U.S. Biofuel Group in Talks with Biden, Trump Campaigns to Boost Industry

June 12, 2020

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by Stephanie Kelly (Reuters) A leading U.S. biofuel trade group said on Thursday it had started conversations with the campaigns of both Democratic presidential candidate Joe Biden and incumbent Donald Trump to discuss potential policy fixes for the ailing industry.

The discussions come as the coronavirus pandemic crushes demand for ethanol and other biofuels, and as the industry wages a long-running lobbying effort to strengthen government biofuel consumption mandates that it says have been weakened by Trump’s Environmental Protection Agency.

The biofuel industry, an important farmbelt constituency, is hoping to use its political clout ahead of the upcoming November election to press its list of demands in Washington.

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During the same call, National Corn Growers Association President Kevin Ross said his group would be in contact with Biden’s campaign as well.

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At the same time, biofuel advocates have sent letters to the Trump administration asking that it upholds a court decision from January that, if applied broadly, would limit the number of waivers the administration grants to oil refiners exempting them from biofuel blending mandates.

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The Trump administration has granted far more waivers than in previous years.

“Ultimately, the buck stops in the Oval Office,” Cooper said. “We are appealing directly to the president to intervene here.” READ MORE

Ethanol Blog: Biofuels Leaders Ask Trump to Reject New Round of Small-Refinery Exemption Requests (DTN Progressive Farmer)

Ethanol: One year after Trump visit (Farm Progress)

RFA marks E15 anniversary, urges Trump to stand up for the RFS (Ethanol Producer Magazine)

RFA, Corn Growers Call on Trump to 'Stand With Us Again' By Limiting SREs (OPIS)

RFA TURNS UP HEAT ON TRUMP A YEAR AFTER PRESIDENT VISITED IOWA ETHANOL PLANT (Brownfield Ag News)

Ag Policy Blog: RFA Holds Trump Accountable for Industry Challenges (DTN Progressive Farmer)

A year after Trump visit to Iowa plant, ethanol industry faces unparalleled crises (Des Moines Register)

President Trump at Iowa ethanol plant - one year later: Ethanol Report 6-11-20 (Energy.AgWired.com; includes AUDIO)

Ethanol industry takes plea for waiver protection directly to president (KMALand)

Ethanol industry pleas for “faithful enforcement” of Renewable Fuels Standard (Iowa AgriBusiness Radio Network)

Agribusiness Report Podcast: Kevin Ross (All Ag News; includes AUDIO)

ETHANOL INDUSTRY GETTING IMPATIENT WITH THE TRUMP ADMINISTRATION (News Dakota/NAFB)

U.S. EPA yet to decide on retroactive refinery waiver requests: senator (Reuters)

RFA calls on president to reject refinery waivers (Biofuels International)

Tom Vilsack: Why Joe Biden is surging in polls of rural Americans (Des Moines Register)

Farmers and baseball (Daily Nonpareil)

Excerpt from DTN Progressive Farmer: A year after President Donald Trump visited an ethanol plant in Council Bluffs, Iowa, the industry is now appealing to him directly to deal with the Environmental Protection Agency’s implementation of the Renewable Fuel Standard, industry leaders said in a telephone news conference today and in a letter to the president published as a full page in the Council Bluffs Daily Nonpareil.

The industry’s impatience with Trump could have an impact on attitudes toward him in Iowa and other ethanol-producing states, and have an impact on this year’s election.

In the past industry groups have directed their ire at EPA, but on the call today Renewable Fuels Association President and CEO Geoff Cooper said EPA “is still the agency that is charged with managing the RFS,” but "ultimately the buck stops in the Oval Office. We are now appealing directly to the president to intervene here.”

Cooper said that Scott Pruitt, the first EPA administrator under Trump, “derailed things,” but Andrew Wheeler, his successor, “has not put it back on the tracks.”

In the letter, Cooper wrote, “Even after a federal court overturned some refinery waivers in January, your EPA continues to receive dozens of exemption requests from oil companies. EPA is now even considering giving retroactive waivers for years that pre-date your administration. This needs to stop. It is hurting farmers, costing consumers, and derailing progress on energy and environmental security.”

“The economic pain in farm country caused by these refinery waivers was compounded this spring -- first by the Saudi-Russia oil price war, and then by the COVID-19 pandemic. As a result of this ‘perfect tsunami,’ half of the ethanol industry was recently shut down, leading to layoffs across rural America. The ethanol industry and farmers are hurting like never before.

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In response to a question from The Hagstrom Report today, Jerke (Mike Jerke, the CEO of Southwest Iowa Renewable Energy) said it is too early to tell how the situation affects Trump’s fortunes but said that while “expressions of support are important, my owners and investors are looking for followup.”

Cooper, Jerke and Ross (Kevin Ross, an Iowa farmer who is president of the Renewable Fuels Association) said they had not yet had direct contact with the campaign of former Vice President Joe Biden, the presumed Democratic nominee for president, but they will be in touch with that campaign and others running for election in November.

Cooper said that the RFS has long had bipartisan support, and the ethanol leaders noted that Sen. Joni Ernst, R-Iowa, who is also up for re-election, has been a strong and reliable advocate for the industry.

The industry leaders said that, as gasoline consumption has picked up in recent weeks, there has been some increase in ethanol demand but that 40 plants are idle and others are operating at reduced levels.

Ethanol letter to President Trump: https://files.constantcontact.com/…

Mike Jerke op-ed in the Des Moines Register: https://www.desmoinesregister.com/story/opinion/columnists/iowa-view/2020/06/10/ethanol-industry-faces-unparalleled-crises-year-after-trump-visit/3158235001/ READ MORE

Excerpt from Reuters: However, a Department of Energy official said last month the department would review retroactive blending waivers. If granted, such waivers could be considered compliant with the court’s ruling.

His comments sparked outrage from biofuel advocates, who claim waivers undermine demand for ethanol and other biofuels. The oil industry refutes that claim.

(Iowa Republican Senator Chuck)Grassley said the petitions should be immediately dismissed, and the fact that they haven’t was a big concern of corn farmers and the industry in general. Iowa is the largest ethanol-producing state in the country.

“If the EPA ends up accepting these petitions, not only will they lose again in court, they will risk President Trump’s support in Iowa and other Midwestern states,” he said. READ MORE

Excerpt from Des Moines Register: The Trump administration’s trade tactics led to retaliatory tariffs from China. While there were good reasons to call out China, the Trump administration failed to form an alliance with nations similarly disadvantaged by Chinese policies. China simply reduced purchases from American farmers and turned to Europe and South America. Lost exports reduced farm income far below the levels enjoyed during the Obama-Biden administration. U.S. farmers took a hit, and so did the rural places they call home. Even the current Phase One Agreement with China that promised more purchases of ag products is failing to deliver at the level expected. Farmers dependent upon robust ag exports have taken notice of these failures.

Adding to the impact of the trade disputes has been the Trump administration’s failure to wholeheartedly support the renewable fuel industry. The waivers for oil and gas granted by the Environmental Protection Agency have reduced ethanol blending to unprecedented levels, diverting more than 4 billion gallons of biofuels from the market. These disruptions forced workforce reductions and complete plant shutdowns. The Trump administration has even stalled on announcing production requirements for 2020 and will likely delay the announcement until after the election. Concern continues to grow that following the election, biofuel targets and newly requested waivers will bring more bad news for the industry. Corn growers and laid-off ethanol plants workers have taken notice of these failures. READ MORE