Iowa Gov. Kim Reynolds says President Trump affirmed his commitment to biofuels during a telephone conversation amid Midwestern fears of a weaker Renewable Fuel Standard in 2018. Despite encouraging words from Trump and the EPA, the head of an Iowa group said biofuel backers won’t rest until the EPA announces its final decision, due by Nov. 30.
“We do know the issue has made its way onto the president’s radar, which was our first goal,” said Monte Shaw of the Iowa Renewable Fuels Association. “We will keep pushing until the ink is dry on the Federal Register (notice) that contains the final RFS rule.”
Midwestern officials and biofuels groups oppose an EPA review that could result in a 15 percent lower target for biodiesel use and by suggestions that EPA should count ethanol exports toward the U.S. target for mixing the renewable fuel into gasoline. The public comment period on the biodiesel review ends this week, so Midwesterners wrote letters and called news conferences against it.
Beyond the immediate concern about the 2018 biofuel mandate, the EPA said in July it may lower permanently the target for “advanced” biofuels, second-generation fuels such as cellulosic ethanol made from grass, crop debris and woody plants. Advanced biofuels were projected to become the bulk of U.S. renewable fuel production, but they are only a trickle at a point when a river of fuel was expected.
“While I have appreciated the accessibility of the EPA and have had many positive conversations about the RFS, I have significant concerns with the direction the agency appears to be taking,” said Reynolds at a news conference in Pella, Iowa. The governor said Trump and EPA chief Scott Pruitt “personally committed to me their continued commitment to the Renewable Fuel Standard during telephone conversations earlier in the day, reported Reuters.
Citing “people familiar with the decision,” Bloomberg said “White House officials have directed the Environmental Protection Agency to stand down on efforts to weaken a federal biofuel mandate after pressure from Iowa politicians seeking to preserve demand for corn and soy.” White House press secretary Sarah Sanders said the administration “didn’t make any assurances” about the RFS during the conversation with the Iowa governor, said Reuters. “No definitive decision was made on RFS.”
On Twitter, Reynolds said, “Thanks @realDonaldTrump for the positive & productive call today.” Iowa is the largest corn and ethanol producing state in the nation and vies with Illinois for the No. 1 spot in soybean production.
The petroleum industry would benefit if exports of ethanol counted toward the RFS. Refiners say the gasoline market is saturated at the traditional 10 percent blend of ethanol into gasoline, with the prospect of having to buy credits if they cannot meet the mandate. In July, the EPA said biodiesel mandates needed a second look because of a surge in imports, which could displace domestic output.
A large fraction of U.S. corn, between 35 and 40 percent of each year’s crop, is used in making ethanol. One third of the oil crushed from U.S. soybeans goes to biodiesel plants.