Posted By Cindy March 1, 2014
The man directly responsible for the EPA proposal to lower the 2014 volume obligations under the Renewable Fuel Standard (RFS) last week addressed members of the ethanol industry directly impacted by that plan.
“I really wanted to provide you with some context and what our thinking was behind our 2014 RVO proposal,” said Chris Grundler, EPA Director of the Office of Transportation and Air Quality for the U.S. Environmental Protection Agency speaking at the National Ethanol Conference. “And it is a proposal,” he stressed several times.
First off, Grundler wanted to make it clear that EPA does support biofuels. “The most disappointing thing I heard in the reporting is that EPA no longer supports the development of biofuels, and I’m hear to tell you that’s wrong,” he said. “We know that if we’re going to achieve what science is telling us we must achieve in terms of greenhouse gas reduction … biofuels has got to be part of that solution set.”
Gundler says they came up with the proposal to address marketplace realities for biofuels. “Our overriding goal with this 2014 RVO proposal is to put the RFS in what we call a manageable trajectory while continuing to support the growth of renewable fuels in our transportation supply,” he said. “We have to address some of the practical realities that we see today in the marketplace.” Comments by Chris Grundler, EPA at National Ethanol Conference
During a brief press availability after his remarks, Grundler defined manageable trajectory as “steady growth in overall biofuels space … where the market is able to move those fuels and people use them.”
Grundler also said specifically that the EPA can definitely change the proposal Grundler stressed that the proposal is just that and it could be changed. He also noted that EPA received over 100,000 written comments during the comment period with 6,000 “unique” comments, and that the hearing held in early December was a record. He added that they do intend to try and meet the goal of finalizing the rule by the end of spring. Press Avail Chris Grundler, EPA
Posted By Mark February 7, 2014
It’s tax time again. You know that short window during the year when it’s ok to complain about being taxed. Given the number of people who remain unemployed it really is kind of bad form to complain the rest of the year.
So as you belly up to do your part to keep the skids of government greased here is a whopper of a tax tale to help you really get the bile out and make your complaining count. I am guessing that it will come as no shock to you that each year the average American pays more than 20 percent of their income in federal taxes. This does not include state and local taxes.
So this begs the question; shouldn’t an industry that makes $175,000 per minute pay at least that much? This is a real number reflecting the profits of the five largest oil companies. Together they earn more in one minute than 95 percent of Americans earn in a year.
However, Reuters news service estimates that Chevron, ConocoPhillips, and ExxonMobil pays effective federal tax rates of 19 percent, 18 percent, and 13 percent, respectively. Reuters noted that this is “a far cry from the 35 percent top corporate tax rate.” Likewise the tax bracket for the most successful Americans is 35%.
The petrol industry has prospered over the past decade, thanks to high oil and gasoline prices. The five largest companies — BP, Chevron, ConocoPhillips, ExxonMobil, and Shell — earned more than $1 trillion during this time. In the first nine months of 2013, these five companies realized a combined $71 billion in profits. Certainly, these companies can prosper without $2.4 billion in annual special tax breaks.
The Congressional Joint Committee on Taxation estimated that three tax preferences provide $24 billion per decade in annual benefits to these five companies. The “limitation on Section 199 deduction,” designed to encourage domestic manufacturing to remain on shore, costs the Treasury $14.4 billion per decade for these five companies. The foreign tax credit deduction saves the big three domestic oil companies $7.5 billion per decade. The “intangible drilling costs” deduction saved the five companies another $2 billion, according to the Wall Street Journal.
It also seems the oil and gas industry has been the largest beneficiary of federal financial support in the entire energy sector benefitting from nearly 60 percent of all federal energy support since 1950. Shouldn’t the lion’s share of these dollars be spent on new, alternative, renewable sources to make us less dependent on something as finite and as devastating to the environment as oil?
Big Oil will argue that these breaks are critical to job creation, but recent data from the Bureau of Labor Statistics shows oil industry employment is off 10 percent. This is not nearly as bleak as it sounds given that nearly half of the direct jobs touted by big oil are service station positions.
