Biofuel producers say deal doesn't follow initial promise

Biofuel producers say deal doesn't follow initial promise

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Following the environmental protection agency's supplemental information on a biofuels deal, producers say the administration is failing them once again.

Iowa biofuel leaders say they were supportive of the initial biofuel announcement because of the transparent numbers they heard from the White House. But experts say the details the EPA released don't follow that. The same EPA that many producers no longer trust.

Both ethanol and biodiesel producers say the president broke his promise to America's farmers.

The Iowa Biodiesel Board says from 2015 through 2018 the biodiesel demand destruction is over to 550 million gallons. And around 200 million gallons have been lost in 2018 alone. For perspective Iowa produced around 365 million gallons of biodiesel in 2018.

Shaw says the details the EPA released aren't good enough and they will continue to work with elected officials, like Senator Chuck Grassley, to get the deal producers want.

Among other lawmakers, Iowa congresswoman Cindy Axne is calling on the President to publicly demand the EPA released a new rule that ensures the EPA will meet the required 15 billion gallons of biofuel demand.

Currently, the EPA's supplemental details proposal does say the 15 billion gallon mark will be met, but the flexibility of how they’ll meet that requirement is what worries biofuel groups.

According to the USDA, 35 to 40 percent of the U.S. corn crop is used each year to make ethanol and dried distillers grains. In recent years, the number continues to drop as production declines.

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