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Bipartisan congressional coalition supports EPA biofuels plan

Kelly Livingston, CQ-Roll Call on

Published in Science & Technology News

WASHINGTON — A bipartisan, bicameral contingent of 47 members of Congress has petitioned the EPA to finalize its proposal for the Renewable Fuel Standard program, which includes measures to discourage the use of foreign imports in the U.S. biofuel market.

The group, led by Sen. Charles E. Grassley, R-Iowa, wrote to EPA Administrator Lee Zeldin last week to advocate for the proposal, saying it “represents a commonsense approach that puts American farmers first, strengthens domestic biofuel markets, and delivers tangible economic benefits to rural communities.”

In June, the EPA proposed changes to the RFS program to increase the Renewable Fuel Obligation (RVO), reduce the value of Renewable Identification Numbers (RINs) for foreign-produced fuels and biofuel components and reallocate unmet regulatory costs from exempted small refineries to larger ones. An RVO is the minimum volume of renewable fuel required to be mixed into the U.S. fuel supply. RINs function as a sort of currency in the biofuels industry.

Last month, the EPA added a supplemental rulemaking to its earlier proposal to clarify the small-refinery exemptions after a group of more than 40 Republican lawmakers expressed concern that the proposal could unduly burden the industry. Those lawmakers also warned against reducing the RIN values for foreign imports saying it would hamper domestic producers who rely on global supply chains.

But the Grassley-led group argued that the RIN reduction measures would “provide essential support for the farm economy so farmers could sell more products domestically” in the face of global market uncertainty.

The letter, whose co-signers include the rest of the Iowa delegation along with members from agriculture-intensive states such as Minnesota, Kansas and Nebraska, also noted that the EPA’s “own analysis” highlighted benefits for the RIN proposal, including job creation and economic growth for farming communities.

“This is exactly the outcome Congress intended when it created and expanded the Renewable Fuel Standard,” the members wrote.

“The Import RIN reduction also aligns with Congressional intent under the 45Z Clean Fuel Production Credit, which prioritizes domestic feedstocks,” they said. “Aligning EPA’s policy with this standard helps level the playing field for domestic feedstock and biofuel producers with imported feedstocks, such as Brazilian tallow and so called ‘used cooking oil’ from China, which would otherwise directly undercut U.S. energy, agriculture, and manufacturing.”

In a press release announcing the plan in June, Zeldin said the plan aimed to discourage the use of foreign biofuel products while encouraging growth in domestic production.

 

“We are creating a new system that benefits American farmers while mitigating the impact on gas prices and ensuring the continued existence of liquid fuels,” he said. “We can no longer afford to continue with the same system where Americans pay for foreign competitors.”

At a public hearing last Wednesday to consider the proposal, the nation’s largest biofuel trade group, Growth Energy, also urged the EPA to finalize its plans.

“The Renewable Fuel Standard continues to be one of our nation’s most successful energy policies,” CEO Emily Skor said at the virtual hearing. “Once finalized, higher volumes under the RFS will truly unleash American energy dominance by unlocking investments, creating jobs and supporting growth in rural America.”

She added that proper accounting of the small-refinery exemptions would help protect production and demand for farm commodities.

“Given the looming crisis in the ag economy, the agency’s approach promises to serve as an economic lifeline to American farmers,” she said.

The agency is accepting public comment on the plans until Oct. 31.

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