New E15 Rule: Read the Fine Print

by Doug Sombke, President South Dakota Farmers Union & Jim Seurer, CEO, Glacial Lakes Energy

In 2008, the movie, “The Curious Case of Benjamin Button” was released.  It was a bizarre story of a man who, once reaching full maturity, began to age backwards.

An unusual premise, but perhaps not all that farfetched.  Didn’t see the movie?  No problem, if you are in the agriculture business, you’re experiencing it now. Thanks to the Environmental Protection Agency and their friends in the oil industry, the U.S. ethanol industry is going backwards. 

It began with EPA granting discriminatory waivers to petroleum refiners excusing them from obeying Renewable Fuels Act laws resulting in decreased ethanol demand to the tune of 2.5 billion gallons.

Many of us, viewed the Renewable Fuels Act as a springboard for growth.  But like Mr. Button, waivers propelled the ethanol industry backwards.  

The recent announcement that EPA would permit 15% ethanol blends year-round was met with great joy by an industry that does not want to read the fine print.  It does in fact, propose to provide year-round exemption from vapor pressure limits for blends of 15% ethanol, but does no more.

The EPA proposal does not extend to higher blends. The anticipated increase in demand, is not enough to make up the loss from waivers.  So why would any industry sign up for a program that guarantees it cannot grow past a certain point? They shouldn’t, at least not the way the proposal is currently written.

And, before you buy the nonsense EPA will spew that this isn’t true, and the industry can apply for a waiver for these higher blends, get your calendar out.  In November of 2009 the EPA was expected to approve E15 blends.  While they ultimately did, 10 years later, the delay effectively stymied industry expansion.

We reject this proposal by EPA, if it will stunt future growth beyond E15. Ethanol should be permitted to be used in any quantity, at any time of year, by anyone who chooses. 

If EPA has concerns, let them do the testing and prove otherwise, as citizens have done in Northeast South Dakota through the E30 Challenge.  How un-American is it for oil companies threatening to sue over EPA removing regulations that result in more consumer choice?

American agriculture is teetering. Trade wars, an EPA colluding with oil companies, and shaky ethanol industry leadership put us in a dangerous position. 

Farmers everywhere should join us and oppose this proposal.

Let the EPA know the ruling needs changes. The comment period is now open, comment here. 

All ethanol blends should be treated equally. President Trump promised to open the market for ethanol. That should not come with limits, conditions, or restrictions.