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Governors' Biofuels Coalition
NEWS UPDATE March 19, 2020

Top Story

U.S. ethanol market sees first sales decline in decades

By Jim Spencer and Mike Hughlett, Minneapolis Star Tribune  •    •  Posted March 18, 2020

Like many U.S. ethanol producers, Chad Friese witnessed a strange phenomenon from 2017 to 2018. As production increased and sales to foreign countries rose to record levels, profits went down roughly 20 cents per gallon. For Friese, CEO and general manager of the Chippewa Valley Ethanol Co. in Benson, Minn., that meant one thing. The domestic market for ethanol had stopped growing at the same time production hit a new record. [ read more … ]

U.S. ethanol prices hit lowest point since 2003

By Sergio Chapa, Houston Chroncile  •    •  Posted March 18, 2020

U.S. ethanol prices have hit lowest point in more than a decade, according to new figures from global energy research firm S&P Global Platts. Crude oil prices are not the only thing falling amid a global supply glut and weakened demand attributed to the coronavirus outbreak. U.S. ethanol prices have hit lowest point in more than a decade, according to new figures from global energy research firm S&P Global Platts. [ read more … ]

Market

Ethanol prices hit all-time low, unconfirmed reports of plant shutdowns

By Jerry Perkins, Successful Farming  •    •  Posted March 18, 2020

Corn demand by the U.S. ethanol oil industry could drop by 120 to 170 million bushels during the next two months if gasoline consumption – and the ethanol blended with it – continues to decrease as expected. That’s according to Todd Hubbs of the Department of Agricultural and Consumer Economics at the University of Illinois. In an analysis posted March 16 on the farmdocdaily website, Hobbs wrote that an estimated 15% to 20% reduction in gasoline consumption that is expected by many industry analysts in the next couple of months will lead to a decrease in demand for corn to make ethanol. [ read more … ]

RFA calls on Trump Administration to help struggling biofuels industry

By Ken Anderson, Brownfield News  •    •  Posted March 18, 2020

The Renewable Fuels Association (RFA) is asking the White House to help the struggling biofuels industry. “With many ethanol plants on the verge of shutting down, we implore the Trump Administration to take action that equitably supports all liquid fuel industries—including ethanol producers—during this time of unprecedented  market uncertainty and unrest,” RFA CEO Geoff Cooper said in a new release. [ read more … ]

RFA Asks for Aid as Grassley Says Biofuels Industry Very Nervous

By Jerry Hagstrom, Progressive Farmer  •    •  Posted March 18, 2020

The Renewable Fuels Association said Monday that the government should help the “liquid fuel industries” — including ethanol producers — while Senate Finance Committee Chairman Chuck Grassley said he found biofuels leaders “very nervous” when he met with them last week. On a call to rural reporters, Grassley said he did not think there was much sentiment in Congress to help “Big Oil,” but that if there were any assistance, it should include ethanol. [ read more … ]

Coronavirus

House Democrats Push for Renewable Energy Tax Credits in Coronavirus Stimulus

BY LISA MARTINE JENKINS, Morning Consult  •    •  Posted March 18, 2020

As lawmakers continue to hammer out legislation to address the impact of the coronavirus pandemic, House Democrats are looking to insert renewable energy tax credit provisions into a larger stimulus package aimed at stabilizing the economy.  The House Sustainable Energy and Environment Coalition co-chairs said in a joint statement to Morning Consult that they have an eye toward addressing “both the economic slowdown we are facing as a result of COVID-19 and the ongoing climate crisis” with these measures.
[ read more … ]

Where the Virus and Climate Intersect

By Brad Plumer and John Schwartz, New York Times  •    •  Posted March 18, 2020

The nation’s major airlines recently asked for $50 billion in government assistance, warning that they could soon go bankrupt otherwise. President Trump has endorsed such an aid package, though the idea may prove contentious. On Wednesday, eight Senate Democrats signed a letter saying that any aid to airlines (or cruise ships, for that matter) should come with conditions requiring them to reduce their greenhouse gas emissions over time. [ read more … ]

SREs

Peterson Leads Biofuels Caucus Letter Urging Administration to Uphold 10thCircuit Court Ruling on Ethanol Waivers

By Office of Representative Collin Peterson  •    •  Posted March 18, 2020

Congressman Collin Peterson, Chair of the House Agriculture Committee, joined fellow Co-Chairs of the bipartisan Biofuels Caucus to send a letter to President Donald Trump today regarding the recent Tenth Circuit Court decision that invalidated three Small Refinery Exemptions (SREs) under the Renewable Fuel Standard and criticized the Environmental Protection Agency’s use of these waivers for small oil refineries. [ read more … ]

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