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Northey hopeful EPA’s delay is a good sign

Reaction from ag leaders has been mixed following the EPA’s announcement that it is once again delaying its decision on 2014 ethanol blend requirements in the Renewable Fuels Standard (RFS).

Iowa secretary of agriculture Bill Northey says that while he is disappointed with the continued delays, he is hopeful that the EPA is reconsidering its decision to lower the requirements in the RFS.

“This may be a sign that they’ve heard the concerns from the Midwest and those that want to be able to have ethanol as part of the mix,” Northey says. “(I hope) they realize the concerns by the oil companies were vastly overstated and maybe they’re more willing to go back to those original numbers.”

But Northey says EPA’s indecision has caused plenty of uncertainty for the biofuels industry, especially the cellulosic ethanol and biodiesel sectors.

“We’ve got three facilities in Iowa that are or will be producing cellulosic ethanol—next generation stuff, great stuff–great to be able to go onto existing plants out there. But folks are waiting to see what EPA says,” Northey says. “And then certainly on the biodiesel side not only the RFS, but the lack of a tax credit for biodiesel, has really given us a lost opportunity this year to be able to grow that market.”

Dennis Morrice-KLEM, Le Mars, Iowa contributed to this story.