SDFU Applauds Decision to Provide Regulatory Relief to Higher Ethanol Blends: Officials call it an important first step

South Dakota Farmers Union (SDFU) called October 9, announcement by the Trump Administration to open the market to higher volumes of high octane, low carbon and low-cost ethanol an important a win for farmers, consumers and the environment.

 The decision to apply existing standards to these higher blends that lower vapor pressure is long overdue, said SDFU President Doug Sombke. “Higher ethanol blends reduce the very evaporative emissions this antiquated restriction was designed to control,” he said. “Adding clean burning ethanol to gasoline replaces the toxic, cancer causing components used to increase octane. It reduces carbon emissions, particulates, and a range of harmful pollutants.”

 While applauding the Administration’s decision, Sombke cautioned that if the EPA attempted to limit the new rule to only blends of 15% it would be a major misstep and cause for serious concern to American agriculture.   

 SDFU is a supporter of the High Octane Low Carbon Alliance along with major ethanol and agriculture organizations and have argued for higher octane levels to help meet the pending fuel efficiency and greenhouse gas rule.

 Ethanol at volumes in the 25-30% range can provide low cost octane allowing automakers to design more efficient vehicles. “15% volume is a great start but certainly should not be a cap or any kind of limit at a time when automakers are acknowledging higher volumes can provide significant increases in octane that they can design to,” said Sombke. 

 “The increased demand for South Dakota’s agriculture products is critical at a time of low prices and fluctuating demand and higher ethanol blends could be the demand driver needed. In addition, the dramatic price differential between gasoline and ethanol provides substantial savings to all consumers. If nothing else this is a pocketbook issue and keeps money at home at a time of increasing world oil prices,” he said.

 SDFU officials said they will continue to work with EPA and other interested parties as they finalize the rule lifting the restrictions.