All in on Ethanol?

by Kelsey Tamborrino (Politico's Morning Energy) EPA sent its rule that would allow the year-round sales of 15 percent ethanol fuel to the White House for review on Monday, a step that makes it more likely the agency will release a final rule before the summertime driving season starts, Pro's Eric Wolff reports.

— Wheeler questions Dems on ethanol: EPA Administrator Andrew Wheeler did his first interview as administrator on Monday with Fox News. In the spot, Wheeler again reiterated that he doesn't believe Democrats' Green New Deal is "ready for primetime" and tied the resolution to ethanol.

Wheeler said the Green New Deal would do away with the internal combustion engine within 10 years — a key burner of ethanol. "I'm really going to be interested to see the Democratic presidential candidates when they go to Iowa before the Iowa caucuses, and they try to explain to the people that live there why they don't want to have ethanol going into the future," Wheeler said.

— Diving in: POLITICO Magazine's Michael Grunwald looks at how 2020 Democrats are grappling with their support for ethanol. He writes that so far it looks like the status quo is prevailing: Every leading 2020 Democrat who has taken a position on ethanol supports it. But if that stance is still politically correct in states like Iowa, that doesn't mean it comes without drawbacks, he writes.

Lukas Ross, a policy analyst for Friends of the Earth, tells Michael that Democrats who call for emergency action to protect the climate will look like hypocrites. "How can a Democratic candidate go to Iowa on Monday as an ethanol booster and then talk seriously on Tuesday about a Green New Deal?" Ross asks. Read more. READ MORE

Excerpt from Politico: But support for ethanol is a top priority for agricultural communities, while opposition to ethanol is far down the list of priorities for environmental groups. And Iowa political operatives believe that because Democrats have done so badly in the economically depressed rural areas that helped Trump flip their state red in 2016, they feel even greater political pressure to embrace ethanol in 2020.

“Democrats are doing really well in Iowa’s urban areas, but we’re getting hammered in the countryside,” says Patty Judge, a Democrat who served as Iowa’s agriculture secretary and lieutenant governor. “Prudent candidates are going to talk about our home-grown ethanol industry and all the good jobs it creates.” READ MORE

Excerpt from DTN The Progressive Farmer: Review of the rule that now appears on the OMB website, https://www.reginfo.gov/…, could take up to 30 days to complete.

Originally, the EPA's 2019 agenda included releasing the rule in February, with the intent to finalize in time for the summer driving season on June 1. Once the proposed rule is made public, the EPA will launch a public hearing period. The rule also includes proposed reforms to the market for Renewable Identification Numbers, or RINs.

There remains considerable doubt about whether the agency can finalize the rule by June 1. READ MORE

Excerpt from Iowa Agribusiness Radio Network: When I stopped into the Renewable Fuels Association (RFA) booth at Commodity Classic last week, I had the chance to speak with Robert White. White says the confirmation of Wheeler should hopefully speed things up.

White says if this can be pulled off by June 1, it will border on miraculous. The EPA has never gotten a rule done this fast.

White foreshadowed (RFA’s President & CEO Geoff) Cooper’s comments last week, saying the time table is going to put stress on terminals and retailers. Terminals must have summer fuels ready by April 30^th. Retailers won’t look at putting in new equipment until they hear from EPA.

The marathon has been turned into a sprint, and the starter’s pistol has been fired. All eyes are on EPA to break a world record. READ MORE