Good Intentions Gone Wrong Can Congress Admit a Mistake?

Good Intentions Gone Wrong Can Congress Admit A Mistake?

A Special Report Prepared By e Washington Times Special Sections Department

RethinkEthanol.com Good intentions gone wrong: Can Congress admit a mistake?

In the 12th century, Saint Bernard increased damage to them and dramati- of Clairvaux is said to have coined the 8 years late, EPA study admits RFS is harmful to the environment .... 3 cally decreased their life spans. Washington Times Staff phrase, “The road to hell is paved with One of the hardest-hitting conse- good intentions.” In the 21st century, the quences of the RFS — higher food costs Biofuels mandate fueling wildlife crisis ...... 4 same apparently holds true for well- — is felt by every living human. Increas- Collin O’Mara intended legislation. ing prices on corn hit livestock farmers Environmental groups back Ted Cruz, Republicans on In 2005 and again in more detail in hard, driving up the cost of feed. As a overhaul of Renewable Fuel Standard ...... 5 2007, the U.S. Congress passed the Re- result, poultry became more expensive, Ben Wolfgang newable Fuel Standard (RFS). It dictated beef products became pricier, the cost of Fixing past missteps on biofuels ...... 6 that up to 10% of the fuel you pump into eggs jumped. In fact, nearly every food Hon. Henry Waxman your car at the local convenience store in your grocery store or on your restau- RFS reform outlined in Welch, Udall bills ...... 7 would be made from corn ethanol. At rant menu uses corn starch, corn syrup Washington Times Special Sections Department the time, the program’s intentions were or some other variation of corn prod- tough to argue with. Corn ethanol in fuel uct. When the RFS drove up the price RFS reform: One of few issues with bipartisan support ...... 8 Members of Congress would be “green,” that is, better for the of corn, it drove up your grocery and environment. It would reduce U.S. reli- restaurant bill. This well-intentioned Cruz battles ethanol industry over national biofuels mandate ...... 10 ance on foreign oil. The RFS would plant program made it more expensive to eat. Washington Times Staff the seeds for a farm program that would One of the promises of the corn The ethanol quagmire ...... 11 soon become self-sustaining and boost ethanol program was that it would kick- Hon. Wayne Allard our overall economy. start an agricultural product that would For the health of the nation: The many reasons why ethanol In order to make sure there were no rapidly become self-sustaining. Except should be phased out ...... 12 unintended consequences, a series of it hasn’t. Senators from farm states are Jerry Jung studies and reports were to be produced loudly protesting any proposed change Why America’s recreational boaters need RFS reform ...... 15 every couple of years to measure the to the RFS because without taxpayer John McKnight economic, environmental and agricul- support and mandates of Congress, they tural impacts. This regular, required aren’t so sure this program will continue. Ethanol industry, small-engine manufacturers clash over damage from fuel ...... 16 c t io n S DEPARTMENT reporting was to monitor the RFS So much for self-sustaining. Ben Wolfgang program and make course corrections as What about those environmental, necessary. economic and agricultural reports? Demand grows for ethanol-free fuel ...... 16 ci a l S e Unfortunately, none of the promises For the most part, deadlines have been Ben Wolfgang of the RFS program came to fruition. ignored by the government agencies, EPA report cites damaging impact of Renewable Fuel Standard ...... 17 This well-intentioned idea turned and even the failures reported by those David French out not to be renewable at all. In fact, agencies who did get around to fulfilling Ethanol mandate: Costly to consumers, devastating to

O N T I MES S pe producing the corn ethanol to go into their required reports have resulted in T chicken industry ...... 18 our fuel supply actually caused a greater no meaningful change. Mike Brown carbon footprint than simply using the Perhaps most telling of all is the long Even in the Midwest, ethanol mandate hurts more than helps ...... 18 AS HI N G standard fuel mix of the past. Addition- list of some of the RFS’ biggest sup- Nicolas Loris ally, once the government expanded the porters who are now vocal opponents demand for corn, millions of more acres of the program. Even former members Renewable Fuel Standard: This ‘dog’ won’t hunt ...... 19 Harry C. Alford were converted into corn production. of Congress who promoted the idea are Corn crops have a far greater negative publicly calling for its sunset as a failed Taxpayers tell Congress: Stop meddling in fuel markets ...... 20 impact on our water, soil and air quality program. The National Taxpayers Union than most, and the environmental dam- In the pages that follow, you’ll find An outdated mandate that drives up gasoline prices ...... 21 age has been overwhelming. So much for the story of a well-intentioned program Thomas J. Pyle O N T I MES T the “green” argument. that has become a colossal flop. Other Ethanol policy: A government failure that should stop ...... 22 The damage the RFS caused has than those that stand to financially ben- R Street Institute not been limited to the environment, efit from it, there is no one left support-

AS HI N G Renewable Fuel Standard is a dead end ...... 23 T H E W BY PREPARED CI A L REP O RT however. Small engines such as lawn ing the Renewable Fuel Standard. In a Ryan Alexander mowers, motorcycles, marine engines true test of our U.S. Congress, one must

A SPE Senators’ letter to the Environmental Protection Agency ...... 24 t H E W and snowmobiles were not designed for ask if they will acknowledge that the | corn ethanol fuel. Its nearly exclusive facts clearly show a failure — and take Members of Congress availability at the gas pump significantly appropriate action.

Cheryl Wetzstein Larry T. Beasley David Dadisman Tony Hill Special SectionS Manager preSident and ceo general Manager director of adVertiSing & integrated SaleS Advertising Department: Thomas P. McDevitt Eugene Jackson Jr. 202-636-3062 chairMan Senior Vice preSident Patrick Crofoot of SaleS & Marketing graphicS SuperViSor Special Sections are multipage tabloid products that run in The Washington Times daily newspaper and are posted online and in PDF form onits website. Sponsors and advertisers collaborate with The Times’ advertising and marketing departments to highlight a variety of issues and events, such as The Power of Prayer, North Korea’s Wednesday • S eptember 5 • 2018 Wednesday Nuclear Threat, Gun Rights Policy Conference and Rolling Thunder Memorial Day Tribute to Veterans. Unless otherwise identified, Special Sections areprepared separately 2 SPECIAL SECTIONS and without involvement from the Times’ newsroom and editorial staff. 8 years late, EPA study admits RFS is harmful to the environment

By Washington Times Staff The years-long reporting delay came into the spotlight last year when Sen. John ive months into the Obama Barrasso, Wyoming Republican and chair- administration, the Environ- man of the Senate Environment and Public mental Protection Agency was Works Committee, sent a letter to then- supposed to complete a study EPA Administrator Scott Pruitt urging him looking at ethanol’s effect on to comply with federal law and complete American air quality. the report. His letter came just days after FMore than eight years later, the agency the EPA issued new requirements for the is finally showing some work. In their new, blending of ethanol with gasoline, largely 145-page report, “Biofuels and the Envi- siding with the biofuels industry and ronment: The Second Triennial Report to Congress,” the EPA repeatedly acknowledges that the Renewable Fuel Standard (RFS) — the federal law that requires the blending of ethanol with gasoline supplies

each year — has done harm to water, soil A SPE and air quality. The National Wildlife Fed- CI A L REP O RT PREPARED BY T H E W eration (NWF) indicates the June report documents millions of acres of wildlife habitat lost to ethanol crop rebuffing critics production and increased — including Mr. Bar- nutrient pollution in water- rasso — who argued the ways and air emissions. They also ethanol mandate should say the report supports their belief that be reduced dramatically. the unintended consequences of replac- “A growing body of inde- ing gas with ethanol are making things pendent academic research has much worse. also documented the RFS’ impacts HI N G AS The RFS is having negative conse- on air, water and land quality, wildlife

quences to a wide variety of environmental habitat, and other sensitive ecosystems,” T indicators, according to David DeGennaro, the senator wrote. “EPA cannot ignore the O N T I MES S pe a policy expert at NWF. “The report is a will of Congress and the requirements of red flag warning that we need to recon- the Clean Air Act” by not completing the sider the mandate’s scope and its focus report.

on first-generation fuels made from food The study is supposed to be completed ci a l S e crops,” he said. every three years, but the EPA had issued it only once before, in 2011. The separate THE WASHINGTON TIMES air quality study was due to be completed c t io ns DEPARTMENT by May 19, 2009. More than eight years The two studies are just one part of a later, the agency is finally much broader fight that’s now become showing some work. an intraparty war between Republi- cans. President Trump has been an In their new, 145-page outspoken supporter of the RFS, a po-

report, “Biofuels and sition shared by Sen. Chuck Grassley, | Wednesday 5 • 2018 • S eptember the Environment: The Iowa Republican, and other members of Second Triennial Report the GOP from states that have benefited greatly from the domestic ethanol sector. to Congress,” the EPA On the other side, Mr. Barrasso, Texas repeatedly acknowledges Sen. Ted Cruz, and others have pressured that the Renewable Fuel the administration to slash the RFS, arguing, among other things, that it has an Standard (RFS) — the adverse impact on the oil and gas industry. federal law that requires In his letter, Mr. Barrasso didn’t explic- the blending of ethanol itly cite air quality concerns as a potential with gasoline supplies each reason why the RFS should be reduced. But it’s clear that a study showing biofuels have year — has done harm to a negative impact on air provides serious water, soil and air quality. ammunition for his side of the debate. illustration by hunter 3 c t io n S DEPARTMENT ci a l S e Biofuels mandate fueling wildlife crisis O N T I MES S pe T

supports bipartisan, common-sense

AS HI N G The enormous dead zone in the Gulf of Mexico reforms that support family farmers fed by agricultural runoff, which reached an all- and advance clean fuels while protect- time high last year, costs seafood and tourism ing public health and our natural resources. We support reducing the cur- industries at least $82 million per year. rent corn ethanol mandate; promoting cleaner, more sustainable biofuels (other than those from food crops like help the country gain energy inde- decimation of the American prairie — corn and soy); halting habitat destruc- O N T I MES

T pendence while promoting a healthier less than 10 percent of this vanishing tion (as required by law); and, funding environment. We were promised that habitat remains — which is contribut- habitat restoration and conservation no habitat would be lost, that the RFS ing to the steep decline of many spe- to mitigate the damage already done. AS HI N G T H E W BY PREPARED CI A L REP O RT would accelerate development of truly cies of grassland-dependent wildlife, These solutions, and others, are in the advanced, low-emission biofuels, and including bee colonies that pollinate Growing Renewable Energy through A SPE

t H E W that the program would be halted if crops accounting for a third of our na- Existing and New Environmentally | adverse impacts occurred. Every one tion’s food supply. Responsible (GREENER) Fuels Act (S. of those promises has been broken, The massive conversion of wildlife 2519 and H.R. 5212). By Collin O’Mara repeatedly. habitat to row crop agriculture — and Ten years ago, we failed to antici- ost habitat. Polluted waters. Since 2007, the ethanol mandate resulting increase in farm runoff — is pate the unintended consequences of Less wildlife. These are all has fueled the destruction of more contributing to toxic algal outbreaks this ill-conceived government man- unintended consequences of than 7 million acres of habitat, harm- around the country that poison drink- date. Today, we know better. We urge the broken ethanol mandate. ing wildlife as well as hunting, fishing, ing water, hurt small businesses, curtail Congress to reform nation’s biofuel Let’s start with a confes- and wildlife-viewing opportunities. outdoor recreation, and raise utility policy and protect our drinking water, sion: More than 10 years Some of the greatest impacts have costs. The enormous dead zone in wildlife habitat, and public health. Lago, the National Wildlife Federa- occurred in the Prairie Pothole region the Gulf of Mexico fed by agricultural tion supported passage of the federal of the Dakotas and Minnesota — the runoff, which reached an all-time high Collin O’Mara is president and CEO of Renewable Fuel Standard (RFS). We main breeding grounds for ducks last year, costs seafood and tourism the National Wildlife Federation. Please

Wednesday • S eptember 5 • 2018 Wednesday agreed with the aspiration to develop and waterfowl in the United States. industries at least $82 million per year. follow @NWF. 4 cleaner, more sustainable fuels to The program is accelerating the The National Wildlife Federation Environmental groups back Ted Cruz, Republicans on overhaul of Renewable Fuel Standard Green organizations urge end to corn ethanol mandate

