Bipartisan Group of 22 Representatives Introduces
Renewable Fuel Standard

Today, April 13, 2005, Representatives Tom Osborne (R-NE), Stephanie Herseth (D-SD), Collin Peterson (D-MN), and Steve King (R-IA) introduced H.R. 1608 The Fuels Security Act of 2005.  This bill, a companion to S. 650 introduced by Senators Lugar and Harkin, sets a national renewable fuel standard of 4 billon gallons by 2006 and 8 billion gallons by 2012, more than doubling the current production of domestically produced renewable fuels.  Eligible biofuels include ethanol, biodiesel, and cellulosic biomass fuels.

If enacted, this legislation will spur production of biofuels in all regions of the country, using a variety of feedstocks and stimulating significant investment and rural economic development.  At a time when the U.S. trade deficit in February reached a record $61 billion, two thirds of the increase in imports was attributed to petroleum and petroleum products.  In 2004, $166 billion of the U.S. trade deficit was from oil imports alone.

At a press conference held today, led by Rep. Herseth, Members outlined other benefits a shift from petroleum to biofuels could have for the country.  Rep. Herseth for rapid adoption of a national renewable fuels standard, saying the effort is a “national issue with growing support.” Rep. Tom Osborne discussed the potential $51 billion increase in income to farmers, the significant decrease in farm payments that will result, the $200 billion that will be added to U.S. GDP, and the overall 20¢ decrease per gallon of gasoline due to the adoption of ethanol blends.  He emphasized that this legislation is not just geared for farmers, rather, “it certainly benefits every American.” 

Rep. Collin Peterson emphasized the value of biofuels in addressing the U.S. national security issue.  In his words, “There is nothing more important we can do for our country then get off our dependence on foreign oil.” He pointed out that biofuels are not just a win for the agriculture sector but “better for the country.” Rep. Mark Kennedy asked, “How high do our energy prices need to get, before we act?  How long will we let our trade deficit grow before we do something?”  Certainly, the current price per barrel of oil hovering above $57 begs that precise question.

Original co-sponsors of the bill include: Representatives Marion Berry (D-AR), Earl Pomeroy (D-ND), Sam Graves (R-MO), Leonard Boswell (D-IA), Betty McCollum (D-MN), Ike Skelton (D-MO), Mark Kennedy (R-MN), Marcy Kaptur (D-OH), John McHugh (R-NY), Jeff Fortenberry (R-NE), Jerry Moran (R-KS), Jim Leach (R-IA), Jim Ryun (R-KS), Ted Strickland (D-OH), Tom Latham (R-IA), Ray LaHood (R-IL), Julia Carson (D-IN), and Mike Pence (R-IN).  

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The Environmental and Energy Study Institute (EESI) is a non-profit organization that works at the nexus of policy and innovation to promote environmentally sustainable societies.  EESI was founded in 1984 by a bipartisan group of Congressional Members dedicated to finding environmental and energy solutions.  EESI provides credible, timely information and innovative policy ideas through coalition building, media outreach, publications, briefings, workshops and task forces on the issues of energy efficiency and renewable energy, transportation, smart growth, agriculture and global climate change.  Carol Werner leads the EESI team as Executive Director.