Late last week, we received word that there would be $1 billion in the Build Back Better Act for the Ethanol Industry and infrastructure concerning the industry. It is just one of the many battles that the industry is fighting along many fronts as we near the end of 2021. It seems like we are getting bombarded with news on the biofuels industry from all sides. So, last week, I took the opportunity to talk with Growth Energy CEO Emily Skor. We did a ?reset? and brought all these topics under one dome for a few minutes. If for nothing else, but to clarify the state of the industry right now.
Skor said that the industry is in a good place when you look at production and that the troubles we saw during the pandemic are turning around for the most part.
While the billion dollars included in the Build Back better Act is indeed a big help, there are still areas where the industry is butting heads with the Biden Administration. One of those is with Renewable Volume Obligations (RVOs). There are still rumors persisting that the EPA is planning to lower those levels, and Skor says that is a non-starter in any talks about biofuels. However, she feels that we will see that not happen and we will see 15 billion gallons for 2022. What she IS concerned about is the fact the EPA is also looking at retroactively lowering the RVOs for 2020. This is an unprecedented move.
Skor says that while we are seeing gas prices rising, ethanol and biodiesel offer cost-efficient alternatives during these times.
What seems to be the most frustrating is that after four years of volatile ups and downs for the industry under the previous administration, we had high hopes that some stability would be returned to the market. We were assured there would be stability returned to the industry. We aren?t seeing that stability as of yet. Skor reminds us that first and foremost, the President is a politician.
Lastly, there is a bill moving around that calls for the repeal of the Renewable Fuels Standard. Skor calls that ?short-sighted? in an age when we are trying to do good for the environment. She adds that is mostly to satisfy the oil industry in certain constituencies.
Our full conversation will be a part of this week?s Weekend Ag Matters program. You can find it where you get your podcasts, or look for it on your Iowa Agribusiness Radio Network affiliate.
