Ethanol trade groups expects significant changes to EPA ethanol proposal
Source: by Christopher Doering, Des Moines Register • Posted: Thursday, January 23, 2014
Bob Dinneen, president of the Renewable Fuels Association, told reporters the EPA was under “a lot of pressure” to come out with a rule showing the market how much renewable fuels must be blended into the country’s gasoline supply in 2014. A proposal released in November to reduce the amount of ethanol and other biofuels that must be blended into the gasoline was widely criticized by renewable fuel supporters who claimed the agency was a favor for the oil industry while slowing their efforts to grow.
“I do expect there to be significant changes to the final rule, “ Dinneen said without providing details. He said he does not believe the Obama administration has wavered in its support for biofuels or rural America.
The proposal by the EPA, which oversees the country’s Renewable Fuel Standard, would cut the fuel requirement in 2014 to 15.2 billion gallons of ethanol and other biofuels, 3 billion gallons less than Congress required in a 2007 law. Traditional biofuels, composed mostly of corn, would be reduced to 13 billion gallons from 14.4 billion. The proposal is currently open to a 60-day public comment period set to end Jan 28.
If the EPA moves forward with a rule similar to the cuts proposed in November, it would mark the first-ever drop in the Renewable Fuel Standard that requires refiners to blend ever increasing amounts of biofuels into the nation’s gasoline supply through 2022. Some ethanol supporters have said they could file a lawsuit unless there are major revisions in the final measure.
“I remain confident that changes to this rule will occur that will keep us out of court,” Dinneen said.