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Governors' Biofuels Coalition
NEWS UPDATE March 13, 2020

Top Stories

U.S. ethanol industry ‘bleeding’ on oil collapse, coronavirus

By Stephanie Kelly, Reuters  •    •  Posted March 13, 2020

U.S. ethanol producers are feeling the pain as margins on the corn-based fuel slumped this week to an eight-year low for this time of year, weighed by concerns over lower fuel demand from the coronavirus and the recent collapse in oil prices.  The coronavirus outbreak, which has infected more than 126,000 people worldwide, is sapping demand for fuel as countries restrict travel and local governments try to prevent the spread of the outbreak. [ read more … ]

McConnell cancels recess to tackle coronavirus

By George Cahlink, E&E News reporter  •    •  Posted March 12, 2020

Senate Majority Leader Mitch McConnell (R-Ky.) is scrapping next week’s recess to work on an economic aid package as the nation reels from the fast-moving coronavirus. “I am glad talks are ongoing between the administration and Speaker [Nancy] Pelosi. I hope Congress can pass bipartisan legislation to continue combating the coronavirus and keep our economy strong,” McConnell said earlier this afternoon in announcing the change in Senate schedule. [ read more … ]

Markets Struck Down by Virus

By Chris Clayton , DTN Ag Policy Editor  •    •  Posted March 13, 2020

The metaphoric “black swan” known as the coronavirus has swooped in and quickly put a hold on daily American life and routines and continued pummeling both commodity and stock markets on Thursday. Soybeans hit a new nine-month low in the May contract with a 13 1/4 cent drop to land at $8.59. November soybeans were down 13 3/4 cents as well. May corn closed down 8 3/4 cents on Thursday, also hitting its contract low at $3.65. December corn was down 5 1/4 cents as well. [ read more … ]

SREs

Iowa’s governor, farmers urge Trump to let pro-ethanol court ruling stand

By O. Kay Henderson, Radio Iowa  •    •  Posted March 12, 2020

Governor Kim Reynolds is again lobbying President Trump and his Administration on ethanol policy. The EPA has signaled it will appeal a court ruling that sided with the ethanol industry and against some of the EPA’s waivers that let small oil refineries skip blending ethanol into gasoline. “We don’t think they should appeal it,” Reynolds said. “We think they should let it stand and that should be something that they implement nationwide.” [ read more … ]

Wyoming’s small oil refineries battle for hardship relief

By Camille Erickson, Star Tribune  •    •  Posted March 12, 2020

A federal court ruling delivered early this year has placed small oil refineries’ access to economic relief in jeopardy. Several refineries transforming crude into fuel in Wyoming apply for annual exemptions from renewable energy standards, which often prove economically prohibitive. But that option for relief is now on the line. [ read more … ]

Energy Bill

Senate energy bill negotiations could be delayed until after recess

By Rachel Frazin, The Hill  •    •  Posted March 12, 2020

Sen. Tom Carper (D-Del.) said Wednesday that negotiations on sweeping and bipartisan energy legislation will cool down over next week’s recess amid disputes over a potential amendment to the legislation.  A proposal introduced by Carper and Sen. John Kennedy (R-La.) to phase down the use of hydrofluorocarbons (HFCs) has held up negotiations on the energy package put forth by Sens. Lisa Murkowski (R-Alaska) and Joe Manchin (D-W.Va.). [ read more … ]

Climate

The oil crash and climate: What to know

By Carlos Anchondo, E&E News reporter  •    •  Posted March 12, 2020

he U.S. Energy Information Administration reported yesterday that oil would experience its first year-on-year decline in production since 2016, raising new questions about how the recent price crash might affect greenhouse gas emissions. Lower oil prices will reduce U.S. drilling activity late this year, EIA said in its monthly outlook. U.S. oil production will average 13 million barrels per day this year before falling to 12.7 million barrels per day in 2021 — the first time back-to-back declines have happened in four years. [ read more … ]

Policy & Politics

Study finds ethanol, biodiesel production power Iowa’s economy

By Iowa Renewable Fuels Association  •    •  Posted March 12, 2020

Today a new study finds despite challenges, Iowa biofuel production continues to have a significant impact on Iowa’s economy, supporting over 48,000 jobs and more than $2.4 billion in household income. The study, authored by John Urbanchuk of ABF Economics and commissioned by the Iowa Renewable Fuels Association, also found that biofuels continue to account for over $5 billion of Iowa’s GDP, or about three percent. [ read more … ]

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