Trump Moves To Remove 1990 regulation, Allow Corn Ethanol Sales Year-Round

Agriculture officials on all levels hailed President Trump's directive Tuesday to EPA to begin a rulemaking process to expand the sale of corn ethanol, to include E15 year-round.

"This is another case of 'Promises Made, Promises Kept' for President Trump," said Agriculture Secretary Sonny Perdue. "Expanding the sale of E15 year-round is sound policy for a variety of reasons. Consumers will have more choices when they fill up at the pump, including environmentally friendly fuel with decreased emissions. It is also an excellent way to use our high corn productivity and improved yields. Year-round sale of E15 will increase demand for corn, which is obviously good for growers. This has been a years-long fight and is another victory for our farm and rural economies. Along with E15 expansion, we also welcome much-needed reforms to the RIN market, which will also increase transparency.

Perdue was at the White House for Trump's announcement, in a group that included Neb. Sen. Deb Fischer and Iowa Sens. Charles Grassley and Joni Ernst.

David Bruntz, chairman of the Nebraska Corn Board and farmer from Friend, said it simply: "E15 is the most tested fuel ever."

E15 is approved for use in 2001 and newer light-duty vehicles. Because of a 1990 regulation, the federal government holds E15, a blend of 15 percent ethanol and 85 percent gasoline, to tougher standards than other fuels during the summer. Between June 1 and Sept. 15, E15 is limited for use in flex fuel vehicles only because of federal Reid Vapor Pressure (RVP) requirements.

"President Trump has again made it abundantly clear that he is unleashing the full potential of American energy production as we retake our rightful place as the world's leader," Perdue said.

Nebraska Ethanol Board Administrator Sarah Caswell said, "We are hopeful this long overdue federal waiver will be finalized and effective before the summer driving season."

According to Growth Energy, a national ethanol trade association, allowing year-round sales of E15 by granting the RVP waiver could boost domestic ethanol demand by 1.3 billion gallons within five years.

"We should see an increase in fuel retailers across the state and nation offering E15 when the red tape and regulatory barriers are removed," said Randy Gard, Nebraska Ethanol Board petroleum representative and chief operations officer for Bosselman Enterprises. "The waiver takes the perceived risk out of the market for fuel retailers, which will stimulate ethanol markets. E15 gives consumers another renewable, low-cost option at the pump."

The E15 change will not be immediate, as it requires a formal rule-making process with EPA, which is expected to publish a proposed rule in the coming weeks, followed by a public comment period.

"Allowing E15 and higher blends of ethanol year round provides a boost for industry stakeholders including farmers, ethanol producers, fuel retailers, consumers and local communities," said Caswell. "We look forward to working with all our ethanol champions in government to make this a reality."

Caswell noted that Nebraska state fleet vehicles have been running on E15 for more than two years, saving the state money while using a homegrown product. Nebraska continues that forward thinking by recently seeking and receiving EPA approval to evaluate the use of E30 in conventional vehicles owned by the state.

"The focus remains on bringing high-octane, low-carbon fuels to the market to meet vehicle standards," said Caswell. "We'll continue our work with automakers and policymakers on retail infrastructure, removing market barriers, reducing cost and ensuring availability."

National Corn Growers Association President Lynn Chrisp of Hastings, Neb., said, "Earlier this year, the President correctly described this barrier as 'unnecessary' and 'ridiculous'. The President also faced pressure to fix this regulatory problem through a bad deal that would have been harmful to farmers. He made the right decision to move this common-sense regulatory relief on its own, and farmers are very grateful.

"With nine out of 10 vehicles on the road today approved to use E15, consumers should have this lower-cost option year-round. NCGA will be taking an active role in the regulatory process, urging EPA to move forward with making the President's commitment a reality by next summer."

The Clean Fuels Development Coalition (CFDC) said higher ethanol blends reduce the very evaporative emissions that the 1990 restriction was designed to control.

"Adding clean burning ethanol to gasoline replaces the toxic, cancer causing components used to increase octane," CFDC Executive Director Doug Durante. "It reduces carbon emissions, particulates, and a range of harmful pollutants."

CFDC officials cautioned that if EPA attempted to limit the new rule to only blends of 15 percent it would be a major misstep and cause for serious concern by many in the ethanol industry. CFDC is a member of the High Octane Low Carbon Alliance along with major ethanol and agriculture organizations and have argued for higher octane levels to help meet the pending fuel efficiency and greenhouse gas rule.

Ethanol at volumes in the 25-30 percent range can provide low cost octane allowing automakers to design more efficient vehicles. "15 percent volume is a great start but certainly should not be a cap or any kind of limit at a time when automakers are acknowledging higher volumes can provide significant increases in octane that they can design to," said Durante.

Even putting the environmental benefits aside, said Durante, the dramatic price differential between gasoline and ethanol provides substantial savings to consumers. If nothing else this is a pocketbook issue and keeps money at home at a time of increasing world oil prices, he said.

Sen. Fischer, a member of the Senate Environment and Public Works Committee and the Senate Agriculture Committee, said the sale of E15 year round "is a big deal for Nebraska farmers, renewable fuel producers, and rural communities. This announcement combined with the USMCA, the South Korea trade agreement, and the start of trade talks with Japan are all signs that we are moving in the right direction."

Nebraska ranks second in the nation, behind Iowa, in biofuel production. The states has 25 operating ethanol plants, which produce more than 2 billion gallons of renewable fuel annually and have created more than 1,300 good paying jobs in Nebraska's rural communities.

