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EPA defends 2023-2025 renewable fuel volumes

  • : Biofuels, Emissions
  • 24/07/02

The US Environmental Protection Agency (EPA) says it did not violate the law when it set renewable fuel standard volume mandates for 2023-2025, rebutting industry and environmentalist concerns about the agency's reasoning in a recent court filing.

EPA told the US Court of Appeals for the District of Columbia Circuit in a filing late last week that it "lawfully and reasonably" set volumes for cellulosic, biomass-based diesel, advanced, and conventional biofuels for 2023-2025, relying on "the same type of analyses" that the court has approved in prior cases. Among other arguments, the agency criticized arguments from refiners that said cellulosic biofuel requirements relied on "overly aggressive" assumptions and from environmental groups that said the agency did not sufficiently consider potential environmental impacts.

There is related litigation before the court involving the agency's reporting requirements for biogas producers and the agency's rejections of petitions to exempt small refineries from 2022 requirements. The DC Circuit affirmed biofuel blending requirements for 2020-2022 in May this year, and EPA says the court should make a similar determination about the agency's subsequent rulemaking.

EPA's broad defense of its 2023-2025 blending requirements, while not surprising, suggests that the agency is holding firm against recent calls from industry groups to acknowledge past mistakes and shift course.

The Clean Fuels Alliance America asked EPA in a formal petition last week to raise volume requirements for biomass-based diesel by more than 2mn USG each for 2024 and 2025. And EPA recently rejected a petition from the American Petrochemical and Fuel Manufacturers that asked for a partial reprieve from cellulosic biofuel obligations because of an undersupply of D3 renewable identification numbers.

The agency, in its latest filing, quoted from prior DC Circuit rulings that said courts should be "particularly deferential" to agencies "in matters implicating predictive judgments." In other words, an agency misjudging future biofuel supply is not reason alone to overturn prior blending requirements, EPA argues.

The US Supreme Court has been increasingly skeptical of deferring to executive agencies like EPA, and just last week struck down a long-running precedent that said courts should afford agencies significant leeway when interpreting ambiguous statutes.

EPA is technically required to finalize renewable volume obligations for 2026 by November this year, but the agency has missed deadlines before and many in the biofuels industry are preparing for a rulemaking after this year's presidential election. Adding updates to previously set obligations would add further complexity to the agency's review.


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24/07/05

Indonesia aims to launch 15 CCUS projects by 2030

Indonesia aims to launch 15 CCUS projects by 2030

Singapore, 5 July (Argus) — Indonesia aims to bring 15 potential carbon capture and storage (CCS) and carbon capture, utilisation and storage (CCUS) projects onstream between 2026-30. Indonesia has carbon storage potential in 20 basins, comprising 573bn t of saline aquifer storage and 4.8bn t of depleted oil and gas reservoirs across Sumatra, Java, Kalimantan, Sulawesi and Papua, according to the country's ministry of energy and mineral resources (ESDM). The government is pushing for the Sunda and Asri basins as well as the Bintuni basin to become CCS hubs, said the ESDM's director of upstream oil and gas business development, Ariana Soemanto. Indonesia in January issued a presidential regulation on the implementation of CCS activities, which sets out the framework for the country's CCS development. CCS development in Indonesia can be undertaken via two pathways under the regulation, said Ariana. The first is the implementation of co-operation contracts in existing oil and gas areas by upstream contractors. The second pathway allows parties to establish a separate CCS business through target injection zone exploration permits and carbon storage operation permits. The regulation also allows CCS operators to set aside 30pc of the storage capacity from international sources. Singapore was the first country to sign an agreement with Indonesia after the regulation was issued, to co-operate on cross-border CCS. Countries such as Malaysia and Indonesia have the storage space to sequester captured CO2, but not the funds to develop the infrastructure. Direct government investment is necessary to develop and install CCS infrastructure such as pipelines, and carbon pricing could be a solution . Indonesia also launched its carbon exchange in September last year. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Upper Mississippi locks closed by high water


24/07/03
24/07/03

Upper Mississippi locks closed by high water

Houston, 3 July (Argus) — High water levels on the upper Mississippi River have caused several lock closures and spurred delays for barge carriers. Lock and Dams (L&D) 12, 16 and 17 on the upper Mississippi River closed 2 July and are expected to remain closed through the rest of this week and possibly into the next, according to the US Army Corps of Engineers. Locks 11, 13, 18 and 20 are expected to close on 4 July. The Corps will likely close locks 14 and 22 on 5 July, while lock 15 is expected to close 6 July. The Corps said the duration of the July 4-5 closures is unclear. Another 2-5 inches of rain fell along the western Corn Belt in the past week, according to the National Oceanic and Atmospheric Administration. High river conditions led to major flood status at Dubuque, Iowa, while other locations along the river are at moderate flooding levels. Water levels are 4-5ft below record highs on the upper Mississippi River. The outdraft at lock and dam 16 was at 211,444 cubic feet per second (cfs) on Tuesday, compared with typical flow of 41,100cfs. Major barge carrier American Commercial Barge Line anticipates 7-10 days of disruption followed by a 2-3 week catch-up. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EU’s centre-right EPP mulls Green Deal tweaks


