Iowa Republican lawmakers and biofuels interest groups expressed disappointment Wednesday after the U.S. Environmental Protection Agency finalized a rule that holds steady the amount of corn-based ethanol that oil refiners must blend into the nation's fuel mix over the next three years.
While increasing blending volumes overall by raising the level for advanced biofuels, the new rule includes lower mandates for ethanol in 2024 and 2025 than the EPA had initially proposed.
Industry officials, farm advocates and members of Iowa’s congressional delegation said the levels ignore production capacity and projected growth in biofuels. The industry is an important market for Iowa farmers because more than half of the state’s corn is used to produce ethanol.
While the overall increased volumes for biodiesel are a slight improvement, it comes at the expense of ethanol, “therefore pitting one biofuel against another,” Iowa Secretary of Agriculture Mike Naig said in a statement.
Iowa Gov. Kim Reynolds said “biofuels can play a key role in fighting off this energy crisis and provide millions of Americans with cheaper, cleaner burning fuel.”
EPA Administrator Michael Regan said the final rule will reduce reliance on foreign sources of oil by up to 140,000 barrels a day and support continued growth of biofuels that produce fewer greenhouse gas emissions than traditional gasoline or diesel.
“Today’s final rule reflects our efforts to ensure stability of the program for years to come, protect consumers from high fuel costs, strengthen the rural economy, support domestic production of cleaner fuels, and help reduce greenhouse gas emissions,” Regan said in a statement.
Most gasoline sold in the United States contains 10 percent ethanol, and the fuel is a key part of Iowa’s economy and that of other Midwestern states.
Ethanol plants in Iowa produced an estimated 4.5 billion gallons in 2022 — a record — and supported more than 57,000 jobs and accounted for nearly $7.2 billion in economic activity in the state, according to the Iowa Renewable Fuels Association.
Environmentalists argue investing in increased corn production to generate more ethanol fosters unsustainable farming practices that erode soil and water quality, raises food prices and actually increases emissions.
Iowa Republican U.S. Sens. Chuck Grassley and Joni Ernst said the EPA should have held to its initial ethanol proposal, and gone further to require even more use of advanced biofuels.
“It’s an insulting bait-and-switch for the American biofuels industry, and totally inconsistent with this administration’s climate agenda,” Grassley said in a statement.
He asserted that President Joe Biden’s administration “is turning its back on an opportunity to reduce emissions, consumer costs and reliance on foreign oil.”
Ernst echoed Grassley, arguing “the Biden EPA is failing to protect our energy security.”
Leading up to the release of the final volumes, Ernst, Grassley and biofuels groups pressed the EPA to raise the volumes to match expected production.
Final numbers show a 250-million-gallon reduction in total corn-ethanol volumes for 2024 and 2025 from a December proposal, setting those volumes at 15 billion gallons for both years.
The EPA set corn-ethanol volumes at 15.25 billion gallons for 2023, including a supplemental 250 million gallons, part of restoring 500 million gallons illegally waved by the agency in 2016. It follows the implementation of a 250-million-gallon supplement for 2022.
EPA’s final rule sets the total target for all kinds of renewable fuels at 20.94 billion gallons for 2023, an increase from the Biden administration’s biofuels blending mandate of 20.63 gallons for 2022. The target grows to 21.54 billion gallons for 2024 and 22.33 billion gallons for 2025, according to the EPA.
The rule calls for growth in cellulosic biofuels made from fibrous plant materials, biomass-based diesel and other advanced biofuels.
The EPA also removed a controversial proposal from the final rule that would have allowed Renewable Fuel Standard blending credits to be generated by electric vehicle manufacturers.
Iowa Renewable Fuels Association Executive Director Monte Shaw called the finalized ethanol blending requirements “a step backward from their historic proposal" and ignores the rapid growth of biodiesel and renewable diesel.
“What changed in the marketplace to justify cutting ethanol blending by half a billion gallons? Nothing,” Shaw said in a statement inviting Biden to attend the Iowa State Fair to meet with farmers and biofuel producers.
“Let’s grab a pork chop on a stick, sit down, and try to work out why this EPA continues to ignore the proven ability of Midwest biofuels to be part of the energy security, jobs and low carbon solution,” Shaw said.
www.thegazette.com
While increasing blending volumes overall by raising the level for advanced biofuels, the new rule includes lower mandates for ethanol in 2024 and 2025 than the EPA had initially proposed.
