by James Osborne (Houston Chronicle) The future of an exemption shielding oil refining companies from a federal mandate that they blend corn-based ethanol into the nation’s fuel supply is looking increasingly uncertain amid increasing political pressure on the Trump administration ahead of the 2020 presidential election.
Months after the Environmental Protection Agency, was expected to begin issuing exemptions from the most recent ethanol requirements, refineries are still waiting for word.
The delay follows a visit by Trump to Iowa last month, which, following his recent order to lift air pollution laws restricting the year-round sale of gasoline with a higher concentration of ethanol, was expected to be a hero’s welcome. But during his visit,Trump heard from farmers and those working within the ethanol industry the refinery exemptions were hurting their business.
...
... Trump is testing his relationship with the oil industry and Republicans representing oil states such as Texas and Oklahoma.
Last year more than 30 refineries across the country were issued exemptions, allowing them to avoid blending or buying biofuel credits for an estimated 1.2 billion gallons of ethanol - about 8 percent of their total obligation under federal law, Cooper said.
Last week, 13 Republican senators, including Texas’s John Cornyn and Ted Cruz, wrote a letter to Trump, urging him not to take advice from Perdue, a former Georgia governor who has been an outspoken champion for corn farmers.
...
Trump’s calculation appears to be that even if he angers a few refinery workers, it’s not enough to swing the vote in an Ohio or Pennsylvania, never mind Texas. But in Iowa being labeled as anti-farmer could very well cost him the election - in the 2016 presidential race only 52 percent of Iowans voted for him.
...
“It’s increasingly trending Republican, but the right Democrat can win in Iowa,” said Mark Jones, a politics professor at Rice University. “Ethanol is a good example of where you have a small number of very intense interests. ..."
...
Were the EPA to stop issuing so many exemptions, that could force the fuel industry to embrace E15 and give farmers the boost they are hoping for.
And many are betting Trump will do just that. Scott Irwin, an economist at the University of Illinois, said on Twitter Tuesday that Republicans’ push to limit Perdue’s authority was a “real act of political desperation.”
“Refiners must not like what they are hearing behind the scenes,” he wrote. READ MORE
Gas stations challenge oil industry orthodoxy on ethanol (Houston Chronicle)
With flood of EPA waivers, refineries find way around ethanol mandate (Houston Chronicle)
RFA President Says Ag Secretary Following The Law By Weighing In On RFS Issues (WNAX)
Daily on Energy: One month into Trump’s ethanol plan, the battle has only just begun (Washington Examiner)
NBB Highlights How Refinery Waivers Hurt Biodiesel Industry (Energy.AgWired.com)
Trump escapes blame for ethanol policy hurting corn farmers (The Republic)
A friend of agriculture (Norfolk Daily News)
Excerpt from Energy.AgWired.com: The National Biodiesel Board (NBB) has launched an ad campaign highlighting the economic damage to biodiesel and renewable diesel producers from the Environmental Protection Agency’s small refinery exemptions. The ads are currently scheduled to run for one week in Des Moines and Washington, DC.
“The president’s EPA is hurting farmers and eliminating jobs by giving special favors to big oil companies,” the ad states. “The EPA’s big oil bailout is destroying demand for biodiesel.”
An estimate from University of Illinois Professor Scott Irwin says the demand destruction could reach 2.45 billion gallons over the next few years causing a $7.7 billion economic loss for the biodiesel industry.
“Just one oil refinery waiver can put an entire biodiesel facility out of business, and that means fewer jobs for rural America,” the ad states. READ MORE
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