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Governors' Biofuels Coalition
NEWS UPDATE April 20, 2020

Top Story

Congress, Trump Administration Near Deal on Coronavirus Aid to Small Businesses

By Andrew Duehren, Wall Street Journal  •    •  Posted April 20, 2020

Lawmakers and the Trump administration were closing in on a more than $450 billion agreement that would replenish a program for small businesses battered by the coronavirus and related shutdowns, aiming to end a weekslong impasse over the loan program. The Senate convened briefly on Monday afternoon without a deal, and Senate Majority Leader Mitch McConnell (R., Ky.) scheduled another session for Tuesday afternoon. While broad strokes of the agreement are largely set, negotiations continued over several details, including how to structure ramped-up testing for the virus in the U.S. [ read more … ]

Relief

Ethanol Could See $10 Billion in Losses

By Todd Neeley, DTN Staff Reporter  •    •  Posted April 21, 2020

When it’s all said and done, the ethanol industry could see about $10 billion in losses as a result of the COVID-19 economic stall this year, according to a new analysis released Monday by a leading ethanol advocacy group. Friday evening, USDA announced some $19 billion in relief funds directed to a number of agriculture sectors — ethanol was not on that list. That’s despite 73 ethanol plants now idled and production cuts made at 70 more plants in the past several weeks. [ read more … ]

Growth Energy Joins U.S. Governors Calling on USDA to Protect Biofuel Jobs, Farm Communities

By Growth Energy  •    •  Posted April 20, 2020

Growth Energy offered thanks to four governors, who sent a letter urging U.S. Department of Agriculture (USDA) Secretary Sonny Perdue to allocate additional resources under the COVID-19 relief package to address the “economic harm and job losses that biofuel producers are suffering.” An initial tranche of aid, announced yesterday by USDA, included welcome funding for farmers and ranchers, but no direct relief for U.S. biofuel producers. [ read more … ]

Market

U.S. Oil Costs Less Than Zero After a Sharp Monday Selloff

By Ryan Dezember, Wall Street Journal  •    •  Posted April 20, 2020

U.S. oil futures plunged below $0 for the first time Monday, a chaotic demonstration that there was no place left to store all the crude that the world’s stalled economy would otherwise be using. The price of a barrel of West Texas Intermediate crude to be delivered in May, which closed at $18.27 a barrel on Friday, ended Monday at negative $37.63. That effectively means that sellers must pay buyers to take barrels off their hands. [ read more … ]

Pandemic

As U.S. fuel demand dries up, more ethanol producers turn to hand sanitizer

By Stephanie Kelly, Reuters  •    •  Posted April 21, 2020

An increasing number of U.S. ethanol plants trying to survive a drop in fuel demand brought on by the coronavirus outbreak have turned to making a product for which demand is soaring: hand sanitizer. At least two dozen producers of the corn-based fuel have switched some of their output to produce a high grade of alcohol required for hand sanitizer since late March, the head of the Renewable Fuels Association said on Monday. [ read more … ]

Coronavirus To Burst Another Bubble? Carbonation Shortage Threatens Seltzer, Beer And Soda

By Chloe Sorvino, Forbes  •    •  Posted April 20, 2020

Soft drink and beer makers are scrambling for access to CO2, a key ingredient in the carbonization used to make their products after coronavirus shutdowns have closed off their access to the chemical. “The supply is rapidly deteriorating,” says Geoff Cooper, president of the Renewable Fuels Association, which represents the ethanol industry. “Absent of some intervention to keep these facilities running, it will further deteriorate. We’re on the verge of something fairly disruptive. It’s going to be hard to come by.” [ read more … ]

SREs

EPA: 26 SRE petitions now pending for compliance year 2019

By Erin Voegele, Ethanol Producer Magazine  •    •  Posted April 20, 2020

The U.S. EPA released update small refinery exemption (SRE) data on April 16, reporting that one additional SRE petition has been filed under the Renewable Fuel Standard for compliance year 2019. A total of 26 SRE petitions for compliance year 2019 have now been filed, up from 25 SRE petitions that had been filed as of March 19. All 25 petitions are still pending. [ read more … ]

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