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President Trump Announces Agreement on Biofuels

WASHINGTON (October 4, 2019) – Today, U.S. Environmental Protection Agency (EPA) Administrator Andrew Wheeler and U.S. Department of Agriculture (USDA) Secretary Sonny Perdue issued the following statements after President Donald J. Trump successfully negotiated an agreement on the Renewable Fuel Standard (RFS):
“President Trump’s leadership has led to an agreement that continues to promote domestic ethanol and biodiesel production, supporting our Nation’s farmers and providing greater energy security,” said EPA Administrator Andrew Wheeler.“Today’s agreement is the latest in a series of steps we have taken to expand domestic energy production and improve the RFS program that will result in sustained biofuel production to help American farmers.”
“President Trump has once again demonstrated that he is a champion for our nation’s farmers and rural America,” said USDA Secretary Sonny Perdue. “The President recognizes that American farmers are the most productive in the world, and he has found a way to pursue policy that promotes economic growth and supports our producers. Building on the success of the year-round E15 rule, this forward-looking agreement makes improvements to the RFS program that will better harness the production of our farmers and ensure America remains energy dominant.”
Under this agreement, the following actions will be undertaken by EPA and USDA:
  • In a forthcoming supplemental notice building off the recently proposed 2020 Renewable Volume Standards and the Biomass-Based Diesel Volume for 2021, EPA will propose and request public comment on expanding biofuel requirements beginning in 2020.
  • EPA will seek comment on actions to ensure that more than 15 billion gallons of conventional ethanol be blended into the nation’s fuel supply beginning in 2020, and that the volume obligation for biomass-based diesel is met. This will include accounting for relief expected to be provided for small refineries.
  • EPA intends to take final action on this front later this year.
  • In the most recent compliance year, EPA granted 31 small refinery exemptions.
  • Building on the President’s earlier decision to allow year-round sales of E15, EPA will initiate a rulemaking process to streamline labeling and remove other barriers to the sale of E15.
  • EPA will continue to evaluate options for RIN market transparency and reform.
  • USDA will seek opportunities through the budget process to consider infrastructure projects to facilitate higher biofuel blends.
  • The Administration will continue to work to address ethanol and biodiesel trade issues.
Since taking office in 2017, the Trump Administration has enacted tax and regulatory policies that have helped make America energy dominant. The Administration has cut burdensome red tape through deregulation, including signing a record number of Congressional Review Act (CRA) legislation, repealing the Waters of the United States (WOTUS) rule, reforming the Section 401 process under the Clean Water Act, proposing a new methane rule, and removing the U.S. from the job-killing Paris Climate Accord. The Administration has also expedited permitting approvals, has opened up federal land for development, including the Arctic National Wildlife Refuge (ANWR), and will continue to enact pro-growth energy policies to expand American energy dominance.
Quotes from Elected Officials
“This is great news for Iowa and rural America. President Trump is following through on his commitment to our nation’s hardworking farmers and biofuels producers. The RFS is essential to the livelihoods of folks across our state, which is why I’ve been fighting tirelessly on behalf of Iowa’s farmers and producers every step of the way and making Iowans’ voices heard throughout this process,” said Senator Joni Ernst (IA).
“Our message was clear: uphold the RFS—15 billion means 15 billion. The president heard that message and has acted on it. The steps outlined today by the administration will help increase demand for our biofuels, provide certainty for farmers and producers for years to come, and ensure that EPA is implementing the RFS as it was written.”
“President Trump listened to the concerns of farmers and biofuels producers and delivered on their behalf… The solution outlined by President Trump, Administrator Wheeler and Secretary Perdue is exactly how the RFS is meant to function according to the law as written by Congress… Maintaining the integrity of the RFS, repealing WOTUS and allowing year-round sales of E15 will all help American agriculture and the rural economy. These are promises made and promises kept by President Trump,”said Senator Chuck Grassley (IA). “President Trump has made clear that he is an ally of corn and soybean farmers as well as ethanol and biodiesel producers. He is fighting for the farmer. This announcement is great news for Iowa, the Midwest and the entire country.”
“In my discussions with the president, I fought hard for a fair deal for Nebraska’s farmers and ethanol producers,” said Senator Deb Fischer (NE). “I thank the president for following through on his commitment to rural America. Today’s announcement means more certainty for families, businesses, and communities across the Good Life.”
“Ensuring RVOs do not go below 15 billion gallons and expanding access to E15 will bolster the RFS and ethanol production at a critical time for our nation’s rural economy, which has been suffering from low commodity prices,” said Governor Pete Ricketts (NE). “Thank you to President Trump for taking these important steps for ethanol and our great farm families!”
“I want to thank the President for working with me to bring parity to farmers in my district, and the ethanol industry as a whole, by addressing the issue of small refinery exemptions,” said Congressman Rodney Davis (IL-13). “I recently introduced the bipartisan Small Refinery Exemption Fairness Act to address this issue and reobligate gallons lost to these exemptions, and I look forward to seeing the details of this plan that will put us on the right path forward.”
“This announcement comes at a time when Illinois ethanol producers needed a big win,” said Congressman Mike Bost (IL-12). “By maintaining the 15 billion gallon baseline and increasing access to E15, President Trump has shown he is working for American agriculture. Farmers across Illinois’ 12th District will be pleased with this announcement and the security it provides for the Renewable Fuel Standard.”
“This is welcome news for Iowa’s farmers and the renewable fuels industry,” said Iowa Secretary of Agriculture Mike Naig. “President Trump listened to our producers’ concerns and took action to address them. This is what happens when farmers, biofuels producers and government leaders work together to make our voices heard. We are grateful to President Trump for directing EPA to uphold the intent of the Renewable Fuel Standard, and we look forward to working with EPA and USDA to implement today’s announcement. As the number one producer of ethanol and biodiesel in the country, Iowa is proud to lead the nation in reducing our dependence on foreign oil. We will continue to work to restore and build demand for these critical markets for Iowa agriculture.”
Background on the Renewable Fuel Standard: Congress passed the renewable fuel standard (RFS) program to reduce greenhouse gas emissions and expand the nation’s renewable fuels sector while reducing reliance on imported oil. This program was authorized under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007. In addition to the goals of increasing production of home-grown renewable fuels, the program supports domestic demand for farm commodities, increases farm income, and creates rural jobs.

