Grassley and Ernst Call on Biden to Unleash Iowa Biofuel Immediately as Gas Prices Hit Record High, U.S. Bans Russian Oil

March 09, 2022

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(Office of Senator Chuck Grassley (R-IA)) Iowa senators introduce bipartisan legislation to open up the use of clean, American-made renewable fuels that are available right now to replace banned Russian oil -- As gas prices hit all-time record highs, Sens. Chuck Grassley (R-Iowa) and Joni Ernst (R-Iowa) are calling on Pres. Joe Biden to unleash Iowa biofuels immediately by supporting their bipartisan plan to replace banned Russian oil with clean-burning, American-made renewable fuels that are available right now. The senators’ new bill — the Home Front Energy Independence Act — puts the ban on Russian oil into law. At the same time, it couples that ban with opening up biofuel production that’s grown in Iowa and across America’s heartland. The current excess ethanol capacity domestically is nearly the same as the amount of Russian gas the U.S. had been importing: roughly 83 million barrels versus 87 million barrels.

“When traveling around Iowa, you see E-15 being sold for $0.30 to $0.40 cheaper than E-10 – and ethanol has been selling at around a $1.20 discount to base gasoline. Homegrown Iowa biofuels provide a quick and clean solution for lowering prices at the pump, and bolstering production would help us become energy independent once again. Iowa producers stand ready to meet the moment and ramp up production to lower gas prices for families across the country,” Grassley said.

“As gas prices hit record highs for Americans across the country, it’s never been clearer that energy security is national security,” Ernst said. “Banning Russian oil was long overdue, but it’s far past time for President Biden to make good on the promises he made on the campaign trail to Iowa farmers and producers to support our state’s biofuel that is American-made, ready, and available to meet our nation’s needs right away.”

Emily Skor, CEO of Growth Energy, said, “The uncertainty of the situation in Ukraine underscores the need for more homegrown biofuels to displace the oil we import from Russia, reducing our nation’s dependence on foreign oil and improving our energy security. This bill by Senators Ernst, Klobuchar, and Grassley if enacted would provide relief for the rising gas prices families are paying at the pump. We urge the passage of this legislation to invest in a more energy independent nation through increasing the use of and access to higher biofuel blends today and the years ahead.”

Sen. Amy Klobuchar (D-Minn.) is the lead Democratic sponsor, while Sens. Tammy Duckworth (D-Ill.), Roger Marshall (R-Kan.), Tammy Baldwin (D-Wis.) and Deb Fischer (R-Neb.) are also cosponsoring the bill.

Specifically, the Home Front Energy Independence Act combines parts of several of Grassley’s and Ernst’s past bills that would make E-15 available year round, establish an E-15 and Biodiesel Tax Credit, direct EPA to finalize their E-15 labeling rule and provide for biofuel infrastructure and compatibility with retailers. This includes elements of the Biofuel Infrastructure and Agricultural Product Market Expansion Act of 2021, the Consumer and Fuel Retailer Choice Act and the Biodiesel Tax Credit Extension Act of 2021.

Click here or below to view Grassley and Ernst’s remarks on their new legislation:

Iowa Senators Call on Biden to Unleash American Biofuel as US Bans Russian Oil, Prices Surge (Biobased Diesel Daily)

Growth Energy Applauds Senate Action to Expand E15 in Response to Global Energy Crisis (Growth Energy)

Bipartisan Senators to Biden: Authorize Summertime E15 to Lower Gas Prices (Growth Energy)

As gas prices rise, Ernst and Grassley pitch biofuels to fill gap created by Russian oil ban (Des Moines Register)

Iowa delegation touts biofuels to ease oil price hikes (Inside EPA)

RFA Thanks Senators for Urging White House Action on Year-Round E15 (Renewable Fuels Association)

Feenstra, Iowa Delegation Urge Domestic Ethanol, Biofuel Production to Secure American Energy Independence (KIOW)

Home Front Energy Act Looks to Promote Biofuels (WNAX)

Clean Fuels Applauds Home Front Energy Independence Act (Clean Fuels Alliance America)

Biofuel is ready to meet the needs of American consumers (Highland County Press)

Ernst Takes Biden Admin to Task for Broken Promises to Rural America on Biofuel, Trade, Regulations (KIOW; includes VIDEO)

Kildee highlights bill that would allow more ethanol in gasoline year-round (ABC 12; includes VIDEO)

Excerpt from Growth Energy: Since the Renewable Fuel Standard was enacted in 2005, America’s crude oil imports have dropped almost 50 percent. Homegrown, plant-based ethanol displaces the gasoline produced from more than 700 million barrels of oil every year. READ MORE

Excerpt from Growth Energy: Today, a bipartisan group of senators, led by Sens. John Thune (R-S.D.) and Dick Durbin (D-Ill.), sent a letter to President Biden urging him to help curb rising domestic energy costs and displace Russian oil imports by increasing access to higher blends of American biofuels.

