‘Preaching to the choir,’ Biden in Iowa pitches more ethanol access

MENLO — Standing inside a distilled grain storage facility at a Central Iowa biofuels processing plant, President Joe Biden repeated a pledge his administration announced earlier Tuesday: They plan to make the higher E15 blend of ethanol available for sale during the upcoming summer months.

“I feel like I’m preaching to the choir here,” Biden said to a few dozen invited guests at the event, as distilled grain poured into the facility beside him.

The event, which marked Biden’s first visit to Iowa since his election in 2020, was held on the grounds of one of 12 facilities in Iowa operated by POET, a biofuels processing company based just across the state’s northwest border in Sioux Falls, S.D.

The most common ethanol blend sold at gas stations is E10, and not all Iowa gas stations offer E15. Under current federal law, the higher-blend E15 cannot be sold during the summer driving period, defined as June 1 through Sept. 15, because of concerns it adds to smog when the weather gets hot.

The Biden administration announced Tuesday that its Environmental Protection Agency will issue an emergency action that will make the E15 blend available through this summer. The action will cite the strain on the nation’s fuel supply caused by the Russian military’s invasion of Ukraine.

“This industry has a role to play in a sustainable energy future,” Biden said. “But I’m here today because homegrown biofuels have a role to play right now, if we work together. If we work together, prices will (come) under control and reduce costs for families.”

Former President Donald Trump’s administration in 2019 used federal rule-making to allow for the year-round sale of E15, making it available during the summers of 2020 and 2021. But this past December, a federal court struck down that rule based on procedure, making E15 once again unavailable during the summer.

The Biden administration believes its use of the emergency rule will stand up to legal review.

“It’s great news for consumers,” said Monte Shaw, executive director of the Renewable Fuels Association of Iowa. E15 “is selling for 10, 20, 30 cents per gallon less. Why would we want that to go away in the middle of an energy crisis when we’ve embargoed oil from Russia and other places?”

Shaw, who attended Tuesday’s event, said the administration’s move also provides good news and some stability for ethanol producers and retail locations, which can now be confident that E15 will remain available at least through May 2023.

“The emergency action today means we’ll be able to sell E15 all through 2022,” Shaw said. “From the ethanol (industry’s) perspective, not only is it the gallons that we’ll still be able to sell this summer, but it buys us time to get a permanent fix in place.”

The Biden administration’s emergency action is by its nature a short-term solution for the ethanol industry. Advocates say they hope federal lawmakers are able to create a more permanent solution to making E15 available year-round.

In a statement, Republican Iowa Gov. Kim Reynolds praised the move while acknowledging its short-term impact.

“Thank-you to the Biden administration for this very welcome news. While there is more to be done from the administration to address high energy and fuel prices, unrestricted access to E15 is a great first step,” Reynolds said in the statement. “This action, although temporary, will ensure Iowans continued access to E15 and higher blends of ethanol. It is critical that the EPA implements this in a way to fully allow E15 for the entire summer driving season.”

On a press call earlier Tuesday, Iowa Republicans applauded the Biden administration’s emergency action to allow for the summer sale of E15, but also criticized the Democratic president, pinning increasing costs to consumers on Biden’s policies.

“Am I glad about this waiver? Yes I am. Is this enough? No it’s not,” Republican Party of Iowa Chair Jeff Kaufmann said.

Iowa Republican U.S. Sen. Joni Ernst said she is hopeful there is a path to making E15’s year-round availability permanent. But she questioned the Biden administration’s commitment to making that happen given its advocacy for increasing the number of electric vehicles on the roads.

E15 “is a solution that is readily available today. The Democrats need to get on board with that today,” Ernst said. “I see it as a win-win situation. I wish President Biden would wrap his arms around it.”

Biden, during his remarks, insisted that biofuels will play a crucial role in his administration’s goal of achieving net-zero carbon emissions by 2050.

“This is an industry with a tremendous future,” Biden said. “You simply can’t get to net zero by 2050 without biofuels.”

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