Envision a Growing Role for Biofuels
American farmers are the most productive in the world. The fruits of their labor provide the feedstocks to create low-cost, clean-burning ethanol and biodiesel, while still allowing us to feed the world. A recent study shows renewable fuels production in Iowa alone supports more than 57,000 jobs while generating over $3.5 billion of income for households. However, the benefits don’t stop there as production of homegrown biofuels means energy independence verse reliance on foreign oil and Chinese batteries. From supporting rural prosperity in small towns to energy independence and national security, Biofuels Vision 2024 urges candidates to support a growing role for home-grown biofuels in their energy plans.
Properly Enact the Renewable Fuel Standard (RFS)
The bipartisan Renewable Fuel Standard (RFS), created under the Energy Policy Act of 2005 and expanded in 2007, is a federal program that cracks through the petroleum monopoly so consumers can choose transportation fuel containing blends of biodiesel or ethanol. The bottom line is the RFS is one of the most successful pieces of energy legislation – reducing our reliance on foreign oil, supporting our national security via homegrown energy, creating good-paying American jobs, cleaning the air we breathe, growing reliable markets for US farmers, and reducing prices for families at the pump. Biofuels Vision 2024 asks candidates to properly enforce the RFS as Congress intended.
Preserve Existing Biofuels Tax Credits (biodiesel blenders credit, cellulosic ethanol credit, 45Z, and 45Q)
While the petroleum industry continues to benefit from tax policies enacted more than a century ago, only recently has Congress enacted energy tax credits to spur innovation and investments by renewable energy providers across the United States. Since the passage of these incentives, biofuels producers have signed binding contracts or started construction on massive capital investments to improve efficiency and productivity. Biofuels companies are doing what any successful business does – they are taking the steps necessary to remain competitive given today’s policy and consumer demands. Considering ongoing investments and the need for business certainty, Biofuels Vision 2024 urges candidates to support maintaining the existing tax credits through at least their current sunset dates.
Champion National Year-Round E15 Solution
E15, a transportation fuel blended with 15 percent ethanol, is EPA approved for use in all 2001 and newer light duty vehicles or roughly 97% of cars driving on roads today. Through a quirk in federal regulations, E10 (the blend almost all motorists use today) and E15 have different summer regulations. This allows the petroleum industry to game the system and freeze E15 out of the market during summer months. The Trump EPA took action to equalize the regulations and level the playing field, but some petroleum interests sued, and the rule was thrown out. E15 requires a Congressional fix. Providing parity for E15 allows this fuel to be sold year-round, removing an outdated and unnecessary barrier while providing families across the United States instant and meaningful savings at the pump (5-20 cents per gallon). The E15 fix is supported by ag and biofuels, but also the American Petroleum Institute. Biofuels Vision 2024 implores candidates to champion a permanent, national year-round E15 fix through Congress and to sign it into law.
Adopt U.S. GREET Model
The United States is one of the top markets for Sustainable Aviation Fuel (SAF), which utilizes homegrown biomass feedstocks like corn, vegetable oils, animal fats and even cooking waste. SAF allows the U.S. to decrease our reliance on foreign oil from our adversaries, like Russia, and replace them with clean, American-made renewable fuels, bolstering our national security and reducing emissions. However, some extreme environmental groups are pushing the US Treasury Department to only recognize a European lifecycle emissions model for SAF that discriminates against American farmers and the low-cost feedstocks they produce. That is why there is bipartisan support for the United States-based GREET model to determine SAF life-cycle emissions. The GREET model is based on sound science and not rigged against American farmers. Biofuels Vision 2024 asks candidates, as president, to direct the Treasury Department to allow the GREET model to be used for SAF.
Unlock Higher Ethanol Blends
Today most consumers are left with few options when filling up at the pump, especially when it comes to cost-saving higher ethanol blends. The bipartisan Next Generation Fuels Act will open the fuel tank to higher-level ethanol blends (like E30 or E40) by establishing a higher minimum octane standard for gasoline. Given that ethanol provides the world’s cheapest source of octane, this provides opportunity for cost-saving, higher ethanol blends for consumers. Furthermore, by increasing consumer options for higher ethanol blends, the Next Generation Fuels Act opens the door to more efficient internal combustion engines (ICE) and pushes back on attempts to favor or even mandate EVs. Biofuels Vision 2024 asks candidates to support additional competition by ensuring higher blends can be used in future vehicles.
Support Farm Bill with Energy Title
There can be no national security without food security. American family farmers are the best in the world, but even they can’t control the weather. A proper safety net for family farmers helps them survive when mother nature throws a curveball. But more than that, it ensures a robust, competitive marketplace of growers that can’t be manipulated by a few large corporations. As a result, Americans spend less of their paycheck on food than any other country in the world. In addition, the Farm Bill can assist biofuels producers by opening up new markets through increased Market Access Program/Foreign Market Development (MAP/FMD) funding. MAP and FMD are likely the single best “return on investment” programs in the federal budget and allow the US to help our allies meet their clean energy needs instead of relying on China or rouge oil states. Biofuels Vision 2024 asks candidates to support a new Farm Bill with a robust Energy Title.
Oppose Electric Vehicles (EV) Mandates
Biofuel producers and farmers understand that if the United States wants to reach energy independence it will take an all-of-the-above approach. However, today some leaders advocate an EV-only approach. With China and other adversaries controlling rare-earth metal markets, it would not be wise to leave foreign oil dependence behind only to become reliant upon Chinese batteries. EVs will no doubt play a growing role in meeting our transportation needs, but US transportation is too big and too important to adopt a one-size-fits-all approach. To best achieve US environmental and security goals – and at a reasonable cost to consumers, the US needs more than EVs. We need heavy duty trucks running on biodiesel, hybrid vehicles, and vehicles capable of running on E30, E40 or even E85 ethanol blends. Biofuels Vision 2024 asks candidates to oppose laws and regulations that mandate (directly or indirectly) an EV-only future.