Branstad questions EPA’s new Renewable Fuel Standard


Iowa governor Terry Branstad at a 2011 event in Des Moines. (Flickr)
Iowa governor Terry Branstad at a 2011 event in Des Moines. (Gage Skidmore/Flickr)

Nick Fetty | June 26, 2015

During a public hearing of EPA’s new Renewable Fuel Standard in Kansas City on Thursday, Iowa governor Terry Branstad questioned the new policy and the economic impact it will have on the Hawkeye State.

Nearly 300 people made statements during the public event which will be the only one EPA plans to host before a final decision is made in November. Brandstad and other supporters of the current fuel standard feel that it is necessary “to force oil companies to improve infrastructure at gas pumps to deliver ethanol fuel blends above the current 10 percent mix.”

“The EPA has a choice: protect the deep pockets of Big Oil and their monopolistic practices or nurture consumer choice, renewable energy growth and a healthy rural economy,” Branstad said.

The proposed plan, which was set by congress, calls for a reduction of 4 billion gallons this year and an additional 5 billion gallons in 2016. Branstad cited the financial impacts the proposal would have on Iowa’s economy pointing out that corn has gone from $6 per bushel in August 2013 to $3.45 per bushel currently. He said this has caused uncertainty in the market and has led to fewer investments in biofuel technologies.

Proponents of the new standard say that it would increase overall biofuel production and use over time. Officials from the oil industry also argue that retailers are not equipped to sell gasoline with ethanol levels greater than 10 percent and that customer demand has not warranted an investment in new infrastructure.

Other have questioned the feasibility of biofuels altogether, citing that production requires large amounts of water and other resources.

Iowa leads the nation biofuel production with 42 ethanol plants and 13 biodiesel plants.

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