Letter to Hon. Tom Vilsack, Secretary of Agriculture - Davis, House Biofuels Caucus Urge Ag Secretary Vilsack to Provide Relief to Renewable Fuels Industry

Letter

Dear Secretary Vilsack,

Thank you for your support of the biofuels industry and your continued efforts to expand the availability of domestic ethanol and biodiesel. As the biofuels industry heads toward recovery, we look forward to the U.S. Department of Agriculture releasing its plan regarding providing aid to biofuel producers. Additionally, we applaud the recently announced $18.4 million investment in the Higher Blends Infrastructure Incentive Program (HBIIP), a program that has proven to be highly successful in promoting infrastructure that brings increased volumes of higher-blend renewable fuels to consumers, and we welcome additional investment in the program.

As you look to provide additional relief under the Pandemic Assistance for Producers program using
funds from the Consolidated Appropriations Act of 2021 (P.L 116-260), we request that a portion of those $6 billion in funds are used to assist the biofuels industry. Specifically, we respectfully request that you implement direct, per-gallon payments for biorefineries that were in normal operation in the first quarter of 2020 and with 2019 production year as a benchmark for providing relief. For advanced biofuels producers who operated at a market loss, we request that you implement direct payments to applicants utilizing an average net return over total costs difference between the pre and post pandemic production.

Another avenue to bolster the industry is through further infrastructure investments for biofuels. Thanks to your leadership in 2015, the Biofuels Infrastructure Partnership (BIP) provided states with nearly $100 million in federal funding for new infrastructure with the purpose of increasing the availability of biofuels for consumers. While the recent $18.4 million investment in the program is a meaningful down payment that comes as welcome news, we look forward to seeing full funding for competitive grants and sales incentives through the program, as announced in May 2020.

Building on the May 2019 announcement to allow for the year-round sales of E-15, increased investments in infrastructure through the HBIIP will support, help rebuild markets, and increase biofuel consumption by allowing large quantities of higher ethanol blends to be sold. Increased investments in this program will serve to help stabilize demand and bolster the ability of producers to sell into the market while expanding domestic energy production.

We continue to advocate for proactive approaches that complement COVID relief efforts to help rebuild the industry, and investments offered through the HBIIP, as well as clear and consistent labeling of higher biofuel blends including E-15 and B-20 or higher, are key for rural America to move forward with confidence. As markets continue to rebound, it is now more important than ever to quickly provide support, and bolster efforts that increase the demand for biofuels at home and abroad.

Given the challenges facing the agricultural sector from all sides on this issue, we appreciate your continued efforts to bolster the sale and use of ethanol and biodiesel. We stand ready to work with you and look forward to you making good on the promises that were made to our farmers.

Sincerely,