In their letter, a bipartisan group of Senators called on President Biden to use his administrative authority to permit the sale of E15 fuel over the 2022 summer driving season, extending the Reid vapor pressure (RVP) waiver from June 1 through September 15. Growth Energy CEO Emily Skor applauded the bipartisan message to President Biden on biofuels’ role in addressing rising gas prices:

“The message from both sides of the aisle in Congress is clear – we need more homegrown, low-carbon solutions to address rising gas prices and shield American drivers from the continued volatility in the global oil market,” said Skor. “Biofuels are a ready solution to help provide consumers with lower costs at the pump. We welcome Sen. Thune and Sen. Durbin’s bipartisan letter to President Biden calling for increased access to higher blends of biofuels, like E15, across the nation and throughout the year to displace a greater share of imported oil.”

The letter was also signed by U.S. Sens. Tammy Baldwin (D-Wis.), Sherrod Brown (D-Ohio), Kevin Cramer (R-N.D.), Tammy Duckworth (D-Ill.), Joni Ernst (R-Iowa), Deb Fischer (R-Neb.), Chuck Grassley (R-Iowa), Amy Klobuchar (D-Minn.), Roger Marshall (R-Kan.), Jerry Moran (R-Kan.), Mike Rounds (R-S.D.), Ben Sasse (R-Neb.), Tina Smith (D-Minn.), and Debbie Stabenow (D-Mich.).

You can read the full letter here. READ MORE

Excerpt from Clean Fuels Alliance America: Clean Fuels Alliance America thanked Sen. Joni Ernst (R-IA) and Sen. Amy Klobuchar (D-MN) for introducing new legislation – the Home Front Energy Independence Act – that would help biodiesel and renewable diesel continue growing, meeting consumer needs, and improving U.S. energy security. The bill would pair a ban on U.S. imports of Russian petroleum products with support for U.S. biofuel production to maintain fuel supplies and address prices. The legislation combines elements of the senators’ previous bills that Clean Fuels supports, including a biodiesel infrastructure program and extension of the biodiesel tax incentive.

“Clean Fuels and its members applaud the strong, bipartisan action that Senators Ernst, Klobuchar and others are proposing to boost America’s energy independence,” Kurt Kovarik, Clean Fuels’ Vice President of Federal Affairs, states. “The more than 65,000 U.S. workers in the biodiesel and renewable diesel industry are helping to meet the nation’s need for cleaner, better transportation fuels.

“We appreciate the Senators’ continued support for a new program to match investments in biodiesel infrastructure and improve consumer access to clean fuels. Over the past decade, the contribution that biodiesel and renewable diesel have made to America‘s fuel supply has kept fuel prices down by an average of 31 cents per gallon. The health benefits and environmental benefits that biodiesel provides Americans exceed two dollars a gallon, according to a recent study sponsored by Clean Fuels.”

The U.S. biodiesel and renewable diesel industry supports 65,000 U.S. jobs and more than $17 billion in economic activity each year. Every 100 million gallons of production supports 3,200 jobs and $780 million in economic opportunity. Biodiesel production supports approximately 13 percent of the value of each U.S. bushel of soybeans. READ MORE

Excerpt from Highland County Press: Hardworking Iowans share the concerns of folks across the country about higher gas prices. They also know the answer is not to turn to our adversaries, either to import energy or the materials and batteries used for electric vehicles—which are often Chinese-made and mined by Chinese companies using slave labor. Iowans know the answer is to take immediate, decisive action to unleash the American energy sector to protect both our national security and consumers at the pump.

Our state can play a vital role in reducing our dependence on Russia. This week, Senator Chuck Grassley and I put forward bipartisan legislation to replace Russian oil with clean, American-made renewable fuels that are available right now.

Our new bill, the Home Front Energy Independence Act, puts into law a ban on Russian oil and couples it with opening up the use and production of biofuel that’s grown in the American heartland. It will make E15 available year round, establish an E15 and Biodiesel Tax Credit, direct EPA to finalize their E15 labeling rule, and provide for biofuel infrastructure and compatibility with retailers. The current excess ethanol capacity domestically is nearly the same as the amount of Russian gas the U.S. had been importing, and we have the capability to ramp up production. It’s time Congress takes action to allow our renewable fuels industry to fill the gap and provide consumers with a more affordable choice at the pump.

Energy security is national security, and the Biden administration’s misguided energy policies have no doubt impacted the crises we’re seeing unfold both abroad and here at home. We need to return to American energy independence and Iowa biofuel is ready to play its part. This effort has the support of Democrats and Republicans, will be a boost for the hardworking farmers and producers across the Midwest, and will help punish Putin and his cronies. READ MORE

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