Delay to changes to ethanol mandate receives mixed reviews

By Erin Murphy, Gazette-Lee Des Moines Bureau

DES MOINES — Any changes to the amount of ethanol required in the nation's fuel supply will not come until 2015 at the earliest, the federal government announced Friday.

Most Iowa lawmakers and interested parties said delaying any reduction in the ethanol mandate is good but delaying implementation of a long-term strategy is not.

In November 2013, the federal Environmental Protection Agency proposed reducing the amount of ethanol required in the nation's fuel supply. The proposal had its critics, including in Iowa, where half of the corn crop goes to ethanol production.

Citing the strong reactions to the proposal and a long delay in implementing new rules, the EPA on Friday said it will not make any adjustments to the Renewable Fuel Standard until 2015.

'Today's EPA announcement amounts to another non-decision on a high-priority issue that impacts Iowa farmers and America's economy,' said Kathy Krafka Harkema, communications director for Iowa Corn, which includes the Iowa Corn Promotion Board and Iowa Corn Growers Association.

Those groups and others opposed the EPA proposal to reduce the ethanol mandate. They say ethanol is a renewable, clean-energy alternative that reduces the nation's dependency on foreign oil.

'Iowa Corn believes today's announcement shows even the EPA knew its proposal was unworkable,' Krafka Harkema said.

Gov. Terry Branstad said the EPA's decision to delay action on the fuel standard is a mixed bag of news.

'We're pleased the Environmental Protection Agency and the Obama Administration halted their ill-advised proposed rule for the time being, but unfortunately, this decision only creates more uncertainty,' Branstad said in a statement. 'While we would have liked to see the Environmental Protection Agency commit to a robust Renewable Fuel Standard for the long-term, we received a clear signal through this process that America supports renewable fuels and our state's work to produce high-quality biofuels.'

Iowa Secretary of Agriculture Bill Northey criticized the EPA for creating uncertainty over the future of ethanol production.

'The past year has been an exciting time in the renewable fuels industry with the first commercial scale cellulosic ethanol plants coming online. However, we have missed opportunities for even more growth in the industry due to the uncertainty created by EPA's initial RFS proposal,' Northey said in a statement. 'Hopefully the withdrawal of this rule signals a larger change in course within EPA where they will be less adversarial and more responsive to the concerns of rural America.'

The EPA said its proposal 'generated significant comment and controversy.'

Iowa's congressional delegation also opposed the proposal.

'I am pleased the EPA did not move forward with their original proposal for 2014, which would have devastated Iowa's farmers, but now it is time for the EPA to get it right,' U.S. Rep. Dave Loebsack, D-Iowa, said in a statement. 'The RFS creates jobs, supports our agricultural communities and lessens our dependence on foreign oil. I will continue to fight to ensure the EPA follows the law with a robust RFS that provides the certainty our farmers deserve.'

l Comments: (515) 422-9061; Erin.murphy@lee.net