The Trump administration is siding with Big Oil despite announcing a plan to increase ethanol consumption, farm state senators told the No. 2 USDA official on Thursday. “That’s a president that has chosen oil companies over family farmers,” said one of the critics, Democrat Sherrod Brown of Ohio.
Farm groups and the ethanol industry have accused the EPA of backsliding on an Oct. 4 agreement to adjust the Renewable Fuel Standard to make up for exemptions granted by the EPA to small refineries. President Trump was credited with negotiating the package. But critics say the EPA undermined the agreement this week with its formula for reassigning “lost” ethanol gallons to other refiners.
“People really thought it was a bait and switch,” said Sen. Tina Smith, Minnesota Democrat, during a Senate Agriculture Committee hearing with Deputy Agriculture Secretary Steve Censky, who has been active on biofuel policy. “What’s going on here, and how can we get to 15 billion gallons [of ethanol] being not only what we’re supposed to be doing but what we are doing, so these secret [EPA] waivers stop really damaging agriculture in Minnesota and around the country?”
“We’re pleased that it was two weeks ago that the president brokered an agreement … to make sure that 15 billion is 15 billion gallons,” replied Censky. “I can just assure you directly from conversations with the president, and the president is insistent that EPA administer this to make sure we achieve 15 billion gallons.”
Republican senators were generally silent on the EPA proposal although Sen. John Thune of South Dakota told Censky that he expected to see the rule “is done right.”
Ethanol makers and Corn Belt farmers say the ethanol mandate of 15 billion gallons a year is eroded by the “hardship” waivers issued by the EPA to small-volume refineries that fail to mix enough ethanol into gasoline and that say they cannot afford to buy ethanol credits to comply with the RFS. The number of waivers granted by the EPA has surged since Trump took office. In August, the EPA issued 31 waivers to refineries that fell short of 2018 goals by a combined 1.4 billion gallons of biofuels.
Democrats on the Agriculture Committee also criticized the administration for three proposals to alter SNAP rules that would disqualify around 4 million recipients, representing roughly 11 percent of current enrollment. Congress rejected changes in SNAP eligibility during debate on the 2018 farm bill. Censky, like other USDA officials, said the administration was being a prudent steward of tax dollars and would provide nutrition assistance to all who meet standards set by law.
“I would strongly urge you to reconsider the direction you’re going,” said Michigan Sen. Debbie Stabenow, the senior Democrat on the panel. New York Democrat Kirsten Gillibrand said the proposals “flout congressional intent.”
Some 3.1 million people would lose food stamps under a USDA proposal for tighter eligibility standards. An additional 800,000 or so would be affected if the USDA limits the ability of states to waive the usual 90-day limit on food stamps to able-bodied adults who do not work at least 80 hours a month. The USDA estimates that “less than 8,000 households” would lose benefits under a proposed new method of calculating utility costs, a factor in determining if an applicant’s income is low enough for them to qualify for SNAP.
To watch a video of the hearing or to read Censky’s written testimony, click here.