# :·.~:~in **:W~**

**'** rJ

# {)/~IV 5,



# ~I J 

# J 

# ::,y,Y) Ru l e(

s) Discussed : 

## 2.0



## I~ **--** 

# J " /<- V 0 1 

### )J 

## f

**1~** Written



# Materi

**o** Name Organization



# ~;.;// **s:f'~A"C C...hc-V~A** 

**cJ d** 



# ~-e v ;' V'\


# ~V\t'\ 't I 

# J- 

# EftA

**~~~ l1AC-\4**  

# Q )(. t-1 

## kv.\Jj 

# !v1 

# evrdtt Jr\ 

# ?

**(l' e-**  '- 

# C v'{ 

# "&e.. (.IV\.- 

### v.._

## t/\ 

# f\N1A~ 

# YQ_-tc /'

/H@t e sfr 

# ~tc..~ &7-,(vr/ 

# JVl

**q- 1**  

## L 

# Lo v-. \



# -~ **~0** }:;.e,-j 

# AP-r.



# ~JL 

# 6o,ytvrJ

**RrP ~** 

f;A, c 

# !l/e/srYV' C / c:v/u /1 / 

# [ke.t

**~/I'D H''~"'**  

# A F 

# f fV\ 

# /3 o b

**~** 

# APT E(ik

**6~o1 -~**  

# \t 

# _A{l lf)[tl



# C>VV\Ml 

# At\ 1 111LJ/O-- 

# Vcu1 o kt 

# tf>ft :/3evr /-fR (/(7 

# S

# P §lA

# I P h one Numb e r 

# j

zuz y o r:J

**~** 

# B..SJ 2o 2.

**~** 

# c:;& L( - ) ( 

# S 

# > 1 -;{j ?_ 

# L/ VJ 

# C 3 t0

**Ao8.~** 

# 7 

# J3 - 04J I



# ~-z_ **)/02 o2.**  **-" ~s:i**  I 2 r:J?.- 

# G

**~** 2-



# Lt **0~**

**zv~** 

# - lPB Z1 - 

# gsr;-o C?:??--99 1 - 2729 _!- 

# z I?""Z./

**~** 0'-- (.,

**~** 0

**~**



### ~0:2-£8' **~** 

# -2 (( / 

# l01 -- { fL



# ~l 

# So 

# I 2ez 

# ,~82-~39~ ()[)d..



# ~r,.4- 

# o3of -.;;>'



### ~61
**,** 

# l'frs

### EO is Required in the Marketplace E IA collects and publishes adequate data in their pet rol eum supply s urvey s to estimate EO use . As the anal ys is b e low s hows, th e EO vo lume is a s ignificant portion of the gaso lin e pool and s hould be included i n th e calculat io n of how much eth ano l can be consumed. The vo lum e of EO sup pli e d to the m arket can be d etermined by using the fo ll ow in g equati on: 

### Produ ct Supplied = Dom es tic produclion 

### + imporls - expo rls - cha n ge in inven101y E IA co ll ects and publish es data for product ion, import s , and in ventory of fini s he d EO . E IA does not co llect ex port data, but publishe s data co lle cted by th e Ce n s us Bur eau. Ex port s of " finish e d gaso lin e" are lik e l y a ll EO du e to th e wi d e range of a ll owed ethanol conte nt in the wo rld and difficu lty of tran spo rting e th anol- bl e nded gasoline. The Table demonstrates the ca lculation of EO . EO Product Supplied Percent of Total Gasol in e 50% 45% 40% 35% 30% 25% 20% 15 % 10 % 5% data source: EIA 0%

