Wallaces Farmer

Bill would advance ethanol and biodiesel availability nationwide by reducing barriers.

Rod Swoboda

May 1, 2020

3 Min Read
Ethanol pump
PRIME THE PUMP: Newly introduced legislation aims to make higher blends of ethanol and biodiesel more widely available.Rod Swoboda

Rep. Abby Finkenauer, D-Iowa, on April 28 announced the introduction of the Clean Fuels Deployment Act of 2020. The bipartisan legislation would provide funding for installing and converting fuel pumps and infrastructure at retail gas stations to deliver higher blends of ethanol and biodiesel.

The bill authorizes $500 million over five years to help retailers nationwide offer higher blends, expand the geographic area selling higher blends and accelerate the use of fueling infrastructure such as pipeline terminals to handle biofuels. Given recent uncertainties in the renewable fuels industry, it’s more important than ever to fund infrastructure improvements and remove market barriers to accessing clean and renewable fuels, Finkenauer says.

“The time is now to further diversify our fuel supply and move more biofuels into the market,” she says. “Biofuels offer a proven path to reducing greenhouse gas emissions, decarbonizing the transportation sector, driving economic growth and creating jobs. Cleaner-burning fuels are good for our economy, and we will keep fighting for them.” The legislation is co-sponsored by Reps. Angie Craig, D-Minn.; Don Bacon, R-Neb.; and Roger Marshall, R-Kansas.

Support for Clean Fuels Act

In addition to supporting distribution of higher ethanol and biodiesel blends at fueling stations, the program could also be used to enhance pipelines and terminals to blend and carry ethanol and biodiesel. Funding from the clean fuels grant program could be used to provide more incentive for deployment of new fueling infrastructure and to convert existing infrastructure to deliver ethanol blends greater than 10% and biodiesel blends greater than 20%.

“The Iowa Renewable Fuels Association thanks Rep. Finkenauer for leading the way on legislation to expand consumer access to cleaner-burning fuels,” says Monte Shaw, executive director of IRFA. “At a time when fuel demand is down nationwide, and farmers and biofuel producers are hurting, it’s more important than ever that drivers have access to higher blends of biofuels at the pump. When given the option, motorists choose to fill up with biofuel blends that are better for the environment and support American jobs. This legislation, if passed and signed into law, will go a long way to ensuring more Americans have that choice.”

Biofuel availability

The Iowa Biodiesel Board also recommends passage of the biofuels infrastructure bill. “We need to accelerate consumer access to biofuels like biodiesel,” says Grant Kimberley, executive director of the IBB and director of market development for the Iowa Soybean Association. “The greatest remaining barriers to widespread biodiesel adoption are at the terminal and pipeline terminal level. We support incentivizing terminals and taking other steps to help increase the market penetration of this environmentally friendly fuel. This will drive economic growth — an urgent need in America today. In these challenging times, farmers and the biofuels industry need all the help they can get.”

ISA President Tim Bardole, farming near Rippey in central Iowa, adds, “Farmers thank Rep. Abby Finkenauer for working to break down market barriers and expand the availability of clean, homegrown renewable fuels. This legislation and investment is critical for providing fueling infrastructure. It will help drive soybean demand and significantly increase the access, sale and use of higher biodiesel and ethanol blends.”

Economic opportunities

The Iowa Corn Growers Association also supports this legislation. “This bill will expand long-term economic opportunities for farmers and biofuel producers,” says Kelly Nieuwenhuis, a farmer from Primghar in northwest Iowa. “It will allow consumers to have greater access to homegrown, cleaner-burning fuels.” Serving on ICGA’s industrial usage committee, he sees the need for higher ethanol blends to increase demand for corn.

As the U.S. eventually emerges from the economic downturn caused by COVID-19, this legislation offers a road map to help revitalize rural communities by expanding cleaner, more affordable options at the pump for motorists, says Kevin Ross, president of the National Corn Growers Association who farms near Minden in western Iowa. He says NCGA is urging House and Senate leaders to “embrace this legislation as an opportunity to support low-carbon fuels and the long-term future for renewable fuels and for rural America.”

 

 

 

About the Author(s)

Rod Swoboda

Rod Swoboda is a former editor of Wallaces Farmer and is now retired.

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