Please add the Governors' Biofuels Coalition to your address book for uninterrupted delivery
View this email in a web browser.
Governors' Biofuels Coalition
NEWS UPDATE September 16, 2019

Top Story

USDA Numbers Confirm Declining Demand For Ethanol

By Amy Mayer, Iowa Public Radio  •    •  Posted September 15, 2019

The national average price for corn this season is back to $3.60 a bushel, about where it’s been most of this year except for an early-season spike ($4.16 in July) before the size and quality of the crop was known. That’s not great news for corn growers, and for the ethanol part of the market, the latest U.S. Department of Agriculture estimates are even worse. The September World Agricultural Supply and Demand Estimate said the U.S. will use less corn in ethanol, a prediction that comes amidst growing anxiety and even plant closures in the biofuels industry. [ read more … ]

Whote House Biofuel Plan

White House Plans Biofuel Quota Boost to Offset Refinery Waivers

By Jennifer Jacobs , Mario Parker , and Jennifer A Dlouhy, Bloomberg  •    •  Posted September 15, 2019

President Donald Trump has tentatively agreed to a plan for bolstering ethanol and biodiesel, amid pressure from Midwest U.S. senators who warned that without action he risks votes in next year’s election.
The blueprint discussed in a Wednesday meeting at the White House calls for the administration to begin offsetting Environmental Protection Agency exemptions waiving some oil refineries from annual blending requirements starting in 2020. That comes on top of other concessions that administration officials had already developed with the aim of encouraging greater U.S. demand for ethanol made from corn. The draft plan was described by people familiar with the matter who asked for anonymity because the deliberations are private. The deal could still unravel, as oil companies and allied senators seek to influence the final outcome and administration officials work to translate broad commitments into formal regulations. [ read more … ]

Reallocation Sticking Point in Biofuels Negotiations

By Todd Neeley, Progessive Farmer  •    •  Posted September 15, 2019

As of Friday morning, it appears both sides in the ongoing biofuels big-package deal aren’t giving ground. Reuters reported this week that President Donald Trump met on Thursday with a group of lawmakers from ethanol-producing states including Charles Grassley and Joni Ernst from Iowa, as well as Iowa Gov. Kim Reynolds. On Friday, Trump was slated to meet with senators from oil-producing states to talk about the deal. [ read more … ]

U.S. biofuel credits rise 10% on report of tentative biofuel reform deal: traders

By Stephanie Kelly, Reuters  •    •  Posted September 15, 2019

U.S. biofuel credits rose about 10% on Friday on a report that President Donald Trump has tentatively agreed to a biofuel reform deal, traders said. Renewable fuel (D6) credits for 2019 traded at 20 cents each on Friday, up from 18.25 cents apiece on Thursday, traders said. [ read more … ]

Senators press Trump for new refinery waiver

By Marc Heller, E&E News reporter  •    •  Posted September 15, 2019

Eight Republican senators urged President Trump yesterday to endorse a new type of biofuel blending waiver for oil refineries, if the administration backs an increase in annual volumes of the alternative fuel. In a letter to Trump, Sens. Ted Cruz of Texas, Pat Toomey of Pennsylvania and others asked for a conventional biofuel waiver credit that could be issued to refineries if the administration’s new biofuel policies result in higher compliance costs. It would allow refineries to buy renewable fuel credits from the government at a reduced price, with proceeds going to building new biofuel pumps at service stations. [ read more … ]

Trade

America’s Farmers Need More Than a Trade Truce

By Stephen Mihm, Bloomberg  •    •  Posted September 15, 2019

President Donald Trump would love nothing more than to announce an end to the trade war with China and relief for the country’s farmers, who have been hit especially hard. But history is likely to get in the way for reasons well beyond his control. In the past century, American agriculture sustained two big boom-and-bust cycles. The current downturn features a familiar combination of factors that led to both: First, rising exports fueled growth. Then the government supercharged it. Inevitably, things went bus [ read more … ]

Policy & Politics

Gevo, Leaf join forces to explore conversion of cellulosic sugars into fuel

By Biofuels International  •    •  Posted September 15, 2019

Low carbon fuel producer Gevo has signed a joint development agreement (JDA) with Leaf Resources to explore the potential conversion of cellulosic derived sugars and glycerol into hydrocarbon molecules for fuels or chemicals. The agreement will be structured around three phases of collaborative work; in the first, the companies will develop the feasibility of a potential facility. The subsequent two phases will investigate commercial development and commercialisation. [ read more … ]

Letter: Ethanol Industry Calls on Trump to Deliver

By Todd Becker, Wall Street Journal  •    •  Posted September 15, 2019

Without a strong ethanol industry, agriculture would suffer greatly, and the economy of the middle of the country would be much weaker (“Trump’s Ethanol Promises Come Due,” Heard on the Street, Aug. 28). The ethanol industry consumes more than a third of the U.S. corn crop every year. It is the backbone of the U.S. agricultural economy. Meanwhile, owing to the strength of the oil lobby, appointees from the oil industry have stacked the deck at the Environmental Protection Agency. It is truly amazing how the agency responsible for clean air and clean water favors oil over everything else. [ read more … ]

Ford, GM rev up electric pickup trucks to head off Tesla

By Ben Klayman in Detroit, Reuters  •    •  Posted September 15, 2019

Large pickup trucks that tow most of the profits in to Ford Motor Co and General Motors Co are holdovers from another century – with heavy ladder frames and big internal combustion engines in the front driving the wheels in the back. Now, Ford and GM are racing to design radical new takes on their most profitable models, replacing petroleum-fueled engines with batteries in a bid to outflank Tesla Inc’s plan to eclipse their brands. Ford’s F-150 pickup and GM’s Chevrolet Silverado are the top selling vehicles in the U.S. market. [ read more … ]

Note: News clips provided do not necessarily reflect the views of coalition or its member governors.