The Biobased and Renewable Products Advocacy Group (BRAG) helps members develop and bring to market their innovative biobased and renewable chemical products through insightful policy and regulatory advocacy. BRAG is managed by B&C® Consortia Management, L.L.C., an affiliate of Bergeson & Campbell, P.C.

By Lauren M. Graham, Ph.D.

On November 9, 2017, the U.S. Department of Commerce (DOC) issued affirmative final determinations in the countervailing duty (CVD) investigations of imports of biodiesel from Argentina and Indonesia.  Following a nine month investigation, DOC determined that Argentina and Indonesia are providing unfair subsidies to its producers of biodiesel at rates from 71.45 to 72.28 percent and 34.45 to 64.73 percent, respectively.  As a result, U.S. Customs and Border Protection (CBP) will collect cash deposits from importers of biodiesel from Argentina and Indonesia based on the final rates.
 
Following DOC’s final determination, the International Trade Commission (ITC) will make its final determination within 45 days.  According to Argentine President Mauricio Macri, the Argentine government would appeal to the World Trade Organization (WTO) if the DOC follows through on the duties on Argentine biodiesel.


 

By Kathleen M. Roberts

On September 20, 2017, the U.S. International Trade Commission (ITC) published in the Federal Register a notice of the scheduling of the final phase of antidumping (AD) and countervailing duty (CVD) investigations of biodiesel imports from Argentina and Indonesia.  ITC will hold a hearing in connection with the final phase of the investigations at 9:30 a.m. (EST) on November 9, 2017, in Washington, D.C.  Requests to appear at the hearing are due by November 2, 2017.  Stakeholders interested in participating as parties in the final phase of the investigations must file an entry of appearance with the Secretary to the Commission no later than 21 days prior to the hearing date.  The pre-hearing staff report will be filed in the nonpublic record on October 27, 2017, and a public record will be issued thereafter.


 

By Kathleen M. Roberts

On August 29, 2017, the government of the province of Ontario, Canada announced $25.8 million has been allocated to the Low Carbon Innovation Fund (LCIF) as a part of the province’s Climate Change Action Plan.  The funding will be used to support emerging, innovative technologies in areas such as alternative energy generation and conservation, new biofuels or bioproducts, next-generation transportation or novel carbon capture and usage technologies. 
 
Funding is available either from:

  • The Technology Demonstration stream, which aims to support the development and commercialization of innovative low carbon technologies through testing in real-world settings; or
  • The Technology Validation stream, which aims to fund proof-of-concept or prototype projects from eligible Ontario companies or academic organizations to help them get to market faster.
To be eligible for LCIF, projects must be conducted in Ontario and must show significant potential to reduce greenhouse gas emissions in Ontario.  Ontario’s Climate Change Action Plan is key to its achievement of its goal of cutting greenhouse gas pollution to 15 percent below 1990 levels by 2020, 37 percent below by 2030, and 80 percent below by 2050.

 

 

By Kathleen M. Roberts

On August 25, 2017, the National Farmers’ Union (NFU) announced that the European Commission confirmed the extension of the Red Tractor voluntary scheme for biofuels for an initial three months.  Red Tractor is a certification body used to prove that crops meet European Union (EU) sustainability requirements.  To receive public support or count towards mandatory national renewable energy targets, biofuels used in the EU must comply with the EU's sustainability criteria.  One way for a company to demonstrate compliance is to participate in voluntary schemes recognized by the European Commission.
 
As with the other voluntary schemes, Red Tractor was approved for a period of five years, which expired on August 1, 2017.  On August 24, 2017, NFU called on the Commission to urgently address concerns that Red Tractor-approved crops will no longer be able to enter the European biofuels market.  The Commission responded by confirming that the Red Tractor scheme continues to be considered compliant with the EU Renewable Energy Directive (RED) sustainability criteria until November 5, 2017, pending another five-year approval.


 

 

By Lauren M. Graham, Ph.D.

On August 28, 2017, the U.S. Department of Commerce (DOC) announced in the Federal Register that a preliminary determination had been issued in the antidumping (AD) and countervailing duty (CVD) investigations on biodiesel from Argentina and Indonesia.  DOC preliminarily determined that countervailable subsidies are being provided to producers and exporters of biodiesel from Argentina and Indonesia. The period of investigation for both countries is January 1, 2016, through December 31, 2016. 
 
Pursuant to Section 703(e)(1) of the Tariff Act of 1930, DOC preliminarily determined that critical circumstances exist with respect to imports of biodiesel from Indonesia for Musim Mas and Wilmar Trading.  Similarly, DOC preliminary determined that critical circumstances exist with respect to imports of biodiesel from Argentina for LDC Argentina and Vicentin, but do not exist with respect to all other exporters or producers not individually examined.  DOC will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of biodiesel from Argentina and Indonesia entered, or withdrawn from warehouse, for consumption, and to require a cash deposit equal to the subsidy rates indicated in the respective Federal Register notice.  For Indonesian companies not individually examined, DOC applied an “all-others” subsidy rate, which was calculated by weight averaging the calculated subsidy rates of the two individually examined company respondents. 
 
More information on the methodology and results of DOC’s analysis is available in the Preliminary Decision Memorandum, which is a public document on file in the Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS).  DOC invites comments on the preliminary determinations from interested stakeholders.  Following DOC’s final determination, the International Trade Commission (ITC) will make its final determination within 45 days.


 

By Lauren M. Graham, Ph.D.

On August 15, 2017, the U.S. Department of Commerce’s (DOC) International Trade Administration (ITA) announced in the Federal Register that the preliminary determination in the antidumping (AD) and countervailing duty (CVD) investigations on biodiesel from Argentina and Indonesia will be postponed.  A request to postpone the determinations was submitted by a petitioner on July 6, 2017, and, pursuant to Section 733(c)(1)(A) of the Tariff Act of 1930, ITA determined that there was no compelling reason to deny the request.  The preliminary determination will now be due by October 19, 2017, and the final determination will be due within 75 days of the issuance of the preliminary determination. 
 
ITCA previously postponed the determinations following a May 22, 2017, request from a petitioner, as reported in the Biobased and Renewable Products Advocacy Group (BRAG®) blog post DOC Postpones Preliminary Determinations for Biodiesel AD/CVD Investigation.


 

By Lauren M. Graham, Ph.D.

Renewable Industries Canada (RICanada), a principal stakeholder representing Canadian producers of clean-burning renewable fuels, announced that the Quebec Government’s 2017-2020 Action Plan under the 2030 Energy Policy included, for the first time, renewable fuel volume requirements for fuels such as ethanol and biodiesel.  The renewable fuel blending requirement was set at 5% for gasoline and 2% diesel and is expected to increase after 2020.  RICanada stated that the “announcement on renewable transportation fuels further entrenches Quebec’s position as a leader in the production of renewable energy and in the broader battle against climate change” and that its “members look forward to helping the Government of Quebec ensure that the province’s GHG targets in the transportation sector are achieved.”  More information on the Action Plan for Energy Policy 2030 is available on the Minister of Energy and Natural Resources website.


 

 
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