Governors' Biofuels Coalition

WASHINGTON — Gov. Terry Branstad made an aggressive push last week to defend the nation’s ethanol policy during three calls with members of the Obama administration as the White House considers making changes to the controversial mandate for 2014.

Government records show Branstad talked on Oct. 30 with three Obama administration officials, including Dan Utech, a deputy director for energy and climate change at the White House, and staff from the Office of Management and Budget. That office, the agency charged with reviewing White House policies, is studying the proposed 2014 Renewable Fuel Standard that dictates how much ethanol must be blended into the country’s motor fuel.

Tim Albrecht, Branstad’s communications director, said the governor also spoke last week with Environmental Protection Agency Administrator Gina McCarthy and Agriculture Secretary Tom Vilsack to “underscore the importance” of the Renewable Fuel Standard.

The mandate, created in 2005 and expanded two years later by Congress, requires refiners to buy alternative fuels made from corn, soybeans and other products in order to reduce the country’s dependence on foreign energy. It has come under fire from oil groups, restaurants and livestock organizations that have called the mandate outdated and pressed Congress to roll back or repeal it.

“The governor does not think we should backtrack on this issue, and he will continue fighting for more renewable fuels and better options for consumers,” Albrecht said. “The EPA needs to stand against Big Oil’s demands, and stand up for the hard-working individuals who are building our rural economies.”

Draft documents from the EPA, which oversees the mandate, show it has considered lowering to 13 billion gallons the amount of conventional corn-based ethanol mixed into the fuel supply in 2014, a drop from 13.8 billion gallons this year.

The EPA has said the increasing levels of ethanol laid out by Congress in 2007 are unrealistic. The agency is expected to release the proposed 2014 figures as early as next week.

Monte Shaw, executive director of the Iowa Renewable Fuels Association, said there “is a lot at stake” for the Renewable Fuel Standard.

“There are very far-reaching consequences if the White House goes to the extreme of the Big Oil wish list that the leaked draft represents. It would be a complete capitulation to the oil industry,” Shaw said. “Having anyone of (Branstad’s) standing and of his long experience come out and say we need to keep this here, reversing this is very bad for the rural economy … and it will cause consumers to pay more for fuel, that is helpful.”

The American Petroleum Institute, which represents 500 oil and natural gas companies, has called for even steeper cuts, to 12.9 billion gallons, or about 9.7 percent of projected gasoline demand. The trade group has pressured lawmakers to end the mandate. Lawmakers have proposed a series of bills to overhaul or end the Renewable Fuel Standard, but they face an uphill battle in Congress given the body’s busy workload and opposition from lawmakers in the Corn Belt.

A drop in ethanol use would have a big impact on Iowa. The state has 41 ethanol refineries capable of producing more than 3.7 billion gallons annually, and four other facilities are under construction.

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