Ethanol Producers Nervously Await EPA Ruling on 2014 Target

Sirikorn Techatraibhop/Shutterstock.com

Biofuels producers and gasoline refiners are poised to pounce on next year’s renewable-fuel standard, no matter where EPA sets requirements.

As the Environmental Protection Agency readies next year’s renewable-fuel standard, both biofuels producers and gasoline refiners are poised to pounce. No matter where EPA sets the volume requirements for ethanol and other biofuel blends in 2014, the standard is going to face push-back.

“Groups within the biofuel industry are fully committed to challenging the rule in court if the EPA changes how it implements the standard,” said Paul Winters, communications director for the Biotechnology Industry Organization. “We want to see the targets continue to be set at the highest-achievable level.”

The biofuels industry is concerned about the 2014 standard because a leaked draft of the proposal showed the agency might reduce the target for renewable fuels from the statutory requirement of 18.15 billion gallons to 15.21 billion gallons next year.

EPA Administrator Gina McCarthy emphasized in a statement last month that no decisions would be made until all stakeholders had an opportunity to provide input, but the leaked draft made many ethanol producers nervous.

“Having seen the leaked draft, we’ve begun to focus on how it would send a chilling signal about future investment in the industry,” Michael McAdams, president of the Advanced Biofuels Association, told National Journal Daily. Association members took their concerns to the White House Office of Management and Budget, which must sign off on EPA’s proposal before it is released, possibly as early as Tuesday.

If the final proposal mimics the draft, biofuels producers are threatening swift retaliation. “We will consider every possible avenue available to change the rule,” McAdams said. “We plan to take our message wherever we need to so that we can try and compel a different set of numbers than the ones we’ve already seen.”

The oil industry also is ready to respond if it considers the target too high.

“If the draft is accurate and the proposal mirrors that, we think that EPA would be on the right track, but we think that they should go further to lower the ethanol requirements,” said Bob Greco, the American Petroleum Institute’s downstream group director.

The numbers in the leaked draft would set ethanol requirements at somewhere between 9.8 percent and 10 percent of the total fuel supply for 2014, Greco said. This could mean that the blend wall—the point at which the amount of ethanol mixed with gasoline exceeds 10 percent—is reached. API contends that this could cause a host of problems, including damage to car engines, although biofuels producers say the claim is exaggerated.

“Once we see the proposal we’ll submit comments, testify at hearings, and continue to talk to EPA about why the requirements should be lowered,” Greco said.

Oil- and gas-industry stakeholders also note that while a lower renewable-fuel standard would be a minor victory, the real prize for them would be repeal of the mandate. For that, they have their sights set on Congress.

“This is still just a Band-Aid cure for a longer-term problem,” said Charles Drevna, president of the American Fuel and Petrochemical Manufacturers. “What EPA is doing is triage, and this patient needs to be delivered to Congress.”

A bill to eliminate the standard’s corn-based ethanol requirements—sponsored by Reps. Bob Goodlatte, R-Va., Jim Costa, D-Calif., Peter Welch, D-Vt., and Steve Womack, R-Ark.—is pending in the House Energy and Commerce Committee.

(Image via Sirikorn Techatraibhop/Shutterstock.com)

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.