Governor Noem calls Biofuels Plan a “Big win for producers”

Source: By Capitol Journal • Posted: Wednesday, October 9, 2019

Governor Kristi Noem applauds the Trump administration’s new plan to promote biofuels and expand ethanol production.

“This is a big win for producers,” said Noem. “With expanded ethanol capabilities, producers will see an increased market for their product and improved long-term stability. This move is absolutely critical for South Dakota farmers and ranchers, as recent years have seen lower commodity prices and unstable market conditions.”

The administration’s ethanol plan:

 Meets Renewable Volume Obligation at 15 billion gallons

Creates additional infrastructure funding for E15 and E85

Includes accurate accounting for Small Regulatory Exemptions starting in 2020 Renewable Volume Obligations

Directs the EPA to initiate a rulemaking process to streamline labeling and remove other regulatory barriers that burden fuel retailers offering higher biofuels blends.

In 2018, South Dakota was ranked sixth in the nation for ethanol production capacity, and accounted for seven percent of total ethanol fuel production nationally. Last year, South Dakota’s 16 ethanol plants produced more than one billion gallons of ethanol.

United States Senator Mike Rounds (R-SD) issued the following statement on the announcement that the Environmental Protection Agency (EPA) will take steps to blend 15 billion gallons of corn ethanol with unleaded gasoline. Rounds and a number of his Senate colleagues recently met with President Donald Trump and Vice President Mike Pence to address the issue.

“Today’s announcement is great news for corn and corn ethanol producers in South Dakota, who have suffered from the EPA’s issuance of Small Refinery Exemptions over the past several years. By taking steps to restore the integrity of Renewable Fuel Standard, family farms and ethanol plants will be spared further loss and their threat of having to close shop is greatly reduced. Jobs in rural America will be saved. Corn and corn ethanol play a vital role in South Dakota’s economy and in our nation’s fuel supply.”