Agriculture officials on all levels hailed President Trump's directive Tuesday to EPA to begin a rulemaking process to expand the sale of corn ethanol, to include E15 year-round.

"This is another case of 'Promises Made, Promises Kept' for President Trump," said Agriculture Secretary Sonny Perdue. "Expanding the sale of E15 year-round is sound policy for a variety of reasons. Consumers will have more choices when they fill up at the pump, including environmentally friendly fuel with decreased emissions. It is also an excellent way to use our high corn productivity and improved yields. Year-round sale of E15 will increase demand for corn, which is obviously good for growers. This has been a years-long fight and is another victory for our farm and rural economies. Along with E15 expansion, we also welcome much-needed reforms to the RIN market, which will also increase transparency.

Perdue was at the White House for Trump's announcement, in a group that included Neb. Sen. Deb Fischer and Iowa Sens. Charles Grassley and Joni Ernst.

David Bruntz, chairman of the Nebraska Corn Board and farmer from Friend, said it simply: "E15 is the most tested fuel ever."

E15 is approved for use in 2001 and newer light-duty vehicles. Because of a 1990 regulation, the federal government holds E15, a blend of 15 percent ethanol and 85 percent gasoline, to tougher standards than other fuels during the summer. Between June 1 and Sept. 15, E15 is limited for use in flex fuel vehicles only because of federal Reid Vapor Pressure (RVP) requirements.

"President Trump has again made it abundantly clear that he is unleashing the full potential of American energy production as we retake our rightful place as the world's leader," Perdue said.

Nebraska Ethanol Board Administrator Sarah Caswell said, "We are hopeful this long overdue federal waiver will be finalized and effective before the summer driving season."

According to Growth Energy, a national ethanol trade association, allowing year-round sales of E15 by granting the RVP waiver could boost domestic ethanol demand by 1.3 billion gallons within five years.

"We should see an increase in fuel retailers across the state and nation offering E15 when the red tape and regulatory barriers are removed," said Randy Gard, Nebraska Ethanol Board petroleum representative and chief operations officer for Bosselman Enterprises. "The waiver takes the perceived risk out of the market for fuel retailers, which will stimulate ethanol markets. E15 gives consumers another renewable, low-cost option at the pump."

The E15 change will not be immediate, as it requires a formal rule-making process with EPA, which is expected to publish a proposed rule in the coming weeks, followed by a public comment period.

"Allowing E15 and higher blends of ethanol year round provides a boost for industry stakeholders including farmers, ethanol producers, fuel retailers, consumers and local communities," said Caswell. "We look forward to working with all our ethanol champions in government to make this a reality."

Caswell noted that Nebraska state fleet vehicles have been running on E15 for more than two years, saving the state money while using a homegrown product. Nebraska continues that forward thinking by recently seeking and receiving EPA approval to evaluate the use of E30 in conventional vehicles owned by the state.

"The focus remains on bringing high-octane, low-carbon fuels to the market to meet vehicle standards," said Caswell. "We'll continue our work with automakers and policymakers on retail infrastructure, removing market barriers, reducing cost and ensuring availability."

National Corn Growers Association President Lynn Chrisp of Hastings, Neb., said, "Earlier this year, the President correctly described this barrier as 'unnecessary' and 'ridiculous'. The President also faced pressure to fix this regulatory problem through a bad deal that would have been harmful to farmers. He made the right decision to move this common-sense regulatory relief on its own, and farmers are very grateful.

"With nine out of 10 vehicles on the road today approved to use E15, consumers should have this lower-cost option year-round. NCGA will be taking an active role in the regulatory process, urging EPA to move forward with making the President's commitment a reality by next summer."

The Clean Fuels Development Coalition (CFDC) said higher ethanol blends reduce the very evaporative emissions that the 1990 restriction was designed to control.

"Adding clean burning ethanol to gasoline replaces the toxic, cancer causing components used to increase octane," CFDC Executive Director Doug Durante. "It reduces carbon emissions, particulates, and a range of harmful pollutants."

CFDC officials cautioned that if EPA attempted to limit the new rule to only blends of 15 percent it would be a major misstep and cause for serious concern by many in the ethanol industry. CFDC is a member of the High Octane Low Carbon Alliance along with major ethanol and agriculture organizations and have argued for higher octane levels to help meet the pending fuel efficiency and greenhouse gas rule.

Ethanol at volumes in the 25-30 percent range can provide low cost octane allowing automakers to design more efficient vehicles. "15 percent volume is a great start but certainly should not be a cap or any kind of limit at a time when automakers are acknowledging higher volumes can provide significant increases in octane that they can design to," said Durante.

Even putting the environmental benefits aside, said Durante, the dramatic price differential between gasoline and ethanol provides substantial savings to consumers. If nothing else this is a pocketbook issue and keeps money at home at a time of increasing world oil prices, he said.

Sen. Fischer, a member of the Senate Environment and Public Works Committee and the Senate Agriculture Committee, said the sale of E15 year round "is a big deal for Nebraska farmers, renewable fuel producers, and rural communities. This announcement combined with the USMCA, the South Korea trade agreement, and the start of trade talks with Japan are all signs that we are moving in the right direction."

Nebraska ranks second in the nation, behind Iowa, in biofuel production. The states has 25 operating ethanol plants, which produce more than 2 billion gallons of renewable fuel annually and have created more than 1,300 good paying jobs in Nebraska's rural communities.