Renewable Fuel Standard
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.
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.
Two dozen senators ask Trump to leave RFS rule as it is
With a letter to President Trump, two dozen senators, mainly from the Midwest, stepped into a dispute that recently fractured the unity of ethanol trade groups. Spearheaded by Minnesota Sen. Amy Klobuchar and Iowa Sen. Chuck Grassley, the letter asks the president to keep petroleum refiners responsible for compliance with the Renewable Fuels Standard, which requires use of biofuels in the gasoline supply.
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.
Largest U.S. farm group backs WOTUS foe for EPA chief
The EPA has saddled farmers and ranchers with "burdensome, unnecessary and, too often, unlawful federal regulations," said the American Farm Bureau Federation in calling for the Senate Environment and Public Works Committee to approve Oklahoma attorney general Scott Pruitt to lead the agency. "We desperately need an administrator who understands the challenges our farmers and ranchers face in producing safe, wholesome and affordable food for our nation and the world."
EPA opens spigot for corn ethanol, faces reality on advanced biofuels
The fuel industry will be obliged to use 15 billion gallons of corn-based ethanol in 2017, said the EPA. It was the first time the agency has set the target for the biofuel at the maximum allowed by the 2007 energy law. The 500-million-gallon increase in the ethanol mandate comes at a time when U.S. gasoline consumption is rising and making it easier to consume larger volumes of biofuels.
In Iowa, Trump vows support for corn ethanol
Republican presidential nominee Donald Trump promised to protect the Renewable Fuel Standard and corn-based ethanol, eliminate burdensome regulations like the Waters of the United States rule ("which is a disaster") and provide tax relief to farmers in a speech in Des Moines over the weekend, says the Des Moines Register. Trump also said he would use immigration laws to prevent crime. "We will move justly but we will move fast, believe me. And we will move tough," he said.
California House members urge EPA to review ethanol mandate
Rep. Eric Swalwell led five additional California House members urging the EPA to put the Renewable Fuel Standard program "back on track by finalizing blending targets that are in line with Congress’ original intent." In a letter to the EPA, the lawmakers said the tepid rise in the RFS announced earlier this year falls short of the statutory volumes set by Congress and "sends a chilling signal to biofuels investors."
Clinton asks California regulators how to revamp biofuel mandate
Advisers for Democratic presidential nominee Hillary Clinton sought advice from California regulators on ways to revamp U.S. biofuel mandates, said Reuters. Corn-based ethanol is popular in the Midwest so the possibility of change in the so-called Renewable Fuel Standard could hurt her in corn states "like Iowa, where she faces a tough battle against Republican rival Donald Trump in the Nov. 8 election."
Four-year extension of biodiesel tax credit is proposed
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.
U.S. ethanol output down 5 percent in a week
The Energy Department said ethanol production fell by a record-matching 5.2 percent, to 956,000 barrels a day last week, a far larger decline than expected by traders, said Agrimoney.
Full compliance with biofuels mandate difficult, says CBO
The EPA "is much more likely" to relax the so-called Renewable Fuels Standard (RFS) than to demand full compliance with the 2007 law that guarantees biofuels a share of the gasoline market, said the Congressional Budget Office. The 2007 energy law sets a target of using 36 billion gallons of renewable fuels annually from 2022, more than double the EPA proposal of 17.4 billion gallons for 2016. Meeting the target for 2022 "would require a large and rapid increase in the use of advanced biofuels and would cause the total percentage of ethanol in the nation's gasoline supply to rise to levels that would require significant changes in the infrastructure of fueling stations," said CBO senior analyst Terry Dinan at a joint hearing of two House Science subcommittees.
Iowans want presidential nominee who likes biofuels
A large majority of Iowans who intend to vote in the state's presidential caucuses say they favor a candidate who supports biofuels and the ethanol mandate, reports the Des Moines Register. The results come from a poll commissioned by America's Renewable Future and DuPont.
EPA likely to raise ethanol proposal modestly, says analyst
Higher-than-expected gasoline use will encourage the EPA to raise the ethanol mandate marginally from the levels proposed in May, says economist Scott Irwin of U-Illinois. The agency is expected to finalize the so-called Renewable Fuel Standard by Nov. 30. Irwin told Ag Insider that his expectation is an increase of 2-3 percent for each of the three years covered by the upcoming regulation - 2014, 2015 and 2016.
Ethanol boosters dominate EPA hearing on biofuel mandates
An EPA hearing in Kansas City on an agency proposal to relax the biofuel mandate for 2015 and 2016 "turned into somewhat of a pro-ethanol hearing and rally with the vast majority of those who testified telling EPA not to mess with the RFS," reports DTN.
At Ag Summit, Bush and Cruz speak against ethanol mandate
Two potential aspirants for the Republican nomination for president, former Florida Gov. Jeb Bush and Texas Sen. Ted Cruz spoke against an ethanol mandate at the Iowa Ag Summit, according to reports in the Washington Post and the New York Times.
Former House Ag chairman seeks to end ethanol mandate
Two of the top-ranking members of the House Agriculture Committee are among the four lead sponsors of a bill to eliminate the federal mandate for corn-based ethanol.
“Little risk” of corn-for-ethanol to fall below 5 billion bushels
Ethanol makers are likely to need at least 5 billion bushels of corn for making the renewable fuel in the coming year despite the biofuel selling at a premium to gasoline, say economists Scott Irwin and Darrel Good of U-Illinois.
Serious oversupply looms for renewable diesel
The boom in renewable diesel is driving U.S. production capacity far above the market for the fuel, said agricultural economist Scott Irwin of the University of Illinois on Thursday. “It’s going to be a very ugly 2024” for refiners, said Irwin during a webinar.