Simply put, it’s time to end special tax breaks for BP, Chevron, ConocoPhillips, ExxonMobil, and Shell.
Posted By Cindy February 5, 2014
After a what seemed to be a never-ending labor process, Congress has finally delivered a new farm bill – well past its 2012 due date.
National Corn Growers Association President Martin Barbre, like most farmers, was happy to see the long process come to an end. “While it’s not perfect, we’re pleased to see the bill contains many provisions we’ve been working hard for over the years,” he said.
There are definitely some changes included in the legislation. “This is not your father’s Farm Bill. It’s a new direction for American agriculture policy,” said Sen. Debbie Stabenow (D-MI), Chairwoman of the Senate Agriculture Committee.
Among the most notable changes for farmers is the option to participate in either the revenue-based Agriculture Risk Coverage program or a Price Loss Coverage program with fixed reference prices. Stabenow notes the legislation also includes “one of the largest investments in land and water conservation we’ve made in many years” consolidating 23 existing conservation programs into 13 programs.
As a nod to Stabenow’s tireless work on the legislation for the past two years, President Obama is expected to sign the bill in Michigan on Friday.
Posted By Cindy January 24, 2014
The turnout was huge in Des Moines Thursday for a “Hearing in the Heartland” to support the Renewable Fuel Standard (RFS).
The event was hosted by Iowa Governor Terry Branstad and included comments from dozens of lawmakers, government officials, farmers, biofuel producers, and other interested parties from seven states – as well as a crowd of hundreds.
“I urge President Obama, Administrator McCarthy and the EPA to listen to the people of Iowa and the Midwest, and continue to support a robust and strong Renewable Fuel Standard — as they have in the past,” said Branstad. Governor Brandstad comments
Among the speakers at the event were Congressmen Tom Latham and Steve King, both Republicans from Iowa who signed a letter this week from U.S. House representatives asking the EPA to revise its proposal for 2014 biofuel volume obligations under the RFS. “It’s good for the environment, it’s good for the economy, it’s 45,000 jobs,” said King. “The RFS is market access, market access, market access – that’s all it is.” Rep. King comments
Rep. Latham urged those present at the hearing to comment on the proposal if they have not done so already. “It’s up to those of you who are most dramatically and directly impacted by this fundamental shift in policy against biofuel to tell your stories and make your views heard,” said Latham. Rep. Latham comments
The comment period on the EPA proposal to lower volume requirements for biofuels under the renewable fuel standard is just days away now and it appears evident that they are being deluged with comments opposing the plan. Nebraska Corn Board executive director Don Hutchens reports that they received over 5,000 letters expressing opposition to the proposal. “This is the greatest grassroots response in the history of the corn checkoff program since its implementation in 1978,” said Hutchens. Earlier this month, the state group had sent farmers letters to the EPA that they could sign and return. These letters will be forwarded to EPA before the comment period deadline of January 28.
Imagine that! Over 5,000 letters from farmers in just ONE STATE! If you have not done so yet, please send in your comments today.
RFS: Hearing in the Heartland photo album
Posted By Mark January 17, 2014
A true David and Goliath battle is under way between the nation’s family farmers and Big Oil in the form of the American Petroleum Institute (API). And farmers in recent weeks bounced a big rock off the head of the petroleum behemoth. At issue is American ethanol.
For months the oil industry has been involved in a well-funded campaign of both public and covert efforts to undermine the growing role of sustainable biofuel like ethanol. They capped this massive misinformation campaign by leaning on the White House and EPA to propose a change to the Renewable Fuels Standard (RFS) that would reduce ethanol use by 1.4 billion gallons this year.
The bad news is the most recent slap in the face, if successful, has the potential to hammer farmers and the rural economy to the tune of more than 10 billion dollars.
Before this recommendation can be accepted EPA’s proposal must go through a formal public comment period. Thousands of corn farmers across the country have responded with a vengeance submitting comments urging the U.S. Environmental Protection Agency to retract its proposed 10 percent cut in the amount of corn ethanol in the 2014 Renewable Fuel Standard.
The volume of supportive comments coming from farmers as well as equipment dealers, bankers, school administrators and consumers who favor a fuel choice has been incredible so thanks to everyone who has taken the time to register your opinion.
