Iowa Republicans condemn EPA decision lowering biofuel requirements

A decision by the Biden administration to decrease requirements for the volume of biofuels blended into the nation's gasoline supply is drawing scorn — and a bit of praise — from ethanol producers and Iowa Republican lawmakers.

On Wednesday, U.S. Secretary of Agriculture and former Iowa Gov. Tom Vilsack announced the USDA will make up to $800 million available to support biofuel producers and infrastructure during the temporary rollback.

The U.S. Environmental Protection Agency on Tuesday lowered annual production requirements for ethanol and other biofuels to account for reduced demand as a result of the pandemic.

The EPA proposed cutting and giving oil companies more time to meet both 2021 and 2020 blending requirements, citing delays and reduced demand from halted travel during the COVID-19 pandemic.

Former President Donald Trump left office without setting the 2021 requirement, meaning refiners have yet to make required purchases and would receive a break.

At the same time, the administration moved to reject requests by 65 small oil refineries to be exempted from ethanol requirements, saying they had failed to show exemptions were justified under the Clean Air Act.

EPA and White House officials said the EPA's actions reflect the administration’s commitment to strengthen the federal Renewable Fuel Standard, or RFS, "following years of mismanagement" by the Trump administration and disruptions to the gasoline market stemming from the pandemic.

Biofuel aid

The $800 million in assistance announced by Vilsack on Wednesday includes $700 million through CARES Act funding to help biofuel producers and restore renewable fuel markets affected by the pandemic.

The department will make $100 million available to increase the sales and use of higher blends of bioethanol and biodiesel, Vilsack announced.

"Under the leadership of President Biden and Vice President Harris, USDA is providing direct relief to the people of rural America who are still reeling from the economic impacts of the pandemic,” Vilsack said in a statement.

"The relief we’re announcing today will pave the way to economic recovery for America’s biofuel producers, stimulate a critical market for U.S. farmers and ranchers and move the country closer to President Biden’s goal of net-zero carbon emissions by 2050.”

The Renewable Fuels Association, an ethanol lobbying group, called the retroactive reduction of the 2020 targets "unprecedented" and "contrary to EPA’s past policies and practices."

The lobbying group, though, welcomed the 2022 projection of 15 billion gallons of corn ethanol and commended the EPA’s move to deny all pending small refinery exemption petitions, following a court ruling earlier this year.

“Over the past four years, RFA has led the charge to stop the previous EPA’s illegal abuse of the small refinery waiver provision," Geoff Cooper, president and CEO of the Renewable Fuels Association, said in a statement. "We are extremely pleased to see the (EPA) shutting the floodgates on these destructive waivers."

While recognizing the Trump administration "left the RFS program in total disarray" and that Tuesday's EPA actions "marks an important step toward finally putting the RFS back on track," Cooper said "work is needed to ensure the RFS drives maximum growth in the production and use of low-carbon renewable fuels."

GOP reaction

U.S. Sen. Chuck Grassley, a staunch ethanol advocate, and other Iowa Republicans argue the EPA’s action contradicts Biden’s campaign promise to promote and advance ethanol and other biofuels.

On a conference call with Iowa reporters Wednesday, Grassley called out the Biden administration's "inconsistency" of focusing on cutting emissions from fossil fuels that is driving climate change while lowering RFS requirements.

He said Tuesday’s EPA decision a "big victory for fossil fuels and Big Oil." Grassley said about 50,000 Iowa jobs are tied to biofuels production.

Fellow Iowa Republican U.S. Sen. Joni Ernst, a member of the Senate Agriculture and Environment and Public Works Committees, echoed Grassley.

"Iowa is the No. 1 producer of ethanol in the country, and 85 percent of Iowans believe biofuel plays an integral part in our economy," Ernst said. "This decision is an about-face by President Joe Biden who campaigned on his supposed support for renewable fuels."

Iowa Republican Gov. Kim Reynolds called the EPA's 2020 and 2021 biofuel blending requirements "a slap in the face to Iowa farmers and renewable fuel producers."

The Associated Press contributed to this article