South Dakota Farmers Union Says RFS "Fixes" Lack Vision and Progress

October 17, 2019

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(South Dakota Farmers Union) Following yet another disappointing announcement by the U.S. Environmental Protection Agency (EPA) on their management of the Renewable Fuel Standard (RFS), South Dakota Farmers Union President Doug Sombke said it’s time to recognize the RFS Is broken.

"The “big beautiful deal” EPA announced last week raised more questions than it answered, and now a week later we have the answers-- it isn't big and it isn't beautiful. Leaving our future in the hands of EPA is sinking us further into a hole," said Sombke, who is also a fourth-generation South Dakota farmer.

"We simply cannot allow agriculture and ethanol to be defined by the RFS-- we can do so much more. In addition to destroying demand through the waivers from RFS obligations, EPA is attempting to make sure the industry never grows beyond current levels."

Sombke said along with not fully re-allocating volumes waived in this proposal, previously, in the E15 rvp rule, EPA also capped blends at the 15% level, making it illegal to blend at 20 or 30%, which is where the highest value is in terms of octane and emission reductions.

Sombke referenced the fact Iowa Senator Chuck Grassley and former Colorado Senator Tim Wirth made this very point in a recent article calling on the environmental and health communities to take another look at E30. But the cap on E15 and restrictions of the RFS have severely limited the industry’s ability to provide those benefits. By making the national debate all about the RFS, Sombke said, it creates constant uncertainty and divisiveness, dragging ethanol and corn through the mud in the process.

In an editorial last week in the Des Moines Register Sombke proposed an easy fix by using the pending Safe Affordable Fuel Economy (SAFE) rule as a pathway to higher octane and to remove the regulatory barriers keeping ethanol from providing the lowest cost, lowest carbon and cleanest octane.

"The Trump Administration has been sitting on the Safe Affordable Fuel Economy (SAFE) Rule for months and with the stroke of a pen could order EPA to lift the caps on volume, and increase octane levels while enforcing toxics controls. That would be a direct pathway to optional higher ethanol blends, more corn grind, increased efficiency with reduced emissions, and an end to some of this constant fighting."

"Of course, we want the RFS to work, said Sombke, but even if fully enforced, it caps corn ethanol. The fixes we propose would make the RFS a true floor instead of the ceiling it has become." READ MORE / MORE

Senator Lankford Disappointed with RFS Mandates: Lankford believes RFS should be repealed or reformed, not increased (Office of Senator James Lankford (R-OK))

Iowa farmers blame Trump for biofuels rule they view as betrayal (WQAD)

Farmers say biofuels proposal reneges on deal with Trump (Arkansas Democrat Gazette/Associated Press)

IOWA AG LEADERS RESPOND TO EPA’S BIOFUELS PROPOSAL (Brownfield Ag News)

Ethanol Report on RFA Reaction to EPA Proposal (Energy.AgWired.com; includes AUDIO)

Iowa Biofuel Leaders React to ‘Disappointing’ EPA Proposal (WHOTV includes VIDEO)

Iowa farmers blast Trump's dealmaking after EPA biofuel plan (Bloomberg/Grand Forks Herald)

Overnight Energy: Farmers say EPA reneged on ethanol deal | EPA scrubs senators' quotes from controversial ethanol announcement (The Hill)

Farmers blame Trump for biofuels rule they view as betrayal (Associated Press)

Trump Remarks Seem to Contradict EPA Plan (Energy.AgWired.com; includes AUDIO)

US biofuel makers say EPA deal does not fully account for refinery waivers (S&P Global Platts)

Lawmakers, groups slam EPA ethanol plan (E&E Daily)

Here's how President Trump can help farmers and the environment beyond RFS (Des Moines Register)

There are better ways to expand biofuel market (Des Moines Register)

Excerpts from The Hill: But farm and ethanol groups say the additional details released Tuesday by the Environmental Protection Agency (EPA) were never part of the package they discussed with the White House.

The fine print: The formula proposed by the agency for determining how many gallons other refineries would have to blend into their fuels would be based on an average of government projections rather than the actual number of gallons small refineries received waivers for.

Reaction: "We're being told that we'll trust that the EPA will treat you better in the future when they're the very agency that has caused the crisis and the economic hardships we see today. I'm sorry, but we don't need to," said Monte Shaw with the Iowa Renewable Fuels Association.

"We had a deal with the president. We stand by that deal with the president. And today we're calling on the president to step in and get the EPA back online. Don't let the EPA undermine your policy once again, Mr. President.

"You don't have to be good at math. You don't have to be a [renewable fuel standard] policy expert ... doesn't it just make common sense that if you're going to try to account for something that you should, I don't know, base it on the real numbers?" Shaw said.

EPA push back: The EPA said their announcement did not depart from what was negotiated by the White House.

"This proposal, which EPA will be taking comment for 30 days following the public hearing slated for October 30, is the text of the agreement negotiated by President Trump, USDA and EPA that was announced on October 4," EPA spokesman Michael Abboud said to The Hill by email.

More on the criticism from farmers here.

And there are signs the proposal might already be losing political support...

DISAPPEARING ACT: The Environmental Protection Agency (EPA) removed positive quotes from Iowa's two senators from a release with the latest details on its plan to boost ethanol use -- a proposal that is now being opposed by Iowa corn growers and ethanol producers.

...

When the EPA made its announcement Tuesday, it included past praise for the ethanol policy from when it was first announced in early October, a detail the agency noted.

But the online version of that press release has since been changed to remove quotes from Sens. Chuck Grassley (R-Iowa) and Joni Ernst (R-Iowa).

"That quote was for the announcement on Oct. 4," Michael Zona, a spokesman for Grassley through the Senate Finance Committee said by email before referring further questions to the EPA.

The EPA did not immediately respond to questions about why the quotes from Iowa's senators were removed from the latest announcement, nor did Ernst's office respond to request for comment.

In early October, Grassley praised President Trump for delivering a good deal for farmers.

"These are promises made and promises kept by President Trump. President Trump has made clear that he is an ally of corn and soybean farmers as well as ethanol and biodiesel producers. He is fighting for the farmer. This announcement is great news for Iowa, the Midwest and the entire country," Grassley said on Oct. 4.

Grassley's team sent a new comment on the EPA's latest proposal Wednesday morning, saying the EPA would need to ensure biofuels actually get blended into traditional fuels if farmers are to be happy with any proposal