Prepared Floor Remarks by U.S. Senator Chuck Grassley of Iowa
Biden Administration Should Utilize GREET Model in Future Biofuel Decision Making
December 19, 2022

 
Biodiesel producers are a vital part of Iowa’s rural economy. In 2021, Iowa produced 340 million gallons of biodiesel, which helps Iowa farmers by adding value to their soybeans.
 
Not only is biodiesel good for Iowa’s economy, it is also significantly better for the environment. Biodiesel decreases greenhouse gas emissions by around 74 percent.
 
Most recently, we have seen rapid growth of renewable diesel, which also uses soybeans as the feedstock.
 
Currently, the U.S. has capacity to produce about 900 million gallons of renewable diesel. If all of the planned investments come to be, the U.S. will soon be producing 5.1 billion gallons by the end of 2024.
 
I was very disappointed to see the most recent proposed RFS volumes from the EPA. EPA proposed a 60 million gallon increase, while the Energy Information Administration predicts a 500 million gallon increase.
 
It sounds like the EPA has failed to consult with the Energy Department.
 
However, this is just a proposed rule, and the EPA has the ability to adjust these volumes in the final rule. If the EPA fails to take into account this growing industry, then the EPA will have failed soybean farmers in Iowa and around the country.
 
This also comes at a time when soybean farmers are making great strides in their conservation practices, which help reduce carbon emissions and improve soil health.
 
As the Treasury Department begins to look at the Sustainable Aviation Fuel Tax Credit in the Inflation Reduction Act, they need to acknowledge these advances.
 
I did not support the Inflation Reduction Act because it is chalked full of reckless spending and tax provisions. But as decisions are being made at the Treasury Department, the department must use the best science in making decisions that will impact renewable fuels.
 
This science is found at the Department of Energy’s Argonne National Lab, where they have developed the GREET model. The GREET model is the best and most complete model in the U.S. for tracking greenhouse gas emissions.
 
I am concerned that the Inflation Reduction Act gives Treasury the option of using the International Civil Aviation Organization (ICAO) modeling scheme.
 
If I was involved in writing the bill, I would have made sure that the Treasury Department could not outsource these important modeling decisions to international organizations.
 
This international model does not reflect that the U.S. is far better at using conservation practices than the rest of the international community – or keep updated on the many advances U.S. farmers are making.
 
Farmers across the country stand ready to provide low-cost and low-carbon fuel to consumers on land, air and sea.
 
The ICAO model will exclude farmers using outdated statistics, and as a result, sustainable aviation fuel made from corn and soybean would not qualify for tax credits.
 
As the Treasury Department begins to write regulations on the Inflation Reduction Act programs, I hope they listen to farmers and our own scientists at the Department of Energy.

We should not be awarding tax credits based on an international model that is outdated and out-of-touch.