By Ben Wolfgang The Washington Times

Green groups were among the loudest champions for the federal government’s sweeping ethanol mandate a decade ago, touting it as a near-magic fuel that could help ease a climate crisis. But the Renewable Fuel Standard (RFS) that boosted ethanol use has fallen out of favor so badly that environmentalists now see themselves on the same side of the debate as Republicans such as Sen. Ted Cruz, arguing that the entire program is deeply flawed and must be completely overhauled. The intense opposition to the RFS from environmental and conservation groups comes as the White House and congressional leaders work to craft the most seri- A SPE ous reforms the program has seen since it was established more than 10 years ago. CI A L REP O RT PREPARED BY T H E W As Republicans and oil-industry groups bemoan the RFS as a job killer in the oil refining sector, environmentalists say their once-high hopes that ethanol could reduce carbon emissions, preserve land and help fight climate change have been proven wrong. program into one focused on promoting be little more than a stopgap as the next that ethanol production can drive up car- “The road to hell is paved with good advanced biofuels. wave of biofuels were developed and put bon emissions, other research — such intentions,” said Collin O’Mara, CEO of “Our bill is a forward-looking proposal, into widespread use. Their opposition, as a January 2017 study from the federal the National Wildlife Federation, a group offering visionary reforms to put us on a along with that of Mr. Udall and other RFS Agriculture Department — found that that was once a vocal supporter of the cleaner and more sustainable path. The critics in Congress, stems from the fact that ethanol greenhouse gas emissions are 43 HI N G AS RFS but now has become one of its chief changes it would make represent a giant the next wave simply hasn’t come to pass, percent lower than gasoline, meaning that

opponents. “There’s a reason why [the step forward to combat the urgent threat of and they believe that a major overhaul of incorporating ethanol into the gas supply T RFS] was bipartisan, but the problem is climate change, cut pollution, and protect the RFS is now the only way to accomplish results in fewer emissions overall. O N T I MES S pe that the law hasn’t been followed … We’ve our planet for future generations,” Mr. that long-term goal. RFS opponents dispute that report, and distorted both our energy policy and our Udall said in March. “A lot of folks on the Democratic side the EPA hasn’t yet followed through on natural resources. That absolutely could’ve The most ardent supporters of cellu- thought that by mandating more of the con- congressional mandates that it thoroughly

been avoided.” losic ethanol and other advanced biofu- ventional food-based ethanols … that those study ethanol’s effects on the environment. ci a l S e Mr. O’Mara and other critics cite the els, however, contend that environmental would be a bridge to the second generation All sides of the debate, from lawmakers fact that the RFS has mostly fueled wild groups have essentially partnered with the biofuels, but that clearly hasn’t happened,” to the ethanol industry, have urged the EPA THE WASHINGTON TIMES growth in traditional corn-based ethanol, oil industry in an effort to undermine the said Rose Garr, campaign director at the to complete its work. c t io ns DEPARTMENT while the so-called “next generation” of future of ethanol, and that the Democratic environmental group Mighty Earth. “A lot Meanwhile, the ethanol industry — led biofuels — such as cellulosic ethanol — legislation would be disastrous. of the climate benefits and carbon reduc- by its largest trade group, the Renewable haven’t grown at nearly the same rate. In- “When oil companies try to ghost write tions were supposed to come from those Fuels Association — counters that the deed, while the Environmental Protection legislation for environmental front groups, fuels, and they just haven’t come online.” overall land dedicated to growing corn Agency during the Trump administration you end up with some pretty backwards The National Wildlife Federation con- has dropped since 2007, and that overall has held steady the amount of corn-based ideas, and that’s exactly what this appears tends, among other things, that the conver- emissions in the transportation sector

ethanol that must be blended with gaso- to be. It’s dead on arrival with any law- sion of huge tracts of land into corn fields continue to decline. | Wednesday 5 • 2018 • S eptember line each year, it’s reduced the mandated maker who cares about the climate, energy produces massive amounts of carbon emis- Industry leaders also reject any re- amount of advanced biofuels blending. security, or the farm economy,” said Emily sions. More broadly, critics argue that the ductions to the RFS, saying instead the [Former] EPA Administrator Scott Skor, the CEO of Growth Energy, which ethanol mandate promotes the continued program should be expanded and more Pruitt last year said that was due to “mar- represents biofuels producers. use of fossil fuels at a time when the na- ethanol allowed into the marketplace. ket realities” that have shown it’s been Indeed, it appears unlikely the Udall- tion’s motor vehicle sector and other areas “We must change the narrative about re- harder to bring advanced biofuels, which Welch bill will gain much traction in Con- of the economy should be moving toward newable fuels so they are not viewed with are generally considered cleaner, into the gress. Sen. John Cornyn, Texas Republican, cleaner energy. cynicism and derision by key influencers marketplace than initially thought. reportedly is crafting his own RFS reform Green groups also say the creation of and decision-makers,” Renewable Fuels Many green groups have lined up be- package, and that’s more likely to attract more corn fields has disrupted habitats and Association President Bob Dinneen said in hind legislation proposed by Sen. Tom support in the Republican-controlled led to other serious conservation issues. a recent speech. “We need to understand Udall, New Mexico Democrat, and Rep. Senate. There’s conflicting information as to there’s another team on the field spinning Peter Welch, Vermont Democrat, that For the National Wildlife Federation the true effect of ethanol on carbon emis- their own anti-ethanol narrative.” would phase out the corn ethanol mandate and others, initial support for the RFS was sions and, by extension, on climate change. portion of the RFS and reform the entire based on the idea that corn ethanol would While some studies have indeed shown 5 c t io n S DEPARTMENT ci a l S e Fixing past missteps on biofuels

aimed at driving a transition to more impact of the program through a series biofuels have no carbon emissions

O N T I MES S pe environmentally friendly transporta- of white papers. benefits and are likely worsening our T tion fuel and reducing climate pollution. “Burned,” the report issued earlier climate crisis. Although it included huge mandates for this year by Mighty Earth and Action It’s time to admit that the RFS has

AS HI N G consumption of food-based fuels that Aid USA, provides a dramatic on-the- fallen far short of its goals. There is no were worrisome at the time, these fuels ground glimpse of the unintended room in any true clean energy policy were sold as a bridge to the production negative consequences of food-based for large amounts of food-based biofu- of non-food-based, ultra-low carbon biofuels. It shows that instead of driving els. And while cellulosic biofuels and fuels, such as cellulosic ethanol and large-scale climate solutions, the RFS other truly advanced fuels still offer promise, these better biofuels need new and additional support. Biofuels production is driving the destruction Fortunately, some in Congress are O N T I MES

T of wildlife habitat around the world, impacting already leading. The GREENER Fuels jaguars in South America, orangutans in Asia, and Act, introduced by New Mexico Sen. Tom Udall and Vermont Rep. Peter AS HI N G T H E W BY PREPARED CI A L REP O RT monarch butterflies in the United States. In part Welch, lays out a pro-environment path due to expanded biofuel production, last year saw forward for biofuels.

A SPE By Hon. Henry Waxman

t H E W The RFS has long been seen as a | the largest-ever dead zone in the Gulf of Mexico. or 40 years, I championed en- struggle between Big Oil and Big Corn. vironmental protections and It is time for pro-environment policy- solutions to climate change other truly advanced fuels. has largely served as a mandate for makers to engage in favor of reforms in Congress. I’m proud of my However, while I was still in Con- corn ethanol and food-based biodiesel that support and prioritize better bio- work to strengthen the Clean gress, an array of peer-reviewed scien- production, including soy and palm fuels and also reduce the harm caused Air Act, make drinking water tific research suggested that food-based biodiesel produced overseas. by corn ethanol and soy and palm Fsafer, reduce pesticides in food, and cut biofuels’ climate and environmental Biofuels production is driving the biodiesel. oil consumption through strong fuel impact was as bad or worse than the destruction of wildlife habitat around efficiency standards. oil it was meant to replace. In addi- the world, impacting jaguars in South Henry Waxman is a former congress- Unfortunately, one piece of leg- tion, the production of truly advanced, America, orangutans in Asia, and mon- man from California and chairman islation that I supported in 2007, the cellulosic fuels failed to materialize. As arch butterflies in the United States. In of the House Energy and Commerce Renewable Fuel Standard (RFS), has Ranking Member of the House Energy part due to expanded biofuel produc- Committee. He currently leads the

Wednesday • S eptember 5 • 2018 Wednesday not stood the test of time. The RFS had and Commerce Committee, we worked tion, last year saw the largest-ever environmental group, Mighty Earth. 6 admirable environmental goals. It was in a bipartisan fashion to evaluate the dead zone in the Gulf of Mexico. These Please follow @StandMighty. RFS reform outlined in Welch, Udall bills

By The Washington Times supported the admirable environmental Special Sections Department goals of the RFS when we created it 10 years ago. Now, it’s clear that the RFS has A SPE Unprecedented bicameral legisla- been a net-negative for the environment. tion seeks to reform the nation’s fuel Not only has the RFS failed to spur sig- CI A L REP O RT PREPARED BY T H E W standard by reducing corn ethanol in nificant development of truly advanced gasoline, stepping up pursuit of “next fuels, but conventional biofuels like corn generation” biofuels and returning some ethanol and soy biodiesel are destroy- U.S. cropland back to natural wildlife ing wildlife habitat at home and abroad, habitat. polluting waterways, and increasing The Renewable Fuel Standard (RFS) global warming pollution,” said Mr. Wax- “has been a well-intentioned flop that is man, who is chairman of Mighty Earth, harming our environment by contribut- a global campaign to protect rainforests ing to the conversion of millions of acres and other threatened landscapes. of grasslands, wetlands and forests into Mr. O’Mara of NWF said, “This crop production while failing to bring critical legislation offers common-sense HI N G AS about the widespread use of truly sus- High ethanol levels in gasoline Second, help farmers return corn- solutions that protect wildlife, drinking

tainable fuels like cellulosic,” said Rep. can also clog fuel lines and otherwise fields to pasture and wildlife habitat water, and public health, while support- T Peter Welch, Vermont Republican and damage small engines, such as those in through a 10 cents-per-Renewable ing family farms and putting the nation O N T I MES S pe lead sponsor of the GREENER Fuels Act motorcycles, boat motors, lawn mowers Identification Number (RIN) fee to fund on track to meet its clean fuel goals the (Growing Renewable Energy through and snowmobiles. a new Private Land Protection and Res- right way.” Existing and New Environmentally Re- In January, Mr. Welch and members toration Fund in the U.S. Treasury. “We thank Rep. Welch and Sen. Udall

sponsible Fuels Act) in the House. of the Vermont Association of Snow The fund will help pay for Depart- for their tireless leadership working to ci a l S e “Our commonsense legislation Travelers took a 30-minute snowmobile ment of Interior programs that: reverse the massive grassland losses and reforms the mandate to dramatically ride to highlight the need to eliminate • pay for easements on private growing algal blooms exacerbated by THE WASHINGTON TIMES reduce its environmental impact and ethanol from gasoline. lands to keep them out of agricultural the ethanol mandate-while also moving c t io ns DEPARTMENT to support the continued growth of The RFS “was intended to grow corn, production; America toward cleaner, more sustain- advanced biofuels,” said Mr. Welch. turn that into ethanol and have it be a • keep the lands in conservation uses able fuels,” he said. “We urge the full Sen. Tom Udall, New Mexico Demo- clean fuel,” Mr. Welch told reporters, like grass, forest, stream buffers, or pol- House and Senate to pass these bills, crat, is sponsor of the companion bill in including Vermont Public Radio. “It’s linator habitat and; before the impacts to America’s wildlife the Senate. turned out to be a well-intended flop.” • help farmers transition land cur- and waterbodies become worse and “The RFS was a well-intentioned idea The Welch/Udall bills, H.R. 5212 and rently in crop production into other more costly to solve.”

that has delivered as intended for the S. 2519, are the first to overhaul the RFS. uses. “The Sierra Club applauds Senator | Wednesday 5 • 2018 • S eptember conventional ethanol industry, which is They are supported by Harry Waxman, Third, extend the cellulosic next Udall, Congressman Welch, and all the now mature and well-established. But former chairman of the House Energy generation biofuel mandate until 2 members of Congress who are putting the promised environmental benefits and Commerce Committee; the Na- billion gallons of annual production is common sense first rather than continu- have yet to be realized. In fact, the tional Wildlife Federation, led by Collin achieved or 2037, whichever is soonest, ing to permit a dirty and destructive standard that was intended to benefit the O’Hara; and the Sierra Club National and improve the way the mandate is policy to remain intact,” said Michael environment may well be hurting it,” Mr. Campaign, led by Debbie Sease. implemented to produce liquid trans- Brune, executive director of the Sierra Udall said. “Our bill is a forward-looking According to Mr. Welch’s office, these portation fuels that dramatically reduce Club. “Instead of continuing to play proposal, offering visionary reforms to bills would: greenhouse gas emissions. political games with our environment put us on a cleaner and more sustain- First, phase out the corn ethanol “It’s time to admit that the Renewable and public health, these legislators are able path. The changes it would make mandate and immediately reduce the Fuel Standard has done more harm than moving policies that will help undo the represent a giant step forward to combat amount of ethanol in fuel by as much as good and start supporting sensible fixes,” damage caused by the ethanol mandate. the urgent threat of climate change, cut 1 billion gallons by capping the amount Mr. Waxman said when the Welch/Udall We urge Congress to pass this legislation pollution, and protect our planet for of ethanol that can be blended into con- bills were introduced in March. immediately rather than continuing to future generations.” ventional gasoline at 9.7 percent. “Like many of my colleagues, I push false theories about ethanol.” 7 c t io n S DEPARTMENT

ci a l S e RFS reform: One of few issues with bipartisan support

By Members of Congress serve its intended purpose: to support ______the development of advanced, environ-

O N T I MES S pe mentally friendly biofuels like biodiesel, Sen. Tom Udall (D-NM) T cellulosic ethanol and other revolution- “The RFS was a well-intentioned idea ary fuels.” that has delivered as intended for the

AS HI N G conventional ethanol industry, which is ______now mature and well-established. But the promised environmental benefits have Sen. Bill Cassidy (R-LA yet to be realized. In fact, the standard “The RFS is outdated. It was created that was intended to benefit the environ- in 2005, a time when American energy ment may well be hurting it. Our bill consumption relied heavily on foreign is a forward-looking proposal, offering imports. It was thought that the Renew- visionary reforms to put us on a cleaner O N T I MES

