Reuters writer Stephanie Kelly reported late last week that, “U.S. lawmakers from Iowa are trying to add aid for the biofuels industry into a pending coronavirus relief package in the Senate, U.S. Senator Chuck Grassley said on Friday.
Grassley and his Iowa colleague, Senator Joni Ernst, hope to include a subsidy for feedstock for the ethanol industry in the bill.
“Farmers and producers of the corn-based fuel were hit hard during the coronavirus pandemic as government-imposed lockdowns sank demand for gasoline.”
EIA weekly report continues to show a ceiling on implied gasoline usage around 8.65 mil barrels/day. Down about 10% yoy. Down 8.4% from pre-COVID March levels. pic.twitter.com/C67eDoF5kk
The Reuters article added that, “‘The long-term hope for ethanol though is directly related to the extent to which the economy picks up and people start driving,’ Grassley said in a call with reporters.”
Also last week, DTN Ag Policy Editor Chris Clayton reported that, “Sen. Chuck Grassley, R-Iowa, said Friday one of his key priorities in the next coronavirus aid package out of Congress would be to subsidize feedstock for the ethanol industry.
“Speaking to reporters on a call, Grassley said he and Sen. Joni Ernst, R-Iowa, are focused on getting that kind of language in a Senate package that would subsidize feedstock for the ethanol industry. Grassley and Sen. Amy Klobuchar, D-Minn., introduced that bill in May. Their plan would reimburse biofuel producers for their feedstock purchases from Jan. 1, 2020, to March 31 through the Commodity Credit Corp.
‘I think what’s going to make our appeal credible besides just the loss that ethanol had — which it didn’t get any help last time — is if petroleum gets help. If we can show petroleum has already gotten some help by what was put into the petroleum reserve,’ Grassley said.
Mr. Clayton explained that, “The Senate plan differs from the ‘Renewable Fuel Reimbursement Program‘ included in the House HEROES Act, which would provide a 45 cents a gallon payment for biofuel producers for qualified fuel produced from Jan. 1, 2020, through May 1. Ethanol plants that were not producing during that time frame could still receive 22.5 cent credit based on fuel volumes they produced during that time period in 2019 as well.”
Yet again we see oil companies trying to take advantage of these ridiculous “gap year” waivers at the expense of Iowa’s farmers and ethanol and biodiesel producers. As I’ve said before, @EPAAWheeler it’s time to throw these petitions out and move on. https://t.co/n3R03m85cJ
“The agency now lists seven pending requests each for 2011 and 2012, 11 each for 2013 and 2015, 12 in 2014, eight in 2016 and two in 2018, in addition there are 27 listed for 2019 and one for 2020.”
I spoke to the White House this morning and again delivered a very simple message: Stop stabbing our farmers and biofuels producers in the back with refinery waivers and attacks on the Renewable Fuel Standard. #IA01#RFS
The DTN article stated that, “American Coalition for Ethanol Chief Executive Officer Brian Jennings said in a statement to DTN the EPA was protecting oil interests.”
It is important that the #RFS is fully enforced! The Dept. of @ENERGY must follow the ruling from the 10th Circuit Court to ensure our farmers and biofuels producers are not further harmed by illegal "gap-year" filings on behalf of Big Oil. pic.twitter.com/7ZRSKRCGUB
Mr. Neeley pointed out that, “The U.S. Court of Appeals for the 10th Circuit in Denver ruled back in January the agency illegally granted exemptions to three small refineries. In that case, the court said the refiners were not eligible for exemptions because they had not previously received them.
“Biofuel and agriculture interest groups have alleged EPA is considering granting small-refinery exemptions for previous years, which could potentially allow refining companies to continue receiving exemptions legally.
“In recent weeks the EPA announced it was postponing indefinitely the scheduled June release of the proposed renewable volume obligations in the RFS for 2021.”
Keith Good is the social media manager for the farmdoc project at the University of Illinois. He has previously worked for the USDA’s National Agricultural Statistics Service, and compiled the daily FarmPolicy.com News Summary from 2003-2015. He is a graduate of Purdue University (M.S.- Agricultural Economics), and Southern Illinois University School of Law.
Reuters writer Stephanie Kelly reported on Monday that, "The U.S. Environmental Protection Agency said on Monday that it agrees with an appeals court's decision last year that cast doubt on a program that granted oil refiners exemptions to U.S. biofuel…
Wall Street Journal writer Timothy Puko reported this week that, "Michael Regan, President Biden’s nominee to lead the Environmental Protection Agency, drew bipartisan support at his Senate confirmation hearing Wednesday, including from North Carolina Republicans who said he has a history…
Bloomberg writers Kim Chipman and Jennifer A Dlouhy reported on Tuesday that, "The Trump administration granted three oil refineries exemptions from biofuel-blending requirements in a last-minute move, prompting quick rebuke from ethanol and biodiesel producers."