To the editor: Fix America's energy policy

High compliance costs of mandates do not help farmers, but they do threaten jobs in Ohio. 


Sun, 24 May 2020 04:00:00 GMT

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A recent letter (“Preserve renewable fuel standard, protect ethanol,” May 9) maliciously targets the Toledo and Oregon mayors for appropriately requesting needed regulatory relief for Ohio manufacturers. Recent history proves that responsibly issuing a temporary, partial waiver of the federal Renewable Fuel Standard (RFS) will protect Ohio manufacturing jobs, without any impact to corn farmers or ethanol producers in the region.

In the midst of the coronavirus epidemic, the price of RFS compliance credits, which refiners are required to purchase, has tripled since January, while the price of gasoline, diesel, and all other commodities has tumbled massively. Because of the RFS, refiners are facing hundreds of millions of dollars in extra costs at a time when many are struggling to keep plants open.

RFS compliance costs add insult to injury in this market, especially because high credit prices have zero impact on ethanol demand. In recent years, as the Environmental Protection Agency (EPA) issued RFS exemptions for small refineries and the price of credits fell in concert, the percentage of ethanol blended into the fuel supply kept increasing. Ethanol is a necessary component of most gasoline, regardless of the volumes mandated by the RFS. A pro-biofuel agricultural economist recently noted, “Whatever the level of gasoline use turns out to be in 2020, it is most likely to still contain at least 10 percent ethanol.”

Finally, since the government has repeatedly mandated more ethanol blending than the fuel supply can safely absorb, refiners have had to rely on hundreds of millions of gallons of foreign biodiesel to meet total RFS biofuel mandates. This is an “UnAmerica First” energy policy and does nothing for Ohio farmers.

The facts prove high compliance costs and mandates that exceed today’s infrastructure constraints don’t help farmers, but they do threaten Ohio’s refining jobs and regional fuel supplies. We applaud Mayors Kapszukiewicz and Seferian for calling on the Trump Administration to protect Ohio’s manufacturing jobs.

SHAUN ENRIGHT

Executive secretary and business manager, Northwest Ohio Building Trades

Toledo

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