Shaw declares state of Iowa Biofuels Industry as Frustrated but Focused

Contact:Cassidy Walter
515-322-0435

ALTOONA, IOWA – Today at the 2020 Iowa Renewable Fuels Summit Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw addressed attendees on the state of the Iowa biofuels industry, characterizing it as frustrated but focused on moving forward, working cooperatively with EPA in 2020.

“Yes, the biofuels and ag community were frustrated on December 19, but that frustration has slowly evolved into focus on the work to be done in 2020,” Shaw said. “I think that starts by trying to rebuild some type of working relationship with the EPA. Speaking for myself, I’m ready to try. I want to try to work with EPA to take steps, small and large, that can rebuild some trust. I think the question here is: does EPA want to do that?”

The EPA rule finalized on December 19, 2019 ignited frustration throughout the ag and biofuels community because instead of accounting for demand destruction caused by small refinery exemptions (SREs) in future Renewable Fuel Standard (RFS) rulings by using an average of the number of previously granted SREs, providing market certainty, the rule stated EPA will account for SREs using an average of U.S. Department of Energy recommendations, leaving the integrity of the RFS up to EPA’s discretion.

In his speech at the Summit, Shaw emphasized that despite this disappointment, there were many other policy victories in 2019 that the biofuels industry can use to grow years into the future.

“My view of 2019 is no longer solely colored by the frustration of December 19,” he said. “While it is certainly a headline, it is not the entire story. As I consider 2019 from a policy perspective, there were many more significant victories than defeats. And while admittedly not a quick fix to our current economic challenges, I enter 2020 with the feeling that future economic gains will be one day traced back to 2019.”

Shaw cited year-round E15, a five-year extension of the biodiesel tax credit, and progress in various trade markets among his list of 2019 victories. He also emphasized that while the December 19 rule didn’t create the immediate market certainty the industry fought for, it did create a path forward.

“If the Trump Administration follows through, then 2020 will be the first year where the RFS was fully implemented at the statutory levels since 2013,” Shaw said. “It’s hard to believe, but every year from 2014 to 2019, the congressionally-mandated RFS levels have been undermined by either illegal general waivers under the Obama Administration or abuse of refinery exemptions under the Trump Administration. There has not yet been a year when the 15 billion-gallon RFS was truly implemented at 15 billion gallons.”

Shaw concluded by outlining top priorities for 2020 for the industry to stay focused on, including encouraging EPA to follow through on their promise to follow DOE recommendations and make the RFS whole, addressing a court-ordered remand of 500 million illegally-waived gallons of ethanol from the RFS, and pushing for new trade opportunities with Mexico and China.

“2019 was not a fun year,” Shaw concluded. “But policy seeds were planted that could grow into meaningful opportunities for biofuels producers and farmers in 2020. The task before us is to work with the Trump Administration to make this happen. I am ready and willing if they are. 2020 can return hope and financial stability to rural America. We stand here today urging the Trump Administration to take the steps necessary to harvest the possibilities.”

The Iowa Renewable Fuels Association represents the state’s liquid renewable fuels industry and works to foster its growth. Iowa is the nation’s leader in renewable fuels production with 43 ethanol refineries capable of producing over 4.5 billion gallons annually – including 34 million gallons of annual cellulosic ethanol production capacity – and 11 biodiesel facilities with the capacity to produce nearly 400 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org.

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