U.S. Federal and State Biofuel Policy News: February 27, 2014

Here’s an update on recent news items and other public policy developments relating to biofuel policies at the federal and state levels in the U.S.

Federal Legislative Developments


Farm Bill Passage. As has widely been reported in the trade press and lay press, in late January Congress passed, and President Obama signed, a new Farm Bill to replace the Farm Bill of 2007 that had expired at the end of 2012. The bill restored mandatory funding for the Energy Titles of the bill, an also extended eligibility of these programs to processes for production of renewable chemicals. The bill, which was widely heralded as a rare example of bipartisanship in the U.S. Congress, is also viewed as a victory for the biofuels and industrial biotechnology industry.

Biodiesel tax incentive extension. On February 12, 2014, Sens. Maria Cantwell, D-Wash., and Charles Grassley, R-Iowa, introduced a bill to extend the expired biodiesel tax incentive for three years. This incentive would apply to biodiesel, renewable diesel and renewable aviation fuel. The bill, S. 2021, would extend the tax incentive until 2017. However, the tax code overhaul bill more recently introduced by Rep. Dave Camp, R-Mich., would repeal and not reinstate any of the expired biofuel incentives or credits. Prospects for passage of the Camp overhaul bill in the current Congressional session are generally considered to be dim.

Bill filed to assist fuel retailers invest in alternative fuels. Representative Dave Loebsack (D-Iowa) has introduced the Renewable Fuel Utilization, Expansion and Leadership, also known as the  Re-FUEL-Act. This bill, H.R. 4051, would create a competitive grant program to provide funds for fuel retailers to use to make investments in renewable and alternative fuel and energy sources. It is meant to address the need for infrastructure changes at the retail level to allow improved consumer access to renewable fuels such as biodiesel and higher ethanol blends.

State Legislative and Policy Developments


New Hampshire legislation introduced
.  A bill has been introduced in the New Hampshire State Legislature, HB 1220, that would prohibit the blending of more than 10% corn-based ethanol in gasoline in the state. A hearing on the bill was held by the House Science, Technology and Energy Committee on February 11, 2014, at which several proponents of ethanol, including the Biotechnology Industry Organization and the Advanced Ethanol Coalition, testified against the bill.

Missouri ethanol blending policy. In Missouri, on February 6, 2014, a State Senate committee debated whether to block a proposal that would allow ethanol/gasoline blends of up to 15% (E15) be sold in the state. The state’s Agriculture Department issued a rule in 2013 that would have allowed the sale of E15, but that rule was blocked by a legislative committee, due to concerns touted by business groups, car manufacturers and the petroleum industry that E15 blends might damage engines. Permanently blocking the rule would require approval by early March 2014 of both branches of the Missouri legislature and the signature of the governor, who is on record as supportive of E15.

Low Carbon Fuel Standard News


California Low Carbon Fuel Standard. In February 2014, The California Air Resources Board (CARB) issued an update to its scoping plan which indicated that it intends to extend the requirements of the California Low Carbon Fuel Standard through 2030. CARB did not provide further details of its plans, except to say that it plans during 2014 to propose “more aggressive targets for 2030”.

Oregon Low Carbon Fuel Standard.  On February 13, 2014, Oregon’s governor John Kitzhaber announced his intention to use executive authority to extend Oregon’s Clean Fuels Program beyond its scheduled December 2015 expiration. Legislative efforts to extend the program past this “sunset” date failed last year and have not sufficiently progressed so far this year, and so Gov. Kitzhaber said he would direct the Department of Environmental Quality to move to the second phase of the program, under which fuel distributors would be required to meet targets for low-emission motor vehicles fuels.

D. Glass Associates, Inc. is a consulting company specializing in government and regulatory support for renewable fuels and industrial biotechnology. David Glass, Ph.D. is a veteran of over thirty years in the biotechnology industry, with expertise in industrial biotechnology regulatory affairs, U.S. and international renewable fuels regulation, patents, technology licensing, and market and technology assessments. More information on D. Glass Associates’ government and regulatory consulting capabilities, and copies of some of Dr. Glass’s prior presentations on biofuels and biotechnology regulation, are available at www.slideshare.net/djglass99 and at www.dglassassociates.com. The views expressed in this blog are those of Dr. Glass and D. Glass Associates and do not represent the views of any other organization with which Dr. Glass is affiliated. Please visit our other blog, Advanced Biotechnology for Biofuels

 

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International Biofuel News: February 20, 2014

Here’s an update on recent news items and other public policy developments in recent weeks relating to the development and commercialization of renewable fuels in Europe.

European Union Renewable Energy Directive


In news relating to the EU Renewable Energy Directive (RED), it was announced that the European Commission had filed suit in the EU Court of Justice against the Republic of Ireland for its alleged failure to implement its obligations under the RED.

Also in February, the U.K. Department of Energy and Climate Change issued updated statistics for the U.K.’s compliance with its RED obligations, showing that 1.34 billion liters of renewable fuels were used in the12-month reporting period that ended in April 2013. This represented 3% of the total road transport fuels used in the U.K. in that time period.

On January 22, 2014, the European Commission issued its 2030 framework for climate and energy policies, to extend EU’s goals for greenhouse gas emission reductions beyond 2020 when the RED will end. Many in the biofuel industry were disappointed that this proposal did not include any proposals for binding targets for renewable fuel use in motor vehicle transport beyond 2020.

European Union Ethanol Policies


EU ethanol anti-dumping actions
.  In late January 2014, the European ethanol trade association ePure filed a formal complaint with the European Commission, alleging that U.S. ethanol producers are illegally dumping ethanol at low prices onto the European market in circumvention of the anti-dumping duties the EU imposed on U.S. ethanol in February 2013. The allegation is that U.S. ethanol is being exported to Norway, which is not an EU member state, and then exported from Norway into the EU in the form of E48 ethanol/gasoline blends. ePure says that Norwegian ethanol imports from the U.S. have grown tenfold in the past year.

More recently, ePure has also pointed to rising exports of ethanol from Peru into the EU, following the entry into force of the EU’s Free Trade Agreement with certain Central and South American countries in August 2013. The association claims that a three-fold increase of ethanol exports from Peru to the EU to over 93 million liters in the first ten months of 2013 has corresponded to exports from the U.S. into Peru of about 84 million liters in the same time period.

The subject of dumping and the EU ethanol tariffs was the cause for a spirited debate at a panel session of the National Ethanol Conference on February 18, 2014, in which Rob Vierhout, the head of ePure, defended the need for tariffs against assertions made by Bob Dineen, the executive director of the Renewable Fuels Association and other North American industry representatives.

Previous Biofuel Policy Watch posts on international biofuel news:

D. Glass Associates, Inc. is a consulting company specializing in government and regulatory support for renewable fuels and industrial biotechnology. David Glass, Ph.D. is a veteran of over thirty years in the biotechnology industry, with expertise in industrial biotechnology regulatory affairs, U.S. and international renewable fuels regulation, patents, technology licensing, and market and technology assessments. More information on D. Glass Associates’ government and regulatory consulting capabilities, and copies of some of Dr. Glass’s prior presentations on biofuels and biotechnology regulation, are available at www.slideshare.net/djglass99 and at www.dglassassociates.com. The views expressed in this blog are those of Dr. Glass and D. Glass Associates and do not represent the views of any other organization with which Dr. Glass is affiliated. Please visit our other blog, Advanced Biotechnology for Biofuels