The EPA has, for the third time, extended the Renewable Fuel Standard Compliance deadline due to the agencies failure to issue a final rule for 2014. The proposed standard, which, among other things, sets requirements for the percentage of ethanol that must be used by petroleum refiners as they blend their product, had to be extended to prevent a regulatory gap while the 2014 standard was being developed. The EPA has not stated when they anticipate getting the 2014 rule to White House, Office of Management and Budget for review, or when the EPA expects to propose a standard for… Read more
Tag: ethanol
Tax Credits for Renewables Up in the Air
Tax credits for renewable energy production and other incentives expired with 2013. The current Congress, facing mid-term elections, sees more pressing issues than the retroactive extension of these credits, including credits of a $1 per gallon of biodiesel, 2.3 cents per kilowatt hour of wind energy, $1.01 per gallon of ethanol produced from cellulose sources, and credits for household energy efficiency improvements. Projects that began construction before the December 31 expiration are entitled to many of the credits for renewables through the end of 2015, although new projects would not be eligible without extender legislation. If Congress takes any action… Read more
House Energy and Commerce Committee Pressured to Ease Mandate on Corn Ethanol
More than 40 groups wrote to members of the House Energy and Commerce Committee urging the Committee to include a less-stringent corn ethanol mandate in its proposed changes to the renewable fuel standard (RFS). The group’s October 7 letter requested that “any legislation that the Committee considers recognizes and addresses the havoc that the corn ethanol mandate has placed on the multitude of stakeholder interests.” RFS proposed changes ranged from freezing mandated ethanol requirements to full repeal. For more information regarding the RFS and/or related issues, contact Phillip Hoover.
New Rules for Underground Storage Tanks on the Horizon
EPA has proposed new requirements for underground storage tanks that will increase compliance requirements and extend them to all new and replaced tanks. If promulgated, the proposed rule would require the installation of secondary containment systems for all new and replaced tanks. It would also implement corrosion protection requirements intended to ensure that tanks are compatible with new biofuels, including E15 ethanol. For more information regarding the proposed rules, contact Phillip Hoover (pehoover@sgrlaw.com) or Steve O’Day (soday@sgrlaw.com).
Welcome Back BCAP!
On October 21, 2010, the U.S. Department of Agriculture (USDA) announced the release of the final rule for the Biomass Crop Assistance Program (“BCAP”). Created by the 2008 Farm Bill, BCAP provides two incentive programs to increase biomass fuel supply nationwide. One component of BCAP provides matching payments of $1 per ton of eligible fuel (up to $45/ton) to qualified biomass fuel harvesting, collecting, handling, and or storage entities. The new BCAP amends previous requirements relating to relationships between the buyer and seller and simply requires that all eligible material be purchased at fair market prices, regardless of the parties’… Read more