US biofuel waiver denials may be 'flawed': Report
President Joe Biden's administration may have relied on a "flawed assumption" as the basis to deny requests from dozens of small refineries for a waiver from biofuel blending mandates, a federal watchdog report said today.
The new report, from the US Government Accountability Office (GAO), focuses on the Biden administration's decision to reject requests from more than 30 small refineries for exemptions from annual biofuel blending requirements under the Renewable Fuel Standard.
The US Environmental Protection Agency (EPA) earlier this year said it denied the waivers because the small refineries — which process up to 75,000 b/d — failed to show they had a "disproportionate" hardship from the biofuel program. EPA said credits called RINs used to comply with the program trade the same price regardless of the size of the buyer, and those costs are then passed through to purchasers.
But the EPA's analysis on the price of RINs might be incorrect, the report said. The GAO said its own analysis found a subset of the small refineries paid 2.4-2.9pc more for renewable fuel D6 RINs than a subset of large refineries, although the price spread fell to 0.5-1.5pc for biomass-based diesel D4 RINs. EPA should reassess its analysis, or else it "risks inappropriately denying valid exemption petitions," the report said.
EPA said it disagreed with the GAO, which it said reached the "wrong conclusion" using the same data the agency had reviewed. EPA said its analysis was backed by an "extensive, transparent notice and comment process and input from experts from across the industry."
The GAO report is likely to be cited in pending litigation by small refiners challenging the EPA's blanket denial of dozens of waivers. Republican lawmakers from states with small refineries say the report shows the waiver denials were "arbitrary" and should be reversed.
"It is high time that the administration reverse course, grant relief to small refineries and clean up its gross mismanagement of this program," US Senate Energy and Natural Resources Committee chairman John Barrasso (R-Wyoming) said.
Biofuel industry groups defended the agency's analysis. The GAO's analysis is "shoddy" and even then only suggests that many small refiners are paying just 0.5pc more for regulatory compliance than large refineries, Renewable Fuels Association president Geoff Cooper said.
"All refiners — large or small, merchant or integrated — face the same compliance obligations and they all pass their RIN costs on to fuel blenders at the terminal," Cooper said.
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Union plans new rail strike despite arbitration order
Union plans new rail strike despite arbitration order
Washington, 23 August (Argus) — The status of rail freight in Canada remains uncertain after a Canadian labor union today issued a new strike notice to Canadian National (CN), less than a day after the federal government forced all parties to participate in binding arbitration. The Teamsters Canada Rail Conference (TCRC) today issued notice to CN that members will go on strike at 10am ET on 26 August. The union had not issued a strike notice to CN earlier this week, but employees could not work yesterday after the CN and Canadian Pacific Kansas City (CPKC) locked them out. "We do not believe that any of the matters we have been discussing over the last several days are insurmountable," the union said today in its notice to CN. It said it would be available to discuss issues to avoid another work stoppage. CN indicated it was frustrated with the union's action. "While CN is focused on its recovery plan to get back to powering the economy, the Teamsters are focused on returning to the picket line and holding the country hostage to their demands," the railroad said. CN last night had begun implementing a recovery plan to restore service . The union has not yet responded to inquiries about its action today. The office of labour minister Steven MacKinnon declined to comment. Rail operations at CN and CP stopped at 12:01am ET on Thursday after the union launched a strike at CPKC and both railroads locked out employees. That action ended late Thursday afternoon with the federal government directing the Canada Industrial Relations Board (CIRB) to manage binding arbitration on the railroads. CIRB, an independent agency, has not yet said if it will accept the government's order. CN began moving some freight early on 23 August, but the new strike order issued soon by the union today could disrupt those plans. The union has also challenged the constitutionality of MacKinnon's order regarding CPKC operations pending the outcome of a new ruling by the CIRB. CPKC's rail fleet remains parked in the meantime. CPKC said late Thursday it was disappointed in the minister's decision and sought to meet with CIRB to discuss resumption of service. CPKC said the union "refused to discuss any resumption of service, and instead indicated that they wish to make submissions to challenge the constitutionality of the Minister's direction." A case management meeting with CIRB occurred last night and another was scheduled for early today. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Indonesia’s Pertamina gets ISCC certification for SAF
Indonesia’s Pertamina gets ISCC certification for SAF
