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EIA: RIN prices for ethanol, biomass-based diesel remain high

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By U.S. Energy Information Administration

July 13, 2022

Policy Business 

The prices of RIN credits—a compliance mechanism used for the RFS program administered by the U.S. EPA—have remained high in 2022. So far this year, D4 RINs peaked on April 28 at $1.91 per gallon and D6 RINs peaked on June 7 at $1.68 per gallon.

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Ahead of a USDA agricultural trade mission to the U.K., U.S. Grains Council staff met with government and industry officials in Paris and Brussels to assess the status of ethanol in the EU and to further share the benefits of U.S. ethanol.

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Michael Lu, U.S. Grains Council's director in Taiwan, discussed the benefits of ethanol blended fuels at the International Trend of Net Zero and Low-Carbon Technology Development Forum, an event organized by the Taiwan EPA and EDF in June.

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The European Commission on July 7 announced charges against Belgium-based Alcogroup SA, and Sweden-based Lantmännen ek för, along with their relevant subsidiaries, over alleged ethanol benchmarks cartel.

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The European Parliament on July 7 voted 334 to 95 to adopt draft rules for the ReFuelEU initiative, which aims to require sustainable aviation fuel (SAF) to account for at least 85 percent of EU aviation fuel by 2050.

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The government of India on July 4 announced it is expanding the excise duty exemption on ethanol and biodiesel to encourage higher biofuel blends, according to a notice published by the Ministry of Finance.

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U.S. operable production capacity for ethanol and renewable diesel expanded in April, while biodiesel capacity fell slightly, according to data released by the U.S. EIA on July 5. Feedstock consumption was up when compared to April 2021.

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Following the EU Council of Ministers agreement on a General Approach for the revision of car and van CO2 standards, ePURE Director General David Carpintero called on the Commission to take into account the GHG benefits of ethanol.

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The Michigan Senate on June 30 voted 24 to 14 in favor of legislation that aims to create a tax credit for retailers that choose to sell higher ethanol fuel blends, such as E15 and E85. The bill was then sent to the Michigan House of Representatives.

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Representatives of the U.S. Grains Council in June conducted a trade mission to Ottawa, Canada, to encourage continued ethanol policy development at national and provincial levels to immediately decarbonize transportation.

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The Canadian government on June 29 published final Clean Fuel Regulations, which will require fuel producers and suppliers to meet increasingly stringent carbon reduction goals for gasoline and diesel.

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IATA: Incentives needed to increase SAF production

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By International Air Transport Association

June 29, 2022

The International Air Transport Association called for governments to urgently put in place large-scale incentives to rapidly expand the use of SAF as aviation pursues its commitment to achieving net zero carbon emissions by 2050.

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The USDA is accepting applications for a new pilot program created under the Bipartisan Infrastructure Law to support the development of biobased products that have lower carbon footprints and increase the use of renewable agricultural materials.

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DOE: Ethanol vs. petroleum-based fuel carbon emissions

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By Valerie Sarisky-Reed, director of DOE’s Bioenergy Technologies Office

June 29, 2022

Biofuels have been proven to emit significantly lower greenhouse gas (GHG) emissions than petroleum-based fuels, and recent scientific studies indicate that net-zero emission biofuels are not only possible, but achievable.

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Members of the European Parliament (MEPs) on the Transport and Tourism Committee on June 27 voted 25 to six in favor of adopting a draft negotiating mandate on the ReFuelEU aviation rules, which sets a goal for sustainable aviation fuel (SAF) use.

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The USDA's Commodity Credit Corp. announced on June 29 that it does not expect to purchase and sell sugar under the Feedstock Flexibility Program for crop year 2021, which runs from Oct. 1, 2021 through Sept. 30, 2022.

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Growth Energy submitted comments on June 24 to the California Air Resources Board on its draft 2022 Climate Change Scoping Plan, which lays out the path toward achieving the state's carbon reduction goals.

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The U.S. Department of Commerce's International Trade Administration on June 16 published a notice renewing its Renewable Energy and Energy Efficiency Advisory Committee and soliciting nominations for membership.

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The government of Rio Grande Do Sul, Brazil's southernmost state, on June 20 announced an agreement with Brazilian biodiesel producer BSBios for the development of a grain ethanol plant that will process corn, wheat, triticale, rice and sorghum.

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Growth Energy filed petitions for review in the U.S. Court of Appeals for the D.C. Circuit challenging the U.S. EPA's decision to excuse certain refineries from their obligations under the Renewable Fuel Standard.

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The California Alternative Energy and Advanced Transportation Financing Authority has awarded Sugar Valley Energy a sales and use tax exclusion (STE) on more than $235 million of purchases related to the facility's construction.

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Growth Energy, RNG Coalition, NCGA, and ASA are among the ag and biofuel groups that have weighed in on a U.S. Securities and Exchange Commission proposed rule that focuses on climate-related disclosures.

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The Michigan Senate Agriculture Committee on June 23 held a hearing to consider legislation that aims to create a tax credit for retailers that choose to sell higher ethanol fuel blends, such as E15 and E85.

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Alto Ingredients Inc. announced June 16 that it has received a $22.7 million cash grant from the USDA's Biofuel Producer Program, which provided $700 million in relief to biofuel producers who experienced market losses due do to COVID-19.

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The Fuels Institute in June published a new white paper that discusses the carbon benefits of various biofuels. The paper also addresses matters related to policy, feedstocks availability, and vehicle and infrastructure constraints.

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The U.S. EPA has indicated it will release proposed rules related to the 2023 RFS RVO and state requests to allow summer E15 sales within the next several months. The agency will also soon finalize pending canola oil fuel pathways under the RFS.

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Since the Brazil's imposition of its ethanol tariff rate quota (TRQ) in 2017, the USGC has undertaken several strategies to reverse the decision, including approaching possible in-country partners that could share trade interests.

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The USGC has taken a targeted marketing approach to DDGS promotion in one region in western Mexico, recognizing that members of the Sonora Pork Producers Union and the Sonora Poultry Association could represent a market for 90,000 MT of DDGS.

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The U.S. EPA on June 16 published updated data on small refinery exemptions (SREs) filed under the Renewable Fuel Standard, reporting that only three SRE petitions are currently pending, down from 69 that were pending as of mid-May.

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The U.S. House of Representatives on June 16 voted 221 to 204 in favor of the Lower Food and Fuel Costs Act, a legislative package that includes funding for biofuel infrastructure and a provision to allow year-round sales of E15.

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