Vilsack: Biofuels $700M Still on Way -- Secretary of Agriculture Says USDA Biofuels Aid in Hands of OMB

September 10, 2021

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by Todd Neeley (DTN Progressive Farmer) About $700 million designed to help biofuels producers is still on the way three months after the USDA made the announcement to help producers hurt by the COVID-19 economic shutdown.

U.S. Secretary of Agriculture Tom Vilsack told reporters Thursday the proposal still is being reviewed by the Office of Management and Budget.

While USDA made the announcement in June, OMB has the final say, the secretary said.

"We don't have the capacity at USDA -- or for that matter any federal agency -- to spend a single dime until OMB has signed off on it," Vilsack said. "Now, if OMB's only responsibility was the U.S. Department of Agriculture, we probably could have moved through many of these more quickly. We're doing the best we can to try to move these things forward and hopefully we get to announce the resources and the structure in which we're going to allocate those resources in the very near future. I don't want to commit to a date certain because it's not totally in my control. The reality is help is going to be there."

In recent months the biofuels industry has expressed concerns about the Biden administration's plans to electrify the vehicle fleet while seemingly providing few opportunities for ethanol and biodiesel to expand their role in greenhouse gas emissions reduction. READ MORE

Tom Vilsack affirms Biden administration support for renewable fuels -- Ag secretary says electric vehicle emphasis does not replace biofuel support (The Gazette)

USDA COVID Aid and Infrastructure for Biofuels Coming Soon (Energy.AgWired.com)

WHAT’S THE HOLD UP? (Politico's Morning Energy)

Iowa's Ernst and Grassley, other senators push for $700 million promised to ethanol, biodiesel producers (Des Moines Register)

Senators ask USDA to explain delay in COVID-19 aid for biofuels (Ethanol Producer Magazine)

Ernst Calls for Answers from Biden Administration on Delay in Biofuel Assistance -- In a letter to USDA Secretary Vilsack, Ernst and her colleagues write, “It is past time our hardworking biofuel producers receive the critical aid that you promised.” (Office of Senator Joni Ernst (R-IA))

Senators seek USDA aid for biofuel producers (Farm Progress)

REPUBLICAN SENATORS WANT UPDATE ON COVID AID FOR BIOFUELS PRODUCERS (Brownfield Ag News)

Grassley seeks answers from Biden admin on biofuel assistance delay (KIWA Radio; includes AUDIO)

Grassley: Ethanol RVOs, USDA aid late (Fence Post)

VILSACK CONFIDENT COVID AID FOR BIOFUEL PRODUCERS WILL BE COMING SOON (Brownfield Ag News)

Senators seek USDA aid for biofuel producers (Farm Progress)

Senators Seek Answers on Biofuels COVID Assistance (Energy.AgWired.com; includes AUDIO)

RFA Leader Says Ethanol Industry Recovering But Still Needs Promised Aid (WNAX)

VILSACK SAYS USDA AND WHITE HOUSE CLOSE TO DEAL ON BIOFUEL AID (Successful Farming)

Vilsack defends EPA plan to cut, then boost, RFS targets (Inside EPA)

Excerpt from Politico's Morning Energy: Eight Midwestern Republican senators pressed Agriculture Secretary Tom Vilsack on Monday on the delayed rollout of financial assistance for members of the biofuels industry still reeling from the coronavirus pandemic. The senators called it past time that "hardworking biofuel producers receive the critical aid that you promised."

USDA announced $700 million in aid as part of the Pandemic Assistance for Producers back in June, and the agency said it would be implemented within 60 days, a deadline the senators said was long passed. "It is simply unacceptable that it has been over 120 days since your announcement and biofuel producers are still waiting," they wrote. "The pandemic continues to negatively affect biofuel producers. As feedstocks have experienced historic highs, margins to produce biofuel have risen, and many plants remain offline or are operating at reduced rates."

A USDA spokesperson told ME in a statement that upon taking office, the agency “took the initiative to review who had not received assistance from the previous administration and we made providing support to the biofuels industry a priority when they had received nothing in 2020. We will be accepting applications for this assistance soon.”

The letter was led by Iowa Sens. Joni Ernst and Chuck Grassley, and also signed by Sens. Jerry Moran (Kan.), Deb Fischer (Neb.), Mike Rounds (S.D.), Roger Marshall (Kan.), Ben Sasse (Neb.) and John Thune (S.D.). READ MORE