AJR 21, as introduced, Olsen. Renewable Fuel Standard program: reform.
This measure would urge Congress to swiftly enact House Resolution 1462, the RFS Reform Act of 2013, to revise the requirements of the Renewable Fuel Standard program.
Fiscal committee: no.
P1 1WHEREAS, The Renewable Fuel Standard program was created
2under the Energy Policy Act of 2005, and established the first
3renewable fuel volume mandate in the United States; and
4WHEREAS, The Energy Policy Act of 2005 required 7.5 billion
5gallons of renewable fuel to be blended into gasoline by 2012 and,
6under the Energy Independence and Security Act of 2007, the
7Renewable Fuel Standard program was expanded to include diesel,
8in addition to gasoline; and
9WHEREAS, The Energy Independence and Security Act of
102007 increased the volume of renewable fuel required to be blended
11into transportation fuel from 9 billion gallons in 2008 to 36 billion
12gallons by 2022; and
P2 1WHEREAS, The 2013 requirement of corn-starch-derived
2ethanol of 13.8 billion gallons represents approximately 84 percent
3of the total renewable fuel mandated in the Energy Independence
4and Security Act of 2007; and
5WHEREAS, At the time that the Renewable Fuel Standard
6program became law, the daily price of a metric ton of corn used
7in biofuel ethanol production was $99, and at the time the Energy
8Independence and Security Act of 2007 became law, the daily
9price of a metric ton of corn used in biofuel ethanol production
10had risen to nearly $180, with the latest price of a metric ton of
11corn currently reported by the United States Department of
12Agriculture as approximately $310, representing an increase of
13over 300 percent since the inception of the Renewable Fuel
14Standard program; and
15WHEREAS, The Environmental Protection Agency has
16determined that as a result of the Renewable Fuel Standard
17program, the increase in overall commodity prices expected as a
18result of the demand for agricultural products used in biofuel
19production will result in an annual increase of food costs to
20consumers of over $3 billion by 2022; and
21WHEREAS, The loss of alternative feedstock acreage to biofuel
22crop production combined with the unprecedented rise in corn
23prices due to the requirements of the Renewable Fuel Standard
24program have significantly contributed to the loss of dairy
25production capacity in California, as represented by the 387
26California dairies that have gone out of business since 2007, with
27over 100 dairy farms lost in 2012 alone; and
28WHEREAS, A bipartisan group of Members of Congress have
29authored the RFS Reform Act of 2013 in the form of House
30Resolution 1462, which will eliminate corn-based ethanol
31requirements, limit the amount of ethanol that can be blended into
32conventional gasoline to 10 percent, and require the United States
33Environmental Protection Agency to set cellulosic biofuels levels
34at production levels, bringing fundamental and urgently needed
35reform to this costly and unworkable federal policy; now, therefore,
36be it
37Resolved by the Assembly and the Senate of the State of
38California, jointly, That the Legislature join a diverse group of
39businesses, industry representatives, and dairymen across California
40in urging Congress to swiftly enact House Resolution 1462, the
P3 1RFS Reform Act of 2013, and bring immediately necessary relief
2to consumers and agricultural families of California; and be it
3further
4Resolved, That the Chief Clerk of the Assembly transmit copies
5of this resolution to the President and Vice President of the United
6States, to the Speaker of the House of Representatives, to the
7Minority Leader of the House of Representatives, to the Majority
8Leader of the Senate, to the Minority Leader of the Senate, and to
9each Senator and Representative from California in the Congress
10of the United States.
O
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