic target to match production expectations and bring the overall renewable fuels target back in line with what Congress initially required.