Biofuel Sector Sees Trump, Thune as Friends in High Places

WASHINGTON — Advocates for the biofuel sector are celebrating President-elect Donald Trump’s victory at the polls, and South Dakota Sen. John Thune’s elevation to Senate majority leader as huge pluses for the ethanol industry.

During his first term as president, Trump frequently voiced support for ethanol and pushed for the year-round availability of E15 nationwide.

E15 is a lower-cost fuel blend containing 15% ethanol; for years it has been banned from June to September under the Clean Air Act because it evaporates more quickly than other fuels, raising air pollution concerns.

Earlier this year, the Biden administration approved a request from a group of Midwest governors to allow year-round sales of gasoline with higher blends of ethanol, but pushed the start date back to mid-2025.

Under the plan, the administration granted a 2022 request from the governors of Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin to allow year-round sales of E15, or gasoline with 15% ethanol, starting next year. 

In the meantime, the EPA could issue a temporary waiver enabling such sales as needed.

Two of the impacted states, Wisconsin and Minnesota, were considered battleground states during the 2024 election cycle.

While the decision was a major move in their direction, many in the biofuel industry saw it as bittersweet, slowing their ability to expand sales of corn-based ethanol.

Trump was all in on such an expansion of sales when he visited a Southwest Iowa Renewable Energy biorefinery in Council Bluffs, Iowa, in June 2019.

“More American ethanol production means less dependence on foreign suppliers,” he said.

“By fully embracing E15, we will reduce dependence on foreign oil by up to 250 million additional barrels every single year. Quite simply, it means more energy. And what can be wrong with that?” Trump said.

Prior to the election, The American Farm Bureau Federation sent a questionnaire to both Trump and Democratic nominee Vice President Kamala Harris, asking for their views on a number of agriculture-related issues.

When it came to energy, Trump said his administration “will increase domestic energy production across the board, streamline permitting, and end market-distorting restrictions on oil, natural gas and coal. 

“I will lower energy prices even below the record lows achieved during my first term,” he continued. “No president has ever fought harder for our farmers than I did. 

“I issued a rule declaring that E15 would be made available all year round. In addition, I dramatically increased the number of fueling stations where E15 could be sold across the country, by letting them use the existing pumps,” Trump said, adding, “We won’t just increase ethanol production in our own country, we will make it our mission to export ethanol all over the world.”

Following Trump’s reelection, Emily Skor, CEO of Growth Energy, a trade group for biomanufacturing facilities, acknowledged the president-elect’s past support and said she and her members “look forward to working with the Trump-Vance administration to deliver on American energy dominance, consumer savings, and booming rural economies — starting with year-round access to E15. 

“During his first term, President Trump delivered on E15 to bring lower cost fuel to American consumers, and we support him enacting a permanent solution that will deliver continued savings at the pump for all Americans, all months, across all 50 states,” Skor said.

She went on to say the Growth Energy stands ready “to partner with President Trump and his administration to unlock markets for American biofuels abroad, allow private investments in the rural economy to soar and harness American-led innovations in aviation and clean energy production.”

Also lining up behind the new president was Geoff Cooper, president and CEO of the Renewable Fuels Association, who said his members share Trump’s vision “for putting American energy first, stimulating growth in domestic production, lowering fuel costs for consumers, and restoring balance and fairness in the global trade of energy commodities. 

“Trump understands that ethanol lowers fuel costs for hard-working families, reduces dependence on foreign energy sources, helps farmers and boosts the rural economy and protects the environment,” Cooper said. “We are committed to collaborating with the Trump administration on the many opportunities that lie ahead for renewable fuels.”

Similarly, Kenneth Hartman, Jr., president of the National Corn Growers Association, said his members were looking forward to working with the new administration and new members of Congress on a wide array of agricultural initiatives.

“We especially appreciate President Trump’s recognition that homegrown fuels, like ethanol, are important for our nation’s energy security and rural economies,” Hartman said. 

“We are also eager to work with his administration and Congress to enact improved farm policies and programs, expand market opportunities and build on the tax policies enacted during President Trump’s first term that are beneficial to corn farmers,” he said.

As for Thune, who will take over as Senate majority leader in January, the South Dakota Republican has long been a champion for the biofuels industry. 

He recently won a 2024 Fueling Growth Award from Growth Energy, “in recognition for [his] valuable service supporting American biofuels.” 

In a social media post acknowledging the award, Thune said “homegrown biofuels support American energy security, a cleaner and more affordable option for consumers, and a critical market for our farmers.” 

In 2021, Thune was among a group of Republican senators who met with President Biden to discuss the roles biofuels could play in his effort to reduce greenhouse gas emissions.

In 2022, he signed a letter with a dozen other senators, asking EPA Administrator Michael Regan to set corn ethanol volume numbers above 15 billion gallons in the Renewable Fuel Standard and remove regulatory barriers hampering the development of sustainable aviation fuel.

Last year, Thune was a vocal member of a bipartisan group of federal lawmakers who called on the Biden administration to allow year-round E15 sales that year. 

The senator also introduced legislation that would permanently allow for E15 sales.

In a written statement released after Thune was elected majority leader on Wednesday, Growth Energy’s Skor called him one of the biofuel sector’s “strong champions” in the Senate and applauded the fact he’ll soon be setting the chamber’s legislative agenda.

“We commend the Senate for elevating him to this position, and we look forward to building on the majority leader-elect’s track record for supporting growth, investment and innovation in the American renewable fuels industry.”

Hartman also applauded Thune’s selection, calling him “a staunch ally of corn growers and rural communities.”

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