**~ ~**  **~** m m m o o o

**~** 9 0 0 0 9 9

**~** M rl rl c 

### >

**~** 

## c >

**~** c 

### >

**~** 

## c

**~ ~**  **~ ~**  **~ ~**  **~ ~**  **~ ~**  **~ ~**  N N N m m m

**~ ~**  **~ ~**  **~** rl

**~** H rl H rl rl rl

**~** rl rl rl rl 

### >

**~** 

## c >

**~** 

## c >

**~** 

## c >

**~** 

## c > ro

**~** ro ro

**~** ro ro

**~ ~**  m

**~** ro m 2

**~ ~**  2

**~ ~**  2

**~ ~**  2

**~ ~**  2 

### • EO de mand is significant and at leas t I 00 times larger than th e co mbined vo l um es of E85 and E l 5. • The Propo se d Rul e errs by excluding demonstrated EO demand when calculati ng the capability of th e gas oline market to absorb ad diti onal ethanol. • Limited data o n EO , E15, and E85 demand increa ses unc e rtainty, which ju s t ifies se nin g a conservati v e targe t that avo id s the chance of in adve rte ntl y cro ss ing the bl e ndwa ll. • T o ensure the standards do no t exceed the ble nd wall , we recommend that E PA u se, as a prud e nt guide , 9.7 perc en t ethano l in the part of the gasoline poo l that is not E85. o A ll ows for a base EO demand to cover some of th e inhe ren t uncertainty 

### o R ecog ni zes th e r ea l wo rld m easurem e nt inaccurac i es that encourage s li ght und e rbl

ending t o avo i d E 15 compliance i ss u es ( E 15 i s defined as blends above I0.1 %)

## @:ongre.u.n of t11e 1ltnitell

**~tate .a**  

### l!l!Iu.siJingtun , i l<!t 20515
The Honorab l e Gina McCatthy Admin.ist:rator U.S. Envi ronmenta l Protec t ion Agency 1200 PeiUlsylvania Avenue, NW Washington, D C 20460 Dear Administrator McCarthy, November 4, 2015

We write to express significant concern with the recently proposed 20 1 6 Renewab le Volume Obligations (RVO) unde r the Renewabl e Fuel Standard (RFS). The RVO as currently proposed would constitute a breach of the ethano l blendwall, which wou l d cause adverse impac ts on American consumers and the economy. Congress expanded the RFS when it passed the Energy Indepe ndence and Security Act of 2007 (EISA). EISA mandated an mUlually increasing volume of biofuel to be blended and consumed i n the nation's motor fuel supply, reaching 36 billion gallons of biofuels in 2022. Jn 2007, the market assumptions regarding the futw·c of transportation fuels in the United States were very different from th e realities of th e market today. The Energy Information Administration (EIA) at the time projected motor gasoline demand to significantly rise through 2022 1 • Since then , ETA has revised its 2007 projection of m otor gasoline in 2022 downward by 27% and projects motor gasoline demand to continue to decline tlu· ough 2035 1• Increased fuel efficiency has led to shrinking gasoline demand . This current r eal ity , coupled wi t h an i ncreasing biofuel blending level requirement, has exacerbated the onset of the El 0 blendwall - the point at which the gasoline supply is saturated with tl1e maximum amount of ethanol that the c ur rent vehicle fleet, marine and other s mall engines, and refueling infrastructw· e can safely accommodate. We agree with the EPA's conclusion in its first RVO proposal for 2014 and in its c urrent proposal for 2014, 2015, and 2016 tllat the ElO blendwall is a binding constraint. We are gra vely concerned, however, that despit e the Agency's recognition of the blendwall, the 2016 proposal aclmowledges that it will be breached nonetheless. Specifically, E PA states tbat the 2016 RVO "includes volumes ofrenewable fuel that will require either ethanol use at levels significantly beyond the level of the El 0 bJendwa ll , or significantly greater use of n on-ethano l renewable fuels than has occurred to date. " 2 1 Energy Information Administration, Annual Energy Outlook 2007-2015, Reference Case Tabla II 2 Federal Register, Vol. 80, No. Ill, Wednesday, June I 0, 2015, Proposed Rules (p.331 02), EPA RenetYable Fuel Standard Program: Standa rds/o r 2014, 2015, and 2016 and Biomass-Based Diesel Volume for 2017; Proposed Rul e
PIUNffO ON RECYClfO PAPE RThe Honorable G ina McCnrthy Page 2 Multiple studies have shown detrimental economic h arm may be caused by breaching the E 10 blendwall. A 2014 report on the RFS by the nonpattisan Congressional Budget Office concl uded that requiring the volumes of biofuel in EISA, which would br eac h the blendwall, could increase the pri ce ofElO gasoline by up to 26 cents per gallon3
. NERA co ncl udes 

### in a July 27,2 015 s tudy that "higher gasoline prices l eave consumers with Jess disposable income'h·, furth er hinderin g economic growt h. 

