Ethanol battle
Administration puts off substantial changes in policy on biofuels
Chalk one up for corn farmers in their conflict with oil drillers.
In the long-running politicalfight between drillers and farmers, chalk one up for the farmers.
The Trump administrationis holding off any major shift in ethanol policy, announcinglast week that it would maintain the blendingmandate for ethanol and other bio fuels near current levels in 2018. The oil industry in recentyears has lobbied to revoke or reduce the ethanol mandate, adopted during the administration of President George W. Bush as away to reduce dependence on foreign oil when crude was in short supply and prices soared above $140 a barrel, compared with less than $50 today.
Oil and agriculture have long been at odds over ethanol, which is made from corn. The fuel slices into sales of gasoline but increases demand —and prices—for the corn grown by Mid western farmers, and it creates thousands of jobs in rural counties.
The administration’ s decisionto essentially keep the blending requirement the same as last year appeared a win for the ethanol industry. The administration lowered the total requirement for all bi o fuels by 0.2 percent to 19.24 billion gallons 2019, but those reductions come from c el lu lo sic and advanced bi ofuel sin part because these technologies are not growing as quickly as earlier thought, the EPA said.
Companies have struggled to technology many once hoped would allow yard debris and other waste to be converted into fuel —as opposed to using food crops like corn and sugar cane as ethanol producers do.
The administration left the effective man date for ethanol at 15 billion gallons, the same as 2017.
Bob Din ne en, president of the Renewable Fuels represents ethanol producers, said that by staying the course and maintaining a strong renewable fuel man date,“consumers will continue to benefit from the policy.”
The American Petroleum Institute had a mixed the administration’ s policy. While it “welcomed EPA’s proposal to slightly lower the total bio fuel volume for 2018,” the group said in a statement, the plan “does not go far enough .”
Most disappointed were makers of cellulosic and advanced bio fuel.
“EPA’s proposedadvanced and c el lu lo sic bi o fuel volume obligations do not reflect the full potential for these innovative fuels over the next year ,” said Brent Erickson, an executive vice president at the Biotechnologywhich represents advanced bio fuel producers. “The agency continues to rely on a flawed methodology formulated by the prior administration.”
The Trump decision on the blending requirement comes as oil and ethanol battle over legislation that would lift along time summer ban on gasoline with higher concentrations of ethanol. Although most retailers sell gasoline with a 10 percent concentration of ethanol, known as E-10, an increasing number are carrying a blend with 15 percent ethanol, or E 15. E 15 pumps, however, are required to be shut during the peak summer driving season, under a federal law designed to reduce levels of asthma-causin go zone.
A coalition of Mid western law maker have introduced a bill in the Senate to lift that ban, which could further boost the market for ethanol. That move opposed by the oil industry as well as lawmakers from Texas.
“The agency continues to rely on a flawed methodology formulated by the prior administration.” Brent Erickson, biofuels producers group