Davis, House Biofuels Caucus members seek $6B in funds to assist industry

As U.S. Department of Agriculture Secretary Tom Vilsack looks to provide additional relief under the Pandemic Assistance for Producers program using funds from the Consolidated Appropriations Act of 2021, U.S. Rep. Rodney Davis (R-IL) and 21 of his colleagues on the bipartisan House Biofuels Caucus requested that a portion of the $6 billion in funds be 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,” wrote Rep. Davis and the caucus members in a June 9 letter sent to Vilsack. “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.”

The congressmen also suggested that another avenue the secretary might take to strengthen the industry is through further infrastructure investments for biofuels. 

“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,” wrote the lawmakers, referring to the Higher Blends Infrastructure Incentive Program (HBIIP) investment announced in May 2020.

Among the caucus members who joined Rep. Davis in signing the letter were U.S. Reps. Dusty Johnson (R-SD), Darin LaHood (R-IL), Tom Emmer (R-MN), Sam Graves (R-MO), Don Bacon (R-NE), Ann Wagner (R-MO), Adam Kinzinger (R-IL), and Angie Craig (D-MN).

“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,” Rep. Davis and his colleagues wrote. “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.”