T able Fuel Standard would be good for our and more sustainable path. The changes environment by decreasing the carbon footprint. But in the last 10 years, our energy AS HI N G T H E W BY PREPARED CI A L REP O RT landscape has changed dramatically. We now have more domestic oil than almost restaurants are estimated to spend $3.2 bil- A SPE

t H E W ever before, and the drawbacks of the RFS lion more for the food they purchase and | greatly outweigh its benefits. serve to their customers because of the RFS. Sen. Dianne Feinstein (D-CA) “The Congressional Budget Office proj- “Unfortunately, there are no environ- “The federal mandate for corn ethanol ects that Americans will be forced to pay mental benefits, but there is tremendous is both unwise and unworkable. Roughly 13 to 26 cents more per gallon if the RFS is environmental harm. An increase in corn 40 percent of corn in the United States is not repealed. For a mom and dad with two production means there is an increase in currently used for fuel, which increases teenagers, this would be about $400 a year. fertilizer use across the Midwest. That the price of food and animal feed while But it doesn’t stop at the pump. Over the last fertilizer runs off into the rivers, goes down also damaging the environment. Addition- 10 years, the price of corn has drastically into the Mississippi River, hits the Gulf of ally, oil companies are unable to blend fluctuated. Corn costs have approximately Mexico, causes algae blooms because of the more corn ethanol into gasoline without doubled since the RFS began. And the corn high nitrogen and phosphorous, and that de- causing problems for some gas stations price increasing has increased the cost of creases the oxygen in the water, devastating and older automobiles. food. As much as 7 percent to 26 percent the fish population. If you look at maps of

Wednesday • S eptember 5 • 2018 Wednesday “Once we remove the corn ethanol is estimated per year, and it also raises the dead zone, it has continuously increased 8 mandate, the RFS program can finally costs all the way down. For example, chain in size since the RFS was put into law.” » see CONGRESS | C9 a bipartisan basis ... because it is an im- CONGRESS portant step to bringing more certainty to From page C8 the marketplace for transportation fuels.” ______it would make represent a giant step forward to combat the urgent threat of Rep. Bill Flores (R-TX) climate change, cut pollution, and protect “In today’s market, the RFS is hurting our planet for future generations.” consumer choices and increasing food and fuel costs for our families. Market ______conditions have dramatically changed since 2005 and 2007 when Congress created and Sen. Pat Toomey (R-PA) subsequently expanded the RFS. Since that “The biofuel use requirements have time, gasoline demand has fallen and is well a negative effect on our economy. Not below the volumes implied by the ethanol only does the mandate likely harm our mandates in the 2007 statute. As a result, car engines, it drives up farmers’ and the legacy RFS formula has now caused ranchers’ costs and causes increased ______the RFS Reform Act, which we have intro- a situation where the ethanol mandate prices in almost everything we buy in duced. Reforming the RFS remains a prior- exceeds the maximum amount of ethanol the grocery store. Current rules require Rep. Peter Welch (D-VT) ity, and we will continue working to see a refiners to blend increasing amounts of “Despite its early promise, the RFS legislative fix move forward in Congress.” has been a well-intentioned flop that is harming our environment by contributing ______to the conversion of millions of acres of grasslands, wetlands and forests into crop Rep. Jim Costa (D-CA) production while failing to bring about the “The Renewable Fuel Standard (RFS) widespread use of truly sustainable fuels is a well-intentioned policy that Congress like cellulosic. Our commonsense legisla- passed in 2005. Unfortunately, with its

tion reforms the mandate to dramatically passage came unintended consequences, A SPE reduce its environmental impact and to which are negatively impacting American support the continued growth of advanced industries, including agriculture, manu- CI A L REP O RT PREPARED BY T H E W biofuels.” facturing, and food service. The RFS is no longer sustainable as currently imple- ______mented. As the United States and the rest of the world continue to update our energy Rep. Bob Goodlatte (R-VA) and transportation policies for the 21st “Forcing more ethanol into the market century, Congress must work together on — while hurting consumers, food producers, and small engines across the nation — that can be efficiently blended into gasoline biofuels — especially corn ethanol into is not the solution. While well-intentioned, under real-world market conditions and the nation’s gasoline supply. The result it has been clear for some time now that the forces refiners to increase ethanol volumes is that corn prices have shot up, and this RFS is a broken policy. The EPA’s action above 10 percent of total gasoline produc- HI N G AS is troubling for Pennsylvania livestock today ignores basic economic and scien- tion. Higher ethanol blends of this nature

farmers who devote about half their op- tific facts, and sets the industry on a path are harmful for small engines, engines for T erating costs to feed. I have heard first- that will be disastrous for families, small recreational vehicles and older vehicle O N T I MES S pe hand from many constituents just how businesses and retailers, the agriculture engines. Furthermore, the current RFS damaging this policy has been. And it community, food aid organizations, and mandates are causing higher emissions is particularly harmful to lower-income the environment. Announcing higher fuel as well as higher fuel and food costs for

families who spend a greater percent- volumes for 2017 only emphasizes the un- consumers.” ci a l S e age of their paycheck on groceries. It is fairness of this mandate, and the need for ill-advised and unsustainable.” Congress to step in and stop the harmful THE WASHINGTON TIMES impacts. There are several good solutions c t io ns DEPARTMENT on the table in the House to help lessen the effects of the ethanol mandate, including | Wednesday 5 • 2018 • S eptember

9 c t io n S DEPARTMENT Cruz battles ethanol industry over

ci a l S e national biofuels mandate

By Washington Times Staff financial ruin because of the federal etha- rumor that the RFS has caused an oil refin- senator is wrong to fight only for oil-and-

O N T I MES S pe Sen. Ted Cruz has emerged as Washing- nol mandate, commonly known as the RFS. ery in Pennsylvania to file for bankruptcy. gas interests when the state’s agriculture T ton’s leading critic of the ethanol industry, Mr. Cruz cited the recent bankruptcy of This example has been cited repeatedly as sector has benefited from the RFS. holding up federal nominees over his op- a Philadelphia oil refinery as an example a justification for forcing RFS supporters “Sen. Cruz — we’ve worked with him

AS HI N G position to the national biofuels mandate, of the problems with the RFS, and sug- to agree to sudden and drastic changes in since he’s been in the Senate,” said Wesley lambasting the sector in fiery Senate floor gested that refineries in his home state how the RFS was designed,” Mr. Grassley Spurlock, chairman of the National Corn speeches, and leading a coalition of oil- of Texas — the oil-and-gas capital of the has said on the Senate floor. Growers Association and director of the friendly lawmakers to the Oval Office in country — could be next... The Philadelphia refinery says it went Texas Corn Producers Board. “We know hopes of weakening the Renewable Fuel Iowa has benefited more than any other bankrupt because of the high cost of Re- the oil-and-gas industry is the No. 1 indus- Standard. state from the RFS, which requires the newable Identification Numbers, which try in Texas, but then agriculture, grains, Mr. Cruz has, for all intents and pur- blending of ethanol with gasoline. Iowa are assigned to each gallon of gasoline livestock, is No. 2. It’s a massive industry poses, become public enemy No. 1 for an farmers grow much of the corn needed to that’s blended with ethanol. Smaller re- in Texas. It’s too bad we’re pitting one O N T I MES

T ethanol industry that has engaged the sena- industry against another with the RFS.” tor in a heated war of words over the future For his part, the senator has said that of the fuel. Bob Dinneen, president of the At the heart of Mr. Cruz’s objections to the biofuels there’s a potential win-win solution in AS HI N G T H E W BY PREPARED CI A L REP O RT Renewable Fuels Association, the sector’s sector is the damaging effect he says it’s having reforming the RFS — a solution that could largest trade group, blasted Mr. Cruz in a save oil refineries but also continue ben-

A SPE on oil-and-gas refiners, some of which say they’re

t H E W 2018 op-ed in the San Antonio Express- efiting corn growers. His supporters say | News, taking the fight to the senator in heading toward financial ruin because of the federal his desire for a compromise is because he the pages of a leading Texas newspaper. ethanol mandate, commonly known as the RFS. understands not just the oil industry but “Cruz needs to stop scapegoating the also the needs of Midwestern states such RFS because a few refiners don’t like the as Iowa, largely due to his presence there program. Renewable fuels like ethanol are help meet the program’s yearly targets, and fineries that don’t have the capacity to during his failed 2016 presidential run. not the enemy. Indeed, renewable fuels Sen. Chuck Grassley, Iowa Republican, is blend the fuel themselves must buy RIN “That’s led him to take the bull by the hold the key to a more sustainable energy one of the sector’s leading champions in credits from larger facilities, and the price horns on this,” said Brendan Williams, vice future that will provide consumers with Washington. of those credits has skyrocketed over the president of government relations at PBF both choice and savings at the pump,” That’s put him in direct conflict with past several years. Energy Co., a New Jersey-based refining wrote Mr. Dinneen. his fellow Republican, Mr. Cruz, and he But ethanol leaders say the solution is company. At the heart of Mr. Cruz’s objections to strongly denies the allegations made by the to blend more ethanol, not less, thereby Mr. Cruz won the GOP Iowa caucuses the biofuels sector is the damaging effect Texas senator against the ethanol industry introducing more RINs into the market in 2016 despite being an outspoken critic

Wednesday • S eptember 5 • 2018 Wednesday he says it’s having on oil-and-gas refiners, and the RFS specifically. and driving down prices. of ethanol. 10 some of which say they’re heading toward “There is a manufactured and baseless In Texas, ethanol backers say the A SPE CI A L REP O RT PREPARED BY T H E W The ethanol quagmire

biofuels, particularly ethanol. fuel with no ethanol at all. Motorcycles, must buy if their ethanol output is below These biofuel increases keep com- marine engines and lawn mowers, to the EPA mandate. ing despite the fact that Americans are name a few, cannot perform properly The biofuel mandates and the RIN HI N G AS driving less (according to the National on fuel containing more than 10 percent market have distorted the U.S. fuel

Association of Insurance Commis- ethanol. In fact, they can suffer fuel marketplace, and the consumers are the T ones who suffer. O N T I MES S pe Meanwhile, the ethanol industry con- The American Motorcyclist Association is part of tinues to push the EPA to approve E15 a broad coalition whose members are negatively blends for year-round sale, something

affected by federal mandates to produce more and that could result in more air pollution ci a l S e during the summer months at fueling more ethanol fuel. ... Motorcycles, marine engines and stations. The industry is seeking an THE WASHINGTON TIMES lawn mowers, to name a few, cannot perform properly exemption from clean air standards. c t io ns DEPARTMENT on fuel containing more than 10 percent ethanol. We believe the Renewable Fuel Standard needs to be rethought and sioners) and modern motor vehicles system and engine damage, and their revamped. And we have solutions. There are more fuel efficient. The result of warranties may be voided. are bills in Congress that would address By Hon. Wayne Allard injecting more biofuels into the smaller The American Motorcyclist As- these issues. s it does every fall, the U.S. amounts of fuel being consumed is that sociation is part of a broad coalition This is a case in which free markets

Environmental Protec- in 2016, the overall percentage of ethanol whose members are negatively affected — not mandates — would better serve | Wednesday 5 • 2018 • S eptember tion Agency announced it in transportation fuel sold in the United by federal mandates to produce more the needs of the American consumer. is mandating even higher States exceeded 10 percent, according to and more ethanol fuel. In addition to Contact your member of Congress levels of ethanol in our Ethanol Producer Magazine. motorcyclists, they represent small and let them know that, for the benefit transportation fuel supply With almost all U.S. gasoline now engine owners, fishermen, hunters, boat of consumers, the ethanol fuel program whileA ignoring market realities and the being sold as E10 (10 percent ethanol by owners, livestock owners, environmen- needs to be changed to meet the various negative impact of the federal Renewable volume), according to the U.S. Energy talists, nutrition agencies, water quality needs and concerns of the American Fuel Standard on American consumers. Information Administration, the only agencies and businessmen. consumer. The Renewable Fuel Standard, en- way to increase ethanol in fuel supply is Concerns in this group range from acted under President George W. Bush to push the content to 15 percent ethanol engine damage — noted above — to Dr. Wayne Allard, DVM, is a former U.S. in 2005 and expanded in 2007, requires (E15) or higher. That’s a 50 percent in- water and air quality to feed costs and Representative and U.S. Senator from ever-increasing amounts of biofuels crease in ethanol, compared to E10. beyond. Colorado. He is now vice president, to be mixed with fossil fuels each year Particularly affected are the consum- On the business side, a market has government relations, of the American until 2022. And the EPA has been issu- ers whose vehicles and small engines sprung up in Renewable Identification Motorcyclist Association. Please follow ing mandates each November for more are only engineered to operate on E10 or Numbers (RIN), the certificates refiners @ama_riding. 11 For the health of the nation: The many reasons why ethanol should be phased out 10 years offers ample proof

