Rounds: Corn Ethanol Production Plays Important Role in South Dakota’s Economy

Environmental Protection Agency, Federal Agency/Executive Branch, Federal Regulation, Feedstocks, Field/Orchard/Plantation Crops/Residues, Opinions, Policy, South Dakota

January 25, 2019

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by Senator Mike Rounds (R-SD) (Brookings Register) Corn and corn ethanol production are vital components of South Dakota’s economy. The corn ethanol industry supports thousands of jobs in our state and contributes a significant amount of revenue to our local communities. Corn ethanol has taken a hit in recent years, due in part to the high number of waivers issued by the Environmental Protection Agency (EPA) to small refineries. This has reduced the amount of ethanol required by the Renewable Fuel Standard (RFS), thus reducing the demand for corn and corn ethanol.

The RFS is a program created by Congress and administered by the EPA that is aimed at increasing the use of renewable fuels such as corn ethanol in our nation’s fuel supply. The RFS requires 15 billion gallons of corn ethanol to be blended into transportation fuel in 2019.

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In granting so many waivers to small refineries, the EPA has effectively reduced the amount of ethanol required by the RFS and reduced the demand on corn and corn ethanol. This underscores the urgent need for year-round sales of E-15, which is 15 percent ethanol blended with 85 percent gasoline. Allowing for year-round sales of E-15 would be a huge win for corn and corn ethanol producers and could result in approximately 700 million additional gallons of ethanol sold, or 280 million additional bushels of corn annually.

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President Trump has said on a number of different occasions that he supports year-round sales of E-15. I had a chance to reiterate the need for year-round E-15 sales when I was with the president during his visit to South Dakota last fall, and he agreed. I’m pleased Mr. (Andrew) Wheeler agrees for the need of year-round sales of E-15 as well. In a meeting I had with him recently and during his confirmation hearing, he reiterated to us that the administration and the EPA are committed to getting E-15 done before the summer driving season. We intend to hold him to that commitment.

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