WASHINGTON, D.C. – Today, Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley testified before the U.S. Surface Transportation Board (STB) on current rail service disruptions’ impact on the biofuels industry, and the urgent need for STB and the railroad industry to take action. The disruptions, explained Bliley, include extreme delays in unit traffic and getting loaded trains offsite.
“Nearly 70 percent of all ethanol is shipped by rail with 377,000 carloads in 2018 alone,” said Bliley. “Rail service is vital to get ethanol from our biorefineries in the Midwest to American consumers from coast to coast. It is perhaps even more important today with drivers facing high gasoline prices and ethanol continuing to trade 80 cents to a dollar less per gallon than wholesale gasoline.
“It is imperative that all possible actions be taken by the nation’s railroads to ensure that these critical fuel supplies are immediately prioritized and reach markets as quickly as possible.”
You can read Bliley’s full testimony here.
Background
Earlier this month, Growth Energy sent a letter to STB voicing concerns over the significant service delays in the rail supply chain impacting the biofuel industry. Growth Energy also joined members of the Agricultural Transportation Working Group (ATWG) in sending a letter to STB echoing these rail service challenges and calling for a resolution to prevent future service failures.