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Iowa leaders concerned over plan on fuels such as ethanol

The future of Iowa's biofuel market could be in jeopardy

Iowa leaders concerned over plan on fuels such as ethanol

The future of Iowa's biofuel market could be in jeopardy

WEBVTT GRASSLEY SAYS THE EPA ISNOT BACKING OFF.>> PRUITT TOLD SENATOR GRASSLEYHE WILL NOT BE BREAKING OFF THEPROPOSAL THAT WOULD REDUCE THEBIOFUELS ALLOWED TO BEBLENDEDYES.THIS IS THE SAME PROPOSAL THATGRASSLEY SAID, IF IT WENTTHROUGH, HE WOULD LOCK KEY EPANOMINATIONS.AS MANY AS 32 OTHER LAWMAKERSHAVE EXPRESSED CONCERN OVER THISPROPOSAL.GRASSLEY DID SAY TO THE'SMEETING WENT WELL AND THE EPAHAS PROMISED TO FIND COMMONGROUND.I CANNOT SAY WE GOT AN ANSWERLIKE WE WERE HOPING TO.BUT, THEY AGREED WITH US AND WASGOING TO BACK OFF.BUT WE DID GET A COMMITMENT FORTHEM TO WORK WITH US.I HOPE WE ARE SUCCESSFUL IN THEEND.>> SENATOR GRASSLEY SAID HE,WITH OTHER SENATORS, A CONCERNEDBY ADMINISTRATOR PREWITT'SBACKGROUND.
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Iowa leaders concerned over plan on fuels such as ethanol

The future of Iowa's biofuel market could be in jeopardy

The chairman of the Senate Judiciary Committee is accusing the Trump administration of pandering to big business after the Environmental Protection Agency announced it would consider lowering production targets for biofuels in the so-called Renewable Fuel Standard, which would put more than 50,000 jobs and the agriculture industry in Iowa at risk. The end of the U.S. Department of Agriculture’s farm rule is just the latest move by the Trump administration that sparked pandering charges from U.S. Sen. Charles Grassley, R-Iowa, who said the president is listening to big refineries and neglecting the biofuels industry. “It seems like listening to big refineries, in fact some five smaller refineries, some of them not economically feasible, listening to them and trying to hurt the biofuels industry, agriculture industry and good-paying jobs in rural America,” Grassley said. Those five refineries Grassley mentioned employ about 15,000 employees, compared with the biofuels industry in the United States, which employs about 43,000 employees. White House press secretary Sarah Huckabee Sanders said there's been no decision regarding the Renewable Fuel Standard. An EPA spokesman said EPA Administrator Scott Pruitt doesn't want to take any steps to undermine RFS objectives. Republican Gov. Kim Reynolds said she had phone calls Wednesday with President Donald Trump and Pruitt, who told her they're committed to a federal program mandating that biofuels such as corn-based ethanol be blended into gasoline and diesel. The governor said during a press conference that she had a constructive conversation with Trump and Pruitt, during which she encouraged them to support a robust Renewable Fuel Standard. “I have been a long and passionate supporter of the biofuels,” Reynolds said, pledging her support for Iowa farmers. A reduction in biofuel production would lead to Iowa job cuts, she said. The issue could test Trump's support in Midwest states where the industry has flourished. “We can't go backwards,” Reynolds said. “We need to go forward. I reiterated over and over that we need to see growth.” Reynolds detailed her conversation with the president at Two Rivers Cooperative, a 100-year-old Pella co-op that takes in nearly 100,000 bushels of corn each day. “Really, the renewable fuels (are) essential to us,” Two Rivers Co-op General Manager Tracy Gathman said. Gathman said if the EPA cut the RFS, it would destroy Iowa's agriculture economy and jeopardize more than 50,000 jobs tied to renewable fuels. “It scares me to death because there are a tremendous amount of jobs in this state related to the renewable fuels industry, and we need to make sure that we maintain those jobs and maintain the pricing for the crops we've got today,” Gathman said. Reynolds said Trump did not make any promises to keep RFS but said her phone conversation with him was positive. “He understood it,” Reynolds said. “He's been in Iowa. He talked about the farmers. He talked about visiting the facilities, and I talked about the depressed commodity prices, the impact that that has on our farmers and our producers and how important it was.” Industry leaders also urged Trump to keep his campaign promise to support renewable fuels. “If he sat back, it would essentially allow the EPA to systematically dismantle the RFS,” said Monte Shaw, with the Iowa Renewable Fuels Association. “One path leads to hope for the heartland and one path would lead to a breach of trust that I don't think would be easily repaired.” The EPA has not said much regarding the RFS because it is in the public comment portion of the process. Reynolds said she would continue to fight for renewable fuels. She is scheduled to visit Washington, D.C., next week to with meet with Vice President Mike Pence and Pruitt. KCCI's Lauren Donovan contributed to this report.

