The Renewable Fuel Standard provides the market and regulatory certainty necessary to drive private investment and maintain progress in research and development of advanced biofuels, the Biotechnology Industry Organization (BIO) said in written testimony submitted to the Senate Environment and Public Works Committee oversight hearing, "Domestic Renewable Fuels: From Ethanol to Advanced Biofuels."
Brent Erickson, executive vice president of BIO's Industrial and Environmental Section said, "The United States must maintain its commitment to reducing reliance on oil imports to protect American consumers and businesses from volatile energy prices.
The s about high gasoline prices possibly derailing the U.S. economic recovery highlight the importance of commercializing advanced biofuels quickly.
Technology to produce advanced biofuels is ready to expand to commercial scale and begin to meet the volume requirements under the Renewable Fuel Standard. Access to capital remains the biggest challenge for the industry, especially as high oil prices threaten to plunge the country into another recession.
The RFS as it is being implemented by the EPA is working in coordination with other federal programs administered by the USDA and DOE to provide the industry, its investors and obligated parties necessary federal support.
"The RFS continues to be an effective mechanism in providing market motivation for investment in the innovative biotechnology necessary for advanced and cellulosic biofuels. Following federal policies, companies have made significant investments and produced successes at each stage of research and development.
"The industry is growing at a rate faster than many predicted it would, providing good jobs and new economic opportunities. Continued federal commitment to underwrite the construction of first-of-a-kind commercial advanced and cellulosic biorefineries is needed to overcome market aversion to risk. This federal support must continue so that the advanced biofuels industry can reach its potential production levels."
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