How Ditching the Iowa Caucus Could Remake the Biofuels Debate

February 10, 2020

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by Miranda Green (New Republic) If politicians no longer coveted that early "Iowa bump," would they still feel compelled to support ethanol subsidies? In the wake of Iowa’s caucus vote-counting disaster, political staffers and pollsters alike are reconsidering the state’s “first in the nation to vote” status. The quaint caucuses and infamous fry-forward state fair could disappear were Iowa to be dethroned. But so too could one of Iowa’s largest industries, which has managed to carve out an outsized role in debates over renewable energy: ethanol.

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Corn is Iowa’s biggest crop and roughly 40 percent of it goes towards making ethanol—a biofuel that’s mixed with gasoline to power engines such as those in cars. The ethanol industry pumps $5 billion into Iowa’s economy and the state’s 43 plants help support more than 40,000 jobs.

Today, candidates seeking the coveted election “bump” from winning Iowa’s caucuses know their position on ethanol could be crucial. This cycle at least nine presidential candidates, including President Trump, visited Iowa ethanol factories for chitchat and photo ops. Minnesota Senator and Democratic hopeful Amy Klobuchar visited an Iowa ethanol plant last April, donning a lime-green construction hat. Senator Elizabeth Warren of Massachusetts visited one in June, her hat white.

Policy positions seem to shift, accordingly. Bernie Sanders, who in 2011 voted to end ethanol subsidies, citing “a negative impact on farmers and consumers,” changed his tune at a fish fry in Iowa this past November. “Biofuels and other sustainable energy is exactly the direction we have got to go,” he said.

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Although Texas Senator Ted Cruz rejected ethanol and won the Iowa caucuses anyway in 2016, candidates this year didn’t appear to want to take the gamble.

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“Ethanol had an outsized importance because of Iowa. And Iowa had an outsized importance because it was first. And the ethanol industry was very smart to exploit that timing and profile...There was no middle ground,” said Stephen Brown, an energy consultant at RBJ strategies. “I think having the Iowa Caucus disappear, it will certainly cause a little bit more room to exist for candidates to take a more rational approach to biofuels.”

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The issue of ethanol is a complex one. In the early 2000s, growing corn and other crops to create ethanol—a greener alternative to burning fossil fuels—was seen as an ingenious way both to bolster farmers in the Midwest and to increase America’s energy independence, reducing the reliance on foreign oil and gas. To regulate the system, in 2005 Congress established the Renewable Fuel Standard (RFS), which mandates that certain amount of gas be supplemented by biofuels. Under the current law, refiners will have to blend 36 billion gallons of renewable fuels into gas by 2022. The program also allows for a waiver for certain refineries capable of showing that implementing the program severely affects their bottom line.

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For GOP members who favor increased fossil-fuel production and the spread of cheap natural gas, ethanol is considered an economic drain and an unfairly advantaged competitor due to the subsidies it gets. The Trump administration has had to walk the ethanol tightrope. Last year it allowed the year-round use of an increased percentage of ethanol mixed in gasoline known as E-15—to the chagrin of the fossil fuel industry. The administration also promised to offer more RFS waivers to small refineries—to the displeasure of the ethanol camp.

For Democrats who are promoting their environmentalist roots, ethanol is similarly fraught. Many green groups have largely turned away from supporting the biofuel, arguing electric cars are a better option than traditional ones with ethanol supplementation.

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A Department of Agriculture study published in March 2019 found that the lifecycle emissions from burning corn-based ethanol was 39 to 43 percent lower than that of traditional gasoline.

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Whether Iowa losing its stature can allow candidates a new level of flexibility when developing their policies on ethanol depends on which state takes Iowa’s place, political strategists say. If it’s still a state in the corn belt, like Illinois, Indiana, Minnesota or Nebraska, then ethanol would likely remain a main discussion point. READ MORE

Ethanol a winner in Iowa caucus--Biofuels could be a key issue in swing state Iowa’s general election in November. (Wallaces Farmer)

Excerpt from Wallaces Farmer: Biofuels Vision 2020 spent months asking candidates directly about ethanol and biodiesel issues, such as:

implementing the RFS as intended
only granting SREs when verifiable harm exists
committing to the growing role of corn ethanol and soy biodiesel
supporting year-round E15
prioritizing open and free markets for biofuels in trade negotiations
supporting long-term extensions of biodiesel and cellulosic tax credits

All leading candidates supported the top six issues to the biofuels industry. To see individual candidate statements on these issues, visit biofuelsvision.com.

Despite the delay and related problems with tallying the final results for the Democrats running in the 2020 Iowa caucus, Snyder thinks the Iowa caucus provides a helpful opportunity to educate candidates and voters in urban areas of the U.S. on issues important to rural America, like biofuels.

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If Iowa is dethroned from being the first caucus state, one of Iowa’s largest industries could also be dethroned: renewable fuel — ethanol and biodiesel.

For decades, the debate over ethanol’s use as a renewable fuel and the government policies supporting it has been part of the presidential candidates’ run in Iowa.

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Today, candidates seeking to win Iowa’s caucuses know their position on ethanol will be crucial. In the 2020 caucus cycle, at least nine presidential candidates, including President Donald Trump, visited Iowa ethanol production facilities to chat and get photo-ops. Policy positions of the candidates shift. For example, Sanders in 2011 voted to end ethanol subsidies. But in Iowa this past November, he said, “Biofuels and other sustainable energy is exactly the direction we have got to go.”

To win Iowa, you are pro-ethanol

To win Iowa, you must be pro-ethanol. Some candidates learn the hard way. In 2016, Republican U.S. Sen. Ted Cruz of Texas rejected ethanol and won the Iowa caucuses anyway, but he lost a lot of voter support as time went on in his presidential run. The candidates this year didn’t want to take the gamble.

Today, support for ethanol can be a tricky matter for politicians, Democrat and Republican, and not just those seeking a presidential nomination. For Republicans who favor increased fossil fuel production and cheap natural gas, ethanol is considered an economic drain and an unfairly advantaged competitor due to subsidies it gets.

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In previous presidential elections such as 2016 and prior, many environmental groups supported ethanol. But a lot of the green groups have now turned away from supporting this biofuel, arguing that electric cars are a better option than gasoline-powered cars, with ethanol replacing part of the gasoline. Environmentalists who oppose biofuels say ethanol and biodiesel have been a disappointment in environmental performance and success in reducing climate change. However, a USDA study released in 2019 showed that lifetime emissions from burning corn-based ethanol were 39% to 43% lower than traditional gasoline.

If Iowa loses its stature and in the future is no longer the first state to hold a caucus, would that allow candidates to be more flexible in developing their policies on ethanol? It would depend on which state takes Iowa’s place. If it’s still a state in the Corn Belt such as Illinois, Indiana, Minnesota or Nebraska, then ethanol would likely remain a discussion point in the debates on political issues and policy. However, even if the first state isn’t in the Corn Belt or the Midwest, presidential candidates will still face a state-focused test, as every state has its own economic driver and issues. READ MORE

Iowa's election debacle could cost ethanol its clout (E&E News)