House Hearing Focuses on Biofuels, the Renewable Economy

November 17, 2021

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by Erin Voegele (Biomass Magazine) The House Agriculture Committee’s Subcommittee on Commodity Exchanges, Energy and Credit on Nov. 16 hosted a hearing on the renewable economy to help inform development of the next Farm Bill. The event featured testimony on the importance of biofuels, the Renewable Fuel Standard, year-round E15, and biobased products.

Rep. Antonio Delgado, D-N.Y., chair of the subcommittee, opened the hearing with a brief discussion of the importance of the renewable economy in the U.S. “While the focus of our hearing is on the benefits of strategic investments in the renewable economy provide rural America, the growth of this industry stands to have a substantial impact on the national and global economy, with some experts estimating the direct economic of biobased products and services and processes at up to $4 trillion per year globally over the next 10 years,” he said.

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Rep. Michelle Fischbach, R-Minn., ranking member of the subcommittee, stressed that Congress should be doing everything it can to help ag economies thrive, and should be warry of taking actions that will create more challenges than opportunities. She expressed concern over some Congressional efforts that don’t recognize that biofuels play an important role in reducing greenhouse gas (GHG) emissions. “There remains an important role for liquid fuels,” she said.

Emily Skor, CEO of Growth Energy, testified at the hearing. She stressed that ethanol has long been an economic driver for rural communities. “Renewable fuels like ethanol remain the single most affordable and abundant source of low-carbon motor fuel on the planet and are critical to meeting carbon reduction goals today. Recent research shows there is no path to net-zero emissions without biofuels,” Skor said, adding that America cannot decarbonize the transportation sector without biobased fuels.

“The Biden administration and Congress must ensure that biofuels are a part of our transportation mix now and into the future,” Skor said. “This can be achieved through a strong Renewable Fuel Standard, accelerated nationwide-use of higher blends, like E15, accurate carbon modeling of ethanol to better reflect the most current data, sustainable farming innovations, and carbon intensity reductions at our biorefineries, and incentives that provide producers with strong policy signals to further reduce our carbon intensity and expand to new transportation markets.”

According to Skor, a strong RFS will reduce transportation emissions and provide a steady market for U.S. grain. “The annual blending requirements are woefully delayed and in recent weeks, unsettling media reports indicate that EPA may turn its back on greater biofuel blending,” Skor said. “It is critical for ethanol producers and suppliers that EPA immediately propose 15 billion gallons of conventional biofuels for 2021 and 2022. The Biden administration simply cannot meet its climate goals while rolling back low-carbon biofuel blending requirements.”

Skor said a nationwide move to E15 would produce a meaningful reduction in GHG emissions, the equivalent of removing nearly 4 million vehicles from the road each year. “It would also creation more than 182,000 additional jobs and save consumers $12.2 billion in fuel costs annually,” she added, encouraging Congress to take action to ensures consumers have year-round access to E15.

Fischbach asked Skor to discuss how the biofuel industry is being impacted by uncertainty over RFS blend volumes and year-round E15. Skor explained that U.S. biofuel producers are still getting their footing back following the severe market impacts of the COVID-19 pandemic. She said the industry needs market certainty and strong signals from the administration, including strong RFS blend requirements that are upheld by the EPA. She said market certainty from a strong RFS and year-round sales of E15 would help biofuel producers make additional investments to further decarbonize their operations and diversify into other products, such as sustainable aviation fuel (SAF).

Rep. Cindy Axne, D-Iowa, discussed her efforts to enact nearly $1 billion in biofuels infrastructure funding as part of the pending Build Back Better Act. Skor stressed that $1 billion would be the largest investment in higher blend infrastructure to date. “It would unleash the power of biofuels,” she said, noting it would give the ethanol industry the ability to work with retail partners to accelerate the market inclusion of E15. “This is an unprecedented opportunity for American biofuels—great for drivers and the American economy,” Skor added.

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Rep. Troy Balderson, R-Ohio, cited data from the U.S. Energy Information Administration that predicts renewable diesel production in the U.S. could grow from the current rate of less than 1 billion gallons per year to 5 billion gallons annually by 2025. He noted that one-third of soy oil produced in the U.S. currently goes to biofuel production—amounting to roughly 8.8 billion pounds. He asked Wheeler for insight into how the soybean industry plans to keep up with projected demand.

Wheeler stressed that the soybean industry continues to expand its processing capabilities and is building out necessary infrastructure. “There is definitely going to be enough production when it comes to soybean and soybean oil,” he added.

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Biodiesel and renewable diesel immediately and substantially reduce greenhouse gas emissions in difficult-to-decarbonize transportation. And, they significantly reduce criteria pollutants from diesel transportation and other end uses, which can have direct benefits for both rural and urban communities, according to the testimony.

Additional information, including a replay of the hearing, is available on the House Ag Committee website. READ MORE

NBB Testifies to Value of Biodiesel in Rural Economies (Energy.AgWired.com) Testimony

Hearing Looks at Rural Renewable Economy (Ag News Wire; includes AUDIO)

Excerpts from Ag News Wire: “The administration should immediately issue robust RVO numbers for 2022,” said Rep. Angie Craig (D-MN). “I’m hearing from farmers who are wondering about all these rumors swirling about the RVOs the administration is considering. They thought they could expect robust numbers, not more relief for refiners.” Play Hearing questioning from Rep. Craig (D-MN) (4:56)

Rep. Rodney Davis (R-IL) noted that he sent a letter the White House in June asking about rumors that “the administration was considering a nationwide waiver of the RFS to cut demand for more combined gallons than all those cut due to the small refinery exemptions issued by the prior administration.”

Both Growth Energy CEO Emily Skor, speaking on behalf of the ethanol industry, and Missouri Soybean Association Executive Director Gary Wheeler for the biodiesel industry, agreed that the rumored administration plan to retroactively cut volume obligations would be unprecedented. Play Hearing questioning from Rep. Davis (R-IL) (4:36)

Lawmakers also brought up the fact that the administration has yet to provide promised aid to biofuel producers impacted by COVID restrictions last year, the court ruling invalidating year round sales of E15, and the importance of accurate greenhouse gas modeling for biofuels.

Ranking Member Michelle Fischbach (R-MN) asked about what impact the uncertainty cause by delayed RVOs and the loss of E15 sales in the summer months is causing. “When we have year round access to E15, when we have the Renewable Fuel Standard upheld as Congress intended, that’s how we start to unleash the power of biofuels,” said Skor in reply. Play Hearing questioning from Rep. Fischbach (R-MN) (2:24)

Reps. Cheri Bustos (D-IL), Cindy Axne (D-IA), and Randy Feenstra (R-IA) all had questions about the role of biofuels in a low carbon future, and how infrastructure funding and the Next Generation Fuels Act could help the industry. Play Hearing questioning from Rep. Bustos (D-IL) (3:44)

Play Hearing questioning from Rep. Axne (D-IA) (5:06)

Play Hearing questioning from Rep. Feenstra (R-IA) (4:11) READ MORE