The current 2018 proposed rule would represent a step backwards for advanced biofuels, resulting in less renewable fuels being blended than in 2017; The rule unjustifiably flatlines biomass-based diesel, reduces advanced biofuels, and reduces the cellulosic biofuel blending target by about 25 percent  

In a letter to Environmental Protection Agency Administrator Scott Pruitt, the senators urged the continued implementation of the RFS as intended by Congress and the release of a strong final rule that would give consumers more choices at the pump, strengthen the economy, and make the country more secure

WASHINGTON, DC – U.S. Senators Amy Klobuchar (D-MN) and Chuck Grassley (R-IA) are leading a bipartisan group of 38 senators in calling for a strong Renewable Fuel Standard (RFS) as the Environmental Protection Agency (EPA) works toward finalizing its rule on biofuels volume requirements for 2018 under the RFS. The current proposed rule would represent a step backwards for advanced biofuels, resulting in less renewable fuels being blended than in 2017. The rule unjustifiably flatlines biomass-based diesel, reduces advanced biofuels, and reduces the cellulosic biofuel blending target by about 25 percent. In a letter to EPA Administrator Scott Pruitt, the senators urged the continued implementation of the RFS as intended by Congress and the release of a strong final rule that would give consumers more choices at the pump, strengthen the economy, and make the country more secure.

“We urge you to ensure that the EPA’s final rule setting blending targets under the Renewable Fuel Standard (RFS) for 2018 promotes growth in the U.S. biofuel sector and in our economy. The 2018 proposed rule, while positive for maintaining the maximum blending target for conventional biofuel at 15 billion gallons, would represent a step back when it comes to advanced biofuels, resulting in less renewable fuels being blended than in 2017,” the senators wrote. “The rule unjustifiably flatlines biomass-based diesel, reduces advanced biofuels, and reduces the cellulosic biofuel blending target by about 25 percent. The agency arrives at these lower targets by utilizing a new methodology more reliant on historical data than projected volumes. The RFS must by law be administered in a forward-looking manner. The final rule should address these shortfalls.”

The senators continued, “If done right, this rule is an opportunity to continue our nation’s path to be not only the world leader in first generation ethanol production, but also in cellulosic ethanol and advanced biofuel production by spurring investment and manufacturing here in the United States rather than overseas. We urge you to continue to implement the RFS as intended by Congress and release a strong final rule that would give consumers more choices at the pump, strengthen our economy and make our country more secure.”

Thirty-six senators joined Klobuchar and Grassley in signing the letter.  

In March, Klobuchar and Grassley led a bipartisan group of 23 senators in urging the Administration to reject changes to the RFS that would upend stability and predictability for small businesses, and rural communities.

For years, Klobuchar has led a bipartisan push for the EPA to release a stronger RFS to support American jobs and decrease dependence on foreign oil. Last November, the former Administration released a stronger final rule for 2017. The new standard required a record amount of biofuel to be mixed into our transportation fuel supply next year. Minnesota’s twenty ethanol plants and three biodiesel plants generate roughly $5 billion in combined economic output and have made our state the fourth-largest ethanol producing state in the country.

As a member of the Senate Agriculture Committee and a 2014 Farm Bill Conference Committee member, Klobuchar successfully pushed for key provisions in the current Farm Bill – including measures to support rural development projects, conservation programs, agricultural research, and the Rural Energy for America (REAP) program. Earlier this year, her staff held public forums throughout the state to hear firsthand from Minnesotans about their priorities for the Farm Bill’s 2018 reauthorization. Since February, Klobuchar has held Rural Economy Tours across Minnesota, meeting with local leaders from the agriculture and business communities to discuss priorities for the 2018 Farm Bill and the economic impact of a stronger RFS.

Grassley has a long record of advancing biofuels policy. Most recently, following the EPA’s latest RFS proposal, which Grassley called a bait-and-switch from a previous proposal in July, Grassley has been pressing Pruitt to uphold President Trump’s pledge to support biofuels, which Trump made numerous times throughout the campaign and recently. Before Pruitt’s confirmation hearing, Grassley, along with a group of Midwestern senators, received a commitment from Pruitt to follow the President’s vision on renewable fuels, to not undermine the Renewable Fuel Standard and to uphold the rule of law.

The full text of the senators’ letter is below.

Dear Administrator Pruitt:

We urge you to ensure that the EPA’s final rule setting blending targets under the Renewable Fuel Standard (RFS) for 2018 promotes growth in the U.S. biofuel sector and in our economy.

When Congress adopted the RFS in 2005, its goal was to put in place a stable, forward-looking policy to drive innovation and investments that would bring biofuels to American consumers. The biofuel industry supports hundreds of thousands of jobs throughout the country, reduces the environmental impact of our transportation and energy sectors, and cuts our reliance on foreign oil. The stability of our policy has led to billions of dollars of investment in the biofuel sector. America’s production capacity has expanded more than threefold since 2005 with fuels such as biodiesel, cellulosic ethanol, recycled-waste, algal, and other advanced biofuels.

We need to build on this progress. The 2017 final RFS rule set Renewable Volume Obligations (RVO) at the levels Congress intended. The 2018 proposed rule, while positive for maintaining the maximum blending target for conventional biofuel at 15 billion gallons, would represent a step back when it comes to advanced biofuels, resulting in less renewable fuels being blended than in 2017. The rule unjustifiably flatlines biomass-based diesel, reduces advanced biofuels, and reduces the cellulosic biofuel blending target by about 25 percent. The agency arrives at these lower targets by utilizing a new methodology more reliant on historical data than projected volumes. The RFS must by law be administered in a forward-looking manner. The final rule should address these shortfalls.

In addition, the Notice of Data Availability the agency published on September 26 would lower the blending targets by the number of gallons of biofuels imported yet still permit these imported gallons to generate compliance credits. There are also reports that the agency is considering allowing exported gallons of biofuel to generate compliance credits. Taken together, these actions would reduce renewable fuel blending in the U.S. and create uncertainty for producers.

If done right, this rule is an opportunity to continue our nation’s path to be not only the world leader in first generation ethanol production, but also in cellulosic ethanol and advanced biofuel production by spurring investment and manufacturing here in the United States rather than overseas.

We urge you to continue to implement the RFS as intended by Congress and release a strong final rule that would give consumers more choices at the pump, strengthen our economy and make our country more secure. 

Sincerely,

###