No doubt it was much to the chagrin of small refinery operators, but President Trump showed more support over the weekend to the corn ethanol industry. He removed federal roadblocks to selling 15% ethanol at retail gas stations.
“Subject only to State approval, our important Ethanol Industry will be allowed to use the 10% Pumps for the 15% BLEND. Thank you!” he tweeted.
That would help allow any filling station to sell the higher blend of ethanol without having to replace their entire underground infrastructure, a major obstacle to increased E15 sales. The action follows Trump’s 2019 order to EPA to allow year-round sales of E15, another major favor granted to corn farmers struggling amid low fuel demand reported POLITICO.
The U.S. and Brazil issued a joint statement late Friday extending a quota on duty-free ethanol exports to Brazil for an additional three months. The quota had expired on Aug. 31, putting a 20 percent tariff on all U.S. ethanol.
Brazilian leader Jair Bolsonaro is under pressure from his sugar industry to let the quota end, but the U.S. ambassador to Brazil has also leaned on him to help Trump get re-elected. The 90-day extension puts the end of the quota well after November’s election.
In the joint statement, the U.S. Trade Representative said the two countries would use the time to negotiate market access for ethanol, corn and sugar in both countries.
Small refinery operators including the CVR Refinery in Wynnewood are fighting for exemptions of biofuels mandates that had been granted by the EPA but were overruled by a 10th U.S. Circuit Court of Appeals decision.
Source: POLITICO