### An RFS study by Charles River Associates concms: " The result [of exceeding the blendwa ll] will be limited availability, h igher consumer costs, and fewer sales of conventio nal transportation fue l s 5 ." Thi s adverse economic harm falls hardest on America's lower income families. E PA acknowledges that its 2016 RVO proposal would require s ignificant greater u se of E l 5 and E85 in ord er to meet th e proposed m a n date in 2016. Therefore, tlli s proposal is problematic no t only' in pdncip le, bu t 

### it is a lso impractical s ince it would take decades, not months, to build out the compatible vehicl e fleet and ins tall t he necessary retail infrastructure to acconuuodate the higher blends of ethano l. AAA calculates that only 5% of the vehicles on

**~e** road are approved to use E15 6 and the EIA calculates that only 6% of vehicles can use E85 7 • The r efue ling retail infrastructure is even more limited with only 2% of retail stations selling E85 8 and only 100 s tations nationwid e selling EI5 9
. Congress will continue its work toward a bipartisan solution to deal with the RFS. As this work continues, it is critical that EPA use its statutory aut h ority to waive EISA's conve ntion al biofuel volwne to keep the blending requirements below the El 0 blendwall, and to help l imit the economic and consumer harm this program h as already caused. Sincerely, Bill Flores Peter Wel c h Bo b Goodlatte Memb e r of Congress M ember of Cong ress Member of Congress



# ~~ M ember of Cong ress 

# ~~ Steve Womack Member of Cong re ss 3 Congressionnl Budget Office, The Renewable Fuel Standard: Issues for 2014 and Beyond(June 20 14) 4 NERA Economic Consulting, Economic Impacts Resultingfi'om implem entation of RFS2 Progmm (July 20 I 5) $Charles River Associate s, Impa ct ofthe Blend Wall Constraint in Complying with the Renewable Fuel Standard

**~ovember** 20I I) 'Ame rican Automobile Association, Press ReleAse "New E15 Gasoline May Damage Vehicles and Cause Consume r Confusion" (D ecember 20 12) 7 Energy In formation Administralion, Annual Energy Outlook 2014 8 Fuels Institute, E85: A Market Pe1jormance Analysis and Forecast (20 14) 9 Renewabl e Fuels Association data (www.ethanolrfa.org)The Honorable Gina M cCart hy Page 3



# ~;[_~ 

# dk~~. **Q~,€-** 

# jJ]oo .

**t?~~...J---** 

# Jtt// jY1 

# v ed

. 

