A roller coaster week for ethanol
On Friday, a federal appeals court struck down a 2019 U.S. Environmental Protection Agency rule allowing year-round sales of E15, a cleaner-burning and lower-cost fuel.
The Minnesota Corn Growers Association (MCGA) is frustrated with the court decision and continued efforts by big oil to undermine consumer access to cleaner fuel options.
It’s important to note that the court ruling cannot go into effect for at least 45 days, meaning there will not be an immediate impact on E15 sales and availability.
MCGA and the National Corn Growers Association are pursuing all available options and will work with the Biden administration and our congressional champions to ensure a solution is in place before the 2022 summer driving season.
On the legislative side, federal lawmakers have introduced several promising, bipartisan bills that could expand the availability of and access to biofuels.
Republican Congressman Randy Feenstra of Iowa and Democratic Congresswoman Angie Craig of Minnesota have introduced a bill to prevent future Renewable Fuel Standard waiver abuse.
The bill was introduced in response to a recent Supreme Court ruling that said oil refineries that have not been receiving continuous, uninterrupted annual waivers under the Renewable Fuel Standard’s ethanol-blending requirements can still receive them. Earlier this year, Congresswoman Craig introduced the bipartisan Renewable Fuel Standard Integrity Act of 2021. This legislation would bring much-needed transparency and predictability to the waiver process.
In the Senate, Minnesota’s Amy Klobuchar and bipartisan cosponsors have introduced bills that would help expand the use of higher ethanol blends in the marketplace.
One bill, cosponsored by Iowa Sen. Joni Ernst, would authorize a higher biofuel blends infrastructure-grant program through the USDA. The bill would increase the funding authorization and duration of the grant program.
Another bill, also cosponsored by Ernst, would re-establish CAFE/GHG credits for flex-fuel vehicles (FFVs) and establish a $200-per-vehicle refundable tax credit for manufacturers for the production of FFVs.
The third bill, cosponsored by South Dakota Sen. John Thune, would establish a 5-cent-per-gallon tax credit for sales of 15% ethanol blends and a 10-cent-per-gallon tax credit for sales of blends greater than 15%. The credit would be fully refundable.
“We commend Sen. Klobuchar for her continued leadership on policies that will expand the use of homegrown ethanol to benefit our economy and the environment,” MCGA President Tim Waibel said. “The Minnesota Corn Growers Association supports the bipartisan legislation recently introduced in the U.S. Senate that would provide incentives for the production of flex fuel vehicles and expand consumer access to higher blends of ethanol by assisting fuel retailers to update refueling infrastructure.”
Additionally, legislation is in the works that would amend the Clean Air Act to allow for the year-round sale of E15 and provide a legislative fix to the appeals court decision last week on the E15 rule.
These federal developments follow a Minnesota state legislative session in which — thanks to the grassroots advocacy efforts of MCGA — legislators committed $6 million to a biofuel-infrastructure program this biennium.
Legislators also have called for allocating $6 million to the program in fiscal years 2024 and 2025, which would bring the total state investment to $12 million over four years.
MCGA remains committed to championing higher blends of ethanol. To learn more about their benefits or find a station carrying E15 near you, visit BetterFuel.org.
