Renewable Fuels Assn. said bifurcating proposal into two separate actions would enhance EPA’s chances of meeting May 31 deadline.

Jacqui Fatka, Policy editor

January 18, 2019

3 Min Read
ethanol plant with corn field in the front
Jim Parkin iStock

Those in the ethanol industry remain hopeful that the Environmental Protection Agency will follow through on securing regulatory changes for use of E15 blends ahead of the summer driving season. However, the industry wants to make sure the agency can follow through on its promises and isn’t hampered by additional calls from the oil industry for renewable identification number (RIN) reform.

At the American Farm Bureau Federation convention earlier in the week, President Donald Trump renewed his commitment to finalize the E15 regulatory fix before summer. In addition, during a nomination hearing Jan. 16, EPA acting Administrator Andrew Wheeler said the agency is on task to complete the E15 rule-making process but did note that it would be combined with other rule changes.

The Renewable Fuels Assn. (RFA) fears that the government shutdown threatens to further delay approval of year-round sales of E15 and encouraged EPA to focus strictly on year-round E15 provisions in its forthcoming proposed rule while addressing RIN reform measures in a separate action. In a letter submitted to EPA on Thursday, RFA noted that “bifurcating” the proposal into two separate actions would greatly enhance EPA’s chances of meeting its May 31 deadline.

Trump announced last October that he was directing EPA to complete a rule-making to eliminate the “unnecessary and ridiculous” summertime ban on E15 before May 31. However, EPA was also planning to include “RIN reform” measures in the upcoming proposed rule. With just 133 days remaining before the summertime prohibition on E15 sales begins, though, EPA is running out of time to propose, seek comment on and finalize a rule allowing year-round E15 sales.

Related:INSIDE WASHINGTON: Wheeler defends RFS actions, WOTUS rule

“Finalizing the year-round E15 rule-making no later than May 31 will take a Herculean effort,” RFA president and chief executive officer Geoff Cooper said. “Therefore, we respectfully request that EPA bifurcate the rule-making into two separate actions, moving forward immediately on the year-round E15 provisions and considering RIN reform in a subsequent and secondary action.”

The letter notes that, unlike the year-round E15 provisions, there is no deadline by which RIN reform measures must be finalized in order to allow fair and efficient operation of the market. “While we support efforts to bring more transparency to the RIN market, there is no urgency to move forward quickly with RIN reform provisions,” according to the letter. “This is particularly true as the previous uproar from refiners about ‘high RIN costs’ has been reduced to a murmur as RIN prices have collapsed to historic lows.”

Related:Trump talks border security, agricultural wins at AFBF

The RFA letter noted, “Holding year-round E15 hostage to RIN reform provisions that are ultimately designed to ease [Renewable Fuel Standard] compliance for highly profitable oil companies seems counterintuitive at best and cynical at worst.”

The letter said while the group supports efforts to bring more transparency to the RIN market, there is no urgency to move forward quickly with RIN reform provisions.

During questioning at Wheeler’s nomination hearing Jan. 16, Sen. Joni Ernst (R., Iowa) said RIN prices were near $1 during 2016 and 2017 and now are trading at 10 cents or below.

About the Author(s)

Jacqui Fatka

Policy editor, Farm Futures

Jacqui Fatka grew up on a diversified livestock and grain farm in southwest Iowa and graduated from Iowa State University with a bachelor’s degree in journalism and mass communications, with a minor in agriculture education, in 2003. She’s been writing for agricultural audiences ever since. In college, she interned with Wallaces Farmer and cultivated her love of ag policy during an internship with the Iowa Pork Producers Association, working in Sen. Chuck Grassley’s Capitol Hill press office. In 2003, she started full time for Farm Progress companies’ state and regional publications as the e-content editor, and became Farm Futures’ policy editor in 2004. A few years later, she began covering grain and biofuels markets for the weekly newspaper Feedstuffs. As the current policy editor for Farm Progress, she covers the ongoing developments in ag policy, trade, regulations and court rulings. Fatka also serves as the interim executive secretary-treasurer for the North American Agricultural Journalists. She lives on a small acreage in central Ohio with her husband and three children.

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