Washington, D.C.-The Fertilizer Institute on June 19 testified before the House of Representatives Subcommittee on Energy and Air Quality regarding the potential impact of climate change legislation on the fertilizer industry and its farmer customers. TFI President Ford B. West outlined what the association believes are the serious threats posed by the Safe Climate Act of 2007 (H.R. 1590) and the Investing in Climate Action and Protection Act (H.R. 6186). West told the committee that nitrogen fertilizer manufacturing is dependent on a reliable supply of natural gas, and that the U.S. has already lost almost one-half of its nitrogen fertilizer production capacity. He warned that the projected fuel switching brought about by climate change legislation would “cause the price of natural gas to skyrocket, even causing additional U.S. production to shut or move offshore.” West noted that only 30 nitrogen plants are currently operating in the U.S., and more than half of the imported fertilizer is from countries with weaker environmental standards and no climate change policies. “The majority of these countries are those from whom we are striving for energy independence,” he said. West urged legislators to exercise caution when considering policy that would have such a broad impact on the economy. “The current record demand for food and fuel has resulted in record demand for fertilizer,” he said. “This surge in world demand has meant that U.S. farmers and farmers around the world are paying the highest prices for their fertilizer inputs in history. With food demand levels predicted to stay high, Congress must tread cautiously and consider all ramifications and unintended consequences of such sweeping policies as climate change. Any climate change policy must take into account essential industries, such as fertilizer, that could be severely challenged if this policy does not address our unique situation.” On June 18, West participated in a House Natural Resources Committee roundtable chaired by Rep. Steve Pearce (R-N.M.) on U.S. energy policy. “Congress must recognize that the current U.S. natural gas supply/demand balance is an artificial one, created by public policy,” West told roundtable members. “The demand for natural gas to produce electricity increased dramatically after the passage of the Clean Air Act Amendments in 1990 and is growing with new efforts to reduce green house gas emissions. On the supply side, Congress has limited the ability to drill for natural gas in areas where there are significant known supplies.” West urged members to expand the area in the Outer Continental Shelf, where drilling could occur. “Any increase in the U.S. supply of natural gas will help to keep the remaining nitrogen plants in the United States operating and help to ensure a domestic source of nitrogen remains available to our nation’s farmers,” he said.
Transparency Across the Fertilizer Value-Chain