Growth Energy to STB: Ethanol Benefits Depend on Reliable Rail Service

WASHINGTON, D.C.-Growth Energy, the nation's largest biofuel trade association, today highlighted a number of issues currently plaguing the nation's rail service-which have resulted in delayed shipments, longer wait times, and higher costs for America's ethanol producers.

In testimony delivered to the Surface Transportation Board (STB) at a D.C. hearing today, Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley outlined the scale of the problem. "With drivers facing high fuel prices and ethanol consistently trading significantly less than unfinished gasoline, at perhaps no other time has the need for timely and efficient ethanol rail service been more important," said Bliley. "Unfortunately, just two years ago, our members saw the most disrupted and inconsistent rail service since the weather-related service disruptions of the 'Polar Vortex' in 2014. Data posted by the STB shows that, in 2022, average dwell time for ethanol unit trains increased, average rail speed decreased, and average number of ethanol-loaded cars not moved increased-all negative trends that contribute to added costs and other negative consequences throughout the entire biofuel supply chain."

Bliley cited increasing rail rates, unfair dispute resolution practices, and unpredictable scheduling issues as major concerns for the American ethanol industry, which ships nearly 70% of what it produces via rail. In his testimony he said that timely and efficient rail service is essential to potential growth opportunities for the industry, as well as for freight rail.

"Looking ahead as an industry, we see tremendous potential for use of higher ethanol blends such as E15, E85, and midlevel ethanol blends like E30. We also see long-term opportunities to decarbonize the aviation sector through use of sustainable aviation fuel," said Bliley. "These growth opportunities for biofuels and American agriculture can also offer tremendous growth opportunities for freight rail as well. However, that is all dependent on timely and efficient rail service being able to deliver significant increases in rail traffic."

Find a copy of Bliley's remarks here.