By Jerry Jung Unintended consequences This has resulted in shortages of pure and other agricultural inputs. Background: When ethanol is added gasoline as well as a glut of ethanol The net effect of corn ethanol man- y name is Jerry Jung. I to gasoline, its octane rating increases. blends 3. The export of higher qual- dates is that it dramatically increases reside in Birmingham, An increase in octane is not to be ity gasoline further lowers the average domestic energy consumption. If pure Michigan. Three years confused with an increase in power, as energy density of U.S. blends. EPA fuel gasoline was consumed instead of the ago, I started a webpage ethanol has less energy density than economy measurements are based on ethanol blends prevalent today, the total entitled “RethinkEtha- pure gasoline. What ethanol does, like pure gasoline, yet most motorists utilize energy consumed by motorists would nol.com.” The webpage lead and MBTE before it, is to delay igni- an E10 blend. This is a questionable decrease significantly because of all the Mhas a link to my resumé outlining both tion with the result that engines operate practice that misleads the public be- fossil fuel required to produce ethanol. my credentials and my motivation to at higher compression ratios. This al- cause ethanol blends cannot deliver the comment on the proposed rule. lows car manufacturers to utilize smaller fuel economy that pure gasoline does. Farm economies upended I support the Environmental Protec- engines. Currently, some car companies The goal: Corn ethanol production Agency’s (EPA) decision to grant are lobbying for higher base octane rat- Energy use up, not down tion will strengthen the domestic farm D6 Renewable Identification Number ings as a way to reduce costs, improve The promise: The mandated economy by expanding the market for (RIN) waivers to small refiners and also fuel efficiency and reduce emissions. production of corn ethanol will reduce corn and increasing its price. support applying D6 RIN credits for ex- The results: Prior to the passage of dependence on foreign oil. The reality: When RVOs were dra- ported corn ethanol. In light of the EPA’s RFS and the subsequent rapid ramp-up The reality: Numerous studies matically increased just over a decade acknowledgment of the environmental in RVOs, the price differential between indicate that it takes more fossil fuel to ago, corn prices spiked near $7 per harm caused by the corn ethanol man- grades of gasoline was 10-to-20 cents. produce corn ethanol than it yields. One bushel. 7 Therefore, in the short term, date, I also support lowering the 2019 Typically, if 87 octane gasoline sold for Cornell University study estimates that the promise of a better farm economy Renewable Volume Obligation (RVO) $2.00, 89 octane gasoline would sell corn ethanol takes 40% more energy to held true. However, the beneficial eco- for conventional biofuel. In addition, for $2.10 and premium grade 91 octane produce than it yields, but most studies nomic effect for farmers was short-lived. the EPA should minimize the adverse gasoline would sell for $2.20. Today, the center on an input/output ratio of about A basic tenet of economics states that impact of incremental corn production spread between regular gasoline and 1-to-1. 4 Even the Agriculture Depart- supply will increase as prices increase. on biodiversity by banning the use of Bt premium gasoline has increased (here ment, an unabashed and misguided sup- The production of 15 billion gallons of corn for ethanol production. in Michigan) from 20 cents pre-RFS to porter of ethanol mandates, estimates ethanol requires 40% of the total corn

c t io n S DEPARTMENT In the last two years, I have made 20 90 cents today.1 Thus, the potential cost energy output at only 10% more than the crop and 35 million acres of prime U.S. trips to Washington D.C., on the topic savings associated with smaller high- energy inputs. 5 The output increases if farmland — an area larger than most of ethanol mandates. I have met with compression engines have been more credit is given for the leftover distillates states. 8 About 8 million acres of this ci a l S e several dozen legislators, a score of trade than offset by the increased cost of high- fed to livestock, but studies indicate that total has been identified by the Na- and environmental associations as well octane fuel. this practice can sicken cattle and alter tional Wildlife Foundation (NWF) as as key administrative officials including Another unintended consequence the taste and appearance of beef while conversion from Conservation Reserve former Administrator Scott Pruitt. Here facing car manufacturers is the public shortening its shelf life.6 Program (CRP) acreage and from na-

O N T I MES S pe in Michigan, I have met with farmers outcry that cars are not achieving EPA Ethanol producers will tell you that tive prairie or forest. The remaining 27 T and conservation groups with a focus on million acres have been diverted from the harm caused to the Great Lakes due growing food crops such as corn, soy-

AS HI N G to the additional nutrient loading associ- beans or pasture. Other countries have ated with increased corn production. taken up this slack. Whereas the U.S. has The rationale to pass the Renewable historically been the world leader in ag- Fuel Standard (RFS) included a smor- ricultural exports, Brazil now surpasses gasbord of admirable objectives, none of the U.S. in soybean exports and Russia which have materialized. surpasses us in terms of wheat exports. These goals included an inexpensive 9 Our ethanol policies have bolstered way to increase the octane ratings of foreign competition for foodstuffs while O N T I MES

T gasoline; a way to reduce reliance on weakening trade ties and expanding the foreign oil imports; a way to invigorate national trade deficit. Predictably, prices the farm economy; an environmentally for corn have dropped to the same levels AS HI N G T H E W BY PREPARED CI A L REP O RT friendly manner in which to reduce seen before the RFS. 10 harmful emissions; and a renewable ap- A March 2017 study by the Con- A SPE

t H E W proach to energy production that would servative Political Action Committee | conserve existing resources. Some sup- confirms that the farm economy has porters of the RFS also pointed to food weakened during the past decade. It is security issues. no wonder. Ethanol is a low-value com- Many ethanol advocates still utilize modity. A bushel of corn will produce these arguments, but the 10-year history 2.8 gallons of ethanol worth about $4.50. of ramped-up corn ethanol production 11 The same corn fed to poultry produces leaves little room to doubt that the initia- about $20 of value and to cattle or pork tive has failed and now hurts many more about $50 worth of value. 12 than it helps. The following comments mileage ratings. Exacerbating this situ- it takes 28% as much energy to produce It is this value-added chain that cre- address each of these lofty goals and ation is the fact that the U.S. is export- ethanol as it yields. This is just the ates rural employment and economic why they have not only failed but indeed ing higher-octane pure gasolines with amount of fossil fuel consumed in the diversity. A couple of years ago, I sold worsened the very situations they were greater energy density to Europe. fermentation and distillation process. some acreage near Coldwater, Michigan,

Wednesday • S eptember 5 • 2018 Wednesday intended to ameliorate. In Europe, where pure gasoline is It does not take into account the fuel to a pork-processing facility owned by readily available 2, ethanol blends have consumed by agricultural tractors and 12 not been well received by motorists. trucks as well as production of fertilizer » see JUNG | C13 likely that the uncompromising support the base of the food chain. Rachel Car- Michigan, the Department of Natural JUNG for ethanol mandates espoused by many son’s book, “Silent Spring,” contributed Resources advises against eating game From page C12 politicians from Iowa is driven by some to the ban of DDT in the United States, taken in the Tittabawasse rivershed42, factor other than popular sentiment. but DDT is still manufactured and used home of a large DOW chemical plant in developing countries. 29 Whereas Bt that produces agricultural products. Clemens Food Group. They currently ‘Green’ benefits unrealized corn has been banned in most European The recent EPA report that ties envi- employ about 1,000 workers processing The sales pitch: Ethanol is good for countries, Bayer still profits from its use ronmental degradation to ethanol man- 10,000 hogs per day. Compare this to a the environment. in the United States. 30 Who is the Third dates is welcome news and is beyond 70 million-gallon annual capacity etha- The outcome: As mentioned World country now? reasonable dispute. nol plant that employs about 30 people previously, mandated ethanol produc- The transfer of genetic material while utilizing twice as many bushels of tion requires 35 million acres of prime between species is more common than Energy, food security worse corn as was fed to the processed hogs. U.S. farmland, the majority of which previously thought. 31 The exponential The RFS selling point: Corn ethanol A recent motorcycle tour through has come from displacing food crops. increases in the toxic Bt gene sequence is a sustainable, renewable source of en- Iowa confirmed the downsides to rural Because of the worldwide nature of as a result of its introduction into food ergy that strengthens domestic energy communities of what is essentially the agricultural commodity markets, foreign crops increases the likelihood that it will independence. industrialization of agriculture. Very countries have taken up the slack, enter the genome of wild plants. This The facts: Corn production, as it is little long grass prairie is left in that state especially Brazil. Few would argue that currently unfolding “Insect Armaged- currently practiced, is not sustainable — about 3% of the original total. 13 While cutting down rainforests is good for the don” has the potential to impact the in terms of water resources, soil health riding through the state, I noticed a large environment. These forests have been environment in a manner detrimental to and phosphorus supplies. And how can hand-painted sign that read, “Family called “the lungs of the Earth” and con- humanity. How it will ripple through the a practice that does not reduce the use farms, not factory farms.” One wonders tain astounding biodiversity. 20 Conser- ecosystem is anybody’s guess. of fossil fuels and effectively doubles whether this sentiment is related to the vatively, 20 million acres of rainforest, Air quality is also an environmental energy consumption provide energy diminished sense of community and in- most of it in Brazil, has been converted concern with ethanol in gasoline. independence? creasing levels of outside control exerted to cropland due in part to U.S. ethanol As the ethanol blend wall increases, Let’s start with the consequences of over the lives of rural families. mandates. 21 If each of these acres con- so do automotive exhaust emissions of irrigating non-food crops. Of particu- Farm profits have not increased in 15 tained 500 tons of carbon sequestered in NOx that synthesizes the creation of lar concern is the vast underground years. 14 The backlash over industrial- the form of biomass, then 10 billion tons ozone — a serious health concern. 32 Ogallala Aquifer, which touches eight scale farming in Iowa is so intense of carbon (20,000,000 acres times 500 Recognizing this years ago, California Midwestern states and used to be prime that the state government passed a law tons per acre) have been logged, cleared Sen. Dianne Feinstein introduced legisla- rangeland but is now increasing given banning corporate ownership of farms. or burned. This same acreage is planted tion aimed at limiting ethanol use in the over to corn production. This reser- A SPE 15 Outdoor recreational opportunities for into food crops that were once grown in nation’s fuel supply. 33 Added to tailpipe voir of clean water is being depleted rural families, such as camping, hunting the U.S. emissions are the extensive air emissions at an alarming rate and, according to a CI A L REP O RT PREPARED BY T H E W and fishing, have been sharply curtailed To put this in perspective, the U.S. involved in the farming of incremental National Geographic article, will take as natural areas have been converted to consumes less than 1 billion tons of coal corn and the conversion of corn kernels thousands of years to replenish. 43 With farming. Drinking water supplies have per year. 22 to automotive ethanol. increasingly polluted rivers in the west- been contaminated by neonics and high- The reduction of habitat has had Polling suggests that the biggest ern part of the Corn Belt, it is unwise to nitrate concentrations. 16 The City of Des a profound effect on biodiversity. Of concern related to excessive agricultural subsidize the extraction of water upon Moines actually sued upstream agri- special concern are agricultural prac- production is water quality. 34 The Des which future generations will rely. cultural districts in an effort to recoup tices such as Roundup Ready corn that Moines lawsuit points to the potential Years of intensive agriculture have increased treatment costs. 17 reduces weeds that many insects and impact on drinking water. A recent reduced many farm soils to little more A typical acre of farmland might birds depend upon. Of even greater University of Michigan study finds that than mineral substrates that are infertile produce $50 of profits for the farmer. concern is the prevalence of Bt corn that 85% of nutrient overload in the western without fertilizers. 44.The production That same acre typically requires about produces biotoxins that kill pests such as basin of Lake Erie is due to agricultural of these fertilizers requires extensive HI N G AS $300 of inputs such as seeds, fertilizer corn earworm but also indiscriminately runoff.35 A few years ago, the City of amounts of fossil fuels that are, by defi- 18 23

and pesticides. Whereas crop prices kill all moth and butterfly caterpillars. Toledo was forced to shut down its nition, not renewable. T are subject to worldwide competitive Corn is a wind-pollinated plant. 24 An in- water supply due to toxic algae in Lake Phosphorous, one of the three O N T I MES S pe pressures, agricultural inputs are con- ternal document that the Bio Innovation Erie. 36 Both Michigan and Ohio have principal components of fertilizer, is in trolled by cartels and oligopolies — the Organization shared with me states that strong agricultural components to their short supply. The U.S. Geological Survey only winners under the RFS. 19 This Bt also effectively kills aquatic larvae economies, yet the governors from both estimates that only 25 years’ worth of

situation has only been exacerbated by such as mosquitoes. (I am sponsoring states have declared the western basin of reserves of phosphate rock is left in this ci a l S e the recent acquisition of Monsanto by independent research to determine the Lake Erie as impaired. 37 During the peak country. 45 Bayer as well as the merger of DOW and extent to which the wind carries corn months of August and September, green The pitch: The RFS will increase THE WASHINGTON TIMES DuPont. Farmers are being squeezed pollen and to study the concentrations sludge covers many square miles of the food security. c t io ns DEPARTMENT between worldwide commodity markets of viable biotoxic pollen that land on Lake’s surface. With warm temperatures The results: A bushel of corn can and locally controlled input prices. insect food sources as well as aquatic and abundant rainfall washing fertilizers produce 2.8 gallons of ethanol. 46 The Agricultural input prices can be higher environments at various distances from from farms this year, surface algae have proposed EPA mandate for conventional domestically than they are in competing corn fields.) returned earlier than normal. 38 I have biofuel is 15 billion gallons in 2019. If his- countries where agricultural acreages Monarch butterflies migrate from experienced this toxic sludge firsthand tory is any indication, about 98% of this have expanded dramatically since the Mexico over the Corn Belt. Their popu- while trying to fish. Scientists have total will be from corn. Therefore, well

