Advanced BioFuels USA

by Larry Lee (Brownfield Ag News) An ag economist expects Washington lawmakers will be revisiting the Renewable Fuel Standard. Scott Irwin with the University of Illinois says, “I think we’re going to see the mother of all political battles over the RFS upcoming.”

Irwin tells Brownfield the crude oil refining industry has been shaken to its core with what’s going on, and in parallel, ag and the ethanol sector have been shaken to its core as well. “(What) we now have, the gauntlet has been laid down by the crude oil states or the big oils states if you like, putting forth a formal request to waive a part of the RFS mandates for 2020.”

Irwin expects the political battle between oil and agriculture states will be a “battle royal.” Irwin says, “Both sides are dug in. Both have their backs up against the wall financially, and it is going to be a real donnybrook in D.C. to see where the RFS comes out after this battle is over.” READ MORE includes AUDIO

Ethanol Blog: Petroleum Interests Ask EPA to Conduct New 2020 RFS Rulemaking (DTN Progressive Farmer)

As Oil Industry Seeks Bailout, Iowa Dems Push For Biofuel Help (Iowa Starting Line)

Ethanol Board Administrator Says Biofuels Industry Needs Economic Aid (WNAX)

Friendly Fire: Ethanol Battles Oil As COVID Destroys Demand For Both (Forbes)

Excerpt from Iowa Starting Line: “Biofuel plants are critical parts of our rural communities, providing thousands of good paying jobs and purchasing significant amounts of corn and soybeans from local farmers,” the representatives (Iowa Democratic Reps. Abby Finkenauer, Dave Loebsack and Cindy Axne) said in a statement. “The industry, due to repeated attempts by this administration to undermine the RFS (Renewable Fuel Standard), has been operating at the thinnest of margins, if at all, and cannot be left behind.”

On a conference call with reporters, Perdue acknowledged the lack of help for biofuels when asked why it was left out of the aid package.

“Frankly, at this point, there’s just not enough money to go around,” Perdue said. “The demand from all of the sectors was even more than we could accommodate at this time. The macro-energy issue is affecting all sectors of energy, so it’s just more than we could do from the USDA perspective at this time.”

Despite repeated promises to Iowa farmers and the ethanol industry, since taking office, Trump’s Environmental Protection Agency has granted 85 waivers to oil refineries, resulting in a 4 billion gallon loss of renewable fuel. Small Refinery Exemptions allow oil refiners to sidestep RFS requirements by releasing them from their obligation to blend ethanol into their fuel supply.

As the price of a barrel of oil dropped below zero and gas prices hit multi-year lows, Trump took to Twitter to reassure the (oil) industry.

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Recent studies have estimated the outbreak of COVID-19 will lead to billions of dollars in losses for the ethanol industry, with projections ranging from $2.5 billion in Iowa to $10 billion nationwide.

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“With plans to support the oil and gas industry already underway, it’s vital that policymakers give the same consideration to biofuel workers and farmers equally impacted by disruptions to the motor fuel market,” said Emily Skor, CEO of Growth Energy, in a statement.  READ MORE