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TRUMP Administration What about the Damage done to ETHANOL?!?
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JonSCKs
Posted 5/21/2019 18:53 (#7511107 - in reply to #7510343)
Subject: President Trump may be coming to Iowa to announce E-15.


Well.. this sounds encouraging..

https://www.bloomberg.com/news/articles/2019-05-21/possible-trump-visit-to-iowa-ethanol-plant-signals-win-for-e15

President Donald Trump is considering visiting an ethanol refinery in Iowa in the coming weeks, according to people familiar with the matter, a signal that the administration will fulfill a pledge to permit the year-round sale of high-ethanol gasoline sought by corn farmers in the state.

Iowa Republican Senators Chuck Grassley and Joni Ernst, as well as Governor Kim Reynolds, will be invited, according to four people familiar with the matter who asked not to be named discussing the private deliberations.

 

US-POLITICS-TRUMP-WORKFORCE

Trump holding a "Make Our Farmers Great Again!" hat during a trip to Iowa in 2018.

Photographer: Saul Loeb/AFP/Getty Images

 

Last fall, Trump visited Iowa and delivered a victory to corn farmers and biofuel producers when he said he signed a memo telling the U.S. Environmental Protection Agency to lift summertime fueling restrictions on E15 gasoline, which contains 15% ethanol. The corn-based fuel currently accounts for 10% of U.S. gasoline consumption and higher blends are restricted during the summer months in some areas.

Since then, agricultural groups have been pressing EPA to meet the June 1 deadline when the higher blends are restricted. Midwestern farmers, who helped propel Trump to the White House, have suffered a loss of sales due to Trump’s trade war with China that has resulted in tariffs on American agricultural products.

The move to allow year-round E15 is opposed by oil refineries. The two sides have long been locked in battle over the Renewable Fuel Standard, the law that compels oil refiners to mix ethanol and biodiesel into petroleum.

 

 

 

Some 37% of U.S. corn production is consumed by ethanol plants. Iowa is the largest manufacturer of both commodities. The deliberations over the ethanol mill visit come as the administration is said to be preparing to announce another round of aid to farmers hurt by the trade war with China as soon as Thursday, according to people familiar with the plan, a package of assistance that could exceed $15 billion.

The way things have gone.. I have this feeling that probably Big Oil Refiners will get MORE Concessions from Rick Perry's Dept of Big Oil Energy in the form of Illegal Small Refinery Waivers to the Law of the Land in the RFS..  Even though they are making WAY MORE $$$.. Billions of $$$ in some cases as part of Big Oil Conglomerates..  than the little Farmer Owned, backed and built Ethanol Refineries.

Still it is what we asked for.

And if he actually does it I will continue to respect the President on his word.

(but I might ask him to fire Perry...  ??  lol..)

Who knows.. he lifted Tariffs on Canada and Mexico.. if the two sides can come to their senses.. and work out an agreement.. maybe we can get back to shipping soybeans to China..  while I'm dreaming here.. ???

White Shadow makes a good point above..

RBOB gasoline traded today at $2.01 and ethanol traded at $1.38. Close to 50% of the canopies in the nation are independents. At this discount to gas, yes they do have an incentive to blend up to e-15 if allowed to by law. The canopies owned by oil companies will not displace their product with e-15 regardless of the price difference as they have billions of dollars tied up in oil infrastructure. I think the ethanol industry has accepted this. 

I will agree with you about the waivers and it would be very nice if the waivers would go away on the mandated e-10. The Rins attached to ethanol and the mechanism to retire them with gasoline production worked well to guarantee the ethanol usage. I have a hard time accepting moving that mandate to e-15, even though it would benefit me personally. Ethanol's discount to gasoline should make the consumer want to use it. At some point we have to start standing on our own legs----based on economics...

As does Illinois Steve..

I have no problem with them approving E-15 and give cautious kudos to trump for supporting it. I am however skeptical about his motives. It looks more like his way of throwing ethanol a bone and trying to make up for the illegal RIN waivers. He can say he is doing something for ethanol by approving E-15 when in fact he knows that it really won't take any gallons away from big oil. I understand your logic about E-15 and how it might be used but I am skeptical. By all means we should approve E-15, I'm just not convinced it will help anything.

yup.. good points from both sides of the aisle.



Edited by JonSCKs 5/21/2019 18:59
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