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Roadblock to Higher Blends

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By Matt Thompson

January 22, 2020

Policy Business Operations 

FROM THE FEBRUARY ISSUE: The U.S. EPA's rule allowing year-round sale of E15 is a monumental achievement for the ethanol industry, but might also stymie growth for higher blends. Challenges to the rule could take the issues to court.

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At the Table, or On the Menu?

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By Geoff Cooper

January 22, 2020

FROM THE FEBRUARY ISSUE: As discussions about climate change ramp up, ethanol and its impact on emissions and the environment should be top of mind.

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A report recently filed with the USDA FAS's Global Agricultural Information Network shows Peru was expected to produce and consume more ethanol in 2019 than it did in 2018. The country currently has a 7.8 percent ethanol mandate in place.

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FROM THE FEBRUARY ISSUE: The Nebraska Ethanol Board offers workshops to help retailers learn more about E15 and higher blends. Other states offer help with grant application processes, or are pushing for for mid-level blends.

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FROM THE FEBRUARY ISSUE: Ethanol's importance for climate goals highlighted following the 25th United Nations Climate Change conference.

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The phase one trade deal signed with China on Jan. 15 includes confidential sales targets for a full range of U.S. agricultural products, including grains, distillers dried grains with solubles (DDGS) and ethanol, according to the USGC.

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All the Wrong MOVES

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By Dave VanderGriend

January 20, 2020

FROM THE FEBRUARY ISSUE: EPA's MOVES model contains serious flaws and could heavily impact the industry as EPA conducts anti-backsliding study.

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The U.S. EPA has released updated renewable identification number (RIN) generation data showing more than 1.74 billion RINs were generated under the Renewable Fuel Standard in December, bringing total RIN generation for 2019 to 19.75 billion.

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The Mexico Supreme Court has ruled against a regulation allowing for higher ethanol content in gasoline, based on the way in which the Energy Regulatory Commission implemented the change in 2017. The ruleing was not against E10 itself.

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Monte Shaw, executive director of the Iowa Renewable Fuels Association, kicked off the 2020 IRFA Summit in Altoona, Iowa, by acknowledging the difficulties 2019 brought to the biofuels industry, but also expressing optimism for recent policy changes.

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Deputy Secretary of Agriculture Stephen Censky told attendees of the Iowa Renewable Fuels Summit that “there are some really positive things that are happening that are going to be great for the biofuels sector.�

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Mexico's Supreme Court announced on Jan. 15 that it has determined the Energy Regulatory Commission's unilateral move to modify the country's fuel standard to allow 10 percent ethanol blends is unconstitutional.

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Iowa Gov. Kim Reynolds highlighted recent positive developments for the biofuels industry during the Iowa Renewable Fuels Association's 2020 summit. She also spoke about her plan to increase funding for the state's biofuel infrastrcuture program.

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The U.S. EPA released updated small refinery exemption (SRE) data on Jan. 16, reporting that five new SRE petitions have been filed under the Renewable Fuel Standard for compliance year 2019, up from 16 petitions that had been filed as of Dec. 19.

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The U.S. Senate passed legislation implementing the revised U.S.-Mexico-Canada trade agreement on Jan. 16 by a vote of 89 to 10. The legislation will now be sent to President Trump for his signature.

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The USDA on Jan. 16 launched a request for information (RFI) seeking public input to aid in the creation of its new Higher Blends Infrastructure Incentive Program, which aims to expand the availability of ethanol and biodiesel.

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As the EU reframes important environment and energy legislation under the European Green Deal, it should not abandon clean, proven and cost-effective solutions such as sustainable renewable fuels and LPG.

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President Trump signed a phase one trade agreement with China on Jan. 15. The agreement will take effect within 30 days and includes a commitment by China to purchase agricultural products over the next two years, including ethanol and DDGS.

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RenovaBio takes off

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By Gabriel Miranda, EcoEngineers

January 14, 2020

RenovaBio, Brazil's new national biofuels policy, became official on Dec. 24. The program details a model for carbon emission reduction that improves the role of biofuels in Brazil's energy matrix, according to EcoEngineers.

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Washington Gov. Jay Inslee visited the Port of Seattle on Jan. 10 to call on the state legislature to adopt a Clean Fuel Standard during its 2020 legislative session. He was joined by Alaska Airlines, which has announced its support for the program.

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The Government Accountability Office issued a letter to a dozen members of Congress on Jan. 10 announcing it will review matters relating to the approval of small refinery exemptions (SREs) under the Renewable Fuel Standard.

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The U.S. EPA posted a notice to its website Jan. 8 announcing the Renewable Fuel Standard cellulosic waiver credit (CWC) price for 2020 is $1.80. The price is slightly higher than the 2019 CWC price, which was set at $1.77 in December 2018.

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A new report details the unique considerations needed to design a successful Clean Fuels Policy for the Midwest. It recommends a technology-neutral, portfolio approach that will benefit producers, consumers, agricutlure and others.

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Oil refiner Suncor Energy U.S.A. Inc. has filed a petition for review with the Tenth Circuit Court of Appeals challenging the EPA's decision to rule its refinery complex located in Commerce City, Colorado, is ineligible to receive SREs under the RFS.

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Valero Energy Corp. and the American Fuel and Petrochemical Manufacturers have asked the U.S. Supreme Court to determine whether the U.S. EPA is required to consider petitions to change the point of obligation under the Renewable Fuel Standard.

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OPINION: 2019 brought some good ethanol news for retailers

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By Cassie Mullen, director of market development at the Renewable Fuels Association

January 02, 2020

As we enter this new decade of the 2020s, the future looks incredibly bright for higher blends of ethanol. RFA's Cassie Mullen highlights several experiences in 2019 that will no doubt lead to continued expansion in the new year.

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The USDA has released renewable identification number (RIN) generation data for November, reporting that nearly 1.45 billion RINs were generated during the month, including 32.68 million cellulosic RINs.

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The USDA Rural Business-Cooperative Service published a final rule for the Advanced Biofuel Payment Program on Dec. 27. The program provides quarterly payments to producers of eligible advanced biofuels.

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A report recently filed with the USDA Foreign Agricultural Service's Global Agricultural Information Network provides insight into Japan's fuel market and shows potential for increased imports of U.S. ethanol.

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President Trump signed two legislative packages into law on Dec. 20, avoiding another government shutdown. The packages include all 12 fiscal year 2020 funding bills and tax extenders legislation that will benefit biofuels and bioenergy.

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