Corn Farmers Thank Trump Administration and Biofuels Champions for Upholding the Integrity of the RFS

Statement from ICGA President Jim Greif

Iowa corn farmers received positive news today for momentum in the right direction to uphold the integrity of the Renewable Fuel Standard (RFS). The Iowa Corn Growers Association (ICGA) thanks President Trump for his commitment to address the demand destruction of corn ethanol brought on by expanded use of small refinery exemptions and prospectively account for those exemptions using a three-year rolling average of actual waived gallons, beginning with the 2020 biofuel standard. This gives hope to Iowa’s rural economy, especially at a time when corn farmers need it most.

We also want to thank Iowa’s elected leaders and Iowa Corn Growers Association members who overwhelmingly responded to communicate with the President the top priority of ICGA — to retain the RFS and reduce regulatory barriers for higher blends of ethanol. We are grateful for the dedication of our biofuels champions, Senators Ernst and Grassley along with Governor Reynolds, who fought for Iowa’s corn farmers, ethanol plants and rural communities.

We appreciate the Trump Administration is taking steps to make it right to help Iowa corn farmers. ICGA will continue to work with our elected champions and the Administration to ensure the commitments made today are implemented and demand for Iowa corn is restored.

Secretary Naig Calls Biofuels Announcement Welcome News for Iowa

DES MOINES, Iowa (Oct. 4, 2019) — Iowa Secretary of Agriculture Mike Naig issued the following statement in response to today’s biofuels announcement.

“This is welcome news for Iowa’s farmers and the renewable fuels industry,” said Secretary Naig. “President Trump listened to our producers’ concerns and took action to address them. This is what happens when farmers, biofuels producers and government leaders work together to make our voices heard. We are grateful to President Trump for directing EPA to uphold the intent of the Renewable Fuel Standard, and we look forward to working with EPA and USDA to implement today’s announcement. As the number one producer of ethanol and biodiesel in the country, Iowa is proud to lead the nation in reducing our dependence on foreign oil. We will continue to work to restore and build demand for these critical markets for Iowa agriculture.”

