Q&A: Boosting Biofuels Boosts Farm Economy

Q: Why is the Renewable Volume Obligation important for Iowa farmers?
A: Biomass-based fuels convert feedstocks, including corn and soybeans, for use in the nation’s fuel supply, frompassenger vehiclesto commercial trucks, marine shipping, rail andaviation. Biodiesel and ethanol expand domestic markets for grain farmers, which is particularly vital when there’s uncertainty with overseas trading partners. Iowa farmers and biofuel producers stand ready to meet demand that provides reliable, affordable, cleaner fuel for consumers.
Two decades ago, I helped steer through Congress two federal laws that unleashed America’s renewable fuels era in the 21stcentury. TheEnergy Independence and Security Actof 2007 built upon theEnergy Policy Actof 2005 that established the Renewable Fuel Standard (RFS). President George W. Bush signed both pieces of legislation that accelerated use of renewable fuels in the transportation sector, primed the pump for the biofuel industry in rural America, produced cleaner burning fuel and fostered U.S. energy independence. The RFS set annual targets with the Renewable Volume Obligation (RVO), a requirement that specifies volumes for refiners and importers to blend into the nation’s fuel supply. Congress authorized the Environmental Protection Agency (EPA) to implement the RFS program. It sets annual RVO’s divided among four buckets: conventional biofuel; advanced biofuel; cellulosic biofuel; and biomass-based diesel. As a lifelong family farmer and lawmaker on the Senate Agriculture Committee, I make my voice loud and clear under bothRepublicanandDemocrat administrationsto champion homegrown biofuel, including speaking out against unfair policies forused cooking oilandimported ethanol. TheEPA needs to follow the law as Congress intended. Bureaucratic lollygagging brings uncertainty to the marketplace and unfairness to farmers and biofuel producers who have the capacity to meet demand. During the Biden administration, I invited theWhite House Climate Czarto visit Iowa to see how renewable fuels are where the rubber meets the road for a more sustainable energy policy, cleaner environment and stronger economy in rural America.
Q: What are you pressing the Trump administration to do on this issue?
A:In April, I led abipartisan letterwith Sen. Amy Klobuchar pressing the EPA to keep its commitment to American energy production and affirm renewable fuels are an important component of that all-the-above energy strategy. We urged the administration to increase RVO levels that take into account biofuels production capacity and the productivity of the American farmer. Specifically, the EPA should set volume levels for biomass-based diesel at 5.25 billion gallons in 2026. What’s more, the EPA ought to provide multi-year RVO standards to provide certainty and growth for the biofuel industry. This would send a strong message to boost investment in biofuels that are an important piece of the economic pie in rural communities. We’ve seen what happens when RVO levels are low-balled, biofuel facilities are forced to reduce their workforce, idle production or shut down their facilities. That’s a big blow to economic vitality on Main Street and a big market loss for local farmers. I’ll be keeping close tabs on the EPA as it works to determine RVO standards.
In addition to trade and energy policies, the federal tax code holds significant sway over investment and profitability in rural America. As former chairman and ranking member of the Senate Finance Committee, I’ve secured importantenergy tax incentivesthat ensured public policy kept pace with advancing technologies in alternative energy. As Congress takes up tax policy in the coming months, I’ll be at the table advocating for the family farmer and biofuel producers. Along those lines, in January I pressed Trump’s cabinet nominees about the importance of providing clarity about new biofuel incentives in the federal tax code. Specifically, I explained the urgency to clean up after theBiden administration’s failureto deliver certainty for farmers and biofuel producers by failing to issue guidance for the clean fuel production tax credit, called45Z. I’m working as hard as ever on behalf of Iowabiofuel producersandfamily farmerswho are putting in the work, taking on the risk and deploying new technologies to power America’s energy needs.