Ethanol

The United States started to pay a 20% tariff on all ethanol exported to Brazil this month. Before that, there was a quota of 750 million liters per year at zero rate, which expired on August 30th. Valor Econômico writers Rafael Walendorff and Camila Souza Ramos reported that the Brazilian government must communicate to the United States that the country is willing to negotiate the conditions for the ethanol trade, but without extension of the tariff- free quota.

Reuters writer Stephanie Kelly reported this week that, “The U.S. Department of Energy has recommended that some of the oil refiners that applied for retroactive exemptions from the nation’s biofuel blending law be granted partial relief, two sources familiar with the matter said on Tuesday.”

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.”

Rachel Frazin reported recently at The Hill Online that, “The Senate Environment and Public Works Committee will not take up Douglas Benevento’s nomination for the No. 2 position at the Environmental Protection Agency (EPA) after Sen. Joni Ernst (R-Iowa) announced her opposition.” 

Reuters writer Stephanie Kelly reported on Thursday that, “The U.S. Environmental Protection Agency has received 52 new petitions for retroactive biofuel blending waivers that, if granted, would help bring oil refiners into compliance with a court ruling this year, EPA data showed on Thursday.”

Bloomberg writers Jennifer A Dlouhy and Michael Hirtzer reported last week that, “Five American governors are asking the Trump administration to waive U.S. biofuel-blending requirements, arguing the cost of complying with the mandates on top of coronavirus-spurred lockdowns pose a ‘severe economic harm’ to the country.”

DTN writer Todd Neeley reported this week that, “Small refiners will not receive a rehearing before the entire U.S. Court of Appeals for the 10th Circuit in Denver on a case alleging EPA improperly granted small-refinery exemptions to the Renewable Fuel Standard in 2017 and 2018, the court announced in an order on Tuesday.”

Reuters writer Richard Valdmanis reported on Wednesday that, “Time has run out for the U.S. Environmental Protection Agency to challenge a federal court ruling that would limit the agency’s use of waivers exempting small oil refineries from the country’s biofuels regulations.”

DTN Ag Policy Editor Chris Clayton reported last week that, “Sen. Chuck Grassley, R-Iowa, stressed to reporters Tuesday morning [March 10th] that President Donald Trump would benefit in rural America if he simply let stand the 10th Circuit Court of Appeals decision last month against EPA’s small refinery exemption program.”

Bloomberg writer Jennifer A Dlouhy reported on Friday that, “President Donald Trump’s decision to defend the U.S. government’s power to broadly exempt oil refineries from biofuel-blending requirements is triggering a backlash in Iowa and other states that are top producers of ethanol and the corn used to make it.”

Last week, Bloomberg writers Jennifer A Dlouhy and Jennifer Jacobs reported that, “Trump administration officials have decided to pare the number of oil refineries granted waivers from biofuel mandates, according to two people familiar with the matter.”

In separate developments this month, a federal appellate court and the U.S. Government Accountability Office, have weighed in with actions that could impact how biofuel waivers that exempt oil refineries from Renewable Fuel Standard requirements are granted.  Today’s update looks briefly at each of these issues.

Bloomberg writer Jennifer A Dlouhy reported this week that, “The Trump administration on Thursday set relatively flat quotas for plant-based fuels in 2020, rebuffing ethanol and biodiesel allies who said the targets don’t do enough to support the industry.”

Reuters writer Richard Valdmanis reported this week that, “The U.S. oil and corn industries continued a long-running public battle over America’s biofuels policy on Tuesday during a Congressional hearing about the Trump administration’s use of ‘secret waivers’ for refineries.

Last week, Bloomberg writer Jennifer A Dlouhy reported that, “Administration officials warned that an EPA plan for boosting biofuel-blending requirements violated the spirit of a deal brokered by President Donald Trump. The White House blessed it anyway.”

Reuters writer Stephanie Kelly reported yesterday that, “The Trump administration, in an effort to mend fences with the powerful corn lobby, proposed a new formula on Tuesday to boost biofuels demand, but the proposal instead only provoked more consternation from the industry.”

Wall Street Journal writers Kirk Maltais and Jacob Bunge reported on Friday that, “The Trump administration outlined a plan to boost biofuel demand, aiming to ease Farm Belt frustrations over recent changes to federal policies affecting the production of ethanol.”