Growth Energy Chief Executive Officer Emily Skor said in a statement the biofuels relief is “critical” to plants’ survival.
“We’re grateful to Congress for stepping up and preventing needless uncertainty from holding back the rural recovery,” she said. “In 2020, ethanol production is down about 13% compared to the previous year, and 2021 is also projecting to be lower than 2019 levels. Ensuring stability is imperative as we head into the new year.”
Skor said U.S. Secretary of Agriculture Sonny Perdue needs to “move quickly” on providing relief to the biofuels industry.
“We are also glad to see long-term investment in innovation that helps protect our climate, our health, and our economy through the extension of several key biofuels tax credits,” Skor said.
“Getting these updates signed into law will jumpstart growth in these innovative technologies at a time when revitalizing rural communities has never been more important.”
Renewable Fuels Association President and Chief Executive Officer Geoff Cooper said the legislation provides a “ray of hope” to a struggling industry.
“More than half of the ethanol industry shut down during the extraordinary demand collapse in the spring, and producers across the country still have not fully recovered from that market shock,” he said.
“The pandemic has cost the industry nearly $4 billion in lost revenue to date, with losses expected to continue well into 2021.”
Brian Jennings, chief executive officer of the American Coalition for Ethanol, said his group is ready to turn the page on the current administration.
“Congress gave USDA flexibility to provide relief for biofuel producers in the last stimulus package, but USDA declined to exercise it,” he said.
“That is why job one in 2021 will be to work with incoming USDA Secretary (Tom) Vilsack, upon his confirmation in the U.S. Senate, to get assistance to the industry in rapid fashion. We long sought to create momentum in Congress for the fuel and fuel feedstock reimbursement programs proposed earlier this year, but we anticipate Secretary Vilsack will be receptive to working with us on relief payments. Given the fact oil companies received relief from the Trump administration outside of Congress, we expect the Biden administration to step up and help biofuel producers.”
Todd Neeley can be reached at email@example.com
Follow me on Twitter @toddneeleyDTN
(c) Copyright 2020 DTN, LLC. All rights reserved.