Ernst-led effort stresses urgency of federal pandemic relief for U.S. biofuel sector

Against the backdrop of the economic impacts resulting from the ongoing COVID-19 pandemic, U.S. Sen. Joni Ernst (R-IA) on Monday led seven of her GOP Senate colleagues in questioning the Biden administration about the delayed financial assistance for the nation’s biofuel sector.

“The pandemic continues to negatively affect biofuel producers. As feedstocks have experienced historic highs, margins to produce biofuel have risen, and many plants remain offline or are operating at reduced rates,” the senators wrote in an Oct. 18 letter sent to U.S. Secretary of Agriculture Tom Vilsack. “With President Biden’s plan to decarbonize the transportation and agriculture sectors, we remind you of the important role of biofuel. It is past time our hardworking biofuel producers receive the critical aid that you promised.”

Among the members who joined Sen. Ernst in signing the letter was U.S. Sens. Deb Fischer (R-NE), Jerry Moran (R-KS), Mike Rounds (R-SD), and John Thune (R-SD), who wrote that they’ve been advocating for targeted relief for the biofuel sector since the onset of the pandemic and the demand collapse for ethanol, biodiesel and other renewable fuels. 

“On June 15, 2021, we welcomed the USDA announcement of $700 million in aid to biofuel producers as part of the USDA Pandemic Assistance for Producers initiative,” Sen. Ernst and her colleagues wrote. “In your press release, you indicated that this assistance would be implemented within 60 days.”

“It is simply unacceptable that it has been over 120 days since your announcement and biofuel producers are still waiting,” they wrote.

As the U.S. Department of Agriculture continues to implement the pandemic assistance initiative, the senators stressed “the urgency of much needed help to ensure biofuel producers are able to survive.”