Iowa, Nebraska AGs to sue Biden administration over delayed ethanol rule

Iowa Attorney General Brenna Bird (R) and Nebraska Attorney General Mike Hilgers (R) on Monday announced their intent to sue the Environmental Protection Agency (EPA) for delaying its decision regarding whether to allow year-round sales of higher-ethanol fuel blends.

The lawsuit comes nearly a year after seven midwestern leaders, led by Iowa Gov. Kim Reynolds (R), wrote to the Biden administration to request a waiver allowing the sale of E15 fuel, which is 15 percent ethanol, year-round, waiving summertime restrictions.

The EPA issued a waiver last summer allowing the sale of the fuel, and earlier this March issued a proposed rule allowing year-round sales, but it would not take effect until 2024, more than two years after the governors’ request.

In an intent-to-sue letter Monday, the state attorneys general cited the Clean Air Act, which allows the federal government to waive certain fuel-blending requirements.

“The EPA needs to follow the law and make E15 gasoline available year-round,” Bird said in a statement. “With record-high gas prices, consumers deserve relief and flexibility when paying at the pump. The EPA’s failure to respond on time not only deprives hard-working Iowans of a cheaper, cleaner option, it’s also a violation of the Clean Air Act.”

“Iowa led the country in expanding ethanol access, and Iowa will go to Court to lead again if the law isn’t being followed,” she added.

The announcement follows a Thursday letter from 10 senators and 21 House members representing the Midwest asking EPA Administrator Michael Regan to grant the governors’ request.

The Renewable Fuel Association (RFA), the primary trade group representing the ethanol industry, backed the AGs in a statement.

“We thank these attorneys general for holding the administration accountable to its responsibilities under the Clean Air Act. The law is clear — EPA should have finalized the Governors’ petition last July and had everything ready to go for this summer,” RFA President Geoff Cooper wrote. “Now, the marketplace finds itself in between a rock and hard place because of the administration’s inaction, and consumers are at risk of losing access to low-cost, lower-carbon E15 in a few short months.’

‘We join these AGs in urging EPA to follow through on its statutory obligation to finalize the Governors petition before this summer,’ he wrote.

The Hill has reached out to the EPA for comment.