ramp-up of ethanol mandates. lations have plummeted 90% to 95% in called for a 40% reduction in phospho- over 5 billion bushels of corn will be | Wednesday 5 • 2018 • S eptember A popular political misconception recent years. 25 Dramatically increased rus in Lake Erie. 39 Ironically, this is the reserved for fuel before the remainder is that the majority of Iowans support corn production and widespread use of same percentage of the corn crop dedi- is made available to feed livestock and ethanol mandates. Many times I have Bt corn (estimated at 80% of the total) cated to ethanol. Millions of people rely for other uses. 47 In other words, the first heard the comment, “We wouldn’t have 26 have delivered a “one-two punch” to on the Great Lakes for drinking water 40% of production is reserved for fuel this stupid policy if Iowa was not the insect biodiversity. A German study, re- and recreation. 40 and the surplus for food. first state to hold primaries.” cently yanked from the internet, pointed Agricultural pollution is not limited This is outrageous logic that serves That may not be the case. Two sepa- to an 80% reduction in insect biomass. to inland rivers and lakes. An area the to exacerbate supply and price swings rate polls, one sponsored by a conserva- The majority of birds eat insects as at size of New Jersey near the mouth of the for food. For instance, a 20% decline in tion organization and one by a political least part of their diet 27, not to mention Mississippi River will not support ma- total corn production translates into a candidate, found the majority of Iowans amphibians, bats and reptiles. 28 rine life due to depleted oxygen levels. 41 30% decline in corn available for food. are opposed to ethanol mandates. In the 1950s and 1960s, as the DDT The extra production of fertilizer, The food industry is many times the Recall that Texas Sen. Ted Cruz, the one pesticide moved up the food chain, it herbicides and pesticides associated size of the ethanol industry. Drought candidate that consistently opposed threatened the survival of apex preda- with increased corn production creates impacted the corn crop in 2012, and ethanol mandates, won the Republican tors such as the bald eagle. Today, huge pollution not only when it is applied but Presidential primary in Iowa in 2016. It is swaths of toxic corn threaten insects at also when it is manufactured. Here in » see JUNG | C14 13 However, subsidized and mandated pro- 11. Sawyer, J. (2015). E85 Frequently article/farming-a-toxin/ JUNG duction of corn has too many economic Asked Questions and Answers. Re- 24. Missouri, U. O. (2012, July 11). From page C13 and environmental downsides to be held trieved from http://www.corunna-mi. Corn Pollination, the Good, the Bad, and hostage to special interest politics. gov/government/city_manager/docs/ the Ugly-Pt 1. Retrieved from https:// prices rocketed up to over $7 per bushel. E85/e85incfrequentlyaskedquestionsan- ipm.missouri.edu/IPCM/2012/7/Corn- 48 Although the EPA had the authority Jerry Jung is a successful businessman, danswers.pdf Pollination-the-Good-the-Bad-and-the- to reduce the RVO predicated on short philanthropist and author who is active 12. Corn Growers Association, I. Ugly-Pt-1/ supplies, they did not. Does it make with several environmental and con- (2018). Corn Facts. Retrieved from 25. Robertson, M. (2018, February 06). sense to affect millions of workers in the servation nonprofits. He is the founder https://www.iowacorn.org/media-page/ Latest count finds sharp decline in mon- food industry; to slaughter poultry, hogs of ReThink Ethanol, a nonprofit group corn-facts arch butterflies wintering in California. and cattle prematurely; and to drive up dedicated to raising awareness and edu- 13. Cohen, D. (2001, September). Iowa Retrieved from https://www.sfgate.com/ the price of food — a most basic human cation about ethanol usage. This article Prairies. Retrieved from https://store. science/article/monarch-butterfly-de- necessity — to protect the relatively tiny is based on comments filed with the EPA extension.iastate.edu/Product/Iowa- cline-california-mex-migration-12553755. ethanol industry? This policy has re- on its Proposed Rule for 2019 Biomass Prairies-Biological-Communities-PDF php sulted in food riots in poor countries as Volumes. Please follow @rethinket. 14. Eller, D. (2017, May 20). Make 26. Fausti, S. W. (2015, May 26). The they exported corn to the United States Comments on EPA RVO Works Cited or break year? Iowa farmers battle causes and unintended consequences instead of feeding it to their people. 49 1. Jung, J. (2018, July 09). Current for profits as debt, delinquencies of a paradigm shift in corn production Michigan Gas Prices [Photograph]. rise. Retrieved from https://www. practices. Retrieved from https://www. Going forward: 5 steps to take Comments on EPA RVO, Michigan. desmoinesregister.com/story/money/ sciencedirect.com/science/article/pii/ The EPA should be applauded for tak- 2. Jung J. (2018, July 31). Current EU agriculture/2017/05/18/make-break- S1462901115000908 ing steps to reduce RIN trading prices, Gas Prices [Photograph]. Comments on year-iowa-farmers-battle-profits-after- 27. University, D. (n.d.). WHAT but more needs to be done. EPA RVO, Michigan. 3-years-falling-income-rising-delinquen- DO BIRDS EAT? Retrieved 2011, from • RINs are, in essence, subsidies 3. Hawranek, D., & Neubacher, A. cies/312736001/ http://vireo.ansp.org/bird_academy/ to ethanol producers funded by a covert (2011, April 19). Out of Gas: E10 Debacle 15. Tidgren, K. A. (2015, October 25). bird_diets.html tax on refiners, much of which is passed Puts the Brakes on Biofuels - SPIEGEL Iowa’s Anti-Corporate Farming Laws: A 28. Bats. (2018). Retrieved from along to motorists. The RIN market is ONLINE - International. Retrieved General Overview | Center for Agri- https://www.michigan.gov/dnr/0,4570,7- very susceptible to market manipulation, August 14, 2018, from http://www. cultural Law and Taxation. Retrieved 350-79135_79218_79619_84901---,00.html both from a regulatory perspective as spiegel.de/international/germany/out- August 12, 2018, from https://www.calt. Kusler, A., & Tingler, J. (1998). Re- well as by speculators. If ethanol produc- of-gas-e10-debacle-puts-the-brakes-on- iastate.edu/article/iowas-anti-corporate- trieved from http://calscomm.cals.cor- tion falls short of the RVO, RIN pricing biofuels-a-757812.html farming-laws-general-overview nell.edu/naturalist/Naturalist-Outreach- becomes very price-inelastic. Trading 4. Lang, S. S. (2005, July 5). Cornell 16. Royte, E. (2017, December 07). The Reptile-diversity-feeding-defense.pdf of RINs is veiled in secrecy. As a result, ecologist’s study finds that producing Simple River-Cleaning Tactics That Big 29. DDT - A Brief History and Status. Delaware Sen. Tom Carper, among oth- ethanol and biodiesel from corn and Farms Ignore. Retrieved from https:// (2017, August 11). Retrieved August ers, have called for transparency. 50 other crops is not worth the energy news.nationalgeographic.com/2017/12/ 14, 2018, from https://www.epa.gov/ • In addition to utilizing refin- | Cornell Chronicle. Retrieved from iowa-agriculture-runoff-water-pollution- ingredients-used-pesticide-products/ ery waivers, the EPA should apply RIN http://news.cornell.edu/stories/2005/07/ environment/. ddt-brief-history-and-status

c t io n S DEPARTMENT credits to exported ethanol. This year, ethanol-biodiesel-corn-and-other-crops- 17. Dowell, T. (2017, January 31). 30. Coghlan, A. (2015, October 5). ethanol exports have increased dramati- not-worth-energy Iowa Supreme Court Issues Ruling in More than half of EU officially bans cally. If RINs are not allowed to be sepa- 5. Gallagher, P. W., Ph.D., Yee, W. C., Des Moines Water Works Case - Texas genetically modified crops. Retrieved ci a l S e rated from exported ethanol, then the & Baumes, H. S., Ph.D. (2016, February). Agriculture Law. Retrieved from https:// August 14, 2018, from https://www. likelihood of an RVO shortfall increases 2015 Energy Balance for Corn-Ethanol agrilife.org/texasaglaw/2017/02/06/ newscientist.com/article/dn28283-more- and RIN pricing has the potential to Industry. Retrieved from https://www. iowa-supreme-court-issues-ruling-des- than-half-of-european-union-votes-to- skyrocket. This further threatens good usda.gov/oce/reports/energy/2015Energy moines-water-works-case/ ban-growing-gm-crops/

O N T I MES S pe paying, productive jobs at refineries and BalanceCornEthanol.pdf 18. Mitchell, L. (2014, October 31. Hayden, E. C. (2018, August 13). A T in the food sector. 6. Kalscheur, K. F., Garcia, A. D., Sch- 23). Are Farmers Rich? Retrieved New View of Evolution That Can’t Be • The most important step that ingoethe, D. J., Diaz Royón, F., & Hippen, from https://www.iowacorn. Represented by a Tree. Retrieved August

AS HI N G the EPA should take is to lower the D6 A. R. (2012). Bio-Fuel Co-Products as org/iowa-corn-stalk/2014/10/23/ 14, 2018, from https://www.nytimes. RVO. It has lowered RVOs for other Livestock Feed. Retrieved from http:// are-farmers-rich com/2018/08/13/books/review/david- categories of biofuels so the precedence www.fao.org/docrep/016/i3009e/i3009e. 19. Hueth, B. M., & Marcoul, P. (n.d.). quammen-tangled-tree.html has been set. The primary justification pdf Information Sharing and Oligopoly 32. Peplow, M. (2014, April for doing so is the environmental dam- 7. Hart, C. E., Ph.D. (2015, January 13). in Agricultural Markets: The Role of 30). Ethanol Fuels Ozone Pollu- age caused by the RFS that has recently Swings in Corn Supply, Demand Impact Bargaining Associations. Retrieved Sep- tion. Retrieved from https://www. acknowledged by the EPA. Under no Global Markets @EthanolMagazine. tember, 2002, from https://lib.dr.iastate. scientificamerican.com/article/ circumstances should the RVO be higher Retrieved from http://www.ethanol- edu/cgi/viewcontent.cgi?referer=https:// ethanol-fuels-ozone-pollution/ O N T I MES

T than the previous year’s domestic supply producer.com/articles/11807/swings- www.google.com/&httpsredir=1&article 33. Feinstein, Toomey Introduce Bill of ethanol. in-corn-supply-demand-impact-global- =1334&context=card_workingpapers to Repeal Ethanol Mandate. (2015, Febru- • An additional step in line with markets 20. Lee, D. P. (2011). Forests - Our ary 26). Retrieved from https://www. AS HI N G T H E W BY PREPARED CI A L REP O RT the EPA’s mission to protect the environ- 8. Mumm, R. H., Goldsmith, P. D., Green Lungs | Climate Protection. feinstein.senate.gov/public/index.cfm/ ment would be to phase out the use of Rausch, K. D., & Stein, H. H. (2014, April Retrieved from https://en.reset.org/ press-releases?ID=61bcf916-1d17-4eba- A SPE

t H E W Bt corn. It borders on insanity to allow 12). Land Usage Attributed to Corn knowledge/forests-our-green-lungs 805d-5b24fcd0a948 | wind-pollinated plants to be genetically Ethanol Production in the United States. 21. Tabuchi, H., Rigby, C., & White, J. 34. Mateo-Sagasta, J., Zadeh, S. M., & modified to spread biotoxic pollen. Retrieved from https://www.ncbi.nlm. (2017, February 24). Amazon Deforesta- Turral, H. (2017). Water pollution from • The EPA should also provide nih.gov/pmc/articles/PMC4022103/ tion, Once Tamed, Comes Roaring Back. agriculture: A global review. Retrieved non-politically motivated scientific ad- 9. Weinraub, M. (2018, February Retrieved from https://www.nytimes. from http://www.fao.org/3/a-i7754e.pdf vice to legislators currently attempting 16). U.S. set to lose top spot as global com/2017/02/24/business/energy-envi- 35. Read, J. (2017, October 26). Inform- to draft legislation addressing the RFS as corn exporter to Brazil. Retrieved from ronment/deforestation-brazil-bolivia- ing Lake Erie Agriculture Nutrient well as the related issues of octane rat- https://www.reuters.com/article/us-usa- south-america.html Management via Scenario Evaluation. ings and CAFE standards. This scientific corn-exports-analysis/u-s-set-to-lose- 22. Tedford, D. (2010, April 08). Why Retrieved from http://graham.umich. advice should be grounded in common top-spot-as-global-corn-exporter-to- We Still Mine Coal. Retrieved from edu/water/project/erie-western-basin sense and take into account the total brazil-idUSKCN1G01VW https://www.npr.org/templates/story/ 36. Herbert, J. (2014, August 8). The environmental picture, not just tailpipe 10. Irwin, S. (2016, June 01). Etha- story.php?storyId=125694190 Toledo water supply shut down. Why emissions or fuel economy. nol Prices Drive Corn Prices, Right? • 23. Jabr, F. (2013, September 03). “boil water” advisories were not enough.

