U.S. Iowa Senators Hope to Include Biofuels Aid in Next Coronavirus Relief Package

July 20, 2020

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by Stephanie Kelly (Reuters) U.S. lawmakers from Iowa are trying to add aid for the biofuels industry into a pending coronavirus relief package in the Senate, U.S. Senator Chuck Grassley said on Friday. Grassley and his Iowa colleague, Senator Joni Ernst, hope to include a subsidy for feedstock for the ethanol industry in the bill. Farmers and producers of the corn-based fuel were hit hard during the coronavirus pandemic as government-imposed lockdowns sank demand for gasoline. READ MORE

Grassley to advocate for COVID-19 relief for ethanol producers (Ethanol Producer Magazine)

Ag Policy Blog: Grassley Sees Aid to Ethanol Industry as a Priority (DTN Progressive Farmer)

Grassley and Ernst to push for ethanol aid in coronavirus package (Fence Post)

Farm, anti-hunger groups try to squeeze into $1-trillion pandemic bill (Fern's Ag Insider)

Drop in ethanol use boosts traffic at some terminals (KPVI)

Crop Conundrum (KFYRTV)

Déjà vu as energy AWOL from stimulus markers (E&E News)

Grassley confident ag relief will be in final COVID-19 stimulus bill (KMA Land)

Grassley: 'Ethanol senators' must stand up for industry aid (E&E News)

Senate GOP aid package to include more farm assistance (Agri-Pulse)

Ernst outlines goals for phase four coronavirus relief (Daily Iowan)

Don't bail out ethanol (The Hill/American Enterprise Institute)

Farm Progress America, July 22, 2020: Max Armstrong reports on how the coronavirus economic slide has hit the ethanol industry (Beef Magazine)

GRASSLEY PUSHES FOR BIOFUELS ASSISTANCE IN NEXT CORONAVIRUS RELIEF BILL (Brownfield Ag News)

ACE WRITES SENATE LEADERS REQUESTING INCLUSION OF DIRECT RELIEF FOR BIOFUEL PRODUCERS IN PHASE FOUR STIMULUS (American Coalition for Ethanol)

Washington Week in Review: July 23, 2020: Sen. Joni Ernst on COVID relief and biofuels (Agri-Pulse; includes VIDEO)

Vulnerable Republicans ask McConnell for ‘clean energy’ help (Roll Call)

Senate Republicans ask for clean energy relief (E&E News)

COVID-19 Aid Debate: Senate to Match House on Size of Ag Coronavirus Aid Package (DTN Progressive Farmer)

Senate GOP's $1T aid plan authorizes expanded ag assistance (Agri-Pulse)

NCGA BOARD MEMBER SAYS “WE NEED THINGS TO START MOVING” (Brownfield Ag News)

Ethanol plants increase production as harvest nears (Iowa Farmer Today)

Excerpt from Ethanol Producer Magazine: Grassley sponsored a bill introduced in May that would provide relief to ethanol producers via payments for feedstock made through the USDA’s Commodity Credit Corp. During the July 17 call, Grassley indicated he and Ernst would work to include provisions of that bill into the upcoming COVID-19 bill.

In the long-term, however, Grassley said he thinks that hope for the ethanol industry will be directly related to the extent to which the economy picks up and people start driving. While ethanol production has picked up in recent weeks following sharp declines in March and April, Grassley said he thinks it will be a slow turnaround for the industry to return to pre-COVID-19 production levels. “I think the Ernst-Grassley bill will help in that effort a lot, if we can get it put into the [upcoming COVID-19 relief bill],” he said.

Grassley also briefly addressed the “gap year” small refinery exemption (SRE) petitions that several small refineries have filed with the U.S. EPA in recent months in an effort to circumvent a January ruling made by the Tenth Circuit Court of Appeals that determined the EPA cannot extend SREs to any small refinery whose earlier, temporary exemptions had lapsed. The 58 gap year SRE petitions that have been submitted to the EPA so far represent an effort by several small refiners to create a continuous chain of SRE approvals that would allow the impacted refineries to maintain eligibility for future SREs. READ MORE

Excerpt from Fern's Ag Insider: The ethanol industry also wanted to be included in the new coronavirus bill. It says the decline in gasoline consumption during the pandemic reduced industry revenue by $3.4 billion. One analyst said the reduction in net revenues would be much smaller than the gross revenue figure and the loss in profits smaller still. Ethanol makers say the oil industry has received aid, through federal purchases for the petroleum reserve, so it deserves consideration too. READ MORE