Advanced BioFuels USA

EXCLUSIVE: White House Backs Plan for Renewable Energy Industry Tax Partnerships

by Jarrett Renshaw and Laura Sanicola (Reuters) … The expansion would allow the renewable energy industry – from wind and solar to biofuels like ethanol – to form master limited partnerships, known as MLPs, that combine the funding advantages of corporations with the tax advantages of partnerships.

The expansion is included in Democratic-backed $3.5 trillion spending legislation being considered in the House.

“An expansion could allow retail investors to direct invest in renewable energy projects, rather than only being able to invest in companies that may deal in renewables,” said Clark Sackschewsky, tax market leader at BDO USA in Houston.

The sources, speaking on condition of anonymity, confirmed White House support for the plan, which is estimated to cost the U.S. Treasury almost $1 billion in lost tax revenue over a decade. READ MORE

EXCLUSIVE Biden Administration Mulls Big Cuts to Biofuel Mandates in Win for Oil Industry -Document

by Stephanie Kelly and Jarrett Renshaw (Reuters) The administration of U.S. President Joe Biden is considering big cuts to the nation’s biofuel blending requirements, according to a document seen by Reuters, a move triggered by a broad decline in gasoline demand during the coronavirus pandemic.

If adopted, the proposal would be a win for the oil industry, most notably PBF Energy (PBF.N) and CVR Energy (CVI.N), which argues biofuel blending is costly.

The cuts would anger ethanol producers such as Archer-Daniels-Midland Co (ADM.N) and the nation’s corn farmers who produce the raw ingredients for ethanol – by far the most widely used biofuel.

After Reuters reported the news, credits used to prove compliance with the requirements, called RINs , fell to 92 cents each, down from $1.07 in the previous session, traders said.

Biden’s Environmental Protection Agency, which administers the nation’s biofuel policy, would reduce blending mandates for 2020 and 2021 to about 17.1 billion gallons and 18.6 billion gallons, respectively, the document showed. That would be lower than a level of 20.1 billion gallons that had been finalized for 2020 before the coronavirus pandemic.

The agency also would set the level for 2022 at about 20.8 billion gallons, the document showed.

The EPA is setting the 2020 and 2021 mandates retroactively.

Ethanol would take the biggest hit.

…

Biofuel advocates fumed over the news.

“If these rumors are true, this would be backpaddling on the president’s commitments (to) uphold the RFS,” said Growth Energy Chief Executive Emily Skor. “It’s hard to imagine any justification for the administration to make such a move.”

Randy Feenstra, a Republican representative from Iowa, the nation’s top corn-producing state, denounced the proposal.

“I’ll fight this tooth-and-nail,” he wrote on Twitter. READ MORE

Grassley Comments on Reported RFS Cuts, Vilsack Defends Administration’s ‘Stable’ Approach to Blending Targets (AgWeb; includes AUDIO)

Biden plans biofuel cut that could ease pressure on oil refiners (Bloomberg/Farm Progress)

Biofuel blending targets could include big volume cuts (Agri-Pulse)

House Republicans Urge Biden to Uphold RFS (Energy.AgWired.com)

Supposed RFS Numbers Leak Moves Prices — RFA Cites Proposed RFS Blend Volumes as ‘Spoofing Attempt’ (DTN Progressive Farmer)

RIN prices drop on questionable biofuel rule reports (Argus Media)

EPA to propose cuts to biofuel blending requirement: report (The Hill)

Excerpt from AgWeb: AgriTalk host Chip Flory pressed Agriculture Secretary Tom Vilsack on the subject Wednesday, asking if rumors the final EPA numbers would be released Friday, Sept. 24. Vilsack said while he didn’t know timing, EPA would release the numbers when the agency is ready.

“I don’t know what the numbers will be,” Vilsack told Flory. “What I do know is that that it’s fair to say that there were some significant disruptions during 20 and 21, as a result of the pandemic, certainly during 20 [we saw] significant disruptions. And the impact that the pandemic had on numbers, you know, the administrator would know, the EPA would know. But at the end of day, I’m going to look for ways in which we a USDA can provide help and assistance. That’s why we are prepared to provide $700 million of assistance now and additional resources above and beyond that, for infrastructure to expand the capacity to get higher blends out there to consumers. We’re going to continue to do what we can’t USDA to support this industry.”

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“When Biden was campaigning in Iowa, he supported ethanol,” Grassley (Senator Chuck Grassley (R-IA)) said on AgriTalk. “I’ve had good conversations with the EPA director on it. And I thought they were favorable to it. And I don’t know the rationale behind it, but it could have something to do with their promoting of electric vehicles. It surely can’t have anything to do with their caving in to big oil, because they don’t like fossil fuels at all.”

Making the Case for Stability with RFS Release

While no reports have been confirmed, Vilsack pointed out that no matter what is released by the Biden Administration, he says one thing is certain: it will provide stable numbers that won’t waiver to carveouts for small refinery exemptions and other possible requests, taking a slam at the Trump Administration’s track record over four years. READ MORE

Excerpt from Energy.AgWired.com: U.S. Representative Rodney Davis (R-IL) and a group of House Republicans, including House Biofuels Caucus co-chairs Adrian Smith (R-NE) and Dusty Johnson (R-SD), are urging President Biden to keep his promise on upholding the Renewable Fuel Standard (RFS).

Recent reports indicate the Biden Administration is taking steps to weaken Renewable Volume Obligations (RVOs) which would reduce the demand for biofuels, an action President Biden strongly condemned under the Trump Administration.

“If your Administration makes the unprecedented move to reopen the finalized 2020 RVO, and strip the demand for billions of gallons, the industry will certainly be devastated,” said the members. “As you stated, “Lip service won’t make up for nearly four years of retroactive damage that’s decimated our trade economy and forced ethanol plants to shutter.” If these rumors are correct, demand for over 5 billion gallons of renewable, clean fuels will be lost.” READ MORE

QUOTE OF THE WEEK — A Group of Ag and Biofuel Organizations and Companies

The State should consider requiring that beginning as early as model year 2024, any internal combustion engine light-duty vehicle (i.e., all non-battery electric vehicles) sold in California be Flexible Fuel Vehicles (FFVs). … Plug-in Hybrids (PHEV), an important choice among lower income consumers, should also be FFVs as well to facilitate using a minimum of fossil-based fuels. Using renewable naphtha or other renewable substitutes for the hydrocarbon portion of E85 can ensure that the fuel utilized in FFVs is 100% renewable maximizing GHG reductions that will be comparable to battery electric vehicles. — A group of ag and biofuel organizations and companies in public comments to the California Air Resources Board READ MORE

The Climate Can’t Wait for Electric Planes. Sustainable Fuel May Be the Answer

by Hanna Ziady (CNN Business) More than 50 airlines, oil companies and other companies, including Delta (DAL), BP (BP) and Boeing (BA), pledged on Wednesday

September 24, 2021 Read Full Article

The Biden Administration to Ensure a Sustainable Future for Aviation: SkyNRG Americas and LanzaTech Secure DOE Funding to Produce SAF in the US

(LanzaTech) The U.S. Department of Energy’s Bioenergy Technologies Office announced more than $64 million in funding for 22 projects focused on developing technologies