Chronicle Editorial

By: 
Chronicle Staff

Evaluating ethanol's uncertain future
 
     The Environmental Protection Agency ruffled feathers last week after it unveiled a controversial proposal that would scale back the required amount of renewable fuel blended into the nation’s gasoline supply next year. Though alternative energy sources like ethanol will be around for a long while the EPA’s plan creates serious questions about the future of an industry vital to rural economies like ours.
     The EPA’s proposal would require oil refineries to blend 17.4 billion gallons of renewable fuels into the nation’s gas supply next year as part of the Renewable Fuel Standard – a law passed in 2007 that sets annual targets to increase the amount of biofuels used in America. A large majority of the proposed target number would come from ethanol, one of the most important sections of Iowa’s agriculture industry. However, the EPA’s suggestion was almost five billion gallons less than the original number set by Congress. The proposal drew considerable scrutiny from the biofuel industry and grain producers across the country, but the EPA has pushed back by claiming Congress’ original target is no longer compatible with nationwide demand for renewable fuels.
     All this back-and-forth bickering between the EPA and industry leaders is relatively frivolous in the short term. An article in Saturday’s Des Moines Register pointed out the agency’s 17.4 billion gallon target number for 2016 is still 1.5 billion gallons more than 2014’s overall production, meaning the biofuel industry won’t be cutting back next year. However, it leads to some interesting talking points about the country’s willingness to continue investing in ethanol and other renewable fuels.
     The EPA says consumer support for fuels like E15 and E85 has been considerably lower than previously anticipated. Growth in other biofuels has slowed, the agency says, and nationwide gasoline consumption has also fallen short of original expectations. All these factors have combined to create a rather stagnant market for renewable fuels like ethanol, consequently necessitating the need for a rolled back production target.
     Various politicians have contested these claims and asserted the EPA is overstepping its legal authority. The Renewable Fuel Standard requires Congress to set nationwide biofuel targets, but this rule seems to create a rather unstable foundation for ethanol and other renewable fuels. If the EPA’s claims are to be believed, it appears the government is creating an inflated market for certain biofuels by setting target numbers that exceed realistic consumer demand.
     However, the Renewable Fuel Standard wasn’t passed with bipartisan support for no reason. Our country needs clean renewable fuels that reduce our dependence on foreign imports. Petroleum-based fuels are a finite resource, and biofuels help curb our dependence by allowing us to produce our own energy grown right here in America. Democrats, Republicans and almost everyone in between agrees that we need to strengthen domestic energy production, and renewable fuels like ethanol are one way to do that.
     Nonetheless, the EPA’s 2016 proposal could be a harbinger of bad news. The agency’s rhetoric seems to hint towards additional rollbacks in the Renewable Fuel Standard’s target numbers. Any future reductions would no doubt affect grain producers in Iowa and sends ripples through the rural economy. Ethanol has been a boon to our state, but the EPA’s current position seems to jeopardize expanded production by cutting support for the future of alternative fuels.

Hampton Chronicle

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