The response has been so terrific that it tweaked API and in response they have launched yet another effort to remove any competition from the fuel marketplace. It takes the form of an annoying and deceptive “robo-call.”
On the pre-recorded action request API refers to those supporting ethanol as both a “special interest group” and as “extremists.” Since most those making the calls are farmers, I guess that means you. They also use the same old hackneyed and debunked arguments saying ethanol leads to higher food prices and damages car engines.
If being called an extremist makes you a little angry fight back. If having one of the world’s most prosperous industries try to increase their profits at your expense….fight back.
Corn growers: Click here to send a public comment to the EPA.
Non-farmers: Click here to customize and send a public comment to the EPA.
I wish it was a real person calling rather than some digital dweeb called Tom, because I would tell him to quit bugging hard working Americans and get back to cleaning up the their latest oil spill.
Posted By Cindy November 26, 2013
Against a backdrop of golden distillers grains, a parade of speakers from state and federal government leaders to local corn farmers and ethanol plant owners spoke out Friday in Iowa against the EPA proposal to lower the volume obligations under the Renewable Fuel Standard (RFS) for 2014.
“The EPA proposal for 2014 guts the RFS which would lead to higher gasoline prices and lower farm income,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw at the “Protect the RFS” event held at Lincolnway Energy near Nevada, Iowa..
“The federal government made a commitment to renewable energy, and the EPA is undermining the commitment,” said Senator Chuck Grassley (R-IA). “All of us who support homegrown, clean-burning energy and forward-thinking energy policy need to speak out and let the Administration know that its proposal is short-sighted and irresponsible.”
“We all need to stand together in opposition to this EPA proposal,” said Iowa Governor Terry Branstad who started a website and petition drive ProtectTheRFS.com.
Others who spoke at the Iowa RFS Coalition event included Congressman Steve King, Iowa Secretary of Agriculture and former National Corn Growers Association president Bill Northey, Iowa Corn Growers Association President Roger Zylstra, Lincolnway Energy CEO Eric Hakmiller, Absolute Energy CEO Rick Schwarck, among others.
The EPA publicly announced the proposal on November 15, but it has yet to be published in the Federal Register, which must be done before comments can be submitted. What has been published in the Federal Register is a notice for a public hearing to be held on the proposal Dec. 5 at the Hyatt Regency Crystal City in Arlington, Va. “The event will begin at 9:00 a.m. and end when all parties present who wish to speak have had the opportunity to do so.” This could be a very long hearing.
Posted By Mark November 22, 2013
They call it black gold and Texas Tea but I prefer to call it environmental anathema; that rare combination of disgrace and abomination. Better that than using the words that I would like to use that got my mouth washed out with soap as a child.
Ok, Thanksgiving is almost upon us so I want to purge a little bile so I will enjoy the day a little more. What better target than Big Oil?
You know, those heavily subsidized global scale polluters who control…I mean contribute to every politician to make sure they have their bases covered. Well after an announcement today, I guess we will see how well their “investment” pays off.
It seems gas and oil are almost singlehandedly responsible for the bulk of all the man-made global warming emissions since the dawn of the industrial revolution. Chevron, Exxon and BP are among the companies most responsible for climate change since dawn of industrial age, according to a new analysis.
The climate crisis of the 21st century has been caused largely by just 90 companies, which between them produced nearly two-thirds of the greenhouse gas emissions generated since the dawning of the industrial age, new research suggests.
I have always been a big fan of irony but this week takes the cake. It seemed bizarre that earlier this week EPA announced their proposal to significantly weaken the Renewable Fuel Standard, reducing the volume of renewable fuels like ethanol for 2014; thus making us even more dependent on oil.
Odd that an agency with “Environment” in their name would turn away from a program that has cut emissions of greenhouse gas by 110 million metric tons, making it one of the most successful programs in the EPA arsenal. This is the equivalent of taking more than 20 million vehicles off the road.
Now it will get even more interesting to see how this same administration that purports to be on a crusade to fight greenhouse gases will deal with Big Oil now that the emperor has no clothes.
