Biofuels Group Calls for U.S. Policy Change

The head of the Advanced Biofuels Association on Wednesday called for legislative changes to the U.S. Renewable Fuels Standards (RFS) program, sparking criticism from those within the industry who favor maintaining the current policy.

The RFS needs to be changed to eliminate a loophole that allows oil companies to opt out from blending cellulosic biofuels with a waiver credit from the Environmental Protection Agency (EPA) and minimum values need to be assigned to those advanced fuel credits, Michael McAdams, president of the group, said at an industry conference.

McAdams also called on Congress to extend the program beyond 2022 to provide incentive for investment in plants that produce cellulosic biofuels.

The group will be "actively seeking" program reform, McAdams said.

The move immediately sparked criticism from others in the industry, with the Renewable Fuels Association, which represents corn-based ethanol producers, reaffirming its stance that the RFS can be fixed without legislative action.

"There is nothing wrong with the RFS that can't be fixed by that which is right with the RFS," Bob Dineen, head of the RFA, said in an emailed statement.

He added on a conference call on Wednesday that the move will heighten uncertainty that will hurt the development of biofuels.

Wednesday's comments reflect the growing divide between corn-based ethanol producers and producers who use alternative plant and waste products as feedstock and qualify as advanced biofuels.

The RFS has been facing criticism from lawmakers, environmentalists, and oil companies that have said it drives up costs of food and other resources and has other major flaws. Much of the challenges to the program have been targeted at corn-based ethanol.

Reporting by Chris Prentice