Minnesota Gov. Mark Dayton, Iowa Gov. Terry Branstad
We are governors from neighboring states and different political parties. We don't agree on everything, but we stand united in our belief that our nation needs a robust Renewable Fuel Standard (RFS) and together in our opposition to the Environmental Protection Agency's proposal to weaken the RFS.
Since Congress enacted the RFS in 2005 by huge bipartisan margins, it has provided the secure policy foundation that rural America needs to continue investments in renewable fuels. Those investments yield excellent returns. They diversify our nation's energy portfolio, clean the air, grow opportunities for businesses, create good paying jobs in rural America, add value to farm products, and give consumers lower-cost choices at the pump.
Big Oil dislikes renewable fuels, and has used its clout in Washington D.C. and at state capitals to thwart their progress. When Minnesota became the first state to require all gasoline sold to contain at least 10 percent ethanol (E10), Big Oil predicted fearsome disasters. They warned that ethanol would clog cars' carburetors and explode their engines, disrupt supply lines causing gasoline shortages, and increase the price at the pump for consumers. None of that happened.
The petroleum industry also claimed that the RFS causes higher fuel prices. In fact, the opposite has proven true. On February 4, 2014, regular gasoline in Cresco, Iowa, a town about 15 minutes from the Iowa-Minnesota border, was selling for $3.44 per gallon. E10 was selling at $3.13 per gallon. E85 fuel, which is 85 percent ethanol, was selling for $2.60 per gallon at the same station - 84 cents per gallon cheaper than regular gasoline.
A recent study at Iowa State University found that, "Feasible increases in the ethanol mandate in 2014 will cause a small decline in the price of E10. Our results should reassure those in Congress and the Administration who are worried that following the RFS commitment to expanding the use of renewable fuels will result in sharply higher fuel prices for consumers."
The Environmental Protection Agency previously estimated that by 2022, renewable fuels would replace 13.6 billion gallons of gasoline and diesel consumption and save motorists nearly $12 billion each year. The EPA also predicted that this displacement of gasoline and diesel would reduce annual greenhouse gas emissions by 138 million metric tons, equivalent to removing 27 million vehicles from our nation's highways. Ethanol can increase competition and save consumers money, provide real choice at the pump, and drive innovations and efficiencies that are good for the economy.