Posted By Cindy September 12, 2013
The House Transportation Committee made a long-awaited move Wednesday and introduced a water resources development bill that adds an extra R to WRDA and provides some hope that improvements will finally be made to outdated locks and dams on waterways that move crops to export markets.
According to the committee, the Water Resources Reform and Development Act of 2013 (WRRDA) “cuts federal red tape and bureaucracy, streamlines the infrastructure project delivery process, promotes fiscal responsibility, and strengthens our water transportation networks to promote America’s competitiveness, prosperity, and economic growth.”
The issue was a major topic of discussion at the Farm Progress Show where committee member Congressman Rodney Davis (R-IL) told farmers he expected the bill to be introduced this month.
“We’ve got to have better policies in place, because even the Corps of Engineers says with full funding right now it would take them 40 years to complete the upgrades to the lock and dam system on the Mississippi,” said Davis. “That’s unacceptable.”
The committee’s bill includes a provision authored by Davis and Rep. Cheri Bustos (D-IL) to improve waterway infrastructure though public-private partnerships “with one goal in mind, to speed up the process that will allow us to have greater locks and dams,” he said. Interview with Rep. Rodney Davis
National Corn Growers Association First Vice President Martin Barbre of Illinois hopes members of Congress understand how critical the situation is before it’s too late. “One of these days, there’s not going to be any salt going to Chicago in the middle of winter because the locks and dams are broke down, then they’ll realize what the corn growers have been fighting all this time,” Barbre said during an interview at Farm Progress Show.
The Davis-Bustos language authorizes the creation of a pilot program that would allow the Army Corps of Engineers to identify 15 water resources development projects eligible to be financed through public-private partnerships. Similar legislation was included in the Senate version of WRDA which passed in May.
Posted By Cindy August 19, 2013
The newly confirmed head of the Environmental Protection Agency visited the Iowa State Fair last week, where she spoke about her goal of building a better relationship with farmers.
“My commitment to you is that at the end of my term, we will have a stronger, more productive, more trusting relationship between EPA and the agriculture community,” said EPA Administrator Gina McCarthy during her brief remarks.
In an interview with USDA Radio from Iowa, McCarthy also had some encouraging words about renewable fuels. “We’re at a pretty exciting time,” she said. “We are seeing a lot of activity, especially here in Iowa where they have advanced ethanol plants. We’re working closely with the farming community and we’re looking at new feedstocks all the time, new ways of producing biofuels.”
In addition, McCarthy offered her views in support of the RFS. “We see that the Renewable Fuel Standard is operating effectively, that the law gives us plenty of tools and flexibility that we can move this forward,” she said.
McCarthy was just confirmed as the administrator of EPA last month. Listen to her comments about farmers, working with USDA, and renewable fuels here: EPA Administrator Gina McCarthy
Posted By Cindy July 31, 2013
Despite what the critics have to say, commercial cellulosic ethanol is already a reality and the fastest pathway is by getting more from traditional corn ethanol.
The latest achievement is the groundbreaking of a new cellulosic “bolt-on” ethanol plant in Galva, Iowa. Quad County Corn Processors Cooperative general manager Delayne Johnson says the Adding Cellulosic Ethanol (ACE) project will increase their production capacity by utilizing more of the corn kernel. “We get six percent of additional cellulosic ethanol out of a kernel of corn,” said Johnson of the new technology, which equates to another two million gallons of ethanol per year from the 13-year-old farmer-owned facility.
The technology has the potential to be adopted by other corn ethanol plants. “If implemented industry-wide, ACE will be able to create an additional two Billion gallons of cellulosic ethanol on an annual basis,” Johnson said. Delayne Johnson, Groundbreaking Remarks
Congressman Steve King (R-IA) was on hand for the groundbreaking event. “I have consistently said we should work to add value as close to the corn stalk as possible and that is exactly what is happening in Galva,” said King. “They have found new ways to squeeze even more out of a bushel of corn and this is paving the way for new technology both here in Iowa and across the country.”
Visit the Quad County Corn Processors “ACE” Groundbreaking photo album here.
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