Larry Kudlow Hatches New Plan to Boost Biofuel Mandates

December 05, 2019

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by Jennifer Jacobs, Jennifer A. Dlouhy and Mario Parker (Bloomberg News/Transport Topics) White House economic adviser Larry Kudlow is developing a new plan to bolster biofuel-blending requirements after ethanol allies in politically important farm states complained the current proposal doesn’t do enough to compensate for waivers exempting some small refineries from the mandates.

Kudlow’s involvement was described by five people familiar with the matter who asked not to be named discussing the administration’s private deliberations. The effort comes after biofuel producers, corn farmers and Midwest politicians blasted the Environmental Protection Agency’s current approach as inadequate, saying it flouted the terms of an Oct. 1 agreement to raise biofuel-blending requirements enough to fully offset refinery exemptions.

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Kudlow, who has been spearheading work on the issue in the White House for months, is now working with EPA officials to develop the new methodology, according to one of the people familiar with the matter. READ MORE

Durbin, Duckworth To EPA: Newly Proposed Renewable Fuel Standard Blending Targets Will Be Undermined By Abuse Of 'Hardship' Waivers (Office of Senator Dick Durbin (D-IL))

Senators urge EPA to ensure RFS won’t be undermined by SREs (Ethanol Producer Magazine)

Ethanol no longer a third rail in Iowa (E&E News)

Time to reign in the EPA (Sentinel Tribune)

EPA chief says addressing biofuel industry concerns over blending mandates -source (Financial Post/Reuters)

Trump administration sees partial waivers as potential fix in biofuel debate -sources (Reuters/Financial Post)

EPA Chief Says Agency Aims to Set Biofuel Quotas by Dec. 20 (Bloomberg/Financial Post)

RUMORS SWIRL FOLLOWING COMMENT PERIOD FOR SUPPLEMENTAL BIOFUELS PROPOSAL (Brownfield Ag News; includes AUDIO)

EPA reneges on president's biofuel promise, reflected in RFS proposal (AgWeek)

US EPA sends final 2020 biofuel volumes to White House for review (S&P Global Platts)

Letter: EPA needs to take action for sake of biofuels and farmers (N'West Iowa)

Hagedorn: People over politics (The Journal)

Shane Goplin: Support local ethanol production (La Crosse Tribune)

U.S. EPA proposed biofuel blending requirements 'similar' to October plan -EPA official (Reuters/Financial Post)

White House Adviser Working on Biofuel Mandate Plan (WOWO)

Biofuel blending quotas on EPA radar (Bloomberg/Northwest Arkansas Democrat Gazette)

Trade Groups Push Congress on Biodiesel Tax Extension (Energy. AgWired.com)

Trump should recommit to biofuels -- Doug Rebout (Wisconsin State Journal)

Grassley: Trump's Oval Office promises need action (E&E News)

EPA Comment Period Winds Down: President Told RFS Proposal Doesn't Match Sept. 12 Agreement (DTN Progressive Farmer)

Ernst, Grassley Comment on EPA and RFS (Emmetsburg News)

U.S. Administration to Use Partial Waivers as Possible Fix in Biofuel Conflict (Downstream Newz)

Trump should recommit to biofuels -- Doug Rebout (Wisconsin State Journal)

Stress shows in Illinois Farm Bureau survey (Kenosha News)

Senator Grassley says White House assured him on 2020 biofuels plan (Reuters/Financial Post)

EPA reneges on president’s biofuel promise (Waseca County News)

EPA reneges on president's biofuel promise, reflected in RFS proposal (AgWeek; includes VIDEO)

Corn Growers suspicious of EPA timing (Farm Progress)

PETERSEN SENDS LETTER TO EPA CRITICIZING RFS PROPOSAL (News Dakota.com)

Excerpt from Reuters/Financial Post: The Trump administration believes it can assuage farmer anger over its biofuels policy by agreeing to use more partial waivers for oil refineries, signaling a potential solution to a protracted battle between Big Corn and Big Oil, two key political constituencies in next year’s presidential election, according to three sources familiar with the matter.

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President Donald Trump has endorsed the use of partial exemptions as a solution to the issue going forward, one of the sources said, instead of consistently issuing waivers that free refiners from 100% of their biofuel blending obligations. It is unclear if the support for the use of partial exemptions would be made official through rule making.

The U.S. Environmental Protection Agency has delivered its proposal for 2020 blending requirements to the White House Office of Management and Budget, an EPA official said on Friday. That proposal is “similar” to the plan the agency unveiled in October, the official said.

But it is possible that changes could be made before the proposal becomes final. The proposal now must go through an interagency review process, where tweaks could be made. READ MORE