RFA Response to WSJ Editorial

Source: By Geoff Cooper, RFA • Posted: Tuesday, October 16, 2018

Ethanol is a cost effective, clean-burning, value-added fuel that is stimulating investment in rural America and reducing costs at the pump.

Your editorial “‘That’s What You Want to Hear’” (Oct. 11) criticizing President Trump’s decision to allow year-round sales of E15 only proves the president knows far more about fuel regulation, value-added agriculture, consumer choice and savings at the pump than the Journal does.

You’re wrong in suggesting E15 hasn’t been allowed in the summer because it creates smog. In fact, the EPA concludes E15 emits less ozone-forming hydrocarbons than gasoline—not more. E15 has been denied to consumers because of antiquated regulations that simply didn’t envision higher ethanol blends. The de facto summertime ban on E15 is a perfect poster child for the type of unnecessary regulations President Trump has endeavored to repeal.

You also misunderstand the market for ethanol, gasoline and renewable identification numbers (RINs), credits used by refiners to comply with the Renewable Fuel Standard (RFS). Ethanol is far less expensive than gasoline today, so adding more of a higher-octane, lower-priced fuel benefits both consumers and gasoline marketers. Moreover, there is a record supply of surplus RINs available today, driven by the unprecedented number of RFS compliance waivers granted to profitable refiners by former EPA Administrator Scott Pruitt. Those waivers reduced RFS demand by 2.25 billion gallons, causing us to wonder why the Journal believes refiners needed to get something in exchange for the regulatory relief President Trump provided ethanol.

Far from benefiting from a “potpourri of government distortions,” ethanol is a cost-effective, clean-burning, value-added fuel that is stimulating investment in rural America and reducing costs at the pump.

 

 

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