Washington (Platts)--23Feb2009

The US Governors' Biofuels Coalition Monday urged President Barack Obama
to provide national policy leadership on biofuels and to take action that
would help increase the distribution and use of biofuels throughout the US.

North Dakota Governor John Hoeven, chairman of the coalition, told a
press briefing that Obama has been an advocate for biofuels and that the group
is asking the administration "to help support in the promotion of biofuels."

Mike Rounds, governor of South Dakota, said, "We need an administration
to partner with us."

One key measure requested by the coalition is for the Environmental
Protection Agency to expand the market for domestic fuels by approving
ethanol-gasoline blends of 13% (up from 10%), and eventually allow up to
20-30% blends, Rounds said. "Research and science already justifies [allowing
higher blends] and it is imperative we move forward now."

In a February 23 letter to Obama, the coalition also asked the
administration to establish an interagency task force on lifecycle greenhouse
gas emissions and transportation fuels. "The task force would be charged with
resolving the debate on this issue by annually and objectively assessing and
comparing the lifecycles analysis of biofuels," the letter said. Such
lifecycles analysis would consider GHG emissions from planting and harvesting
to processing and consumption.

The letter also recommended new policy options to increase the
sustainability of biofuels feedstock production, with the Department of
Agriculture "leading an effort focused on water efficiency and water quality,
fertilizer use, habitat conservation and crop management practices related to
the production of biofuels."

The coalition also called for removing market barriers for E85 (85%
ethanol blends), "through policies that increase flexible fuel vehicle
production and provide funding for meaningful retail marketing efforts. Last
year, [the Department of Energy] dedicated only $4 million to E85 efforts. We
hope that this can be enhanced a great deal."

The letter asked Obama for a "continued, straightforward message from
your administration to the American people on the [necessary] role of
biofuels." Misinformation [about the value of biofuels] "from entrenched
interests has done a great disservice to America."

--Gerald Karey, gerry_karey@platts.com