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State-Specific Data Shows RFS is Working as Intended, Highlights Need for Robust RFS

JOHNSTON, IOWA – The Iowa Renewable Fuels Association (IRFA) today submitted formal comments to the U.S. Environmental Protection Agency (EPA) in defense of a strong and growing federal Renewable Fuel Standard (RFS).

In its comments, the IRFA noted, “Simply stated, IRFA urges EPA to finalize volumes of 14.4 billion gallons for conventional renewable fuel and 1.7 billion gallons for biodiesel. In support of this request, IRFA will make the following points citing specific Iowa examples: (1) There is no E10 blend wall; (2) It is completely unnecessary to reduce 2014 conventional renewable fuel volumes below 14.4 billion gallons; (3) The RFS lowers fuel prices for consumers; (4) Higher RIN prices drive higher E85 sales; (5) U.S. biodiesel producers are fully capable of producing 1.7 billion gallons in 2014; and (6) EPA’s rationale for reducing 2014 RFS volumes is illegal, and if finalized, would ensure that RFS volumes are never raised in the future.”

In their submission, the IRFA provided data on Iowa’s ethanol and biodiesel sales that detail the success retailers had in meeting and exceeding RFS volumes.

“These real, personal testimonies show that if consumers are given the opportunity, they will buy enough higher ethanol blends to exceed the RFS volumes. The problem is not that retailers can’t sell higher ethanol blends; it’s that the petroleum industry refuses to make these blends available,” stated IRFA executive Director Monte Shaw. “It’s also worth noting that ethanol is simply cheaper, cleaner, and higher octane than gasoline, and that reality is reflected in the price at the pump throughout Iowa. Today, 87-octane E10 sells for a discount of between 23 and 30 cents compared to 87-octane E0.”

“Iowa biodiesel producers have set production records in each of the last three years, Shaw added. “Following record U.S. biodiesel production of nearly 1.8 billion gallons in 2013, there is no question that the nation’s biodiesel producers can once again produce at least 1.7 billion gallons in 2014.”

Shaw urged the EPA, “If you’re serious about cleaner fuels, consumer choice, and cutting oil dependence, don’t turn your back on us now. Don’t mess with the RFS.”

To view IRFA’s full comments, please click here..

Iowa is the leader in renewable fuels production. Iowa has 42 ethanol refineries capable of producing over 3.8 billion gallons annually, with three cellulosic ethanol facilities currently under construction. In addition, Iowa has 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually.

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.