The battle over small refinery exemptions from the Renewable Fuel Standard is moving to a new stage.
On Friday, the agency granted small refinery exemptions for 5.34 billion credits. But the agency is now working on plans to reallocate credits issued for 2023 and later years. EPA issued exemptions for 5.34 billion credits, or renewable identification numbers (RINs). About 1.4 billion were for 2023 and 2024.
The agency says it will have a draft supplemental rule ready “in the near future.”
The biofuel industry welcomed EPA’s plan to reallocate credits, but refiners blasted it. “Piling on more than a billion gallons in additional, reallocated mandates will do nothing other than increase imports, harm U.S. energy dominance and cost consumers,” says Chet Thompson, president and CEO of the American Fuel and Petrochemical Manufacturers.
Take note: The reallocation plan is a win for corn and soybean growers and further evidence that the Trump administration is banking on biofuel policy to help shore up the ag sector. “Trump 2.0 is all-in on supporting biofuels and ag,” University of Illinois economist Scott Irwin says in a post on X.
Ethanol group optimistic on pathway for year-round E15
Brian Jennings, the CEO of the American Coalition for Ethanol, believes there’s a “critical mass of political support” in the current Congress for permanent, year-round E15.
Jennings, in an interview with Agri-Pulse during ACE’s annual conference on Friday, said Congress’s ethanol champions have “doubled down” in their efforts to find a legislative vehicle for year-round E15 authorization. One such proposal was stripped from the 2024 year-end spending package due to concerns about the bill’s length.
“They knew they were so close to getting this done, and then to have that provision among many others removed left a bad taste in their mouth,” Jennings said of ethanol supporters in Congress.
Possible vehicles: Jennings said the upcoming appropriations bill or a continuing resolution “could be a good target” for year-round E15. While less likely, lawmakers could also use a manager’s amendment to the “skinny” farm bill that is likely to be weighed this fall.
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Texas leads drop in cattle on feed
The number of cattle in U.S. feedlots continues to shrink. USDA’s latest Cattle on Feed report shows 10.9 million head on feed as of Aug. 1, a drop of 2% from the same date last year.
No. 1 Texas saw a drop from 2.74 million on feed in August 2024 to 2.49 million this year. No. 2 Nebraska is gaining on Texas, going from 2.32 million a year ago to 2.39 million on Aug. 1.
Meanwhile, placements in feedlots during July fell 6% below the same month in 2024 to 1.6 million. Marketings of fed cattle last month also dropped 6%, to 1.75 million head.
Take note: Texas has been the hardest hit by the suspension of cattle imports from Mexico.
On deck: The quarterly trade outlook from the Economic Research Service is due Thursday. The previous report was delayed several days and did not include the accompanying analysis. That report projected an agricultural trade deficit for fiscal 2025 of $49.5 billion, up slightly from the previous estimate of $49 billion.
Farmageddon photos
Aggies from Iowa, Kansas and other parts of the U.S. gathered in Dublin, Ireland, Saturday for what was billed as Farmageddon. Appropriately, they were treated to a barnburner that saw the Cyclones hold off the Wildcats. The final score of the Aer Lingus Classic was 24-21. Here are some photos of attendees who made it across the pond for the game.
Agri-Pulse's Al Johnson and Sara Wyant with Alexis Taylor, Amanda Taylor De Jong, Sheryl Empey and Mary Kay Thatcher.
Court upholds flycatcher’s listing as endangered species
A federal appeals court has upheld the listing of the southwestern willow flycatcher as an endangered species, rejecting a challenge from the New Mexico Cattle Growers Association.
The group says the service has made it virtually impossible to challenge the designation under the Endangered Species Act. But the court said the disagreement hinged on the service’s choice of studies to evaluate the bird’s classification as a valid subspecies.
“There is no requirement that agencies somehow evaluate data using standards that do not reflect accepted scientific research methodology,” the D.C. Circuit Court of Appeals said in its opinion.
HHS stops recognizing unions
The Department of Health and Human Services plans to de-recognize unions representing workers at some of its agencies, according to the American Federation of Government Employees.
An AFGE press release says six local AFGE chapters representing workers from the Centers for Disease Control, National Institute for Occupational Safety and Health, and the Food and Drug Administration are affected.
"Whether or not HHS recognizes us on paper, we will continue standing together, side-by-side as coworkers, to defend our rights and protect the nation’s health,” said Micah Niemeier-Walsh, a leader for AFGE Local 3840, which represents NIOSH employees in Ohio.
Final word
“This is akin to your neighbor getting a tax break and the IRS showing up at your doorstep with the bill. It is simply wrong” American Fuel & Petrochemical Manufacturers in a statement on the possibility of reallocating waived RINs.
Noah Wicks contributed to today’s Daybreak
