Agreement Reached on Ethanol Waivers

Agreement Reached on Ethanol Waivers

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The Trump Administration has reportedly agreed to boost the biofuel sector by re-allocating 3 years of waived biofuel blending quotas starting next year.

According to Informa, the EPA will start calculating waivers into future quotas starting with the 2020 targets. They would come in a 3 year rolling average of exemptions meaning 2020 would reflect waivers issued in 2016, 2017, and 2018.

Ethanol supporters reportedly haven't signed off on the new plan, yet and there's no word if the white house will finalize the proposal without their backing.

Meanwhile, Sioux-Land Energy Cooperative in Northwest Iowa is idling production at it's 90 million gallon corn ethanol plant. The president of the company tells DTN the last round of small refinery waivers and the 18 to 20 cent price drop in ethanol was the final punch. To offset their losses they're idling the plant with no layoffs.

The company says they hope for policy changes from the Trump Administration in order to bring the plant back into production but there's no word if the latest plan to reallocate those waivers will make a difference.

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