Wednesday • S eptember 5 • 2018 Wednesday The sentiment among many in Wash- farmdoc daily. Retrieved from https:// Farming a Toxin to Protect Crops, Pol- Retrieved from http://msue.anr.msu. ington D.C., is that any change to the farmdocdaily.illinois.edu/2013/10/etha- linators and People. Retrieved from 14 RFS must be acceptable to all parties. nol-prices-drive-corn-prices.html https://www.scientificamerican.com/ » see JUNG | C15 Why America’s recreational boaters need RFS reform

biobutanol — a biofuel that is more similar to gasoline than ethanol. While EPA’s decision in June to allow the registration of biobutanol as a fuel additive is encouraging, additional commonsense steps are needed. NMMA sent a letter to EPA in June outlining two immediate actions: allow biobutanol blending with current gasoline base stocks and accept current refiners process transfer statements to include biobutanol blending. These measures will enable smaller gasoline blenders to get their products to gas stations and expand availability to boating consumers. Unlike E15, which causes severe By John McKnight damage to marine engines, biobuta- s acting Environmen- nol delivers more renewable energy tal Protection Agency content than ethanol while remain-

Administrator Andrew ing compatible with current vehicles, A SPE Wheeler will soon learn, boats, and infrastructure. Biobutanol is if he hasn’t already, re- far superior to ethanol in many ways, CI A L REP O RT PREPARED BY T H E W forming the Renewable To prevent the damage that the proposed E15 and, as our data shows, it is poised to FuelA Standard (RFS) is critical to the expansion would cause, the National Marine be the next generation biofuel. economy and boaters. The recreational Manufacturers Association (NMMA) is calling on As we seek to reform the RFS and boating industry supports 650,000 improve the lives of American busi- American jobs and contributes $39 President Trump and the EPA to recognize the harmful nesses, consumers, and families, the billion to the economy each year. And, effects of E15 on marine products and implement administration should not rule out approximately 142 million boaters take policies that expand renewable fuel options innovative solutions. By expanding ac- to the water annually. cess to more types of renewable fuels, Unfortunately, recent efforts to like biobutanol, and making sure that expand the sale of gasoline containing by the Outdoor Power Equipment cause, the National Marine Manufac- consumers are aware of potential dan- 15 percent ethanol — commonly known Institute, only 20 percent of consumers turers Association (NMMA) is calling gers, we can keep our economy strong, HI N G AS as E15 — at the pump year-round will notice ethanol content at a gas pump. on President Trump and the EPA to growing, and working for everyone.

put marine manufacturers and boaters Because 95 percent of boats are tow- recognize the harmful effects of E15 T at risk by making an unsafe and unreli- able, most recreational boat owners are on marine products and implement John McKnight is senior vice president O N T I MES S pe able fuel choice universally available. at risk of misfuelling at their local gas policies that expand renewable fuel of Environmental, Health, and Safety Boat engines and fuel systems station. options. A great place to start is break- Compliance at the National Marine cannot process E15 safely. However, ac- In order to prevent the damage that ing down all regulatory impediments Manufacturers Association. Please fol-

cording to a Harris Poll commissioned the proposed E15 expansion would to the full-scale commercialization of low @therealnmma. ci a l S e THE WASHINGTON TIMES c t io ns DEPARTMENT Erie phosphorus-reduction targets chal- news.nationalgeographic.com/ com/2012/07/31/opinion/corn-for-food- JUNG lenging but achievable. Retrieved from news/2014/08/140819-groundwater-cali- not-fuel.html From page C14 https://news.umich.edu/lake-erie-phos- fornia-drought-aquifers-hidden-crisis/ 48. Yousuf, H. (2012, July 20). Corn, phorus-reduction-targets-challenging- 44. Hidden Costs of Industrial Agri- soybean prices shoot up as drought edu/news/the_toledo_water_sup- but-achievable/ culture. (2018). Retrieved from https:// worsens. Retrieved from https://money. ply_shut_down_why_boil_water_advi- 40. Jung, J. (2018, July). Lake Erie on www.ucsusa.org/food_and_agriculture/ cnn.com/2012/07/19/investing/corn-

sories_were_not_enoug Recent Fishing Trip [Digital image]. our-failing-food-system/industrial-agri- soybean-prices/index.htm | Wednesday 5 • 2018 • S eptember 37. Geist, M. E. (2018, April 03). Lake 41. Wines, M. (2014, August 04). culture/hidden-costs-of-industrial.html#. 49. Istook, E. (2008, February 26). Erie has been declared impaired. So Behind Toledo’s Water Crisis, a Long- W0GHBthKit8 Ethanol policy threatens to starve the what? | Great Lakes Now. Retrieved Troubled Lake Erie. Retrieved from 45. Werkheiser, W. H. (2018, January world. Retrieved from https://www. from https://www.greatlakesnow. https://www.nytimes.com/2014/08/05/ 31). Mineral Commodities 2018. Re- heritage.org/energy-economics/com- org/2018/04/lake-erie-has-been-de- us/lifting-ban-toledo-says-its-water-is- trieved from https://minerals.usgs.gov/ mentary/ethanol-policy-threatens- clared-impaired-so-what/ safe-to-drink-again.html minerals/pubs/mcs/2018/mcs2018.pdf starve-the-world 38. Morrison, L. (2018, July 06). 42. Schrouder, K. S., Lockwood, R. N., 46. Sawyer, J. (2015). E85 Frequently 50. Carper Calls on President Trump The First 2018 Lake Erie Algal & Baker, J. P. (2009, September). Tittaba- Asked Questions and Answers. Re- to Address RFS Market Manipulation. Bloom Forecast is Here, and It’s Not wasse River Assessment. Retrieved from trieved from http://www.corunna-mi. (2018, March 16). Retrieved August 14, Pretty. Retrieved from https://www. https://www.michigan.gov/documents/ gov/government/city_manager/docs/ 2018, from https://www.carper.senate. clevescene.com/scene-and-heard/ dnr/SR52_text_540515_7.pdf E85/e85incfrequentlyaskedquestionsan- gov/public/index.cfm/2018/3/carper- archives/2018/05/07/the-first-2018-lake- 43. Dimick, D. (2014, August 21). danswers.pdf calls-on-president-trump-to-address-rfs- erie-algal-bloom-forecast-is-here-and- If You Think the Water Crisis Can’t 47. Carter, C. A., & Miller, H. I. market-manipulation its-not-pretty Get Worse, Wait Until the Aquifers (2012, July 30). Corn for Food, Not Fuel. 39. Erikson, J. (2016, March 22). Lake Are Drained. Retrieved from https:// Retrieved from https://www.nytimes. 15 Ethanol industry, small-engine manufacturers clash over damage from fuel

By Ben Wolfgang 15 percent ethanol blend, for example, isn’t The Washington Times suited for some older pieces of equipment. Others see the Outdoor Power Equip- Manufacturers of lawn mowers, snow- ment Institute and other critics as unwit- blowers, chainsaws, and other small-en- ting agents of the oil and gas industry, gine equipment continue fueling a debate which long has opposed federal ethanol over the supposed dangers of ethanol, but mandates and increased use of the fuel. the ethanol industry argues that they are The small-engine complaints, they say, merely looking for a scapegoat to mask are just pieces of a broader war against operator error. ethanol. Gasoline blended with ethanol has “We’re a threat, and that’s not compat- become commonplace for American driv- ible with the status quo,” said Doug Berven, ers, especially since Congress enacted the vice president of corporate affairs at POET, 2007 Renewable Fuel Standard and began a South Dakota-based biofuels company. mandating increasing amounts of the fuel “From an ethanol industry [perspective], at gas pumps across the country. Critics what we want is to offer choice to the argue that while such blends — including consumer. We would like to see all dif- the most common, E10, which combines 10 ferent types of fuel blends at a pump so a percent ethanol with regular gasoline — consumer always has the best value.” pose no problems for automobiles, they But whether consumers fully under- can often wreak havoc on small engines. stand the choices they are getting remains Those problems become even worse, an open question. E15, for example, has they say, with higher ethanol blends such been federally approved for automobiles as E15. “Sometimes a customer will have an problems in small-engine equipment can made in 2001 or later. Using the blend “You’re putting alcohol into the fuel. issue and it’s not covered under warranty be traced back to simple mistakes by the in vehicles older than that could lead to They’re different atoms. They don’t like because it’s a fuel storage issue,” said Terry owner, not any inherent problems with engine problems. to stay married,” said Kris Kiser, president Ditsch, vice president of product service ethanol itself. Mr. Ditsch and others argue that cus-

R c t io n S DEPARTMENT and CEO of the Outdoor Power Equip- at Echo USA, one of the nation’s leading “You can bring it into a mechanic and tomers simply may not pay attention to ment Institute, the leading trade group small-engine products manufacturers. he says, ‘Do you use ethanol? There you the specific type of fuel they are using, for power equipment and utility vehicle Like a host of other companies, Echo go, that’s the problem,’ without having ever especially if they are accustomed to filling ci a l S e manufacturers. “This is a big deal, and has produced a guide sheet warning cus- diagnosed it,” said Donn Larson, the CEO up with the cheapest choice at the pump. everybody wants to downplay it. But we’re tomers to avoid any ethanol blend higher of Larson Sales in Hudson, South Dakota, “The problem is you’ve got this little pretty sensitive to it.” than E10 and urging them to take extra a wholesale distributor of outdoor power sticker nobody pays attention to,” he said. One of the key issues, Mr. Kiser and precautions when using gasoline blended equipment. “This thing with E15, where it’s available

O N T I MES S pe others argue, is how rarely much of the with ethanol. “You put fuel in there and ethanol gets but it’s not really for small engines — T small-engine equipment is used. While Some companies even offer specially blamed. It’s easy,” he added. “And people you’ve got a disconnect between what’s automobiles run through tanks of gas designed fuel that is entirely free of buy into it in droves. But speak to them, ask available in the marketplace and the gen-

AS HI N G relatively quickly, lawnmowers and other ethanol. them where they got their information and eral public’s understanding of where it small machinery often contain the same Both sides of the debate point to stud- why they think ethanol is a problem, and can be used.” gasoline for weeks or months. ies that seem to prove their points, though they typically can’t answer you.” This news article first published online Over time, the ethanol attracts mois- anecdotal reports of engine problems have Mr. Larson and other ethanol backers on April 9, 2017. ture, separates from the fuel, and causes skyrocketed since ethanol has become contend that owners either allow fuel to sit serious engine problems, steering car more prominent, Mr. Kiser and others say. too long in their equipment or use a blend owners to repair shops. Ethanol proponents say most of the that is incompatible with their products. A O N T I MES T AS HI N G T H E W BY PREPARED CI A L REP O RT Demand grows for ethanol-free fuel A SPE t H E W | By Ben Wolfgang fuel trends. have found increasing demand. consumers want it.” The Washington Times While federal mandates make finding “Consumers don’t buy things because Ethanol proponents attribute the desire pure gas somewhat difficult — the vast retailers sell them. Retailers sell them be- for E0 fuel to the public relations war Ethanol’s rise over the past decade has majority of stations in the U.S. sell primar- cause consumers want to buy them. If you waged by the oil and gas industry, whose given birth to an under-the-radar market: ily E10, gasoline blended with about 10 see an outlet that’s selling pure gasoline, share of the fuel market could be chipped Americans who are willing to travel miles percent ethanol — specialists say there is nonblended gasoline, it means there’s a away further by growth of the ethanol out of their way and pay significantly more a dedicated market for the product. Some significant demand in the market,” said R. industry. per gallon for ethanol-free fuel. customers may hold fast to the notion that Timothy Columbus, a Washington lawyer Other trade groups, such as those rep- Like locally sourced food or antibiotic- ethanol damages engines over time, or they who represents the Society of Indepen- resenting small-engine manufacturers, free chickens and eggs, so-called E0, or may want to protest government policies dent Gasoline Marketers of America and also have taken a public stand against “pure gas,” has generated a cultlike fol- that have forced increased amounts of the National Association of Convenience ethanol. They warn that the fuel harms lowing willing to pay a premium. More ethanol into the gasoline supply. Stores. their products and urges the public to be

Wednesday • S eptember 5 • 2018 Wednesday than 12,000 service stations across the Whatever the reason, the service sta- “People may have 1,000 reasons they wary of gasoline with increasingly high U.S. and Canada now offer E0, according tion owners that sell pure gas, often at a want to buy it,” he said. “Retailers have 16 to pure-gas.org and other groups that track per-gallon price 40 cents higher than E10, only one reason they sell it, and that is » see DRIVE | C17 EPA report cites damaging impact of Renewable Fuel Standard

franchise owners who operate under nationally known chain restaurant brands — have borne the brunt of volatile and unpredictable costs. For example, corn prices in the RFS era have fluctuated between $3 and $8 per bushel, compared with a $2 average in the 10 years prior to the RFS. Due to corn’s prominent use in animal feed, higher corn prices translate into higher prices for other commodities such as beef and poultry. Because chain restaurants and small business franchisees operate on thin profit mar- gins, these extra costs inflate the bills of consumers. When the RFS was first introduced, By David French corn and soybean ethanol were sold he Environmental Pro- as a “bridge” to greener fuels such tection Agency recently as cellulosic and advanced biofuels.

released a report on the According to the EPA report, however, A SPE impacts of the federal Re- substantial volumes of those fuels newable Fuel Standard that have not been produced as anticipated, CI A L REP O RT PREPARED BY T H E W requires billions of gallons and large-scale use of feedstocks Tof ethanol be blended into the na- other than corn and soybeans has not tion’s gasoline supply each year. And occurred. Even worse, the report con- the report — which is four years late cludes that large-scale production is — comes to the same conclusion that not likely to be reached anytime soon. we’ve known for years: The RFS isn’t Those in the restaurant business working. have long known of the damage caused The “Biofuels and the Environ- by the RFS. Now we have yet another ment” study is the EPA’s second report they are also the dominant feedstocks consequences have long been known report to provide it. Unless Congress to Congress in which the agency has for biofuel production. Increased corn to the environmental and conserva- acts to overhaul this broken law, the found serious, significant problems and soybean cultivation has led to tion communities, many of which RFS will continue to harm the envi- HI N G AS with the RFS. more pesticide use and runoff, which originally supported the RFS but have ronment, businesses and ultimately,

