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Governors' Biofuels Coalition
NEWS UPDATE February 12, 2021

Top Story

Governor Asks President Biden to take Steps to Protect the Future of the States’ Biofuels Industry

By Governors’ Biofuels Coalition  •    •  Posted February 11, 2021

Minnesota Governor Tim Walz sent a letter to President Biden asking him to take two administrative steps to ensure the future of the states’ biofuels community. Governor Walz is the chair of the Governors’ Biofuels Coalition.  “The growth of the ethanol industry over the past 20 years has made it an economic cornerstone of many Midwestern states. But the once flourishing industry is now in jeopardy, threatened by trade wars, a litigious petroleum industry, and shrinking demand caused by the pandemic,” Walz wrote. Governor Walz warned that “technology advances, which will significantly benefit the nation overall, could have a devastating impact on the ethanol industry and the rural communities it supports without a planned, balanced transition.” The governor proposed two administrative actions to ease that transition. [ read more … ]

Biden Administration

Biden’s EPA pick to review options for biofuel blending law beyond 2022

By Stephanie Kelly, Reuters  •    •  Posted February 11, 2021

U.S. President Joe Biden’s pick to lead the Environmental Protection Agency said he will confer with legal and policy teams to understand the options available for setting mandates to blend biofuels into the nation’s fuel mix beyond 2022. Michael Regan also said he has had conversations with other members of the Biden administration, including Biden’s pick for the Agriculture Department, to discuss the role biofuels can play in combating climate change, according to written responses from Regan to questions submitted to him by Republican Senator Joni Ernst of Iowa.
[ read more … ]

Legislation

GREEN Act includes biofuel, bioenergy tax extenders

By Erin Voegele, Ethanol Producer Magazine  •    •  Posted February 11, 2021

Mike Thompson, D-Calif., chairman of the House Ways and Means Subcommittee on Select Revenue Measures, on Feb. 5 announced the introduction of the Growing Renewable Energy and Efficiency Now (GREEN) Act, which includes several tax extenders that would benefit the biofuel and bioenergy industries. The bill would extend the Section 45 production tax credit (PTC) for electricity produced from certain renewable resources. For facilities that produce electricity from landfill gas, trash, qualified hydropower, or marine and hydrokinetic, the credit would be extended through 2026. [ read more … ]

Markets

EIA: Ethanol Stocks Ease off 39-Week High as Demand Edges Up

By DTN Staff  •    •  Posted February 11, 2021

Ethanol inventories in the United States moved off a 39-week high as demand for the fuel blendstock nudged up about 1% while the uptick in production was marginal, the most recent data from the Energy Information Administration show. Blending activity, a measure of demand, recouped the prior week decline, up 7,000 barrels per day (bpd) to 785,000 bpd in the week profiled, 10.1% below the corresponding week in 2020, data show. Blending activity during the four weeks ended Feb. 5 averaged 782,000 bpd, 93,000 bpd or 10.5% below the comparable year-ago period. [ read more … ]

EVs

Electric Vehicle Holdouts Fret Most Over Charging Infrastructure

By Morning Consult  •    •  Posted February 11, 2021

Skepticism about charging infrastructure remains a hurdle for the country’s transition to electric vehicles, according to new Morning Consult polling, though consumers’ interest in EV models is growing slowly but surely.  A Jan. 22-25 poll found that the share of U.S. adults who say they are likely to purchase an EV in the next decade (39 percent) is up 6 percentage points since March 2019. Meanwhile, the share of those who say they are unlikely to do so is down to 49 percent from 56 percent. Interest in hybrids has remained steady during the same period. [ read more … ]

Commentary

The Road to Recovery: Starts at Home

By Doug Durante, Clean Fuels Development Coalition  •    •  Posted February 11, 2021

Economics 101 teaches us the way to increase value of any product is to increase demand for that product. In the case of ethanol our historic increase in production has been a result of a corresponding demand increase, driven by a combination of renewable requirements, tax incentives, and just plain value. With tax incentives long gone and RFS requirements leveling off, new demand will require creativity and further defining our value. A recent report by economists at CoBank looked at Forces that Will Shape the Ag Economy in 2021. It acknowledged that the ethanol industry is recovering but seemed to define success as simply getting back to where we were pre-pandemic. [ read more … ]

 

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