The long-awaited biofuel package from the Trump administration was released Friday, but still had more questions it seems than answers. Even USDA Secretary Sonny Perdue did not have a lot of details to offer in remarks he made after the announcement.
Perdue told Agri-Talk that certainty was the biggest thing this announcement will bring. The administration is seeking to “follow the letter of the law,” Perdue remarked, referring to the RFS requirement that 15 billion gallons of conventional ethanol (primarily corn-based ethanol) be used in the nation’s motor fuel.
But the focus for USDA will especially be on E15, Perdue noted, explaining they are “working on ideas” and “listening to the industry on ideas of what it will take to grow E15 demand. What is the best way we can quickly make E15 the fuel of choice.”
Perdue said there will still be small refinery exemptions (SREs) issued, although “maybe not at 100 percent, but maybe 50 percent.”
The use of a three-year average of SREs is one way that those “will be accounted for,” Perdue said. While reallocating those SREs was looked at, he noted it was “a hill too high to climb.” But EPA will be using that three-year average to “maintain the minimum 15 billion gallons” for conventional ethanol, he observed.
One way to bolster E15 is “those pumps capable and certified for E10 can be used for E15,” Perdue said. Noting that E15 fuel is typically cheaper, he predicted: “If we give customers the choice, I am pretty confident of the choice they will make.”
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