INDIANAPOLIS, Ind. — In mid-June 2014, Indiana ethanol supporters were watching what seemed a likely continued hike in the price of oil because of insurgents in Iraq marching toward Baghdad and petroleum exports possibly delayed by violent action.
As it turned out, the timing of their yearly Ethanol Forum was actually at the peak of briefly-surging gas prices in the upper-$3 range, which began declining again shortly thereafter. Eleven months later, at last Thursday’s annual forum in Indianapolis, ethanol supporters were waiting again – this time, for news from the U.S. EPA about Renewable Volume Obligation (RVO) levels for 2014-16.
RVOs are established under the Renewable Fuel Standard (RFS) and dictate how much renewable fuel is to be incorporated into refined petroleum gas or diesel in the United States each year. RVOs for 2014 are long overdue, as are those for this year. In late 2013, the EPA’s original RVO proposal for the 2014 RFS called for a reduction in corn ethanol along with no increase in biofuel production; this was well-received by the oil industry. But hundreds of thousands of public comments, many from farmers and environmentalists decrying the proposal, helped put it on hold, and a new one was expected last fall along with a 2015 proposal – but did not materialize.
In March, the American Fuel & Petrochemical Manufacturers and American Petroleum Institute sued the EPA in U.S. District Court for the District of Columbia to force some sort of announcement. Last month these plaintiffs proposed a consent decree in which all parties would agree the EPA would publish 2015 numbers by June 1 in the Federal Register for its public comment period to begin.
But the EPA’s U.S. Department of Justice (DOJ) attorney filed a counter to this proposed decree stating the agency needs to provide "reasonable opportunity" through the Federal Register "to persons who are not named as parties or interveners to the action … to comment in writing" on the proposed decree before the court approves it.
"If none of the comments disclose facts or considerations which indicate that the decree is inappropriate, improper, inadequate or inconsistent with the Clean Air Act’s requirements, the (EPA) administrator will request that the Court enter the decree," it added.
As of Friday, Judge Christopher Cooper had not yet signed this decree. The EPA website’s language seemed ambiguous as to the agency’s intent to produce an RVO proposal for 2015 by June 1, stating only that the proposed consent decree calls for it.
Wyn Hornbuckle, deputy director of public affairs for the DOJ, stated the proposed consent decree "is out for public comment and when the comment period is closed, we will review the comments." Hornbuckle did not note when that period closes.
The EPA’s website did state, however, that, "Outside the scope of the consent decree, EPA also commits to: propose the RFS volume requirements for 2016 by June 1, and finalize them by Nov. 30; propose and finalize the RFS biomass-based diesel volume requirement for 2017 on the same schedule; and re-propose volume requirements for 2014 by June 1, that reflect the volumes of renewable fuel that were actually used in 2014."
At the May 7 Indiana Ethanol Forum, CEO Tom Buis of Growth Energy in Wash-ington, D.C., said he understands the EPA will roll out RFS numbers June 1. "Pick your own rumor," he said of speculation as to what its RVOs will be. "If you want to start one today, let’s have some fun."
He does not know how long the public comment period will be, but once it has begun he urges corn growers and others in the ethanol industry to make themselves heard. This willingness to comment, and to contact elected officials, he said, is how the EPA’s proposed rollback of corn ethanol RVOs two years ago was suspended, and how the industry has put a kibosh so far on efforts in Congress to repeal the RFS altogether.
"The biggest lie I’ve ever heard is (the debate over) food versus fuel," Buis said, pointing out ethanol is made from the starch of No. 2 yellow corn – not sweet corn or any other consumed directly by humans – and that corn processed for ethanol also produces livestock-edible byproducts.
Patrick Pfingsten, public affairs manager for Indiana Corn, reported the EPA had last week sent its RVO proposal to the White House Office of Management and Budget for review, and reiterated the expectation of news in June on the RFS.
