The Renewable Fuel Standard turns 20 today and a celebration is underway in recognition of the monumental contributions the law has made in American life.
“Since it was signed into law, the Renewable Fuel Standard has provided immeasurable benefits to Americans,” said Illinois farmer and NCGA President Kenneth Hartman Jr. “It has dramatically increased demand for corn, provided significant savings to consumers at the pump and strengthened America’s energy dominance.”
An Epic Advocacy Effort
NCGA and state corn grower groups were on the forefront of the issue in the 1990s and early 2000s, pushing for a national law that would allow use of biofuels in the nation’s fuel supply. Using ethanol, they argued, would address concerns around greenhouse gas emissions while diversifying the nation’s fuel supply and reducing the price of fuel for drivers.
The outcome was far from certain. The law had first been introduced several years before and failed to advance. A promising effort in 2004, in which the bill was close to passage, went down in flames after an ally in Congress refused to vote for it over an unpopular rider.
But state and national corn growers were not deterred. They made calls. They went to Capitol Hill. And they united with unlikely partners, like Edison Electric and other industries, to push for passage of the legislation.
“We got down to a couple of votes in Congress and the corn growers were united like never before, and I started receiving calls from Capitol Hill saying, ‘would you have your growers stop calling us, we are with you,’” said Jon Doggett, who served as NCGA’s chief lobbyist at the time and retired as CEO of the organization. “I had not seen anything like it before and haven’t seen anything like it since.”
The efforts were a success. Congress quickly passed the Energy Policy Act of 2005, requiring gas sold in the United States to contain renewable fuel blends capped at 10%. The law, which expanded again through legislation in 2007, was a paradigm shift for a host of sectors, ranging from the travel industry to community farming.
“Not only was the nation benefiting from the new standard, but corn growers and rural communities benefited from increased corn sales,” Hartman said. “It was and continues to be a win-win situation for everyone.”
The RFS has helped increase demand for corn for ethanol by 244% over the last 20 years, according to economic data released by NCGA.
A Raised Profile
After its passage, corn gained increased attention and respect. It was top of mind among Democratic and Republican presidential candidates eager to win the Iowa caucuses. It was featured as part of the plot in season six of the popular TV show “West Wing,” and its growers were fêted by policymakers on both sides of the aisle. It even earned the moniker, King Corn.
The impact of the Renewable Fuel Standard has only improved with age. Since 2005, the law has:
- Created hundreds of thousands of jobs. The biofuels industry supports more than 300,000 jobs and contributes $50 billion to the nation’s GDP every year.
- Bolstered America’s fueling infrastructure. RFS has created the infrastructure to produce 18 billion gallons of ethanol annually. That would fuel 300 million cars every year.
- Saved money. Studies have estimated that the RFS has saved consumers between 10-30 cents per gallon at the pump over time.
Expanding Access to Ethanol
As years progressed, the 10% cap on ethanol blends was eliminated. But the Environmental Protection Agency, which is tasked with administering the RFS, eventually enacted an outdated requirement limiting consumer access to fuel blends containing 15% ethanol, or E15, over the summer months. While EPA has issued temporary waivers for that policy, NCGA has worked in recent years for a law that would eliminate the need for regulatory action, thus providing year-round consumer access to higher blends of ethanol across the country. That battle continues.
NCGA is also working with the Trump administration, the airlines sector and Congress to make inroads into the aviation sector. NCGA and corn grower advocates support a tax incentive for this promising industry, and corn growers say they are continuing to work to ensure that standards are in place that will allow the ethanol industry and farmers to capture value from the credit.
“There is more work to be done if we are going to fully unleash the power and benefits of ethanol,” Hartman said. “But today, we are going to celebrate a hard-fought victory that has resulted in countless benefits for corn growers and indeed all Americans.”