Reuters writers Jarrett Renshaw and Stephanie Kelly reported late last week that, “President Joe Biden’s administration, under pressure from labor unions and U.S. senators including from his home state of Delaware, is considering ways to provide relief to U.S. oil refiners from biofuel blending mandates, three sources familiar with the matter said.
May b a new admin but its the same problems w EPA kowtowing to big oil/ Big oil + labor unions are a BIG problem for biofuels/ Pres Biden don’t cave to special interests U need to stand up for the farmers bc u said ur admin wld promote biofuels 2help rural America & honor the RFS
— ChuckGrassley (@ChuckGrassley) June 11, 2021
“The issue pits two of the administration’s important political constituencies against each other: blue-collar refinery workers and farmers who depend on biofuel mandates to prop up a massive market for corn.
Not only would this be devastating to our crop growers & #biofuels producers, but it also once again ignores the fact that ethanol & biodiesel can play a huge role in reducing carbon emissions. I urge the Biden admin to reject this push immediately. #IA04https://t.co/r1394fkeHR
— Rep. Randy Feenstra (@RepFeenstra) June 11, 2021
The Reuters writers explained that, “The law requires them to blend billions of gallons of ethanol and other biofuels into their fuel each year or buy credits from those that do.
I unequivocally oppose these efforts – and I’m letting the White House know that this is UNACCEPTABLE for Iowa.https://t.co/HeYdSQl2pi
— Rep. Cindy Axne (@RepCindyAxne) June 11, 2021
“The credits, known as RINs, are currently at their highest price in the program’s 13-year history, and refiners have said the policy threatens to bankrupt fuel makers already slammed by sinking demand during the pandemic.”
Now is the time to support family farmers and producers, not create more instability for them. I’ve reached out to the White House to address this. https://t.co/2bIDGgwa7f
— Angie Craig (@RepAngieCraig) June 11, 2021
If the latest report is true that #Biden considering relief to refiners on #RINS, raises questions about what exactly is the administration’s policy on #biofuels/oil? #EPA just recently argued in biofuels’ favor before #SCOTUS on small-refinery exemptions case. #Confusion…
— (@DTNeeley) June 11, 2021
“Biofuel advocates counter that fuel makers should have invested in biofuel blending facilities years ago and can pass through added costs for buying credits,” the Reuters article said.
FINALLY!!! I have been asking for exactly this type of chart as empirical evidence regarding RIN costs and refining margins. Exactly what simple economic theory predicts: passthrough. Also consistent with academic research at the aggregate market level. https://t.co/siDHaH4XBn
— Scott Irwin (@ScottIrwinUI) June 11, 2021
Meanwhile, DTN writer Todd Neeley reported last week that, “Twenty-two members of the House biofuels caucus asked U.S. Secretary of Agriculture Tom Vilsack to help the ethanol and biodiesel industries following the COVID-19 economic shutdown that led to reductions in biofuels production.
“In a letter to Vilsack on Wednesday, the lawmakers said producers need assistance to rebuild the industry.
I led the House Biofuels Caucus in urging the @USDA and @SecVilsack to use their authority and provide COVID-19 relief to the renewable fuels industry, who have been hurt by the pandemic. Biofuels like ethanol are a critical market for farmers in #IL13 and across the country. pic.twitter.com/XgnySi5vJz
— US Rep Rodney Davis (@RodneyDavis) June 11, 2021
“‘As you look to provide additional relief under the Pandemic Assistance for Producers program using funds from the Consolidated Appropriations Act of 2021, we request that a portion of those $6 billion in funds are used to assist the biofuels industry,’ the letter said.”
Mr. Neeley added that, “The ethanol industry has been on a roll lately, as the price of Renewable Identification Numbers, or RINs, have been higher and profitable margins have returned to much of the industry following a difficult 2020.”