By Kathleen M. Roberts
On June 12, 2017, 28 companies representing the advanced and cellulosic biofuel industry sent a letter to the members of the Senate Environment and Public Works Committee requesting their support for the Consumer and Fuel Retailer Choice Act (S. 517), which is scheduled to be marked up in the Environment and Public Works Committee before the August recess. The letter claims that the Act, which would extend the Reid Vapor Pressure (RVP) waiver to ethanol blends above 10 percent, is vital to the advanced biofuel industry since it would allow E15, a more environmentally-friendly and affordable fuel, to be sold year round and, thus, would create marked headroom for next generation fuels. While the signatories commit to supporting the Renewable Fuel Standard (RFS) in its entirety, they state that the RVP issue will not only ensure that E15 can be sold year round but will also provide an opportunity for advanced and cellulosic fuels to compete at the pump. According to the letter, moving to E15 would reduce the cost of gasoline by 5 to 15 cents per gallon, and lower emissions harmful to the environment.
On June 14, 2017, the Committee held a legislative hearing on the Act. In his opening statement, Senator Carper (D-DE) stated that his primary objective is to ensure that the ethanol blends above 10 percent do not contribute more or less to ozone pollution than ethanol blends below 10 percent, as is currently assumed. Carper stated his interest in learning whether advanced biofuels would benefit from the increased market share that would result from the Act, what impacts the Act would have on the Renewable Identification Number (RIN) market, and what more can be done to add transparency and certainty to an opaque market.
By Kathleen M. Roberts
On May 9, 2017, Senator Elizabeth Warren (D-MA), along with seven additional Democratic Senators, sent a letter to the Securities and Exchange Commission (SEC), the U.S. Environmental Protection Agency (EPA), and the Commodities Futures Trading Commission (CFTC) requesting an investigation into the activities of Carl Icahn for potential insider trading, market manipulation, and other securities and commodities law violations in the renewable fuel credit market. The letter states that the actions of and the massive profit earned by Icahn raise questions related to conflict-of-interest rules that apply to government officials, and questions regarding insider trading and market manipulation of renewable fuel credits, known as Renewable Identification Numbers (RIN) -- which SEC, EPA, and CFTC have jurisdiction over. EPA oversees the issuance and trading of RINs. CFTC works with EPA to ensure integrity in the RIN market since it has broad authority to prevent insider trading and other market manipulation in commodities markets and futures markets. SEC has jurisdiction to investigate whether Icahn’s actions as a senior adviser to President Trump affected CVR Energy's stock value or the accuracy of the company's annual and quarterly financial reporting and disclosure.
The Senators maintained that RIN insider trading and market manipulation hurts all parties, including biofuel producers and refineries, and requested an investigation by the three agencies based on the publically available information detailed in the letter. The Senators also requested information on whether EPA Administrator Scott Pruitt and SEC Chairman Jay Clayton would recuse themselves from the investigation.
By Lauren M. Graham, Ph.D.
On April 26, 2017, a bipartisan bill was introduced in the U.S. Senate to reform the biodiesel tax credit and extend the new policy for three years. The American Renewable Fuel and Job Creation Act of 2017, which was sponsored by Senator Chuck Grassley (R-IA), Senator Maria Cantwell (D-WA), and 14 other senators, transfers the $1 gallon tax credit from the blenders to the producers of biofuels to ensure that it incentivizes domestic production. The bill also provides an additional $0.10 gallon credit for small biodiesel producers in the United States. According to a statement released by Grassely, the bill would incentivize domestic production, remove a system that allows foreign biodiesel producers to benefit from the tax credit, and would have little to no impact on the consumer.
A post from the Environmental Law Institute's "Vibrant Environment" Blog
By Lynn L. Bergeson
The last thing the push for TSCA reform needs is another delay, and Senator Paul's unexpected interest in H.R. 2576 has caused just that. Under typical circumstances, a Member's focused interest in legislation is refreshing, and as today highlights, entirely too infrequent. In this instance, the circuitous road to TSCA reform is anything but typical—the complexity of the legislation has invited an unusual divisiveness that has frustrated passage—and delay is the enemy of the good.