24/07/03
24/07/03

EU’s centre-right EPP mulls Green Deal tweaks

Brussels, 3 July (Argus) — The European Parliament's largest group, the centre-right EPP, is working to complete the bulk of its strategy programme on 4 July at a meeting in Portugal. Key elements in the party's 2024-29 policy agenda include significant changes to the bloc's climate and energy policy for 2030. A draft of the five-point policy plan lists revising CO2 standards for new cars and vans to "allow for the use of alternative zero-emission fuels beyond 2035". The EPP also calls for a new e-fuel, biofuel and low-carbon fuel strategy "with targeted incentives and funding to accompany the EU hydrogen strategy". Additionally, the EPP wants the incoming European Commission to create a "single market for CO2" with a market-based framework for carbon capture and storage (CCS) and carbon capture and utilisation (CCU), through an accompanying legislative package similar to that adopted for the EU's gas and hydrogen markets. The strategy document discusses a "Green Growth Deal" aiming to achieve the EU's 55pc emission reduction target by 2030 — from 1990 levels — and climate neutrality by 2050, while boosting the EU's competitiveness and ensuring technological neutrality. The draft document emphasises the need to transition "away from fossil fuels towards clean energy", also by ramping up international hydrogen production. And the draft advocates for a "simple, technology-neutral, and pragmatic definition for low-carbon hydrogen" in upcoming technical legislation from the commission. More controversial points include postponing application of the EU's deforestation regulation and addressing problems related to its implementation. The EPP also wants to split the EU's industrial emissions directive into "industrial and agricultural parts", conduct a "full-scale" inquiry into why farmers are not receiving fair prices for their products, and require robust impact assessments for the economic viability of farms for any new animal welfare proposals. The group's members of parliament are meeting until 5 July. Commission president Ursula von der Leyen is also attending. She was [recently nominated](https://direct.argusmedia.com/newsandanalysis/article/25825320 by EU leaders for re-election. The EPP programme will significantly influence policy priorities that von der Leyen would support, if she is approved by an absolute majority of 361 votes at a session in Strasbourg on 15-18 July. But von der Leyen may need to drop more controversial points to secure a majority with liberal, centre-left and green support. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

South Africa could be regional SAF leader: Iata


24/07/03
24/07/03

South Africa could be regional SAF leader: Iata

London, 3 July (Argus) — The International Association of Air Transport (Iata) is urging South Africa to leverage its experience, resources and infrastructure to accelerate the development of its sustainable aviation fuel (SAF) production for the Africa continent. "South Africa has vast potential to become a leading [SAF] producer in the region," said Iata senior vice president for sustainability Marie Owens Thomsen at an industry conference. "More than a strategy in support of aviation's decarbonisation, it is a strategy for economic development and should be a top priority for the new South African government," she added. Iata said South Africa has several advantages in developing SAF production, such as great feedstock potential — including sugarcane and biomass — significant production capacity, existing refinery infrastructure and strategic geographic location. The association said last month that SAF production is on track to triple in 2024 from 2023. It estimates that global SAF production will reach around 1.9bn litres (1.5mn t) in 2024, from an estimate of 500,000t in 2023 . This would account for 0.53pc of aviation fuel needed in 2024. So far, 140 SAF projects are scheduled to start production by 2030. If these proceed, total renewable fuel production capacity will be 51mn t by 2030, the association said. But, estimated renewable fuel capacity has been revised lower from 69mn t expected by 2028, from the association's report in December. The decrease is attributed to an evaluation of projects against more stringent criteria for the potential to meet SAF's sustainability criteria and that some projects have progressed at a slower rate, Iata added. The International Civil Aviation Organisation (Icao) set an ambition to cut 5pc of CO2 emissions from international aviation by 2030. To achieve this, around 27pc of all expected renewable fuel production capacity available in 2030 would need to be SAF. Currently SAF accounts for 3pc of all renewable fuel production, Iata said. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

California voluntary offset bill stranded


24/07/02
24/07/02

California voluntary offset bill stranded

Houston, 2 July (Argus) — A California bill targeting sellers of questionable or false voluntary offsets credits in the state has died after its author pulled it from a committee hearing on Monday, leaving no way to advance the bill in this session. SB 1036, introduced by state senator Monique Limón (D), would have made it unlawful for anyone to issue, market, certify or sell voluntary carbon offsets, or maintain a registry, if they have knowledge that the credit-generating projects are not actually reducing or removing greenhouse (GHG) emissions as claimed. The bill spent just over a month in limbo ahead of a Monday hearing before the state Assembly Natural Resources Committee, after passing out of the Senate by a 31-15 vote in May. But Limón withdrew the bill just before the hearing, which represented its final chance to meet Wednesday's deadline for advancing out of the policy committee. Limón cited difficulties gaining support from market participants as the reason for withdrawing the bill, which would add claims around carbon offsets purchased from the voluntary market to the state code on false or misleading advertising. "Despite the deep deficiencies within voluntary carbon markets, it became clear that market participants are unwilling to accept legally enforceable standards to address the magnitude of junk offsets being marketed and sold in California," she said. This is Limón's second attempt to pass a bill regulating claims in the voluntary carbon offset sphere, following SB 390, which passed largely unopposed in the legislature last year before governor Gavin Newsom (D) vetoed the bill. The governor rejected the bill on concerns that it might affect well-meaning sellers and verifiers, hurting the in-state and wider voluntary carbon markets. While the predecessor bill smoothly moved through the legislature last session before the governor's veto, the same was not true for SB 1036, which faced opposition from environmental market participants and industry groups such as Anew Climate, Western States Petroleum Alliance (WSPA), the Securities Industry and Financial Markets Association (SIFMA) during this session. Critics of the bill said the requirements would be unworkable, discourage project development and investments and increase the role of the courts in reviewing the intricacies of GHG accounting. It is unclear if Limón will again revive this specific approach to regulate the voluntary carbon offset market in the next legislative session. But the senator has no plans to stop, her office said, and she intends to decide early next year her next steps to address the voluntary carbon market. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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