The Environmental Protection Agency today set the final renewable fuel standards for 2015 and 2016, but the Iowa Renewable Fuels Association immediately said the agency ignored federal law and didn’t do enough.

 

“Today’s announcement by the EPA was a gut punch for consumers and farmers,” Monte Shaw, the association’s executive director, said in a statement. “Given the EPA’s stated rationale for these numbers, one of the most successful energy policies in our nation’s history has been put squarely in the stranglehold of the petroleum industry. As a result, consumers will see higher prices at the pump, and Iowa farmers will likely continue to see commodity prices below the cost of production.”

Shaw said the rule is especially bothersome when grain prices are low and the agriculture economy is struggling.

“This final rule is a severe step backwards for consumers, farmers, the environment and energy security,” Shaw said.

The original corn-based ethanol targets under the renewable fuel standard called for 15 billion gallons in 2015 and 2016. Today, the EPA finalized these targets at 14.05 billion gallons for 2015 and 14.5 billion gallons for 2016.

On the biodiesel front, the National Biodiesel Board had requested goals of 2.4 billion gallons in 2016 and 2.7 billion gallons in 2017. The EPA set the targets at 1.9 billion gallons for 2016, and 2 billion gallons for 2017.

Gov. Terry Branstad had pressured the EPA to set higher goals, and a poll by America’s Renewable Future and DuPont showed that 61 percent of Republicans and 76 percent of Democrats in Iowa would be more likely to back a presidential candidate who favors growth in renewable fuels.