CEO DATELINE - Biofuels groups angry about policy reversal
CEO DATELINE - Biofuels groups angry about policy reversal
- October 18, 2019 |
- Walt Williams
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Associations representing farmers and biofuels producers are blasting the Trump administration for seemingly walking back a promise made less than two weeks ago to require large oil refiners to blend ethanol with motor fuel.
The federal Renewable Fuels Standard requires biofuels like ethanol to be blended with petroleum-based motor fuels. The regulation is unpopular with the oil industry but popular with farmers as it creates a market for their crops, with corn the most widely used ingredient used in producing ethanol.
The Trump administration has granted a large number of small refineries exemptions from the standard, angering farmers in states critical to the president's reelection bid. Administration officials sought to make amends in early October by announcing that large refineries would be required to blend ethanol that would have otherwise been blended at exempted refineries—a decision that received widespread praise from biofuels groups at the time.
However, the formula unveiled Oct. 15 by the Environmental Protection Agency bases the amount of ethanol to be blended on projections rather than the actual amount of gallons exempted, according to an analysis by The Hill. Groups that were praising the administration less than two weeks ago are now criticizing the measure as woefully inadequate to help farmers and ethanol plants harmed by its decision to grant so many exemptions. https://bit.ly/2VWojla
"The proposal released today will do nothing to bring back the ethanol plants that have shut down or help the burden that many of our corn farmers currently face," Growth Energy CEO Emily Skor said in a statement. "Every day that passes without the true solution President Trump promised means more and more pain for America's farmers and rural workers."
The administration's decision "is a step backward," Renewable Fuels Association CEO Geoff Cooper said. "It falls short of delivering on President Trump's pledge to restore integrity to the Renewable Fuel Standard and leaves farmers, ethanol producers, and consumers with more questions than answers."
The National Corn Growers Association also was displeased with the administration's solution: "President Trump made a commitment to farmers and instructed the EPA to follow the law, but this proposal appears to come up short again," elected President Kevin Ross said.
Oil industry associations are also dissatisfied with the plan, as they see the standard itself as a costly and pointless mandate.
"EPA's proposed RFS adjustments would be a painful affront to U.S. refiners and the manufacturing workers the president promised to support, and do nothing to address the real source of what currently ails the biofuel and agriculture industries: the trade war with China," American Fuel & Petrochemical Manufacturers CEO Chet Thompson said.
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