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Governors' Biofuels Coalition
NEWS UPDATE May 23, 2021

Top Story

Green-Fuel Push Stirs Food Inflation Fears in Rebound From Virus

By Kim Chipman, Bloomberg  •    •  Posted May 22, 2021

The push to fight climate change with greener fuels is colliding with another challenge facing the world as it struggles to emerge from the pandemic: skyrocketing food prices. Soaring demand for crops has once again raised the question of whether nations should really depend on ethanol and renewable diesel to save the planet from global warming. Corn, soybeans, palm oil and sugar, which are increasingly processed into biofuels worldwide, are part of a staggering commodities rally that’s making everything from animal feed and noodles to taco shells and chocolate more expensive, putting central bankers worldwide in a tough spot between fighting inflation and seeking to stimulate battered economies. [ read more … ]

SREs

EPA: 2 additional SRE petitions filed, 70 now pending

By Ethanol Producer Magazine  •    •  Posted May 23, 2021

The U.S. EPA on May 20 published updated small refinery exemption (SRE) data, reporting that two additional SRE petitions have been filed for Renewable Fuel Standard compliance year 2020. The agency also changed the status of three previously filed SRE petitions. [ read more … ]

Biden Administration

The lucrative climate proposal that’s going nowhere in Washington

By ANTHONY ADRAGNA, MARIE J. FRENCH, DEBRA KAHN and LORRAINE WOELLERT, Politico  •    •  Posted May 23, 2021

 Support for putting a price on carbon dioxide pollution is steadily spreading — from environmental advocates who have long promoted it and the states already reaping billions of dollars from the idea to the business groups and free-market economists who see it as one of the most cost-effective ways to confront climate change.
Everywhere except Washington, D.C. [ read more … ]

USDA Report Notes Role of Biofuels in Carbon Reduction

By Cindy Zimmerman, AgWired  •    •  Posted May 23, 2021

USDA’s 90-Day Progress Report on Climate-Smart Agriculture and Forestry which includes stakeholder input on how to best use programs, funding and financing capacities to encourage the voluntary adoption of climate-smart agricultural practices. The report also supports the role of agriculture in de-carbonizing the transportation sector. [ read more … ]

State Initiatives

Ethanol inputs exempted from Nebraska state sales and use taxes

By Unicameral Update  •    •  Posted May 23, 2021

Sen. Joni Albrecht, state sales and use taxes may not be imposed on the gross receipts from the sale, lease or rental of — and storage, use or other consumption in Nebraska of — all catalysts, chemicals and materials used in the process of manufacturing ethanol and the production of coproducts. The bill also includes provisions of LB672, introduced by Sen. Dave Murman of Glenvil, that define agricultural machinery and equipment for the purposes of an existing sales and use tax exemption. [ read more … ]

Iowa farm groups bemoan lawmakers’ failure to boost renewable fuels

By Donnelle Eller, Des Moines Register  •    •  Posted May 23, 2021

Iowa lawmakers ended this year’s legislative session without passing a bill that would have required fuel sold in Iowa to contain higher blends of ethanol and biodiesel, products that are made using the state’s two largest crops. “We’re disappointed an opportunity was forfeited this session to further support Iowa farmers, consumers, the environment and long-term ag economy,” Jeff Jorgenson, a Sidney farmer who is president of the Iowa Soybean Association board, said in a statement. [ read more … ]

Markets

EU ethanol market transitioning to post-lockdown normality

By Karim Elafany, S&P Global  •    •  Posted May 23, 2021

While European undenatured ethanol physical spot prices have rallied 51% since the beginning of 2021, a persistently abnormal prompt structure continues to reflect demand uncertainty, although there are signs that the market is starting to normalize further down the curve.
[ read more … ]

EVs

All Those Electric Vehicles Pose a Problem for Building Roads

By Aarian Marshall, Wired  •    •  Posted May 23, 2021

Last week, Washington governor Jay Inslee—the guy who, while running for president two years ago, proposed a nationwide ban on sales of gas-powered cars by 2030—vetoed a statewide ban on gas-powered car sales by 2030. The reason for the puzzling move, Inslee said in a statement, was a provision tucked into the legislation. The language said the 2030 target would take effect only if lawmakers created a program to charge drivers based on how far they drive each year. [ read more … ]

Note: News clips provided do not necessarily reflect the views of coalition or its member governors.