Ethanol critical piece of America's energy strategy

The conflict over the Renewable Fuel Standard between the EPA, Congress and special interest groups have left hardworking people throughout rural America with a growing sense of uncertainty about their futures. An honest discussion about this program is long overdue. In order to do that, it’s necessary to understand where the RFS began, how it evolved and the role it plays in ensuring American prosperity and security. For decades, refiners have used octane enhancers. Lead was the most common but was replaced in the late 1970s by an organic compound called Methyl tert-butyl ether (MTBE). Twenty years later, Congress passed the Clean Air Act Amendments of 1990, which required the use of oxygenated gasoline in areas with high levels of air pollution. The law increased MTBE’s popularity because it helped reduced tailpipe emissions. However, when MTBE was exposed as a public health risk, its use sharply declined, leaving refiners searching for an alternative. That alternative was ethanol. In 2005, Congress passed the Energy Policy Act, which removed the oxygenate requirement for reformulated gasoline. It also instituted the RFS. Refiners eliminated MTBE from blending operations and switched entirely to ethanol. In 2007, the Energy Independence and Security Act passed, expanding the RFS by extending yearly volume requirements and increasing long-term blending goals. The tax credit, what many called the “ethanol subsidy,” given to oil companies to incentivize blending, was then allowed to expire.