The Environmental Protection Agency denies the request to waive the Renewable Fuels Standard.
RFS requires 36 billion gallons of renewable fuel to be blended into the fuel supply by 2022.
The ethanol industry is praising the EPA's recent decision.
Ag Reporter Sarah Gustin has more on the current situation of the ethanol industry.
Corn kernels roll in by the truck load here in Richardton.
(Gerald Bachmeier / Red Trail Energy) "Look at the increase demand in gasoline consumption over a 10 year period or a 20 year period. And you look at the only new refineries in the nation and North Dakota is the ethanol industry, which we now are roughly 9.4-9.5% of every gallon across the U.S.and if you go to e-15 we can actually supply that."
(Sarah Gustin / email@example.com) "To produce 56 million gallons of ethanol a year the plant has to run 24/7 and brings in more than 18 million bushels of corn every year."
Gerald Bachmeier is the CEO of Red Trail Energy in Richardton.
Bachmeier says all that corn comes from North Dakota.
(Gerald Bachmeier / Red Trail Energy) "North Dakota is kinda a garden spot. Minnesota, North Dakota and South Dakota have had some awful good crops up in this area and we are having a huge increase in corn market for the corn expansion in western North Dakota."
While the ethanol industry here in North Dakota is thriving, a nationwide drought has plants in other states struggling.
(Gerald Bachmeier / Red Trail Energy) "Our company and the companies within North Dakota. You are seeing some of the widest bases on corn that you have seen in the nation. There are other plants that are paying a lot more for corn and some of the corn is getting railed out of North Dakota and going east which is something I haven't seen in my 20 years in the industry."
(Bob Dinneen / President and CEO of RFA) "With corn prices being where they are and the market where it is today, it's a tough time in the ethanol industry. Nationwide, ethanol production is probably down 15%. As you have seen some producers cut down their production, you have seen others shut their doors all together. It is indeed a tough time, but we are going to weather this storm as we have weathered other storms in the past and long term we remain very bullish about the ethanol industry."
Dinneen says the U.S. produces more than 14 billion gallons of ethanol a year.
He says with ethanol making up 10% of our nation's fuel supply--the U.S. needs more corn.
(Bob Dinneen / President and CEO of RFA) "The market signal being sent to farmers today is pretty clear. We need to plant more corn."
Red Trail Energy is one of 4 ethanol plants in North Dakota.
The others are located in Underwood, Casselton and Hankinson.