US Ethanol Industry Again Loses by Winning
Remember back when Donald Trump was president and he tried to find a “win-win” regarding ethanol policy? In the end, neither side was satisfied. That again is the case after EPA’s latest announcement on Wednesday when it proposed to allow year-round E15 sales in eight states for 2024. But with EPA, there’s always a but or two.
But #1: 2024, not 2023
EPA announced it is proposing to grant requests from eight states for waiving the Reid Vapor Pressure (RVP) requirements under the Renewable Fuel Standard (RFS) that would allow for sales of E15 fuel in those states for the 2024 summer driving season. The action is proposed to take effect April 28, 2024. That would allow time for refiners/blenders to be able to put the fuel into commerce for the summer driving season that starts June 1.
Related article: EPA’s Year-Round E15 Proposed Rule Pushes Sales into 2024
Governors from Illinois, Iowa, Kansas, Minnesota, Nebraska, North Dakota, South Dakota, and Wisconsin made the request several months ago and wanted it to be effective for the 2023 summer driving season.
But #2: North Dakota was the only state that petitioned the agency and did not receive approval, apparently due to lack of sufficient information.
EPA is as slow as congressional appropriators from both political parties in reaching a conclusion. Ethanol proponent veteran Sen. Chuck Grassley (R-Iowa) welcomed the action but expressed frustration at the length of time it took for EPA to respond to the requests.
“EPA foot dragging on summer E15 sales means higher fuel prices for Iowans,” Grassley tweeted.
Why the delay? Ben Hengst, deputy director of EPA's Office of Transportation and Air Quality, said there were several reasons why the E15 proposal was delayed.
"I will say from our team's perspective, this is an area that EPA has never issued a rule," he said.
Related article: United Airlines Taps Corn to Bring Ethanol-Based Jet Fuel to Market
Because the agency is frequently taken to court (an understatement), Hengst said the agency took its time on the legal, technical analysis. Note this: Industry advocates and Iowa Gov. Kim Reynolds (R) are threatening to press for quicker implementation in federal courts.
But #3: Will EPA now announce an emergency action to allow sales of E15 this year during the summer driving period?
The agency took the action for 2022, announcing the effort April 29, saying it was “issuing an emergency fuel waiver to allow E15 gasoline to be sold during the summer driving season.”
Bottom line
Ethanol proponents in Congress may seek a legislative solution, but history shows this will not occur. One-step forward, one-step back. Standing in place.
