EPA uses sorghum to help farmers cope with trade war

Senators and congressmen had called on former EPA chief Scott Pruitt to approve sorghum under EPA’s Renewable Fuel Standard program, as farmers face low crop prices and are looking for new markets for their crops.

The announcement comes on the heels of a $12 billion White House emergency farm aid package Tuesday to support farmers hurt by an ongoing trade war.

Biofuel proponents and farmers have argued that Pruitt, who resigned earlier this month over a number of scandals, dragged his feet in approving sorghum for production of biofuels under the EPA fuel program.

The agency published its intent to allow sorghum to be used as a feedstock under the RFS in December, but final approval of the rule has not been made. Wheeler will announce the approval late Tuesday afternoon at a ceremony with lawmakers at EPA headquarters, according to the agency.

Wheeler also announced earlier Tuesday that he was relaxing reporting rules for farmers in accordance with the FARM Act that called for the removal of “undue reporting burden” on America’s agriculture industry.

“EPA is taking action to reflect Congress’s direction in the FARM Act that removed an undue reporting burden on American agriculture,” said Wheeler in a statement. “EPA is committed to providing regulatory clarity and certainty to farmers and ranchers — hardworking Americans invested in conserving the land and environment.”

Republican Sen. Deb Fischer of Nebraska joined Wheeler in the statement. “Over the years, we’ve seen too many harmful federal regulations make it harder for Nebraska agriculture producers to feed the world,” she said. “I thank Acting Administrator Wheeler for signing this final rule to implement the law that will provide our nation’s producers with the relief they deserve.”

The ethanol industry said it was pleased with the steps taken by the administration in providing the $12 billion in farm relief, but said EPA could do more.

The Renewable Fuels Association, the ethanol industry’s top trade group, wants the agency to move forward with President Trump’s endorsed plan from earlier in the year to increase the amount of ethanol in the nation’s gasoline supply.

This would be accomplished by allowing 15-percent ethanol fuel blends to be sold year round. Currently, the higher blend of ethanol is restricted from use during the summer months due to high Reid Vapor Pressure rating for fuel volatility.

EPA could grant a year-round waiver to allow the fuel to be sold year round. Bob Dinneen, the ethanol trade group’s president, said he hopes that as the administration explores trade mitigation options, “they will also recognize the benefit of providing RVP relief.”

Part of the reason the Trump administration is acting Tuesday is due to the tariffs that China and other countries have placed on U.S. agriculture products, including ethanol, in response to the president’s trade policies.

“The ethanol industry is an important value-added market for corn growers and with another record crop on the horizon, any chance to create additional market opportunities will help,” Dinneen said. “Market opportunities such as year-round access to 15% ethanol (E15) would be a step in the right direction.”

While Dinneen said he wants to work with the administration to move this plan forward, other ethanol lobbyists in Washington were much more confrontational.

“Once again, this administration has missed an opportunity to provide long-term relief to farmers by increasing domestic demand through RVP relief,” said Emily Skor, president and CEO of Growth Enegry, representing large ethanol producers. “We will continue encouraging the President and his administration to uphold his promise of supporting farmers and rural Americans by following through on allowing the year-round sale of higher blend fuels.”