By Julia Shanahan | June 13th, 2019
President Donald Trump recently approved the sale of year-round ethanol for consumer access – a move that was applauded by Iowa’s Republican Senators Chuck Grassley and Joni Ernst.
In a joint press release from Grassley, Ernst, and Iowa Gov. Kim Reynolds, they commended Trump for “keeping his promise” to Iowa farmers.
“[Trump’s] directive to EPA to finalize a rule allowing year-round sales of E15 will allow for an open marketplace with more fuel options, encourage competition and drive down fuel costs — all while improving the environment,” said the June 11 press release.
Trump made an Iowa campaign stop on June 11 in Council Bluffs and West Des Moines, where he touted his approval of year-round E15 to farmers and manufacturers in Council Bluffs. E15 is championed as something that could boost Iowa’s economy because of the use of corn in its manufacturing.
E15, a gasoline blend with 15 percent ethanol, burns cleaner than standard fuel and can be used in all 2001 and newer vehicles. Burning ethanol does result in the emission of greenhouse gas, but when the combustion of ethanol is made from corn or sugarcane, it’s considered atmospheric neutral, because the biomass grows and absorbs CO2.
As of March 2019, Iowa’s ethanol industry has accounted for 43,697 jobs and $4.7 million in GDP, according to the Iowa Renewable Fuels Association. In 2018, there was 4.35 billion gallon of ethanol production.
In a 2016 editorial from the Yale School of Forestry & Environmental Studies, a professor of food and agriculture policy wrote that increasing corn production in the Midwest for ethanol use has repercussions on the environment, and questioned the profitably of the ethanol industry. He referenced ethanol production taking off in the mid-2000s and corn prices reaching record highs in 2007.
However, the USDA cites other contributing factors to the high corn prices, including the depreciating U.S. dollar, bad weather, and policy responses on imports and exports of commodities.