Industry officials, farm advocates and members of Iowa’s congressional delegation said the levels ignore production capacity and projected growth in biofuels. The industry is an important market for Iowa farmers because more than half of the state’s corn is used to produce ethanol.
While the overall increased volumes for biodiesel are a slight improvement, it comes at the expense of ethanol, “therefore pitting one biofuel against another,” Iowa Secretary of Agriculture Mike Naig said in a statement.
Iowa Gov. Kim Reynolds said “biofuels can play a key role in fighting off this energy crisis and provide millions of Americans with cheaper, cleaner burning fuel.”
EPA Administrator Michael Regan said the final rule will reduce reliance on foreign sources of oil by up to 140,000 barrels a day and support continued growth of biofuels that produce fewer greenhouse gas emissions than traditional gasoline or diesel.
“Today’s final rule reflects our efforts to ensure stability of the program for years to come, protect consumers from high fuel costs, strengthen the rural economy, support domestic production of cleaner fuels, and help reduce greenhouse gas emissions,” Regan said in a statement.
Most gasoline sold in the United States contains 10 percent ethanol, and the fuel is a key part of Iowa’s economy and that of other Midwestern states.
Ethanol plants in Iowa produced an estimated 4.5 billion gallons in 2022 — a record — and supported more than 57,000 jobs and accounted for nearly $7.2 billion in economic activity in the state, according to the Iowa Renewable Fuels Association.
Environmentalists argue investing in increased corn production to generate more ethanol fosters unsustainable farming practices that erode soil and water quality, raises food prices and actually increases emissions.
Iowa Republican U.S. Sens. Chuck Grassley and Joni Ernst said the EPA should have held to its initial ethanol proposal, and gone further to require even more use of advanced biofuels.
“It’s an insulting bait-and-switch for the American biofuels industry, and totally inconsistent with this administration’s climate agenda,” Grassley said in a statement.
He asserted that President Joe Biden’s administration “is turning its back on an opportunity to reduce emissions, consumer costs and reliance on foreign oil.”
Ernst echoed Grassley, arguing “the Biden EPA is failing to protect our energy security.”
Leading up to the release of the final volumes, Ernst, Grassley and biofuels groups pressed the EPA to raise the volumes to match expected production.
Final numbers show a 250-million-gallon reduction in total corn-ethanol volumes for 2024 and 2025 from a December proposal, setting those volumes at 15 billion gallons for both years.
The EPA set corn-ethanol volumes at 15.25 billion gallons for 2023, including a supplemental 250 million gallons, part of restoring 500 million gallons illegally waved by the agency in 2016. It follows the implementation of a 250-million-gallon supplement for 2022.
EPA’s final rule sets the total target for all kinds of renewable fuels at 20.94 billion gallons for 2023, an increase from the Biden administration’s biofuels blending mandate of 20.63 gallons for 2022. The target grows to 21.54 billion gallons for 2024 and 22.33 billion gallons for 2025, according to the EPA.
The rule calls for growth in cellulosic biofuels made from fibrous plant materials, biomass-based diesel and other advanced biofuels.
The EPA also removed a controversial proposal from the final rule that would have allowed Renewable Fuel Standard blending credits to be generated by electric vehicle manufacturers.
Iowa Renewable Fuels Association Executive Director Monte Shaw called the finalized ethanol blending requirements “a step backward from their historic proposal" and ignores the rapid growth of biodiesel and renewable diesel.
“What changed in the marketplace to justify cutting ethanol blending by half a billion gallons? Nothing,” Shaw said in a statement inviting Biden to attend the Iowa State Fair to meet with farmers and biofuel producers.
“Let’s grab a pork chop on a stick, sit down, and try to work out why this EPA continues to ignore the proven ability of Midwest biofuels to be part of the energy security, jobs and low carbon solution,” Shaw said.
Iowa officials disappointed in EPA rule on biofuels mandates
While increasing blending volumes overall by raising the level for advanced biofuels, the new rule includes lower mandates for corn-based ethanol in 2024 and 2025 than the EPA had initially proposed.
www.thegazette.com
