U.S. Sen. Joni Ernst (R-IA) wants the U.S. Environmental Protection Agency (EPA) to remove an outdated restriction on the year-round sale of E15 as the agency updates policy in the Renewable Fuel Standard (RFS).
The RFS sets the rule for the amount of renewable fuel — most often corn-made ethanol — that must be mixed into gasoline by oil refiners. E15 denotes 15 percent ethanol and 85 percent gasoline, a higher octane fuel available in 28 states at retail fueling stations, according to the Renewable Fuels Association.
The EPA is considering policy changes such as making ethanol exports count toward the annual quota, which essentially would reduce how much ethanol oil refiners would have to use. The nation’s corn growers don’t like the idea, but oil refiners do because it would lower their costs to blend ethanol.
Sen. Ernst’s home state of Iowa leads the nation in renewable fuels production with 43 ethanol refineries capable of producing more than 4.4 billion gallons annually and 12 biodiesel facilities with the capacity to produce nearly 400 million gallons a year, according to the senator.
“The industry supports almost 50,000 jobs across the state and accounts for $5.0 billion of Iowa GDP,” she wrote in Aug. 17 comments submitted to Acting EPA Administrator Andrew Wheeler regarding the EPA’s proposed volume requirements under the RFS for cellulosic biofuel, advanced biofuel and total renewable fuel for calendar year 2019, and the EPA’s proposed biomass-based diesel volume for calendar year 2020.
“Agriculture drives Iowa’s economy, and the RFS is critically important to the state’s continued growth and development,” wrote Sen. Ernst, a member of the U.S. Senate Environment and Public Works Committee. “While I am pleased the proposed rule sets the corn ethanol requirement at levels intended by Congress, I remain disappointed that the 2020 biomass-based biodiesel requirement was not increased to accurately reflect current domestic usage and production capacity.”
The EPA reduced the RFS volume obligations by over two billion gallons in 2016 and 2017, she pointed out, via small refinery exemptions that decreased both corn and ethanol demand.
“The proposed increase to the amount of renewable fuel blended into transportation fuel is encouraging, but does not account for demand destruction,” the lawmaker wrote. “I respectfully ask EPA to reallocate waived gallons and establish a clear procedure to ensure obligated parties demonstrate “disproportionate economic hardship” before an exemption is granted.”
Sen. Ernst also urged the EPA to “follow through on the President’s directive and remove the outdated restriction on the sale of E15 year-round. Granting Reid vapor pressure (RVP) relief for E15 is a no-cost solution that will expand a domestic market for farmers who have been adversely impacted by ongoing trade disputes.”
RVP relief, she concluded, would increase farm income and jumpstart growth and development across rural America during a time of economic hardship.
“The final rule issued by EPA should follow Congressional intent, both the spirit and the letter of the law,” wrote Sen. Ernst.