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Climate, Energy Legislation Continue To Fuel Debates

5.18.2009

Proposed climate legislation has many sectors of the nation’s marketplace facing big changes in how they do business. Some are warming up to the idea more quickly than others.

One controversial rule that could have a big impact on agriculture is the Environmental Protection Agency’s (EPA) recent proposal to include indirect land-use calculations when tallying emissions. The proposed regulation is designed to curtail greenhouse gas emissions blamed for climate change and to make sure that alternative fuels, such as ethanol or biodiesel, do not have indirect effects, such as deforestation in other countries, that could increase levels of greenhouse gases in the atmosphere.

The rule comes on the heels of a California Air Resources Board (CARB) decision last month to factor indirect land use into the state’s renewable fuels standard, which some lawmakers worry could set a new footprint for federal policy to follow.

“The California Air Resources Board’s decision to unfairly target ethanol for carbon emissions from around the world is one that could have a significant negative impact on the renewable fuels industry in South Dakota and across the nation,” Sen. John Thune (R-S.D.) said in a recent press conference. “By relying on outdated, inaccurate models to calculate the carbon output of biofuel production, CARB does a disservice to America’s most abundant homegrown fuel supply.”

While viewpoints vary among different interest groups, the crux of the debate lies in how carbon footprints are determined.

“While I am pleased the EPA issued a range of emissions for biofuels, the EPA’s new standards for measuring ethanol’s life-cycle carbon output in other countries could be a serious setback for our nation’s push for energy independence,” Thune said. “The EPA is relying on unproven models that undermine our nation’s most readily available alternative to foreign oil.”

Many crops grown specifically for biofuels, such as switchgrass, easily pass the carbon footprint test.

However, corn-based ethanol, criticized for competing with food crops and for using substantial amounts of fertilizer in fields and fossil fuels in distilleries, does not. Neither does soybean-derived biodiesel.

Nebraska Farmers Union president John Hansen said that “misinformation” is contributing to public criticism of ethanol.

“We know those with vested economic interests are going to fight to maintain the choke-hold they have on the American economy,” Hansen said. “They won’t give up those market shares willingly.”

Hansen cited the oil industry as the mastermind behind ethanol’s black eye.

“There’s a reason why oil companies don’t want our energy supply replaced with renewable sources,” he said. “These guys are hard at work. They have a lot of pull, and misinformation campaigns are a part of that.”

Hansen said the oil industry’s efforts toward a negative public perception of ethanol were evident throughout the drafting of the farm bill.

“For the first time ever, we saw retail grocers join hands with big oil interests to hire public relations firms and spend $100-200 million a year to place opinion editorials and background pieces and paid advertising with the media,” he said.

Hansen added that, with regard to climate change legislation, “Big Oil” is in the middle of the public policy arena — as well as the economic marketplace — “up to their eyeballs.”

“For those who have been in ethanol (research), we know they’re not going to roll over and play dead,” he said.

The Obama administration has not taken a position on key regulatory issues, but is inviting comments from scientific experts and businesses on how to measure carbon emissions from the full life cycle of biofuels, from land use to fertilizer to manufacturing process to delivery.

Last week, Thune introduced a bill that directs the EPA to focus on “direct life cycle” greenhouse gas emissions. Additionally, the bill would require the EPA to publish the model for measuring life cycle greenhouse gas emissions before taking any regulatory action. The bill would also allow individual ethanol producers with a unique production method to apply to the EPA for a lower carbon score, providing incentives for increased efficiencies in ethanol production processes.

EPA administrator Lisa Jackson stated in a press release that existing corn ethanol distilleries or ones under construction would probably be exempt from the new regulations.

“The new administration has taken the approach to have a diversity of perspective within their own shop,” Hansen said. “And they have very vigorous discussions about the pros and cons of all these (energy) issues.”

Hansen added that the one consistent message from the administration has been from the president vowing commitment to the development of renewable energy, and remaking the economy with a renewable energy-based system.

But the battle is far from over, Hansen said.

“One thing is certain: (The oil industry) has enormous political power by virtue of the size of their pocketbook, and we know they’re not going to give up the advantage they have structurally.”