PRST STD U.S. POSTAGE PAID OMAHA, NE PERMIT NO. 36
Volume VIII, Issue 1
January 2014
A battle over renewable fuels by Gordon Wolf A proposed change in the renewable fuel standard (RFS) has agriculture groups and ag leaders in Iowa going to battle with the federal Environmental Protection Agency (EPA). On November 15, the EPA proposed setting the corn ethanol standard at 13 billion gallons for 2014, a decrease from the 13.8 billion gallon standard for 2013, and proposed that the biomass-based biodiesel level remain at 1.28 billion gallons. The EPA also proposes to set the cellulosic biofuel standard at 17 million gallons, which the EPA said was significantly lower than the Clean Air Act target of 1.75 billion gallons. The total proposed volume of renewable fuel to be blended in 2014 is 15.21 billion gallons. A week after the announcement, Iowa Governor Terry Branstad, Lt. Governor Kim Reynolds, Senator Chuck Grassley, Representative Steve King, and Iowa Secre-
tary of Agriculture Bill Northey joined the Iowa Renewable Fuels Coalition to urge the Obama Administration and the EPA to restore strong blending levels for 2014 at a “Defend the RFS” event at Lincolnway Energy near Nevada. Monte Shaw, director of the Iowa Renewable Fuels Association, said the EPA’s proposal would lead to higher gasoline prices and lower farm income. Branstad later brought together a bipartisan group of six governors to sign on to a letter to President Barack Obama, EPA Administrator Gina McCarthy and United States Secretary of Agriculture Tom Vilsack in expressing their support for a strong RFS. The letter said, “More than 400,000 Americans depend on renewable fuels for good-paying jobs that support rewarding careers in our states. According to the Renewable Fuels Association and LMC International, 44,500 of these jobs could be lost due to the EPA proposed rule.
“This proposed rule would greatly hinder our states’ efforts to foster policies that create jobs, grow family incomes, and revitalize our economies. “If the EPA’s currently proposed rule becomes final, the negative impact would be disproportionately felt by rural America. According to an Iowa State University estimate, corn prices alone could drop nineteen cents per bushel based on the proposed rule, which could bring corn prices below the cost of production for many farmers. The proposed EPA rule could also cause a ripple effect on agri-business, our communities, and the entire economy.” On January 7, VoteVets.org announced it was launching a television ad in Iowa, aimed at protecting the RFS, spending nearly $110,000 for one week of time in the Des Moines market as well as in Washington, D.C. The ad features Iraq War Veteran Michael Connolly making the case that gutting the RFS would allow for a greater flow of oil dollars to U.S. enemies, who use that money for weaponry that has targeted
U.S. troops. Connolly served in Iraq from 2007 to 2008, lived in Glenwood from 2010 to 2012, and now lives just across the border in Nebraska. In its November 15 announcement, the EPA said nearly all gasoline sold in the United States is now E10 and that while the production of renewable fuels has been growing rapidly in recent years, “advances in vehicle fuel economy and other economic factors have pushed gasoline consumption far lower than what was expected when Congress passed the Renewable Fuel Standard in 2007.” The EPA reasoned that the United States is at the “E10 blend wall,” the point at which the E10 fuel pool is saturated with ethanol. The agency said if gasoline demand continues to decline, as currently forecast, continuing growth in the use of ethanol would require greater use of higher ethanol blends such as E15 and E85. Comments about the EPA’s proposal for the 2014 RFS standards can be posted online at www.regulations.gov. Comments can also be emailed to aand-r-docket@epa.gov. The comment period closes at 11:59 p.m. Eastern Time on Tuesday, January 28.
Governor to address IRFA annual summit The Iowa Renewable Fuels Association (IRFA) announced Iowa Governor Terry Branstad and Lt. Governor Kim Reynolds will address the eighth annual Iowa Renewable Fuels Summit and Trade Show on January 28 at The Meadows Conference Center in Altoona. The IRFA said the governor’s support of the federal Renewable Fuel Standard and Iowa’s renewable fuels industry has helped Iowa remain the nation’s leader in renewable fuels production. The Summit is free and open to the public. Pre-registration is required. To learn more and register to attend, visit: http://iowarfa.org/2014Summit. php. Iowa is the leader in renewable fuels production. Iowa has 42 ethanol refineries capable of producing over 3.8 billion gallons annually, with three cellulosic ethanol projects currently under construction. In addition, Iowa has 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually.