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Biofuel groups advocate for tax credit extensions at hearing

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By Erin Krueger

March 14, 2018

Policy Business 

On March 14, the U.S. House of Representatives Committee on Ways and Means held a hearing on post tax reform evaluation of recently expired tax provisions. Several representatives of the biofuels industry offered testimony at the event.

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The U.S. EPA has proposed to settle with Philadelphia Energy Solutions over its Renewable Fuel Standard compliance obligations, according to documents filed with the U.S. Bankruptcy Court for the District of Delaware on March 12.

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The U.S. Energy Information Administration has published the March edition of its Short-Term Energy Outlook, increasing its ethanol production forecasts for 2018 and 2019. Ethanol consumption is also expected to grow through 2019.

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On March 8, Rep. Peter Welch, D-Vt., and Sen. Tom Udall, D-N.M., introduced companion bills that aim to dismantle the Renewable Fuel Standard and sunset blending obligations for conventional, advanced, cellulosic, and biomass-based diesel fuels.

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Estimated ethanol production margins at U.S. corn ethanol plants averaged 22 cents per gallon (gal) in 2017. Last year was the fifth consecutive year that margins have averaged more than 20 cents/gal.

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U.S. Secretary of Agriculture Sonny Perdue administered the oath of office to Bill Northey March 7 at the Annual Iowa Ag Leaders Dinner. Northey previously served as Iowa's Secretary of Agriculture, a position he had held for more than 11 years.

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On March 6, a group of more than 200 companies and trade associations sent a letter to House and Senate Agricultural Committee leaders urging them to reauthorize and fund energy title programs in the next Farm Bill.

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On March 7, managers at more than 150 U.S. biofuel plants sent a letter to President Donald Trump, urging the White House to defend the Renewable Fuel Standard from efforts by Sen. Ted Cruz, R-Texas, to alter the program.

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Any action to artificially cap renewable identification number (RIN) prices in exchange for an RVP waiver allowing year-round sale of E15 would be bad deal for rural America and the nation's consumers, according to a new economic analysis.

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Data released March 1 by the Energy Information Administration confirms that the U.S. ethanol industry produced a record amount of high-octane, low-carbon renewable fuel in 2017, according to the Renewable Fuels Association.

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U.S. Sen. Chuck Grassley, R-Iowa, has released a copy of a letter sent to the U.S. EPA in January asking the agency about its previous assessments that RIN prices do not affect the success of refiners. The EPA has not responded to the letter.

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A new analysis issued by University of Illinois economist Scott Irwin finds that the impact of a 10-cent cap on RIN prices, as proposed by Texas Sen. Ted Cruz, would be “catastrophic� for the Renewable Fuel Standard.

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On March 1, President Trump met with a variety of stakeholders from the biofuels and refining industries to continue the discussion on the Renewable Fuel Standard and renewable identification numbers (RINs).

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On Feb. 21, Brazil's Ministry of Mines and Energy published a notice announcing that landfill gas-based fuels will be eligible to comply with the requirements of RenovaBio, the country's new national biofuels policy that was established in December.

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On Feb. 27, nearly six months after he was first nominated, the U.S. Senate confirmed Iowa Agriculture Secretary Bill Northey to serve as Under Secretary for Farm and Foreign Agricultural Service at USDA.

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No deal on Renewable Fuel Standard reform was reached during a Feb. 27 meeting at the White House. President Trump has requested to meet with representatives of the biofuel and oil industries on March 1 to continue the conversation.

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Representatives of the U.S. farming community are speaking out ahead of a Feb. 27 White House meeting on the Renewable Fuel Standard, urging President Donald Trump to avoid seeking change that would weaken the nation's biofuel policy.

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The American Coalition for Ethanol hosted a webinar Feb. 20 titled “Opportunities and Challenges to Increasing Ethanol Demand in 2018.� The webinar focused on ACE initiatives designed to ensure ethanol continues to grow in the U.S.

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The U.S. EPA has released renewable identification number (RIN) generation data for January, reporting that approximately 1.52 billion RINs were generated during the month, including more than 1 million cellulosic RINs.

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On Feb. 21, Sen. Ted Cruz, R-Texas, spoke at a rally against the Renewable Fuel Standard hosted by Philadelphia Energy Solutions Inc., a refiner that recently blamed the RFS and renewable identification number (RIN) prices for its bankruptcy.

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On Feb. 20, the European Union announced it is initiating an expiry review of anti-dumping measures on imports of U.S. ethanol. Current duties will remain in place during the European Commission's investigation, which is expected to take 15 months.

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Grain producers and agribusiness representatives met to help chart the operational course for the U.S. Grains Council during advisory team (A-team) meetings Feb. 13 in Houston, Texas. One A-team is dedicated to ethanol.

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The USDA Economic Research Service has released updated 10-year agricultural projections through 2027. The report predicts ethanol production will increase for several years, before declining to 2016 levels toward the end of the projection period.

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A University of Illinois analysis shows that conditions that caused high D6 RIN prices are changing rapidly and it is possible "...for D6 RINs prices to fall back their pre-2013 level of just a few cents without making any changes to the RFS."

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A new legislative bill to fund more ethanol blender pumps across South Dakota is set to go before the state Senate Agriculture and Natural Resources Committee Thursday, Feb. 20. The bill is being proposed by Sen. Jason Frerichs.

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FROM THE MARCH ISSUE: Editor in Chief Tom Bryan previews the magazine, including features about a catalyst to convert carbon dioxide to ethanol, bacterial control, biofilm removal and liquefaction efficiency.

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Federal forecasts in the U.S. Energy Information Administration's newly released Annual Energy Outlook 2018 (AEO2018) demonstrate a clear and growing need for U.S. biofuels says Chris Bliley, vice president of regulatory affairs at Growth Energy.

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The RFA today hailed the release of two studies by the Department of Energy that find ethanol-based high octane fuels can deliver substantial fuel economy improvements and emissions reductions when paired with optimized internal combustion engines.

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Representatives of the cellulosic biofuels industry are asking the U.S. EPA to take a renewed look at commercial-ready cellulosic biofuels as the agency begins its work to develop proposed 2019 Renewable Fuel Standard RVOs.

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E15 Continues to Build Momentum

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By Mike O’Brien

February 14, 2018

FROM THE MARCH ISSUE: Growth Energy's Mike O'Brien outlines efforts and advances in the E15 market.

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