EPA Administrator Lee Zeldin is set to make an announcement in Houston today about what the agency describes as “nationwide E15.” He’s almost certain to announce another waiver for E15 use this summer. Zeldin will be in Houston for the annual CERAWeek, the premier energy industry conference.
Still to come is Zeldin’s announcement – by next Tuesday – of the new renewable volume obligations under the Renewable Fuel Standard.
King Corn, politics & E15
Can election pressures get permanent, year-round E15 over the finish line? Growth Energy’s Emily Skor thinks so.
“We’re going to get this done,” the CEO of the U.S.’s biggest ethanol lobby group said at this year’s Agri-Pulse Ag & Food Policy Summit. “Our legislators have to be able to deliver when they return home in November.”
The tightest U.S. House races in this year’s midterm elections are expected in major ag states like Wisconsin, Ohio and Iowa, which produce ethanol and the corn used to make it.
The lack of progress in Congress on efforts to pass a bill to allow year-round sales of higher ethanol-gasoline blends of 15%, or E15, is wearing on corn growers.
“Farmers are frustrated with Washington. I don't care what side of the aisle you're talking about,” Ohio corn producer John Schroeder tells Agri-Pulse. “South America is at E30, and we can't get them to get E15 in this country, and we should be talking about E30. These types of things would help offset this cost of fertilizer.”
‘Constantly waiting’: Skor says once E15 is enshrined into law, and the country doesn’t have to rely on yearly waivers to allow summertime sales of the fuel, investment to boost capacity to facilitate the sales will follow.
What’s turned into an annual guessing game of if and when the government will grant an E15 waiver means fuel retailers are “constantly waiting,” Skor says.
“So, they're not investing in the capacity to be able to really sell it and really ramp up.”
For more coverage of the summit, and an in-depth look at why the Trump administration’s new tariff policy could achieve the president’s goals, check out our weekly newsletter today.
Democratic states sue over new USDA award conditions
Democratic attorneys general are suing the Trump administration over “vague and broad” terms and conditions targeting DEI and illegal immigration that USDA has imposed on funding awards.
In their lawsuit, the AG’s “assert that USDA has threatened harsh penalties if states do not comply with the agency’s vague and expansive funding conditions relating to immigration, [DEI], and gender identity, which are unrelated to the purpose of USDA funding,” according to a press release .
In December, Agriculture Secretary Brooke Rollins signed a memorandum directing USDA agencies and staff offices to use a standard set of USDA General Terms and Conditions.
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The AGs argue that the conditions could affect over $74 billion their states receive each year from USDA, including through child nutrition and food assistance programs.
BNSF CEO says service has been ‘strong’ during fertilizer delivery season
BNSF President and CEO Katie Farmer says the rail giant has been handling record volumes of fertilizer this spring,
In a letter Tuesday.to Corey Rosenbusch, president and CEO of The Fertilizer Institute, Farmer said BNSF had been anticipating a strong spring season even before the war in Iran effectively closed the Strait of Hormuz. “That robust volume has materialized, and we are on pace to set a first-quarter record for fertilizer shipments on our railroad.”
Rosenbusch had urged railroads in a letter last week to prioritize fertilizer shipments amid disruptions caused by the closure of the Strait of Hormuz. Farmer told him BNSF brought additional transits online for fertilizer service “without negatively affecting fluidity.”
Fertilizer car velocity during the fertilizer season so far has averaged 150.2 miles per day, which she said is a 15% improvement over the same period last year.
Take note: Last week, Union Pacific Executive Vice President of Marketing and Sales Kenny Rocker told Rosenbusch his railroad has seen a 2% increase in fertilizer shipments compared to last year and touted a 100% system car order fulfillment rate so far this year.
Senate OKs bill to speed up USDA disaster relief
The Senate has unanimously approved a bill introduced by Nebraska Republican Sen. Deb Fischer to expedite producer access to federal disaster relief under USDA’s Emergency Conservation Program and Emergency Forest Restoration Program.
Wildfires active in the state are the worst ever, burning more than 800,000 acres in the state, Fischer said on the Senate floor.
She said the programs “are often slow to respond to wildfires, floods, and other disasters. This means producers face significant delays and red tape when trying to get access financial assistance.”
She said her bill would ensure that program eligibility “can be triggered faster in response to a wildfire and provide flexibility for the producers completing the rehabilitative work.”
Final word
“The ad hoc government payments being sent out as we speak will be helpful, but not enough to make up for the drop in price.” – A banker in the Federal Reserve’s 11th District, which covers Texas, northern Louisiana and southern New Mexico, responding to a Fed survey conducted March 3-11. He was commenting on low commodity prices.
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