In this new report, the EPA found has degraded water quality, ecosystem turned against it now that its true consumers. The time for action has T that biofuel production associated health, soil quality and possibly even impacts are clear. come. O N T I MES S pe with large-scale cultivation of corn air quality, which is ironic given that The RFS would be lousy policy on and soybeans has had damaging effects the RFS was passed as an amendment the basis of the environment alone, but David French is executive director of the on the environment, many of which to the Clean Air Act. it also whacks everyday consumers in National Council of Chain Restaurants

are attributed to overplanting the two The report also blames the RFS the form of higher food costs. Since in Washington, D.C. For more informa- ci a l S e crops. These two commodities are for contributing to land-use change the RFS became law in 2005, restau- tion, follow @NRFnews. the foundation of our food supply, but and decreased biodiversity. These rants — including the small business THE WASHINGTON TIMES c t io ns DEPARTMENT

federal legislation passed with bipartisan elsewhere. If they’ll fall short of the 10 “Above and beyond that, that’s a whole DRIVE support and signed by President George percent average, they can purchase RINs host of other issues,” he said, reiterating From page C16 W. Bush, called for increased amounts of from other companies that exceed the concerns that E15 and higher blends could ethanol to be blended into the nation’s threshold. pose problems for at least some engines.

levels of ethanol. gasoline supply each year. Right now, the “The way it works is because EPA set Moving forward, the ethanol industry | Wednesday 5 • 2018 • S eptember “We’ve seen these scare tactics from the mandate calls for a roughly 10 percent the standard now just over 10 percent. believes that E0’s share of the marketplace oil industry and even the small and off-road blend average. For every gallon of E0 that gets sold, eventually will peak. engine industries. You have the combina- That doesn’t mean that every single somewhere else in the country there’s “I think there’s room for growth before tion of all the negativity being well-funded gallon of fuel sold in the U.S. contains 10 some amount, a corresponding amount, of they figure out where the market penetra- and the opportunity for these fuel retailers percent ethanol. Higher blends such as E15 E85 or E15 or some other fuel that’s being tion value is,” Mr. White said. “At some to capitalize on that concern,” said Robert or E85 are also available at many stations blended into the market to provide the point, if the station across the street offers White, vice president of industry relations across the country, just as E0 is becoming RINs that enable the retailer of E0 to sell [E0], the margin isn’t going to be as strong. at the Renewable Fuels Association, a lead- increasingly common. that fuel,” said Patrick Kelly, senior fuels The competition will drive that back down ing ethanol trade group. To comply with the federal require- policy adviser at the American Petroleum to [consumers saying], ‘OK, maybe E10 is While refiners obviously can sell E0 ments, fuel companies must submit re- Institute, the oil and gas sector’s leading a better deal.’” to service station owners who in turn sell newable identification numbers, or RINs, trade organization. * Reporting for this story, which first ap- it to customers, the underlying process is to the Environmental Protection Agency. Mr. Kelly said the API is fully sup- peared online on April 25, 2017, was funded more complicated. Companies that sell E0 must have portive of E10 for highway and nonroad in part by the nonprofit Washington Policy The 2007 Renewable Fuel Standard, higher blends, such as E15, available engines. Institute. 17 Ethanol mandate: Costly to consumers, devastating to chicken industry

feed and into gas tanks. Ultimately, American consumers bear the added costs of the RFS, but poultry producers, meat packers and others face their own significant economic challenges. The price of corn feed is generally the most expensive part of raising chickens, and the RFS’ ethanol mandate has cost chicken producers an extra $62.5 billion in higher actual feed costs since 2007 compared with a 2006 baseline. Over that period, more than a dozen major producers have ceased operations. The RFS has steadily grown more expensive and more detached from its original good intentions. At the time the By Mike Brown RFS was adopted, the chicken industry he Environmental Protection was led to believe it included a workable Agency (EPA) this sum- “off-ramp” that would reduce mandates or drought away from another crisis; yet was 10.5 billion bushels. mer issued its proposal for in times of economic crisis. That belief the RFS continues to be expanded. The RFS is broken. Dozens of con- the 2019 mandated used of has proven to be very naïve. The original 2007 statute set a cap sumer and taxpayer advocacy organiza- ethanol in the U.S. fuel supply. On two occasions — in 2008, the on mandated ethanol use at 15 billion tions, hunger charities, engine manu- Of course, it was set at the first year that expanded ethanol man- gallons but to little effect. Last year, total facturers, restaurants, academics, and Tabsolute maximum allowed by law. dates were foisted on the market and production of ethanol was 15.8 billion livestock and poultry producers agree. This annual rite is a stark reminder drove corn prices to historic record gallons, and average weekly production It’s time for Congress to stand up to Big of the costs heaped onto American highs, and in 2012 during the worst to date is running ahead of last year’s Ethanol and reform the RFS.

c t io n S DEPARTMENT chicken farmers by the misguided 2007 drought in more than 50 years — EPA pace and on trend to hit nearly 16 billion Renewable Fuel Standard (RFS). That ignored the promised economic safety gallons. That’s the equivalent of about Mike Brown is president of the National policy creates an unfair advantage for valve. The results were devastating to 5.7 billion bushels of corn. To put that Chicken Council (@chickencouncil) in ci a l S e the politically coddled ethanol industry the chicken industry. Today, chicken volume in perspective, the year the RFS Washington, D.C. by diverting corn away from food and producers remain just one flood, freeze was adopted, total U.S. corn production O N T I MES S pe T

AS HI N G Even in the Midwest, ethanol mandate hurts more than it helps

if everyone else has to suffer with infe- of doing business by raising the cost of most motorcycles per capita. According rior fuel at the gas pumps. feed corn and soybean meal. That’s why to a report from the Motley Fool, Wis- O N T I MES

T Except, they don’t. Most people in the National Chicken Council, National consin (1 motorcycle per 17.8 people), the agricultural heart of America suffer Cattlemen’s Beef Association, National Iowa (1 motorcycle per 16.5 people) from this boondoggle, too. Pork Producers Council, the Milk Pro- and South Dakota (1 motorcycle per 8.9 AS HI N G T H E W BY PREPARED CI A L REP O RT Corn and soybeans — while excellent ducers Council and the National Turkey people) rank in the top four. Further- as foods — are far less efficient than oil Federation all oppose the mandate. more, there are boat owners aplenty in A SPE

t H E W as a fuel source. When these commodi- Four of the top six turkey-producing the Land of 10,000 Lakes. The Missis- | ties are diverted from the table to the states are Minnesota, Arkansas, Indiana sippi River, too, is a hugely popular pump, Midwestern Americans — like and Missouri. Iowa ranks No. 1 in egg playground for recreational boaters. the rest of us — have to pay more for production and processing where, ac- Anyone tempted to declare the etha- both fuel and food. Whether it’s a small cording to the Iowa Poultry Association, nol mandate an economic win for Amer- trucking business in Minnesota, a fast- the chickens consume “55 million bush- ica’s heartland should pause to tally the food franchise in Iowa or your average els of corn and 504,500 tons of soybean costs it extracts from the general popula- Joe in Illinois filling up his tank on the meal yearly.” Nebraska, Kansas, Okla- tion. The math is not so pretty when it way to the grocery store, they’re all pay- homa and Iowa are some of America’s encompasses the whole equation. ing more. top beef-producing states. By Nicolas Loris Livestock and poultry producers Yet another concern is that ethanol Nicolas Loris is The Heritage Founda- The federal Renewable Fuel Stan- pay more, too. Corn and soybeans are has proved to be harmful to smaller en- tion’s Herbert and Joyce Morgan Fellow, dard, aka the ethanol mandate, is often staple ingredients of the feed they use gines like those that power motorcycles specializing in energy, environmental and

Wednesday • S eptember 5 • 2018 Wednesday assumed to be a boon for the Midwest. on their ranches and farms. The ethanol and boats. Some top corn-growing states regulatory policy analysis. Please follow 18 Surely, the grain belt must benefit, even mandate artificially increases their cost also happen to be the states with the @Heritage and @NiconomistLoris. A SPE CI A L REP O RT PREPARED BY T H E W Renewable Fuel Standard: This ‘dog’ won’t hunt

our waters as well as our air. Therefore, HI N G AS the Sierra Club and the National Black

Chamber of Commerce are together on T this issue. O N T I MES S pe Older auto engines and small engines for lawn mowers, snow blowers, motorcycles, etc., are not designed to

cost of nearly every food there is. Most Second, it was claimed that the Re- handle corn ethanol fuel, and its use ci a l S e foods at the grocery store have corn newable Fuel Standard would be good can result in damage — and a short- syrup, corn starch or some other corn for the environment. That is far from ened lifespan — for those engines. The THE WASHINGTON TIMES derivative. Prices for all are higher the truth. The fact is it takes 28 percent difference is overwhelming. The cost c t io ns DEPARTMENT because of the mandate. Most meats, more energy to produce corn ethanol increase affects everyone. including chicken, turkey, beef and fuel than to stay with simple fossil The concept that the government has mandated exactly what will be used for fuel and how much will be The concept that the government has mandated produced annually squelches inno- By Harry C. Alford exactly what will be used for fuel and how much vation and new advances. Since the

government has decided winners and | will be produced annually squelches innovation Wednesday 5 • 2018 • S eptember e support regula- losers … nearly all of us become losers. tions that benefit the and new advances. Since the government has They have created an incentive not to economic vitality decided winners and losers … nearly all of us develop new, more efficient technology. of our capitalistic become losers. They have created an incentive It is quite clear that those with lim- nation and serve no not to develop new, more efficient technology. ited resources will be affected the most. threat to our national We are causing economic pain on our Wsecurity. The Renewable Fuel Standard citizens and business owners. Also, we (RFS) was a program that seemed to be pork come from animals that eat corn fuels. That is more greenhouse gases, are putting Mother Earth at more risk. consistent with that mission. However, feed. When the price of corn goes up, not less. If greenhouse gases are caus- it is without a doubt a program that is it has a direct effect on the price of ing global warming, the RFS is making Harry C. Alford is president and CEO filled with “unintended consequences.” those commodities. Also, eating out is it worse. of the National Black Chamber of Com- First, the government mandate that more expensive for the same reason Also, corn crops have more chemi- merce (nationalbcc.org). He can be corn be used in fuel drove up the cost whether it is at McDonald’s or a five- cal and phosphorous runoff than any reached at [email protected]. of corn, which, in turn, increased the star restaurant. other crop. This increases pollution of 19 Taxpayers tell Congress: Stop meddling in fuel markets c t io n S DEPARTMENT By The National Taxpayers Union thresholds. And, more recently, after a Philadelphia area refiner was bank- ci a l S e ore than 10 years after rupted by the volatile Renewable Iden- the Renewable Fuel tification Number (RIN) market (itself Standard (RFS) was ex- another toxic byproduct of the ethanol panded and finalized in mandate), the EPA has provided hard-

O N T I MES S pe 2007, policymakers are ship waivers that exempt some small T still wrestling with how producers from compliance. to implement this big-government boon- Without congressional action,

AS HI N G M doggle. Unintended consequences litter however, there’s little the EPA can do to the past decade of the RFS regime, but lift this burden on consumers and the reform has been hard to achieve even phase-separation, when water and etha- has jumped. The diversion of more economy. While the EPA can turn some as the toll to consumers and taxpayers nol settle out of the fuel mixture into the than 40 percent of corn production dials in the RFS formula, such as forcing mount. As we near the 2022 horizon, bottom of the tank, stranding boaters to Americans’ gas tanks has injected higher blends like E15 into the market- when the Environmental Protection far from shore. Lower energy content in unnecessary risk into the food chain place and displacing the E0 blend that Agency (EPA) is set to become the sole ethanol blends means lower gas mileage where one drought (such as the one many small engine users seek, the RFS arbiter of the RFS, Congress needs to act (and higher costs) for drivers who have in 2012) or other disaster could make is fundamentally at odds with real-world O N T I MES

T while it still can. to fill up more often. costs skyrocket for food producers and consumption habits and free-market The profound failures of the RFS The repercussions are also felt out- consumers. principles. are no surprise to any student of free side these direct hits to the family bud- By playing favorites with commodi- Government meddling in markets AS HI N G T H E W BY PREPARED CI A L REP O RT markets. Government meddling cre- get. RFS incentivizes corn and soybean ties, the RFS is currently contributing never ends well. And soon, Congress ates market distortions and triggers a cultivation at the expense of other crops. to a growing “corn glut,” exacerbated by could be leaving even more power to A SPE

t H E W host of painful repercussions. These The artificial demand mandated by high yields and trade uncertainty. Like dictate the fuel choices of consumers | are both seen and unseen, intended and Washington makes it justifiable for agri- squeezing one end of a balloon, govern- in the hands of an agency with a legacy unintended. Often, due to the law of businesses to plant on environmentally ment meddling in one area of the farm of overreach. Consumers and taxpay- dispersed costs and concentrated ben- sensitive land, leading to habitat loss. economy necessarily leads to problems ers shouldn’t have to keep paying such efits, the effect can be marginal for most Corn growing depletes the soil, increas- elsewhere. This poking and prodding a high price for past mistakes. It’s time people and largely undetected. ing the need for fertilizers that then run from Washington, with the goal of pour- to inject some common sense into our That’s not at all the case with the RFS. off, affecting water quality and leading ing more corn into fuel tanks, makes economic engine and take on the broken There are few federal policies the uptick in harmful algae blooms and our farm economy less resilient and less RFS. where so many can see so tangibly the dead zones in the Great Lakes and the responsive to market signals. cost of government interference as in Gulf of Mexico. And taxpayers get an- Despite all this, so far Congress has Founded in 1969, the National Taxpay- the transportation fuel marketplace. other hit to the wallet to fund programs failed to unravel the RFS web — trap- ers Union is the “Voice of America’s Increased volumes of corrosive ethanol to clean up these hazards at the local, ping taxpayers. To its credit, the EPA Taxpayers.” Its mission is to achieve have wreaked havoc on small engines state and federal level. has used its authority to adjust the favorable policy outcomes using the

