Farm State Lawmakers-Ethanol a Priority in Senate COVID Relief Package


Reuters author Stephanie Kelly reported late final week that, “U.S. lawmakers from Iowa are attempting so as to add assist for the biofuels business into a pending coronavirus reduction package deal in the Senate, U.S. Senator Chuck Grassley stated on Friday.

Grassley and his Iowa colleague, Senator Joni Ernst, hope to incorporate a subsidy for feedstock for the ethanol business in the invoice.

“Farmers and producers of the corn-based fuel were hit hard during the coronavirus pandemic as government-imposed lockdowns sank demand for gasoline.”

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.”

National Weekly Ag Energy Round-Up. USDA Livestock, Poultry & Grain Market News. USDA- Agricultural Marketing Service (July 17, 2020).

Also final week, DTN Ag Policy Editor Chris Clayton reported that, “Sen. Chuck Grassley, R-Iowa, stated Friday one among his key priorities in the following coronavirus assist package deal out of Congress can be to subsidize feedstock for the ethanol business.

“Speaking to reporters on a name, Grassley stated he and Sen. Joni Ernst, R-Iowa, are centered on getting that form of language in a Senate package deal that will subsidize feedstock for the ethanol business. Grassley and Sen. Amy Klobuchar, D-Minn., launched that invoice in May. Their plan would reimburse biofuel producers for his or her feedstock purchases from Jan. 1, 2020, to March 31 by the Commodity Credit Corp.

‘I think what’s going to make our attraction credible moreover simply the loss that ethanol had — which it didn’t get any assist final time — is that if petroleum will get assist. If we will present petroleum has already gotten some assist by what was put into the petroleum reserve,’ Grassley stated.

Mr. Clayton defined 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.”

Meanwhile, DTN author Todd Neeley reported on Wednesday that, “The ethanol business in the United States has misplaced about $3.four billion already in 2020 as a results of the COVID-19 financial shutdown, a new evaluation from the Renewable Fuels Association stated, with losses to proceed to mount on into 2021.

“Though ethanol margins have been enhancing because the final of May, the business is in a little bit of a holding sample ready to see if the U.S. financial system totally reopens.


USDA Daily Ethanol Report. USDA- Agricultural Marketing Service (July 15, 2020).

“The RFA analysis said losses for the industry could deepen if states continue to open and close as a result of COVID-19 cases.”

And concerning a separate situation impacting the ethanol business, DTN author Todd Neeley reported final week that, “The EPA on Thursday posted six further pending requests for retroactive small-refinery exemptions to the Renewable Fuel Standard to the company dashboard, bringing the grand complete to 58 such requests for waivers for compliance years 2011 by 2018.

“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.”

The DTN article said that, “American Coalition for Ethanol Chief Executive Officer Brian Jennings said in a statement to DTN the EPA was protecting oil interests.”

Mr. Neeley identified that, “The U.S. Court of Appeals for the 10th Circuit in Denver dominated again in January the company illegally granted exemptions to a few small refineries. In that case, the courtroom stated the refiners weren’t eligible for exemptions as a result of that they had not beforehand acquired them.

“Biofuel and agriculture curiosity teams have alleged EPA is contemplating granting small-refinery exemptions for earlier years, which may probably permit refining corporations to proceed 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.”

Source: Farm Policy News, News Summary, Keith Good