Ag Policy Blog

Iowa Delegation Wants RFS Hearing in State

Todd Neeley
By  Todd Neeley , DTN Staff Reporter
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Ahead of a scheduled June 25 public hearing in Kansas City, Kansas, on the Renewable Fuel Standard Iowa's Congressional delegation is asking the U.S. Environmental Protection Agency to host a public hearing in Iowa.

EPA released proposed renewable fuel volumes for 2015 and 2016 that call for corn ethanol's piece of the pie to stay below the federally mandated 15 billion gallons per year -- essentially the cap placed on the industry -- and increases in cellulosic ethanol production and biomass-based biodiesel across that same time span.

Ethanol industry groups have suggested EPA's proposal is not legal, as it basically replaces a portion of corn ethanol's market with advanced biofuels without ever addressing concerns about the so-called blend wall where total ethanol production exceeds the available E10 market.

In a letter to EPA Administrator Gina McCarthy Monday the Iowa delegation said the agency needs to hear from farmers, ethanol producers and others on how the proposed RFS volumes would affect life in rural America.

"The EPA's long delay in issuing RVOs for 2014, 2015 and 2016, and its decision to deviate from the levels set by Congress has created uncertainty for the biofuels industry and hampered investment," the letter said. "The flawed justification that the EPA uses to defend the proposed levels, especially related to ethanol, raises questions about the agency's commitment to renewable fuels.

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"Unfortunately, despite having 18 months to listen to stakeholders and consider comments, the EPA's proposed RVOs fall short. Thus, we strongly encourage you to add a public hearing in Iowa that would enable EPA officials to hear from Iowans who work in and contribute to the biofuels industry."

When EPA originally released the proposed RVOs for 2014, Gov. Terry Branstad organized a public hearing in Des Moines where a number of stakeholders testified. Critics pointed to that effort as nothing more than political theatre at a time when Branstad was running for re-election.

The letter was signed by Reps. David Young, Steve King, Dave Loebsack and Rod Blum, Sens. Charles Grassley and Joni Ernst.

Iowa produced about 4 billion gallons of ethanol and biodiesel combined in 2013, making Iowa the top ethanol-producing state.

Also this week, more than 100 biodiesel producers and other industry leaders are in Washington, D.C., making the case with lawmakers to strengthen the RFS. The biodiesel industry received a boost from the EPA proposal that calls for annual increases in production at a time when the industry continues to operate in the absence of the $1 blender's credit that expired in 2014.

"We want to show Congress that the RFS is working and that thousands of jobs are at stake in this pending EPA rule," National Biodiesel Board Vice President of Federal Affairs Anne Steckel said in a news release Tuesday. "We want lawmakers to see first-hand how these issues are playing out in their states and districts. The RFS is not some political football. It's a successful policy that's driving innovation, creating jobs and building competition in the fuels markets."

The EPA proposal would increase the biomass-based diesel sector of the RFS by about 100 million gallons per year to 1.9 billion gallons in 2017.

"The proposal is a step in the right direction, and we appreciate the administration's efforts to strengthen and grow the RFS," she said. "However, there is plenty of room for improvement before it is finalized in November. We intend to make sure policy makers in Washington understand biodiesel's full potential to help grow the economy and strengthen our energy security while sharply reducing pollution."

Read the Iowa Congressional letter here, http://tinyurl.com/…

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melvin meister
6/17/2015 | 10:07 PM CDT
Ne. Reps. and Senators please wake up and help Iowa .