Sioux City Times

HULL, IOWA – U.S. Representative Randy Feenstra (R-Hull) and Iowa Senators Chuck Grassley (R-IA) and Joni Ernst (R-IA) have urged the Biden administration to reconsider its decision on Renewable Volume Obligation (RVO) levels. In a letter addressed to President Biden and EPA Administrator Michael Regan, they called for an increase in RVO levels to better align with industry production capacity, specifically for Iowa biofuels.

“Homegrown Iowa biofuels support our farmers, lower gas prices for our families, and strengthen American energy security. Representing the top biofuel-producing district in the country, it is my mission to ensure that the Biden administration understands the growth potential of Iowa biofuels, the importance of biofuels to our rural economy, and the need to support our farmers and the production of biofuels,” said Rep. Feenstra. “Unfortunately, due in part to the EPA’s decision to set RVO levels far lower than market capacity, biodiesel plants in Ralston, Iowa and Madison, Wisconsin were forced to close – eliminating jobs and harming the local economy. We must ensure that these closures do not replicate across Iowa and the Midwest because these misguided steps by the Biden administration have real-world consequences for our economy and rural communities. That’s why – alongside Senator Grassley and Senator Ernst – I’m calling on President Biden and EPA Administrator Regan to increase RVO levels according to the actual production potential of our biofuels producers. Securing American energy independence begins with supporting Iowa’s homegrown energy production.”

Senator Ernst echoed this sentiment: “Completely ignoring my warnings early last year, Biden’s EPA has once again missed the mark on doing right by our farmers, environment, and biofuel producers,” she said. “By implementing drastically low RVO levels, this administration has gone out of its way to destroy jobs and damage rural economies. One plant closure in Iowa is one too many. President Biden and EPA Administrator Regan must act now to increase RVO levels which will support homegrown energy and lower gas prices for families already hurting in Biden’s economy.”

Senator Grassley added: “Iowa businesses and families have suffered the consequences of the Biden EPA’s uninformed decision to lower RVO levels. The Biden administration is restricting biofuel producers, making it difficult for plants to keep their doors open and stifling opportunities for biodiesel at the expense of rural economies and broader environmental benefits,” he said. “The EPA ought to straighten out this mess it created. Iowans are ready to help fuel the nation if only bureaucracy would get out of the way.”

The lawmakers' letter highlighted concerns about setting biomass-based diesel, overall advanced fuels, and overall Renewable Volume Obligations at what they described as "drastically low levels." They urged immediate amendments.

They pointed out that on June 3, 2022, when finalizing RFS volumes for 2021-2022 while reopening previously finalized volumes for 2020 due to COVID-related demand destruction considerations was unprecedented but justified under those circumstances.

“There is no internal correction in the RFS for scenarios where EPA dramatically misses projections," they wrote. "If EPA can reopen an RVO rule reducing volume obligations based on demand forecasts errors then it should also correct upward forecast errors."

The full letter from Feenstra along with Senators Grassley & Ernst can be found HERE.

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