CEO DATELINE - EPA decision on ethanol leaves associations with mixed feelings
CEO DATELINE - EPA decision on ethanol leaves associations with mixed feelings
- December 1, 2015 |
-
Walt Williams
| Want more news?
Consider joining CEO Update. Membership gives full access to the latest intelligence on association management, career advancement, compensation trends and networking events, as well as hundreds of listings for senior-level association jobs.
|
The Environmental Protection Agency released its long-awaited ruling Monday on the amount of ethanol that must be blended with gasoline, and the collective reaction from oil and ethanol associations alike was: "It could have been worse."
The federal Renewable Fuels Standard requires a certain percentage of ethanol to be combined with gasoline. That amount rises steadily each year with EPA deciding the rate of increase. After delaying the decision for two years, the agency finally to scale back the rate, although not as far as it previously proposed. http://on.wsj.com/1MUjtKz
The loudest opponent of the ethanol mandate is the oil industry, which argues that ethanol harms vehicle engines and drives up gas prices. American Petroleum Institute CEO Jack Gerard called EPA's decision a step in the right direction.
"However, the agency must do more to protect consumers," he said. "EPA's final rule relies on unrealistic increases in sales of higher ethanol fuel blends despite the fact that most cars cannot use them. Motorists have largely rejected these fuels."
Growth Energy, an association that represents the ethanol industry, said in a statement it was pleased even though the rule relies on a "flawed mythology" to set the rate of increase below what was recommended in the original law.
"This final rule makes it possible to drive the growth of higher ethanol blends through the so-called blend wall, giving consumers choices at the pump, such as low-cost E15," the group said.
Renewable Fuels Association CEO Bob Dinneen was harsher in his assessment. He said EPA's decision "turns our nation's most successful policy decision on its head" by introducing marketplace uncertainty and chilling investment in ethanol.
"Unlike Big Oil, the ethanol industry does not receive billions in tax subsidies and the (Renewable Fuels Standard) is our only means of accessing a marketplace that is overwhelmingly and unfairly dominated by the petroleum industry," he said. "Today's decision will severely cripple the program's ability to incentivize infrastructure investments that are crucial to break through the so-called blend wall and create a larger market for all biofuels."
MORE CEO DATELINE