America needs to expand production of biofuels, not scale back

Iowa has long been a leader in biofuels and it’s had a big impact in Jasper County.

The REG biorefinery plant in Newton produces up to 30 million gallons of clean-burning biodiesel each year and has more than 30 employees. Statewide, biodiesel plants produced 365 million gallons and the biofuels industry overall supports over 48,000 jobs across Iowa.

In addition to an economic engine for our local economy, biofuels are good for our environment. Corn ethanol reduces greenhouse gases by 43 percent compared to conventional gasoline, while biodiesel can reduce greenhouse gases from 50 percent to 86 percent.

But there’s trouble brewing for biofuels, our farmers and our economy.

Over the summer, two ethanol plants in Iowa were forced to shut down. POET Energy, which operates seven biofuels plants in Iowa, also announced it is scaling back ethanol production. They are reducing corn processing overall by 100 million bushels nationwide, with the largest drop in production here in Iowa. That means more Iowans will be out of work and there will be less demand for our crops just as we approach harvest season.

These troubling developments in the biofuels industry are the result of ongoing trade wars and a huge increase in small refinery exemptions (SRE) approved by the US Environmental Protection Agency (EPA).   

EPA officials this summer approved 31 new SRE waivers, which essentially allows oil companies to ignore the Renewable Fuel Standard (RFS) blending requirements already in law. With the huge increase in these waivers, the administration has now granted three times the SRE waivers than were approved under the previous administration and that has dropped demand for corn by a whopping 1.4 billion bushels.

The reduced demand and falling crop prices will cost Iowa farmers $363 million this year alone. Unless things change soon, we will continue to see a reduction in the sale of farm products and smaller margins for our Iowa businesses and farm families.

I think it is time to change course. It’s time to open markets for our ag products, not close them. It’s time to expand the production of biofuels, not scale back. It’s time to protect and grow renewable energy jobs in our community, not put Iowans out of work.

It’s time to work together for Jasper County and Iowa.

Wes Breckenridge represents District 29 in the Iowa House of Representatives.