Nobody seems to be happy about the tax breaks/unemployment benefits deal announced by President Obama yesterday and no one is sure what all it ultimately will include, but Sen. Chuck Grassley (R-IA) says that ethanol blenders tax credit and associated tariff, as well as the biodiesel tax credit may be in it. During his regular weekly conference call with reporters …
Congress May Make Deal on Tax Cuts
After defeating a compromise measure proposed by Sen. Max Baucus (D-MT) to extend the Bush tax cuts only for the middle class, the talk on Capitol Hill is now turning to a deal that would keep all of the tax cuts in exchange for extending unemployment benefits. Baucus had proposed a compromise amendment late Thursday that would have continued unemployment …
Deforestation Decline Debunks Land Use Change Theory
Rainforest deforestation rates have reached new lows, which further challenges the theory of international land use change that has been used to penalize corn ethanol for its carbon footprint. Brazilian President Luiz Inacio Lula da Silva announced today that deforestation rates in the Brazilian Amazon declined 14 percent from August 2009 to July 2010, reaching the lowest rates ever recorded …
Some Senators Urge End to Ethanol Incentives
U.S. Senators Dianne Feinstein (D-CA) and Jon Kyl (R-AZ), together with 15 other senators, today sent a letter to the Senate leadership expressing their “lack of support for extending the current 54-cent-per-gallon tariff on ethanol imports and the 45-cent-per-gallon subsidy for blending ethanol into gasoline.” Calling the incentives for domestic ethanol production “fiscally indefensible,” the senators wrote that ending them …
RFA Calls on EPA to Update RFS2 ILUC Models
Earlier this month, the California Air Resources Board (CARB) made a positive step for ethanol by updating its indirect land use models in the Low Carbon Fuel Standard (LCFS). This in effect, will reduce the ILUC penalties in half. Unfortunately, the new rule doesn’t take effect until mid-2011 although LCFS kicks in on January 1, 2011. In light of this …
Gore Ethanol Comments Generate Industry Response
A Reuters report out of Athens today on former Vice President Al Gore’s comments about corn ethanol has generated responses from the U.S. ethanol industry. According to the article, Gore said, “It is not a good policy to have these massive subsidies for (U.S.) first generation ethanol,” while speaking at a green energy business conference in Athens. He blamed his …
Ethanol Report on California LCFS
The California Air Resources Board (CARB) has decided to use the latest research on indirect land use change (ILUC) for implementing the state’s Low Carbon Fuels Standard (LCFS), meaning the current ILUC penalty for corn ethanol likely will be cut by at least half by the spring of 2011. The Renewable Fuels Association (RFA) says the resolution is good news …
EPA Decision on E15 for Later Models Delayed
The Environmental Protection Agency says it will now be the end of the year before testing of 15 percent ethanol blended fuel in vehicles older than 2007 model year is complete. According to a very brief statement issued by the EPA, the Department of Energy has informed EPA that “lab testing of E15 in model year 2001-2006 vehicles will now …
California to Update Land Use for Ethanol
The California Air Resources Board yesterday agreed to update the land use change and other indirect effects of biofuels production under their Low Carbon Fuels Standard (LCFS). The board is asking for updates to the land use values for corn ethanol, sugarcane ethanol, and soy biodiesel, and other feedstocks by spring of 2011 to implement the LCFS, which currently penalizes …
Guardian Energy Invests in Ohio Ethanol Plant
Guardian Energy Holdings of Minnesota now has a majority stake in an ethanol production facility located in Lima, Ohio. The 54-million gallon per year plant will operate under the name Guardian Lima, LLC. The facility originally began operations in 2008 as Greater Ohio Ethanol, but filed for bankruptcy protection later that year due to numerous operational challenges and adverse financial …