When TSCA reform achieved bipartisan support in 2015, the Miracle on 34th Street quality of it all invited cautious optimism that reform of our ancient chemical management law just may be possible after all. Through 2015 and early 2016, the roller coaster ride the legislation took between the House and Senate was both nerve-wracking and energizing. Members and others "close to the legislation" metered out bits of information, sufficient to telegraph the patient was alive but requiring extreme measure to stay afloat. When the House voted on May 24, 2016, by an overwhelming majority to approve H.R. 2576, there was a palpable buzz in the chemical community and a real sense that this insanely stubborn law was finally going to relent and get its much- needed overhaul.
Seemingly out of nowhere, Senator Paul put a hold on the bill's further consideration. Taking his explanation at face value, wishing to read the legislation is not an unreasonable request. In addition to wanting to read the legislation closely, Senator Paul reportedly is concerned about the enhanced criminalization provisions in the bill that raise fines for TSCA violations and enhance penalties for knowingly putting someone in imminent danger. Both of these changes are consistent with penalties stipulated in other federal environmental laws. Paul’s request to put a hold on TSCA, however, disturbs a fragile balance that is not well-suited to sustain disruption, and plainly breaks the momentum the legislation enjoyed before the Memorial Day recess.
It is imperative that days do not turn into weeks, or worse. We need this law, and we need it yesterday. TSCA has not kept pace with chemical innovation and EPA desperately needs enhanced authorities to manage potential risks from existing chemical substances. The Senate must make this vote a priority when it reconvenes so President Obama can sign it, as we expect he will, and we can start the important work of implementing the law.
On April 5, 2016, the biofuel trade associations Advanced Biofuels Business Council, Algae Biomass Organization, Biotechnology Innovation Organization (BIO), Growth Energy, National Biodiesel Board, and Renewable Fuels Association sent a letter to House and Senate Leaders asking for a multiyear extension of advanced biofuel tax credits. The six organizations are specifically asking that the Second Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, the Biodiesel and Renewable Diesel Fuels Credit, the Alternative Fuel and Alternative Fuel Mixture Excise Tax Credit, and the Alternative Fuel Vehicle Refueling Property through the Protecting Americans From Tax Hikes Act of 2015 are extended before they expire at the end of 2016. Other energy production tax credits have been extended, and the biofuel trade associations argue that extending certain energy tax provisions and not others creates investment uncertainty across the energy sector, and puts biofuel producers at a disadvantage.
On May 11, 2015, Senators Joe Manchin (D-WV) and Heidi Heitkamp (D-ND) introduced S. 1282 -- a bill to amend the Energy Policy Act of 2005 to require the Secretary of Energy to consider the objective of improving the conversion, use, and storage of carbon dioxide (CO2) produced from fossil fuels in carrying out research and development (R&D) programs under that Act. The bill represents a broad recognition of the importance of algae and other biobased carbon utilization platforms that can convert CO2 into fuels, chemicals, and other valuable biobased products. If passed, S. 1282 will add "improving the conversion, use, and storage of carbon dioxide produced from fossil fuels" to the list of Department of Energy (DOE) fossil energy R&D objectives under Section 961(a) of the Energy Policy Act of 2005 (42 U.S.C. § 16291(a)).
Nearly 30 Democratic Senators participated in an all-night session from the evening of March 10, 2014, through the morning on March 11, 2014, to highlight the need for action to combat the harmful effects of climate change. This session was the first major act of the Senate Climate Action Task Force, which was formed earlier this year by Senators Barbara Boxer (D-CA) and Sheldon Whitehouse (D-RI) to urge action on the issue. The all-night session was organized by Senator Brian Schatz (D-HI).