Feenstra, Ernst, Grassley Call on Biden Administration to Support Iowa’s Production of Homegrown Biofuels
HULL, IOWA – Yesterday, U.S. Rep. Randy Feenstra (R-Hull) and Iowa Senators Chuck Grassley (R-IA) and Joni Ernst (R-IA) led a letter to President Biden and EPA Administrator Michael Regan urging the Biden administration to amend its decision to set Renewable Volume Obligation (RVO) levels well below industry production capacity and instead increase RVO levels for homegrown Iowa biofuels.
“Homegrown Iowa biofuels support our farmers, lower gas prices for our families, and strengthen American energy security. Representing the top biofuel-producing district in the country, it is my mission to ensure that the Biden administration understands the growth potential of Iowa biofuels, the importance of biofuels to our rural economy, and the need to support our farmers and the production of biofuels,” said Rep. Feenstra. “Unfortunately, due in part to the EPA’s decision to set RVO levels far lower than market capacity, biodiesel plants in Ralston, Iowa and Madison, Wisconsin were forced to close – eliminating jobs and harming the local economy. We must ensure that these closures do not replicate across Iowa and the Midwest because these misguided steps by the Biden administration have real-world consequences for our economy and rural communities. That’s why – alongside Senator Grassley and Senator Ernst – I’m calling on President Biden and EPA Administrator Regan to increase RVO levels according to the actual production potential of our biofuels producers. Securing American energy independence begins with supporting Iowa’s homegrown energy production.”
“Completely ignoring my warnings early last year, Biden’s EPA has once again missed the mark on doing right by our farmers, environment, and biofuel producers,” said Sen. Ernst. “By implementing drastically low RVO levels, this administration has gone out of its way to destroy jobs and damage rural economies. One plant closure in Iowa is one too many. President Biden and EPA Administrator Regan must act now to increase RVO levels, which will support homegrown energy and lower gas prices for families already hurting in Biden’s economy.”
“Iowa businesses and families have suffered the consequences of the Biden EPA’s uninformed decision to lower RVO levels. The Biden administration is restricting biofuel producers, making it difficult for plants to keep their doors open and stifling opportunities for biodiesel at the expense of rural economies and broader environmental benefits,” said Sen. Grassley. “The EPA ought to straighten out this mess it created. Iowans are ready to help fuel the nation, if only the bureaucracy would get out of the way.”
“America’s soy farmers and processors along with biodiesel and renewable diesel producers are investing to meet growing demand for alternative, low-cost transportation fuels in on-road, off-road, shipping, rail and air travel,” said Kurt Kovarik, Vice President of Federal Affairs at Clean Fuels Alliance America. “Due to EPA’s miscalculation, biofuel producers are struggling to stay in business rather than making their full potential contributions to rural economic growth, lower consumer costs at the fuel pump and grocery store, and cleaner air for all communities.”
The lawmakers opened their letter saying, “We write to highlight the real-world impacts of the Environmental Protection Agency’s (EPA) decision in 2023 to set the biomass-based diesel, overall advanced, and overall Renewable Volume Obligations (RVOs) through the Renewable Fuel Standard (RFS) at drastically low levels, and to urge you to immediately consider amending the RVOs to higher levels.”
“On June 3, 2022, the EPA finalized RFS volumes for 2021 and 2022, but also took the unprecedented step of reopening and modifying the previously finalized volumes for 2020. Despite the fact that the RFS internally self corrects when actual fuel demand is less than estimated in the rules, EPA cited COVID-related demand destruction as justification for reopening a rule and reducing the volume obligation. There is no internal correction in the RFS for scenarios where the EPA dramatically misses the mark in projecting ethanol and biodiesel availability and demand. If the EPA has the authority to reopen an RVO rule to reduce volume obligations, then the agency certainly has the authority to do so to increase volumes. With the precedent now set, the EPA should admit its error in forecasting the amount of ethanol and biomass-based diesel in the market for 2024 and 2025 and reopen the rule to increase the biomass-based diesel, overall advanced and overall volume obligations. Failure to do so will almost certainly result in additional biodiesel plant closures,” the lawmakers continued.
The full letter can be found HERE.
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