biodiesel

Sens Chuck Grassley of Iowa and Maria Cantwell of Washington state proposed revival and extension of the $1-a-gallon biodiesel tax credit through 2018. "This provision should be included in the tax extenders package under discussion," Grassley said in a joint statement with Cantwell.

Lawmakers are "headed for another last-minute, end-of-the-year renewal" of five-dozen tax breaks that expired at the end of 2014, reports Agri-Pulse, which quotes House Majority Leader Kevin McCarthy as saying, "In these situations, it's always coming down to the last week to see what mix we're able to get."

Revival of four dozen tax breaks, including incentives for the agricultural sector, is possible in the lame-duck session that opens next week, says the Washington Post.

Biodiesel production is booming in Brazil and Argentina and will put a pinch on exports of soybean oil, the feedstock for making the biofuel, says the Agriculture Department. Biodiesel is forecast to consume one-third of soy oil in the two countries during this marketing year, double the amount that was used six years ago. "In contrast, exports are forecast to fall from more than half of total use to just over 40 percent over the same period," said USDA'S "Oilseeds: World Markets and Trade" report. Brazil and Argentina are the largest soybean producers in the world after the United States.

Fulcrum Sierra Biofuels will receive a $105 million loan guarantee to build a plant in McCarran, Nev, to produce biodiesel jet fuel from municipal solid waste, said the Agriculture Department. The plant would produce 11 million gallons a year of fuel. The loan guarantee is nearly half of the $226 million cost of the plant. Cathay Pacific Airways said last month that it would invest in Fulcrum Bioenergy and negotiated a 10-year contract with Fulcrum for 375 million gallons of fuel.

"Rep. Bruce Braley is betting the farm on corn — and Democrats’ hold on the Senate may be in danger if he’s wrong," says the lead sentence in Politico on the Senate campaign in Iowa. The Hawkeye state is No 1 i corn and ethanol production, with several thousand people working at ethanol plants. Braley

The ethanol mandate is likely to be set higher than initially proposed by the EPA, says Sen Al Franken, Minnesota Democrat, in comments quoted by The Hill newspaper. Franken was among 10 Democratic senators, including Agriculture chairwoman Debbie Stabenow, who met White House advisor John Podesta to discuss biodiesel.

The Agriculture and Energy departments awarded a total of $12.6 in research grants to 10 projects, from Virginia to California, to improve to improve plant feedstocks for the production of biofuels, biopower, and biobased products. The work is part of developing non-food sources of biomass.

In a report titled "Ethanol's Broken Promise," the Environmental Working Group says the scaled-back ethanol mandate proposed by EPA "would lower U.S. greenhouse gas emissions by the equivalent of 3 million tons of carbon dioxide (CO2e) – as much as taking 580,000 cars off the road for a year." EWG says its figures take into account the effect of bringing more land into crop production.

Rising gasoline consumption could allow the EPA to set the ethanol mandate higher than it originally proposed, says Reuters. It says an industry source says there is enough leeway for EPA to set the mandate at 13.6 billion gallons for this year, compared to its November proposal of 13 billion gallons for corn-based ethanol.