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Governors' Biofuels Coalition
NEWS UPDATE February 8, 2022

Top Story

FEATURE: Renewable diesel producers racing for the finish line as credits under pressure

By Josh Pedrick and Janet McGurty, S&P Global  •    •  Posted February 8, 2022

After years of investment and refinery conversions, renewable diesel is poised for a breakout year in 2022 as production facilities come online. Producers, though, are pushing to get plants across the finish line as prices for key credits are under pressure amid the wave of new output. Renewable diesel, or RD, prices are at a steep premium to conventional diesel. S&P Global Platts calculated the value of RD in California at an average premium of more than $3.70/gal to CARB diesel in the early weeks of 2022. [ read more … ]

RFS

Biofuels Groups, Refiners Fight Over EPA ‘Reset’ Of RFS Biofuel Volumes

By Stuart Parker, Inside EPA News  •    •  Posted February 8, 2022

Biofuels groups and refiners are advancing conflicting interpretations of EPA’s ability to “reset” statutory biofuel blending mandates under the renewable fuel standard (RFS), as part of wider arguments for and against EPA’s proposed volumes for the RFS that would cut volumes for 2020, keep them low for 2021 and only increase volumes this year. EPA’s long-delayed Dec. 7 proposal would retroactively cut volumes for the 2020 compliance year, and keep them at levels reflecting what the agency believes was actual consumption in 2021, before raising volumes this year, along with a restoration of 500 million gallons in blending volume cut from the 2016 RFS. [ read more … ]

States

Senate Democrats’ vote leaves Wheeler’s appointment to Youngkin’s Cabinet in limbo

By Laura Vozzella, Washington Post  •    •  Posted February 8, 2022

The party-line vote is not likely to end Youngkin’s efforts to install Wheeler, a former coal lobbyist who led a rollback of Obama-era environmental regulations as Environmental Protection Agency chief under President Donald Trump. Wheeler’s appointment as secretary of natural and historic resources will remain viable until the General Assembly session adjourns March 12. Like all 16 of Youngkin’s nominees, he has been on the job since the governor took office on Jan. 15. [ read more … ]

Minnesota House Ag Committee chair eyes biofuels infrastructure buildout

By Mark Dorenkamp, Brownfield  •    •  Posted February 8, 2022

“We’re trying to get the infrastructure buildout for the delivery of ethanol fuel and expand that quite a little bit throughout the state. With cooperation from my colleague Representative Paul Anderson (R, Starbuck) we’re working diligently on that. There’s a lot of people in my caucus, and some on the committee representing their views on electric vehicles. And I truly believe that electric vehicles are the wave of the future, but we’re not there yet.” [ read more … ]

How governors races may change energy, from EVs to renewables

By Miranda Willson, Kristi E. Swartz, E&E News  •    •  Posted February 8, 2022

At least half a dozen races for governor in 2022 are considered tossups, according to early polls and analyses. They include races in battleground states like Nevada and Michigan, where incumbent governors seeking to reduce carbon emissions from the power and transportation sectors are facing tough reelection campaigns. In other states, such as Arizona, Massachusetts and Pennsylvania, a handful of candidates are vying for an open seat. [ read more … ]

Markets

Kinder Morgan authorizes renewable diesel hub in Southern California

By Jordan Blum, S&P Global  •    •  Posted February 8, 2022

Kinder Morgan said Feb. 7 it will build a renewable diesel hub in Southern California capable of moving 20,000 b/d with room to grow now that it has received sufficient contractual commitments.
The gas and refined products pipeline operator said the hub will be the first of its kind in the nation to transport batches of renewable diesel by pipeline. The project is designed to keep the diesel separate from other products during transport so customers do not lose access to the valuable California renewable tax credits, including the Low Carbon Fuel Standard (LCFS) credits. [ read more … ]

As oil nears $100 a barrel, U.S. drillers get busy in costly shale basins

By Liz Hampton, Reuters  •    •  Posted February 8, 2022

As U.S. oil rises toward $100 a barrel, producers in some high-cost shale basins are buying properties and adding rigs and frack crews in places that fell silent when prices crashed early in the pandemic two years ago. Benchmark U.S. prices last week topped $93 a barrel, up around 65% in the last 52 weeks and the highest since 2014. U.S. producers are cranking up spending at double-digit rates as fuel demand has soared and fears have waned that OPEC will again punish them by flooding the market with crude that is cheaper to produce. [ read more … ]

Climate

USDA Promotes Climate-Smart Commodities

By Chris Clayton, DTN Ag Policy Editor  •    •  Posted February 8, 2022

USDA will spend $1 billion on a series of partnerships to develop and promote “climate-smart commodities” through pilot projects meant to create new markets for agricultural and forestry products grown through practices that reduce greenhouse emissions and protect the soil. The “Partnership for Climate Smart Commodities” will look for ways farmers and ranchers can market food and fiber projects that are tied to cost-effective practices to measure and verify lower greenhouse emissions or sequester carbon in the soil. [ read more … ]

USDA kicking off climate-smart commodity initiative

By Steve Davies, Agri-Pulse  •    •  Posted February 8, 2022

The Biden administration is launching the application process for a $1 billion program that will test ways farms of all sizes can profit from the low-carbon commodities they produce through practices that cut greenhouse gas emissions. In an interview, Agriculture Secretary Tom Vilsack said the Partnerships for Climate-Smart Commodities program will allow “American agriculture to take a leading effort in the development of climate-smart commodities and allows us to meet the market where it is here domestically, and also make sure that we maintain a competitive edge for exports.” [ read more … ]

EVs

Why This Could Be a Critical Year for Electric Cars

By Jack Ewing and Neal E. Boudette, New York Times  •    •  Posted February 8, 2022

While electric vehicles still account for a small slice of the market — nearly 9 percent of the new cars sold last year worldwide were electric, up from 2.5 percent in 2019, according to the International Energy Agency — their rapid growth could make 2022 the year when the march of battery-powered cars became unstoppable, erasing any doubt that the internal combustion engine is lurching toward obsolescence. The proliferation of electric cars will improve air quality and help slow global warming. The air in Southern California is already a bit cleaner thanks to the popularity of electric vehicles there. And the boom is a rare piece of good news for President Biden, who has struggled to advance his climate agenda in Congress. [ read more … ]

Electric vehicle sales doubled in 2021, with more now sold each week than entire year in 2012

By Louise Boyle, Yahoo Finance  •    •  Posted February 8, 2022

The electric vehicle (EV) market is soaring, with 130,000 cars sold globally each week, roughly equivalent to sales for the entire year in 2012. Sales of EVs more than doubled in 2021, even with supply chain snarls and pandemic-related shrinking of demand for gas-powered cars. New data, from the influential intergovernmental International Energy Agency (IEA), revealed that 6.6 million electric cars were sold last year – twice the number of 2020 – making up 9 per cent of the global car market. [ read more … ]

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