The chairman of the Senate Judiciary Committee is accusing the Trump administration of pandering to big business after the Environmental Protection Agency announced it would consider lowering production targets for biofuels in the so-called Renewable Fuel Standard, which would put more than 50,000 jobs and the agriculture industry in Iowa at risk.

The end of the U.S. Department of Agriculture’s farm rule is just the latest move by the Trump administration that sparked pandering charges from U.S. Sen. Charles Grassley, R-Iowa, who said the president is listening to big refineries and neglecting the biofuels industry.

“It seems like listening to big refineries, in fact some five smaller refineries, some of them not economically feasible, listening to them and trying to hurt the biofuels industry, agriculture industry and good-paying jobs in rural America,” Grassley said.

Those five refineries Grassley mentioned employ about 15,000 employees, compared with the biofuels industry in the United States, which employs about 43,000 employees.

White House press secretary Sarah Huckabee Sanders said there's been no decision regarding the Renewable Fuel Standard. An EPA spokesman said EPA Administrator Scott Pruitt doesn't want to take any steps to undermine RFS objectives.



Republican Gov. Kim Reynolds said she had phone calls Wednesday with President Donald Trump and Pruitt, who told her they're committed to a federal program mandating that biofuels such as corn-based ethanol be blended into gasoline and diesel.

The governor said during a press conference that she had a constructive conversation with Trump and Pruitt, during which she encouraged them to support a robust Renewable Fuel Standard.

“I have been a long and passionate supporter of the biofuels,” Reynolds said, pledging her support for Iowa farmers. A reduction in biofuel production would lead to Iowa job cuts, she said. The issue could test Trump's support in Midwest states where the industry has flourished.

“We can't go backwards,” Reynolds said. “We need to go forward. I reiterated over and over that we need to see growth.”

Reynolds detailed her conversation with the president at Two Rivers Cooperative, a 100-year-old Pella co-op that takes in nearly 100,000 bushels of corn each day.

“Really, the renewable fuels (are) essential to us,” Two Rivers Co-op General Manager Tracy Gathman said.

Gathman said if the EPA cut the RFS, it would destroy Iowa's agriculture economy and jeopardize more than 50,000 jobs tied to renewable fuels.

“It scares me to death because there are a tremendous amount of jobs in this state related to the renewable fuels industry, and we need to make sure that we maintain those jobs and maintain the pricing for the crops we've got today,” Gathman said.

Reynolds said Trump did not make any promises to keep RFS but said her phone conversation with him was positive.

“He understood it,” Reynolds said. “He's been in Iowa. He talked about the farmers. He talked about visiting the facilities, and I talked about the depressed commodity prices, the impact that that has on our farmers and our producers and how important it was.”

Industry leaders also urged Trump to keep his campaign promise to support renewable fuels.

“If he sat back, it would essentially allow the EPA to systematically dismantle the RFS,” said Monte Shaw, with the Iowa Renewable Fuels Association. “One path leads to hope for the heartland and one path would lead to a breach of trust that I don't think would be easily repaired.”

The EPA has not said much regarding the RFS because it is in the public comment portion of the process.

Reynolds said she would continue to fight for renewable fuels. She is scheduled to visit Washington, D.C., next week to with meet with Vice President Mike Pence and Pruitt.

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KCCI's Lauren Donovan contributed to this report.