NCGA: YEAR-ROUND E15 A WIN-WIN FOR FARMERS AND CONSUMERS

MAY 2019

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NCGA: Year-Round E15 a Win-Win for Farmers and Consumers

(Posted Fri. May 31st, 2019)

The National Corn Growers Association (NCGA) today celebrated the Trump Administration completing actions to allow for year-round sales of 15 percent ethanol blends or E15.

 

“Corn farmers have been long-time advocates of higher blends of ethanol such as E15, touting its benefits to both the farmer and the consumer,” NCGA President Lynn Chrisp said. “Farmers are facing some tough times which makes this announcement particularly welcome. We thank President Trump for following through on his promise to rural America and USDA Secretary Sonny Perdue and supporters in Congress for their outspoken commitment to year-round E15.”

The final rule from the Environmental Protection Agency (EPA) eliminates the outdated barrier that required retailers in many areas of the country to stop selling E15 during the summer months by allowing E15 to receive the same summer volatility adjustment EPA permits for E10.

 

Higher blends of renewable fuels such as E15 reduce fuel prices for drivers by three to ten cents per gallon and result in lower emissions, improving air quality and providing greater greenhouse gas reductions. Blending additional ethanol replaces some of the most harmful components in gasoline, and cleaner ethanol results in 43 percent fewer greenhouse gas emissions than gasoline. 

 

NCGA submitted comments to EPA in April to press the need to finalize the rulemaking to ensure there would not be an interruption in E15 sales between June and September. The comments also cautioned EPA against finalizing proposed Renewable Identification Number (RIN) market rule changes that would be counterproductive to greater biofuels blending supported by the E15 rule. NCGA agrees with EPA’s focus on transparency and market data in the final rule and the decision not to finalize proposals that would work against biofuels blending.

 

NCGA’s comments also highlighted the impact of EPA’s expansive Renewable Fuel Standard (RFS) waivers to large, profitable refineries, which have taken a toll on farmers by undercutting the RFS and reducing corn demand. Since early 2018, EPA has granted 53 RFS exemptions to refineries for the 2016 and 2017 RFS compliance years totaling 2.61 billion ethanol-equivalent gallons of renewable fuel.  EPA currently has 39 waiver petitions pending for the 2018 RFS compliance year. 

 

“While corn farmers are immensely grateful that the barrier to year-round E15 has been lifted, we won’t be able to reap the full benefits if EPA continues to allow oil companies to avoid blending biofuels in accordance with the RFS,” Chrisp said.