Biodiesel Facts

  • Iowa produces roughly 4.3 billion gallons of ethanol and 365 million gallons of biodiesel annually.
  • Biodiesel production accounts for roughly 3 percent of Iowa GDP and $2.5 billion of income for Iowa households.
  • The biofuels industry supports 48,000 jobs in the state of Iowa.
  • Iowa will have close to 1,000 E-15 pumps at 200 stations across the state by the end of 2019. Iowans can find E15 fueling stations here.

Statement from the Renewable Fuels Association

The Trump Administration announced today that it is taking action to begin reversing the damage done to rural America by refinery exemptions from the Renewable Fuel Standard (RFS). Today’s plan requires EPA to keep the statutory RFS volumes whole by prospectively redistributing exempted renewable fuel blending requirements to non-exempt refiners. Renewable Fuels Association President and CEO Geoff Cooper offered the following statement:
“We thank President Trump for hearing the concerns of ethanol producers, farmers and consumers across the country. The plan announced today takes a crucial step toward repairing the damage done by EPA’s small refinery waivers and re-establishes the RFS as a driver of growth in the production and use of low carbon renewable fuels. Once finalized and implemented, this plan will ensure EPA follows the law in setting annual biofuel blending obligations under the RFS.
“President Trump’s action today not only begins to restore integrity to the RFS, but also starts to revive hope for farmers and ethanol plant workers who have seen small refinery exemptions wreak havoc on their markets and destabilize their rural communities.
“It is important to remember that today’s announcement marks the beginning—not the end—of an EPA regulatory process, and much work remains to be done. We will continue to diligently work with EPA and the administration to ensure this action is finalized in a way that guarantees a 15-billion-gallon requirement in 2020 truly is a 15-billion-gallon requirement.
“We are especially grateful to the many members of Congress, state governors, and USDA leaders who voiced their concerns to the President and stood steadfast with farmers and ethanol producers. America’s farm families and biofuel workers have an incredibly powerful voice when we pull together, and we applaud the President for responding to our concerns and upholding his promise to protect the RFS.”

White House’s RFS Proposal Would Put RFS Back on Track

JOHNSTON, IOWA – Today President Donald Trump’s Administration released a proposed biofuels package intended to address the damage caused by Renewable Fuel Standard (RFS) refinery exemptions that have destroyed biofuels demand and led to shuttered ethanol and biodiesel plants across the country. The proposal included the much-needed prospective reallocation of exempted gallons in order to ensure the integrity of the RFS blend levels.

In response to this proposal, Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw made the following statement:

“Iowans thank President Trump for again listening to their concerns and calls for the Renewable Fuel Standard (RFS) to be enforced according to the law. The economic devastation wrought by the unjustified use of refinery exemptions must be stopped. We welcome the proposal to restore integrity to the RFS by prospectively accounting for those exemptions using a three-year rolling average of actual refinery exemptions granted. We will work with our champions and the White House to make sure the EPA’s final rules ensure that a 15 billion-gallon RFS will actually be a 15 billion-gallon RFS. If that is accomplished, the integrity of the RFS will have been restored and President Trump’s promise to protect and uphold the RFS will have been redeemed.

“None of this would have been possible without the steadfast support and hard work of our elected champions. We are deeply appreciative of all Sens. Ernst and Grassley and Gov. Reynolds did to bring about this positive proposal today.

“With the process toward RFS integrity begun, IRFA will also continue to work on expanding biofuels requirements, specifically the advanced level in 2020 and the biomass-based diesel level in 2021, as well as restoring the 500 million gallons of conventional biofuels that were illegally waived by the Obama Administration in 2016, and which the D.C. Circuit Court of Appeals has already ordered the EPA to put back in the RFS program.”

The Iowa Renewable Fuels Association represents the state’s liquid renewable fuels industry and works to foster its growth. Iowa is the nation’s leader in renewable fuels production with 43 ethanol refineries capable of producing over 4.5 billion gallons annually – including 34 million gallons of annual cellulosic ethanol production capacity – and 11 biodiesel facilities with the capacity to produce nearly 400 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org.



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