Singapore, 23 August (Argus) — Indonesia's state-owned Pertamina has obtained International Sustainability and Carbon Certification (ISCC) Corsia and ISCC EU RED-compliant certification for sustainable aviation fuel (SAF). Pertamina's downstream arm Pertamina Patra Niaga obtained the certification as it is powering a domestic flight with SAF during the Bali International Air Show next month, said company sources. Following the air show, Pertamina also plans to encourage SAF adoption among its aviation customers, starting with those at the Ngurah Rai International Airport in Bali because of its high volumes of international flights. The Ngurah Rai aviation fuel terminal in Bali and Soekarno-Hatta Aviation Fuel Terminal and Hydrant Installation in Jakarta were the first locations to receive the certification. Pertamina's customers will be able to claim reduced carbon emissions resulting from the use of SAF, hydrotreated vegetable oil and used cooking oil (UCO) purchased from the refiner, its director of central marketing and commerce Maya Kusmaya said. He added that Pertamina is the first operator in southeast Asia to market ISCC Corsia certified SAF. But Pertamina's actual SAF production from palm and waste-based feedstocks such as UCO and palm oil mill effluent oil is likely to still start around 2026, when the second phase of its Cilacap "green refinery" is commissioned and comes on line, said a company source. It [previously produced SAF] (https://direct.argusmedia.com/newsandanalysis/article/2251914) and renewable diesel at its Cilacap and Dumai refineries but using refined, bleached and deodorised palm oil. Pertamina awarded in July its first SAF import tender seeking 3,500 kilolitres of blended SAF for end-August delivery. The volumes will likely be used at the Bali International Air Show. The tender stated the blended SAF has a 30-40pc neat SAF component and the cargo must be Roundtable on Sustainable Biomaterials, ISCC Corsia or EU certified. Indonesia's government had expressed at the end of May hopes to finalise a national roadmap and action plan for the industrial development of SAF by June. But there have been no updates so far, sources from Pertamina and another trader said. The country previously shared plans to announce a SAF roadmap-related presidential regulation on the sidelines of September's air show with no further details disclosed. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Canada rail strike ends by forced arbitration: Update
Canada rail strike ends by forced arbitration: Update
Adds comments from railroads, Canadian Propane Association and background. Calgary, 22 August (Argus) — A Canadian rail strike that started early Thursday morning will be short-lived as the federal government stepped in to force the union and two railroads into binding arbitration. The federal government is now directing the Canada Industrial Relations Board (CIRB) to "assist the parties in settling the outstanding terms of their collective agreements by imposing final binding arbitration," labour minister Steven MacKinnon said Thursday. At 12:01am ET today, Canadian Pacific Kansas City (CPKC) and Canadian National (CN) locked out union members, while the Teamsters Canada Rail conference launched a strike at CPKC . The work stoppage froze ongoing train shipments, even if they have not yet reached their destinations. CN ended its lockout at 6pm ET and initiated its service recovery plan. CN said it is satisfied that the labour action has ended, but it is "disappointed that a negotiated deal could not be achieved at the bargaining table despite its best efforts." CPKC said it would restart operations once it receives orders from CIRB. "Our teams are already preparing for the safe and orderly resumption of our rail network and further details about timing will be provided once we receive the CIRB's order," CPKC said. CPKC chief executive Keith Creel said the railroad regrets that the government had to intervene because he believes in and respects collective bargaining, but "given the stakes for all involved this situation required action." Though the work stoppage lasted less than a day, it may take weeks for rail operations to return to normal. The Canadian railroads last week embargoed shipments of toxic materials and earlier this week stopped loading any new railcars. Instead it focused on delivering already-loaded trains to their destination. Shippers across North America feared the impact of the work stoppages. The Canadian Propane Association today said that for each day that propane is not delivered, there is a sales loss of C$9.82mn and that would rise to $75.2mn after seven days. Labour minister MacKinnon has the authority under section 107 of the Canada Labour Code to mandate the sides return to the bargaining table, a tool the federal government was reluctant to use until now. By Brett Holmes and Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Canada rail strike stopped by forced arbitration
Canada rail strike stopped by forced arbitration
Calgary, 22 August (Argus) — A Canadian rail strike that started early Thursday morning will be short-lived as the federal government stepped in to force the union and two railroads into binding arbitration. The federal government is now directing the Canada Industrial Relations Board (CIRB) to "assist the parties in settling the outstanding terms of their collective agreements by imposing final binding arbitration," labour minister Steven MacKinnon said Thursday. The minister has the authority under section 107 of the Canada Labour Code to mandate the sides return to the bargaining table, a tool the federal government was reluctant to use until now. Operations for Canadian Pacific Kansas City (CPKC) and Canadian National (CN) stopped at 12:01am ET Thursday when they could not reach agreements over contract terms with the Teamsters Canada Rail Conference (TCRC). Operations will resume at the railroads during arbitration. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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