Wednesday • S eptember 5 • 2018 Wednesday such as motorcycles and chainsaws. Crop diversification has fallen as Renewable Volume Obligations (RVOs) most effective pro-taxpayer team on 20 Marine engine failure can be caused by land devoted to ethanol production by setting volumes under the statutory Capitol Hill and in the states. @NTU. R A SPE CI A L REP O RT PREPARED BY T H E W An outdated mandate that drives up gasoline prices

For more than a decade — as free But the days of American energy leaves a pseudo-market intact. HI N G AS market competition and private sector scarcity, thankfully, are gone. These aren’t real reforms. They’re

ingenuity, not government’s heavy Today, America is a global energy simply attempts by politicians and an T hand, transformed our nation’s energy player, poised to become a net ex- army of special interests to further dis- O N T I MES S pe outlook for the better — American porter. And this has all happened in tort energy and fuel markets. There’s consumers, family farmers and refiners spite of the RFS, not because of it. no rationale or economic justification have suffered under this economi- With the United States awash in oil to maintain this outdated mandate.

cally and environmentally destructive and natural gas, the ethanol mandate For the sake of consumers, family ci a l S e policy. is a fundamentally unnecessary policy farmers, refiners and our environment, Like other government policies that of yesterday. Yet, faced with these Washington should end this failed THE WASHINGTON TIMES attempt to pick winners and losers, facts and growing frustration from policy once and for all before it does c t io ns DEPARTMENT the RFS creates many of the latter and American families and businesses, as any more harm. The latest so-called very few of the former. It’s a prime well as many across the agriculture fixes to the program will only make example of the economic phenomenon community, the Trump administration matters worse. of concentrated benefits — for corn and some in Congress are considering Democrats and Republicans both states in this case — and dispersed options to prop up the mandate when bear responsibility for this disaster. By Thomas J. Pyle costs — thrust upon the millions of they should be finding ways to end it. Too many in Washington listen to a

other Americans who pay more at the So-called “fixes” that have been small but powerful group of special | Wednesday 5 • 2018 • S eptember nly in Washington do we pump without any meaningful benefits proposed by some special interests are interests rather than the American call expanding a pro- for doing so. more government meddling with the people. gram “reform” and more At the time of its initial passage — fuels that American consumers are Fortunately, an opportunity exists special-interest handouts several years before the first iPhone forced to use. It’s classic Washington. for both parties to listen and be re- “fixes.” That’s precisely was launched — America’s energy out- For example, year-round “E-15” (fuel sponsive to the people they represent. what’s happening with the look was much different, with higher containing 15 percent ethanol) sales It’s time for Washington to finally ORenewable Fuel Standard (RFS) — an prices at the pump, limited access to give corn growers government-guaran- repeal the RFS, get government out of outdated ethanol mandate that drives domestic supplies, and a deepening teed market share — or backdoor sub- the business of picking winners and up gasoline prices and puts refiners out reliance on foreign energy sources to sidies — but will harm drivers whose losers, and let the free market move of business. meet our increasing demands. cars weren’t built to run on ethanol our energy economy forward. Enough In a continuation of this unending Given the perceived domestic energy while charging them more at the pump. is enough. saga, corn and refining state senators scarcity and rising consumer costs, Likewise, allowing exported gallons of met again at the White House earlier politicians of both parties cast their ethanol to count toward domestic RFS Thomas J. Pyle is president of the this year to discuss “solutions” for the vote to “grow” more of our energy from blending requirements provides some American Energy Alliance (@AEA). RFS’ many shortcomings. corn in our nation’s heartland. relief for the refinery industry, but still 21 Ethanol policy: A government failure that should stop

hiccups or unintended economic and it impossible for refiners to adhere to estimates, the ethanol market redis- political consequences. its ever-rising mandated use. tributes roughly $7 billion a year to First, the writers of the Renew- This situation has forced the corn growers and distillers from the able Fuel Standard (RFS) language Environmental Protection Agency to refining industry, which, in turn, must assumed that gasoline use would become a market try to pass the costs continue to grow at a rate of roughly 1 intervener off on consumers. percent per annum. Instead, the 2008 on a grand Meanwhile, the recession caused gasoline demand to scale, upset- fracking revolution decline by 6 percent between 2007 ting both has more than dou- and 2012. refiners and bled U.S. oil produc- That, in turn, created a glut of farmers. By some tion since the mandate By R Street Institute ethanol that threatened to damage was passed, which makes many older car engines by push- the law irrelevant to U.S. energy lmost everyone reading ing the level of ethanol above the 10 security. this is aware that govern- percent threshold covered by engine Given that the RFS mandate ment interventions in the warranties. expires in 2022, it’s possible an op- marketplace usually fail. Second, the law assumed that portunity to escape this policy mael- From attempts to limit cellulosic ethanol derived from strom will present itself. As difficult inflation in the 1970s to non-food plants would be as it will be to dislodge parts of the theA sub-prime housing bubble in 2008, commonplace by around farm economy from its government- “government failure” is as real a threat 2015, but research- created ethanol dependence, U.S. to American prosperity as any “mar- ers were never consumers will benefit in the end. ket failure” that’s occurred in the past able to develop half-century. market-ready R Street Institute is a nonprofit, non- Despite these examples, politicians cellulosic partisan, public policy research organi- and their donors always seem willing ethanol, zation. Its mission is to engage in policy to introduce new, perverse incentives mak- research and outreach to promote free

c t io n S DEPARTMENT into the marketplace, usually with ing markets and limited, effective govern- good intentions, in order to achieve a ment. Please follow @RSI. short-term outcome. ci a l S e The current law mandating ethanol use in gasoline is an example of one such government failure. Passed in its current form in

O N T I MES S pe 2007, the legislation mandated T the blending of corn ethanol The 2008 recession into the U.S. gasoline pool caused gasoline demand AS HI N G to a level of 10 percent to decline by 6 percent to help curb expensive foreign oil imports at between 2007 and 2012. a time of very high This, in turn, created oil prices. Unfor- a glut of ethanol that tunately, the law threatened to damage didn’t take into account the many older car engines O N T I MES

T potential for by pushing the level of technical ethanol above the 10 AS HI N G

T H E W BY PREPARED CI A L REP O RT percent threshold covered by engine warranties. A SPE t H E W |

illustration by linas garsys Wednesday • S eptember 5 • 2018 Wednesday 22 Renewable Fuel Standard is a dead end

By Ryan Alexander decade ago Congress created the current federal Renewable Fuel Standard (RFS) to jump-start the alternative fuels mar-

ketplace. The goal was A SPE to spur the production of billions of A CI A L REP O RT PREPARED BY T H E W gallons of cellulosic biofuels derived from perennial grasses, agricultural residues, and other non-food sources. The hope was that blending these biofuels with U.S. gasoline and diesel would significantly reduce harmful emissions and improve U.S. energy security. However, more than 10 years later, it is clear the RFS is hopelessly ineffective. My organization, Taxpayers for Common Sense (TCS), has opposed HI N G AS the Renewable Fuel Standard since illustration by greg groesch

the beginning. The RFS distorts mar- T kets by picking winners relying on a O N T I MES S pe system of direct and indirect subsi- disruptions and increased burden dies primarily to corn ethanol. For associated with shifting feedstocks nearly four decades, corn ethanol has among the wide range of companies

received billions of dollars in govern- that are relying on them today...” ci a l S e ment subsidies. For these and many other reasons, Instead of creating an on-ramp TCS has joined a growing chorus of THE WASHINGTON TIMES for non-food-based biofuels, the RFS diverse interests calling on Congress c t io ns DEPARTMENT did little more than provide further to address the broken RFS mandate support to already heavily subsidized and stop picking winners and los- corn ethanol and more recently, ers. While the corn ethanol industry soy biodiesel. That’s right, the large promised that decades of subsidies majority of the RFS mandate has been (tax credits, farm bill bioenergy subsi- filled with first-generation, food-based worse. Next year’s cellulosic biofuel decades ago. The detrimental impacts dies, ethanol blender pump subsidies,

biofuels — the opposite of its pur- volume is expected to meet just 4 of skyrocketing corn ethanol produc- etc.) would lead to better biofuels, | Wednesday 5 • 2018 • S eptember ported goals. percent of the 8.5-billion-gallon 2019 tion since 2007 include higher food corn ethanol has instead proven to be These first-generation biofuels may cellulosic biofuel mandate, accord- and feed costs as it is diverted to fuel, an expensive bridge to nowhere. The actually increase instead of decrease ing to the newly released renewable damage to small engines from higher sooner Congress realizes the RFS is a greenhouse gas emissions. A recent, volume obligations while corn ethanol ethanol use, and higher fuel costs. dead end, the better for all of us. congressionally mandated report on volumes are maxed out at 15 billion On top of the dire impacts from the RFS concluded that the expansion gallons. corn ethanol, using palm oil instead Ryan Alexander is president of Taxpay- of corn and soybeans onto grasslands My organization has worked along- of soybean oil for food to make up for ers for Common Sense, a nonpartisan and wetlands since 2007 has also side a broad range of stakeholders, the losses created by diverting soy- budget watchdog that has served as an harmed our wildlife, land, air, water including consumer, environmental, bean oil to biofuels could “in turn… independent voice for the American tax- and soil. These negative impacts agricultural, food and commodities, increase the lifecycle GHG emissions payer since 1995. Its mission is to ensure increase costs for consumers, utilities, motorcycle, fishing and boating inter- associated with these incremental vol- that taxpayer dollars are spent responsi- fishermen, the poor and taxpayers. ests to highlight the negative conse- umes,” according to the Environmen- bly and that government operates within Without action to reform the RFS, quences and costs of corn ethanol tal Protection Agency. EPA elaborates: its means. Please follow @taxpayers. the situation will continue to get subsidies since their inception four “There would also likely be market 23 July 26, 2018

Andrew Wheeler Acting Administrator Environmental Protection Agency 1200 Pennsylvania Avenue, NW Office of the Administrator, 1101A Washington, DC 20460

Dear Acting Administrator Wheeler:

In recent weeks, media reports indicated that the Environmental Protection Agency (EPA) considered a proposal to retroactively reallocate the Renewable Fuel Standard (RFS) compliance obligations from small refineries, which have received hardship relief, to other refineries and importers. Thankfully, in the proposed rule setting renewable volume obligations for 2019 (the “2019 RVO”), EPA abandoned this ill-considered plan. However, given the requests from biofuel interests, we are writing this letter to state very clearly our strong opposition to any future resurrection of this proposed policy.

There is little doubt that retroactively reallocating obligations would only compound the problems with the RFS. Simply put, a retroactive reallocation of small refinery obligations to other obligated parties is illegal and fundamentally unfair, imposing a financial penalty on refineries that have otherwise been in compliance with the law. By so doing, retroactive reallocation violates the principles of due process and administrative law and is clearly not authorized under the Clean Air Act. Further, retroactive reallocation injects radical uncertainty into the market for compliance credits, hurting the U.S. refining base, its workers, and the communities they serve.

Retroactive reallocation is also inconsistent with sound energy policy. A robust domestic refining sector is a key element to national security, as administrations of both political parties have found. Refineries are a source of high-paying manufacturing jobs, thousands of which are placed at risk when RFS compliance obligations aren’t reasonable and when compliance costs escalate. All of this is placed in harm’s way if EPA retroactively reallocates the obligations of small refineries, which have received hardship relief. We urge EPA to maintain the policy articulated in the proposed 2019 RVO and not deviate from sound policy and the law by trying to fashion any form of retroactive reallocation. Any other direction undermines national security, threatens higher gasoline prices for U.S. consumers, and risks economic harm to fuel providers and the loss of manufacturing jobs.

c t io n S DEPARTMENT Sincerely, ci a l S e

James M. Inhofe Ted Cruz Joe Manchin III

O N T I MES S pe - United States Senator - United States Senator - United States Senator T AS HI N G Orrin G. Hatch Bill Cassidy, M.D. Pat Toomey - United States Senator - United States Senator - United States Senator

Michael B. Enzi Tom Cotton Jeff Flake - United States Senator - United States Senator - United States Senator O N T I MES T AS HI N G T H E W BY PREPARED CI A L REP O RT John Barrasso, M.D. David A. Perdue Shelley Moore Capito - United States Senator - United States Senator - United States Senator A SPE t H E W |

James E. Risch Cindy Hyde-Smith James Lankford - United States Senator - United States Senator - United States Senator

John Boozman Johnny Isakson Steve Daines - United States Senator - United States Senator - United States Senator

Wednesday • S eptember 5 • 2018 Wednesday Michael S. Lee Roger F. Wicker John Kennedy 24 - United States Senator - United States Senator - United States Senator