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Governors' Biofuels Coalition
NEWS UPDATE September 13, 2021

Top Story

Axne, House Agriculture Committee Approve Investments in Biofuels, Rural Development and Axne’s Rural Equal Aid Act

By Office of Rep. Cindy Axne  •    •  Posted September 13, 2021

Yesterday Iowa Rep. Cindy Axne voted to approve the House Agriculture Committee’s portion of the Build Back Better Act, which includes provisions she fought for to support biofuel infrastructure and rural business owners. The bill specifically includes $1 billion to support expanded biofuel infrastructure, a key Axne priority, and $400 million for loan relief for rural borrowers, originally proposed by Axne through her Rural Equal Aid Act. [ read more … ]

Budget Reconciliation Bill

Ways and Means panel unveils green tax credit package

By Kelsey Tamborrino, Politico  •    •  Posted September 13, 2021

The House Ways and Means Committee unveiled a sweeping package of tax credits late Friday night covering a host of incentives for wind and solar power and other types of green energy that would be tied to prevailing wage, apprenticeship and domestic content requirements. Biofuels groups however are already sounding the alarm over language in the package that would boost sustainable aviation fuel with a $1.25-$1.75 tax credit that aligns life cycle emissions reduction requirements with the methodology adopted by the International Civil Aviation Organization. [ read more … ]

Manchin slams $3.5T plan, says climate bill ‘makes no sense’

By George Cahlink, E&E News  •    •  Posted September 13, 2021

Congressional Democrats will need to start bridging major differences over climate policy and spending this week if they want to make headway toward their goal of passing a sweeping budget reconciliation bill by the end of the month. Senate Energy and Natural Resources Chair Joe Manchin (D-W.Va.) threw more cold water on the process. On multiple talk shows, he said he would not vote for a $3.5 trillion plan and suggested it should be scaled back to no more than $1.5 trillion. [ read more … ]

House Ag Committee Spars in Partisan Fight Over Budget Reconciliation Package

By Chris Clayton, Senior DTN Ag Policy Editor  •    •  Posted September 13, 2021

With a rush from congressional committees to draft and vote their sections of the $3.5 trillion budget reconciliation bill — dubbed the Build Back Better Act — the House Agriculture Committee held a nine-hour meeting through remote livestream on Friday that was a mix of partisanship, frustration and comedy. [ read more … ]


Biden Outlines a Plan for Cleaner Jet Fuel. But How Clean Would It Be?

By Hiroko Tabuchi, New York Times  •    •  Posted September 13, 2021

“Aviation fuels are going to be one of the toughest nuts to crack because electrification isn’t as simple” as electrifying, say, cars, trains or other ground transportation, said Jason Hill, professor of bioproducts and biosystems engineering at the University of Minnesota. “The problematic part is that today’s biofuels don’t reduce greenhouse gas emissions. That’s not where the state of the science is. They can actually make them worse.” To address those concerns, the Biden administration says that it will help cut costs and rapidly scale domestic production of sustainable fuels, but in a climate-friendly way. The administration has proposed a sustainable-aviation-fuel tax credit that would require at least a 50 percent reduction in overall greenhouse gas emissions, a standard that would disqualify most crop-based biofuels. Congress is now studying the plan. [ read more … ]

Biden’s push to curb aviation GHGs creates opening for biofuels In RFS

By Inside EPA  •    •  Posted September 13, 2021

A major new White House policy push to increase the supply of sustainable aviation fuel (SAF) creates a new role for EPA to encourage biofuel production for aircrafts under the renewable fuel standard (RFS) — offering a crucial long-term market opportunity for biofuel producers. Biofuels groups welcomed the White House announcement, which came following a roundtable meeting between biofuels groups and administration officials. [ read more … ]


Will Biden’s push for electric vehicles kill ethanol? Not if he wants to cut carbon emissions now, its supporters say

By Donnelle Eller. Des Monies Register  •    •  Posted September 13, 2021

Elite and Iowa’s 41 other ethanol plants consume roughly half of Iowa’s corn crop, projected this year at 2.44 billion bushels, and Iowa is the nation’s leading producer of both. Under federal law, almost all of the nation’s gasoline is blended with at least 10% ethanol. But ethanol’s future is uncertain, supporters and critics say, given President Joe Biden’s push toward electric vehicles to reduce the carbon emissions that contribute to climate change. Biden wants half of all new cars and trucks sold by 2030 to be electric, key to achieving his ambitious goals of slashing U.S. emissions in half by 2030 and achieving a carbon-free economy by 2050. The nation’s largest manufacturers, Ford, General Motors and Stellantis, formerly Fiat-Chrysler, have pledged to achieve that milestone. [ read more … ]

Toyota, Honda oppose U.S. House electric vehicle tax plan

By David Shepardson, Reuters  •    •  Posted September 13, 2021

Toyota Motor Corp and Honda Motor Co on Saturday sharply criticized a proposal by Democrats in the U.S. House of Representatives to give union-made electric vehicles in the United States an additional $4,500 tax incentive. Toyota said in a statement that the plan unveiled late Friday discriminates “against American autoworkers based on their choice not to unionize.”
[ read more … ]


Alan Guebert: Ethanol’s future is running out of gas

By Alan Guebert, Farm Forum  •    •  Posted September 13, 2021

Neither Biden plan — reduced biofuel blending mandates or increased governmental favoritism of electric cars and trucks — means the end of ethanol. Together, however, they make it plain that ag-based biofuels, and ethanol in particular, face a very tough future in the coming years. How severe is yet to be determined, but corn-rich states like Iowa, where about 60% of the state’s field corn flows to ethanol plants, will be hardest hit. Nebraska, the nation’s second largest state producer of ethanol, will take a hard pop, too. [ read more … ]


RFA Analysis: Retail Gas Prices Not Affected by Renewable Fuel Standard Credits

By Ken Colombini, RFA  •    •  Posted September 13, 2021

The Renewable Fuel Standard’s compliance credit market mechanism does not have any impact on retail gasoline prices, according to a new analysis released today by the Renewable Fuels Association. The analysis finds that while RFS compliance credits—known as RINs, or Renewable Identification Numbers—are a factor in wholesale gasoline prices, there is no evidence that RIN costs have any measurable effect on the retail prices paid by consumers. [ read more … ]

Note: News clips provided do not necessarily reflect the views of coalition or its member governors.