# ~~ 

# gwa()IIJ {;,f,srgi)



# 9LLB~

## l , The Honorable Gina McCarthy Page 4



# ~ **"\I}V fi~** 

**~~ rE~MA(}~~**  

# c£Jc.C2

**~~**. The Honorable Gina McCarthy Page 5



# .


# ~~~

**~~** 

# (J)- J 7Coc¢J .

**q'~ri_E~**



# Ju,L \j 

# ~
**d..KL~** 7 

### 7 

# tfJw~


# ~j{;~
**(#~I**The Honorable Gina McCarthy 

### Page 6



# (,:11=(/L**~1~~** 

# tf!llr:**Gt~­**

# ~'ftk£

# J The Honorable Gina McCarthy Page 7



# ~;242



# 4~

**~~ ~~-~**  

# 1+ U 1l1I 'fr**1f;~ r-**  **~**



# ~ **tJ~~**



# l!i~~ 

# /ti

**~y~** 

# 9-t.........J 1-kt (AR-?-)The Honorable Gina 

### McCart h y Page 8



# ~~

**[2a&O?.·~**The Honorable Gina Mc Carthy Page 9



# ~~



# RtJukiJ

# \ T he Honorab le Gina M cCarth y Page 10 

# ().J.. 

# w }J..J(.



# ~kkw~ .:sPc

**~** £ilrRcnrc< 

# klJawti - . 

# t.·L 

# +

**~_J¢**
. **?!~**The H onorab le Gi na McCarthy P age 11



# h~

**/I~'B.(rr**



# ~

**~**

**~~**

**·**

**a~~Jlt**

**~~** 

# afC/L7



# &~ **of),~~** 

# -/WVVV( d

### The Honorab le Gina McCarthy Page 12 

# --r::**~--~** 

# .**~((~~**

# (9{,-**~k~ ~** **!l! ~** 

# 144~~~**~**The Honorable Gina McCarthy Page 13 Page 3 Jeff Duncan Ryan Zinke Lou Barletta B i ll Posey Bradley Byrne Rob Bishop Glenn Thompson Robert Hurt Steve Russ e ll Bruce Westerman Tom Pri ce Michael T. McCaul Joe Heck Garret Graves Gary Palmer Joaqui n C astro Jim Bridenstine Mia B. Love Page4 Robert J. Dold Tom Rice Robert Pittenger Barbara Comstock Dennis A. Ross Charle s J. "Chuck" Fleischmann Rob e rt Aderholt Cedric Richmond Mimi Walters Barry Loudermilk Kevin Br ady G r egg Harper T homas Massie Brian Babin W ill Hurd Richard Hanna Doug LaMalfa Ron D eSantis Page 5 Ryan Costello David P. Roe D e nny Heck Peter King David Rouzer Jeff Miller Joseph R. Pitts Mark E. Amodei S

cott Rlgell Dave Brat Mar c A. Veasey Frank Guinta Scott De sJarlais John Ratcliffe David B. McKinley Chris Stewart David Sc hweikert Steven M. P alazzo Page 6 Dan Benishek Mario Diaz- Balart Rick Allen Fllemon Vela Ted Yoho Mike Pompeo Randy 1<. Weber, Sr. Patrick Meehan George Holding Earl L. "Buddy" Carter Tom MacArthur Richard Hudson Paul Gosar · **Mil~e** Bishop Evan Jenl<i n s David Valadao Glenn Grothman Devin Nu n es Page 7 Lois Frankel Blake Farentho l d Kay Granger Steve Knight Jami e H errera H. Morgan Griffith Beutler Martha MeSally Diane Bl a de John Katko Markwayne Mullin Renee Ellmers Alexa nder X. Mooney Mo Brooks French Hill Paul Cook Chris Collins Keith Roth f us Scott Perry Page 8 Christopher P. Dan Newhouse Gibson Billy Long Raul R. Labrador Andy Harris Mike Kelly Jim Jordan Lee Zeldin Jody Hice Doug Collins Andy Barr Charles W. Boustany, Jr. Carlos Curbelo Trent Kelly Randy K. Trey Gowdy Neugebauer Roger Williams Brad l ey Wenstrup

### Th e Honor able Gi na M c Car t hy Page 14 P

age 9 Eric A. "Rick" Peter De Fazio Crawford Rob Woodall Ander Cren s haw Richard Nugent John Fleming Joe Barton Gregg Walden John Carte r David W. Jolly Gus M. Bilirakis Che llie Pingree Pete Olson John Mi ca Ma r k Sanford Lynn We s tmoreland John J. Duncan, Jr. Mac Thornbe rry Pag e 1 0 Henry Cuellar Darrell E. l ssa Cha rl es W. Den t Dana Rohrabacher Jeb Hensarling Sam John son Joe Wilson Edward R. Royce S

cot t Garrett Michael K. Simpson Pete Sess ion s Kenny Marchant L ouie Gohm e rt Ruben Hinojosa Mar s ha Bla ck burn G. K. Butter f ield Bill Shus t e r Rodney P. Fre lin ghuysen Pag e 11 Don Young Tom McClintock Stev e S cali se Michael C. Burgess Walt e r B. Jone s Matt Salmon Virginia Foxx L e onard Lance Ste v e Chabot John Abn e y Culberso n Chri stopher H. Doug Lamborn Smith Lam a r Sm it h Ted Po e Au s tin Scott Mick Mulvaney Frank A. LoBiondo Tim Murphy Pag e 12 Dun can Hunter Kurt Schra der Stevan Pearce Cynthia Lummis T r ent Fran ks T i m Walberg Tom Reed Tom Graves Mike Coffman Ben Ray Lujan F. James Tom Cole Sensenbrenner Stephen Fincher Gene Green R

o b e rt J . Wittman K. Michae l Conaway Bruce Poliquin Kevin McCarthy