biofuels
As expected, EPA denies change in ethanol rule sought by Icahn
The EPA rejected a petition by oil refiners to relieve them of the responsibility for blending biofuels into gasoline and diesel fuel, "dealing a blow to billionaire investor Carl Icahn and oil companies that had sought the change," reports Bloomberg. EPA administrator Scott Pruitt told farm-state lawmakers a few weeks ago that the agency was unlikely to change the "point of obligation," based on its preliminary analyses.
Northey nomination for USDA may move in December
Texas Sen. Ted Cruz won’t let go of his “hold” on USDA nominee Bill Northey, said Iowa Sen. Chuck Grassley, so he and fellow Iowa Sen. Joni Ernst have appealed to Senate Majority Leader Mitch McConnell to arrange a vote. “We want to do it as soon after Nov. 30 as we can,” Grassley told ag reporters.
Biofuels groups say EPA has to do more for biodiesel and cellulosic ethanol
EPA administrator Scott Pruitt quelled midwestern protests over a potential change in course by the Trump administration, saying there would be no additional cuts in the biofuels mandate proposed for 2018. But two groups, the National Biodiesel Board and the Iowa Renewable Fuels Association, said the government ought to raise the target for biodiesel.
Cruz says he’ll block USDA nominee until White House calls ethanol meeting
The winner of the 2016 Iowa presidential caucuses, Sen. Ted Cruz of Texas said he will block a confirmation vote on a key USDA nominee until President Trump convenes a meeting to hash out oil-state complaints about the Renewable Fuel Standard.
EPA weighs rules change on how to count biofuel exports
In a potentially significant change to the U.S. ethanol mandate, the EPA is considering whether to allow exports of ethanol to be counted toward the volume requirements in a law intended to boost the domestic consumption of biofuels, said Reuters, citing two unnamed sources. The ethanol trade group Growth Energy said the proposal cast doubt on the Trump administration’s support for biofuels, including corn-based ethanol.
Countervailing duties levied on Argentine, Indonesian biodiesel
Argentina and Indonesia unfairly subsidize the production of biodiesel fuel, so the United States will levy countervailing duties as high as 68 percent on the imported fuel, which competes with U.S.-made biodiesel, said the Commerce Department in a preliminary ruling. “Even friendly nations must play by the rules,” said Commerce Secretary Wilbur Ross.
Biofuels mandate effectively is 20 billion gallons, not 36 billion gallons
In 2007, Congress set a goal of mixing 36 billion gallons of biofuels, the bulk of it coming from second-generation "advanced" fuels, into gasoline annually, beginning in 2022. Economist Jonathan Coppess of the University of Illinois says the "actual, effective floor" for biofuels will be 20 billion gallons, based on the recent U.S. appellate court ruling that clarifies the EPA's power to adjust the so-called Renewable Fuels Standard.
Minnesota doubles down on soybean biofuel
Minnesota ruled that biofuels will need to contain a mix of 20 percent soybeans or other renewable fuel sources, cutting the amount of emissions while boosting demand for soybeans, said MPR News. "This is an opportunity to add value to farmers' products," state agriculture commissioner Dave Frederickson said last Thursday, according to the report. "Given the fact that the first B10 mandate actually added about 63 cents per bushel, on every bushel sold, we're hoping to double that as we move into a B20 mandate."
Appeals court overturns EPA’s 2016 biofuel mandate
The EPA erred when it set the target for biofuels use in 2016 below the levels specified by Congress, said the U.S. Court of Appeals for the D.C. Circuit in a decision that vacated the regulation and ordered EPA to try again. The three-judge panel said EPA improperly interpreted the "inadequate supply provision" that allows it to waive the statutory targets for renewable fuel use.
EPA will consider permanent reduction in mandate for advanced biofuels
Two months behind schedule, the EPA has proposed the targets for renewable fuel use in 2018 — corn-based ethanol in its usual place as the primary biofuel, at 15 billion gallons, and so-called advanced biofuels at 4.24 billion gallons. The agency said it will begin the technical analysis that could lead to a permanently lower mandate for advanced biofuels, which are being produced in far smaller quantities than envisioned in a 2007 law.
E15 is the doorway for cellulosic biofuels, says trade group
The Advanced Biofuels Business Council told the Senate Environment Committee that year-round sales of E15 would widen the market for cellulosic ethanol, made from gasses and woody plants, reported DTN. At present, E15, a 15 percent mix of ethanol and gasoline, cannot be sold during the summer because of air pollution rules.
Ethanol groups take two routes in pursuit of E15 sales
In hopes of expanding sales of gasoline with a 15 percent biofuel blend, ethanol trade groups are putting pressure on the EPA as well as Congress, says DTN. Their immediate goal is approval by the Senate Environment and Public Works Committee of a bill to waive a fuel volatility rule, which would allow the sale of E15 during the summer.
Perdue assures farmers, ‘You grow it and we’ll sell it’
Standing in shirtsleeves on a hay rack at an Iowa farm, Agriculture Secretary discarded his prepared speech in favor of repeated promises to be an unstinting advocate of U.S. food and ag exports, which generate 20 percent of farm income. President Trump supports biofuels, said Perdue, adding, "I think it was the boss who said we're not going to mess with the RFS (Renewable Fuels Standard)."
Thieves target fry oil
Thieves are stealing fryer oil from restaurants, as the price per pound climbs to 25 cents, up from 7.6 cents per pound in 2000. “[T]hanks to a 2007 energy law, oil companies must use 2 billion gallons of biodiesel this year, 100 million gallons more than last year, and the most ever in U.S. history. Most of that biodiesel is made from soybean oil, but old fryer grease is the second largest (and fastest growing) source,” says Eater.
New U.S. look at mileage standards may be an opening for biofuels
An ethanol industry trade group says President Trump's decision to review fuel economy standards for automobiles set by his predecessor could mean a larger role for "high octane, low carbon fuels" such as renewable fuels. Trump announced "the big news that we're going to work on the CAFE (corporate average fuel economy) standards, so you can make cars in America again" during a speech in Detroit.
Citizen watchdog group and Carl Icahn growl over ethanol
The avowed watchdog group Public Citizen says in letters to the U.S Senate and House that businessman Carl Icahn, a special adviser to the White House, may have violated federal lobbying laws when he tried to change the Renewable Fuels Standard, reports DTN. Icahn says the group is inciting a "witch hunt" against him.
Ethanol group gets the cold shoulder
The largest of the ethanol trade groups, the Renewable Fuels Association, is out in the cold for supporting a change in the program that gives biofuels a share of the U.S. gasoline market. Fuels America, an agribusiness coalition "committed to protecting America's Renewable Fuels Standard," severed ties with RFA, while the second-largest ethanol group, Growth Energy, said the RFA was doing the dirty work of the oil industry.
Hot issues could put the chill on farm bill fever
The Senate Agriculture Committee holds its first farm bill hearing today in Kansas, 19 months before expiration of current law. Congress has not enacted a farm bill on time since 1990, so an early start seems prudent — the committee held its kickoff in Washington last week. Yet, it's too early to push to the side other issues that could dominate 2017.
Lawmakers would triple lifespan of 45Z clean fuel credit
The 45Z tax credit, intended to encourage the development of sustainable aviation fuel and other low-carbon fuels, would be available until 2034 and limited to domestic feedstocks under companion bills filed in the House and Senate on Tuesday. Farm groups said the legislation would allow time for domestic production to rise while discouraging a flood of imported oil, grease, and tallow.