Congressional Update
Congress took swift action last week to avert a government shutdown by passing a Continuing Resolution (CR) extending government funding until December 20. The process moved quickly following a bipartisan, bicameral agreement on a clean CR announced last Sunday. This outcome frustrated former President Donald Trump and far-right Republicans, who had pushed for a six-month CR that included the SAVE Act, which mandates definitive proof of citizenship for voter registration (though it is already illegal for non-citizens to vote). As we covered previously, Mr. Trump had urged a government shutdown if the SAVE Act was not included. After that effort failed, the Speaker, Senate leadership, and Appropriations Committee leaders opted for a clean CR, maintaining current funding levels, and allowing Congress more time to address funding issues after the election. Once the House and Senate passed the CR with broad bipartisan support, Congressional leaders quickly recessed, sending members back to their campaigns, proving once again that nothing motivates Congress more than the prospect of leaving town.
It is important to note that this CR is only a temporary solution and when Congress returns, it faces a packed agenda, with ongoing appropriations work joined by other must-pass legislation, including the National Defense Authorization Act and the Farm Bill. All of these will need to be addressed in November and December, and that does not even include other notable legislation like the Credit Card Competition Act. Even so, with government funding now set to expire five days before Christmas, the stakes are higher for Congress to complete a significant amount of work quickly as a shutdown or failure to act on some of this must-pass legislation during the holiday season could prevent members and their staff from returning home to see their families, not to mention the negative impact it would have on the continuation of government functionality.
On the biofuels infrastructure front, Senator Joni Ernst (R-IA) and Amy Klobuchar (D-MN) sent a letter to the USDA requesting more funding for the Higher Blends Infrastructure Incentive Program (HBIIP). Specifically, the Senators urged the USDA to extend HBIIP funding with the Commodity Credit Corporation (CCC) funds to assist retail store owners to purchase the infrastructure necessary to provide e10 and b20 plus blends at the pump and b20 plus blends for heating fuel distribution facilities.
“Since its inception in 2020, HBIIP has been vital in expanding access to higher blends of biofuels like E15, E85, and B20 for customers. Through a cost-share approach, HBIIP has helped fuel retailers invest over $77.8 million in biofuel-related infrastructure projects, leading to an estimated 1.2-billion-gallon increase in annual biofuel sales,” wrote the senators. “However, access to these higher blends of renewable fuel can only occur if the proper infrastructure is in place at our gas stations, truck stops, and heating fuel facilities, a gap HBIIP has and will continue to help bridge. As the final quarter ends on September 30, 2024, we strongly encourage the USDA to allocate CCC funds to sustain this essential program.”
Meanwhile, Senator Roger Marshall (R-KS) and several Midwest lawmakers introduced the bicameral/bipartisan Farmer First Fuel Incentives Act requiring the Treasury Department to restrict the eligibility of the 45Z Tax Credit to renewable fuels made only from domestically sourced feedstocks and extending the tax credit to make it a full ten-year credit.
Another issue that we are monitoring is the possible strike forthcoming at ports along the East Coast and in the Gulf of Mexico, which, barring any changes, is expected to begin on October 1. The International Longshoremen’s Association (ILA) union, which represents about 45,000, is entangled in a pay-dispute with the United States Maritime Alliance, which is represents the interests of the operators of the main ports involved with the dispute. There is concern that a lack of agreement and potential strike could reignite inflation and create significant supply chain bottlenecks for goods nationwide.
