On Friday, May 23, 2014, the U.S. Department of Agriculture (USDA) released its semi-annual regulatory agenda (Agenda) indicating its intended actions and priorities for the remainder of the year. A copy of USDA's Agenda is available online. According to the Agenda, USDA intends to issue its final rule addressing how its BioPreferred® Program will designate complex products and intermediate materials and feedstocks in July 2014. USDA published its proposed rule on this matter in the...
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May 23, 2014
House Agriculture Appropriations Bill Would Make Significant Cuts To Mandatory Funding For Farm Bill
On May 20, 2014, the House Committee on Appropriations' Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies (House Agriculture Appropriations Subcommittee) and the Senate Committee on Appropriations' Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies (Senate Agriculture Appropriations Subcommittee) marked up and passed their separate versions of a Fiscal Year (FY) 2015 spending bill for USDA. A...
On April 3, 2014, the U.S. Department of Agriculture (USDA) announced that it has launched a website that provides details on Farm Bill implementation. The website provides useful information on USDA's implementation of the Farm Bill and includes information on the economic implications of the bill's implementation prepared by the Economic Research Service.
December 13, 2013
Navy Announces Funding For Military Biofuels
On December 11, 2013, the U.S. Departments of Agriculture (USDA) and Navy announced that as part of their joint "Farm-to-Fleet" initiative, the acquisition of biofuel blends will be included into regular Department of Defense domestic solicitations for jet engine and marine diesel fuels. The Navy will seek to purchase JP-5 and F-76 advanced drop-in biofuels blended from 10 to 50 percent with conventional fuels. Funds from USDA's Commodity Credit Corporation will assist the effort....
This week could determine whether Congress will be able to pass its next five-year Farm Bill by the end of this year. Congress is expected to adjourn for its Thanksgiving recess at the end of this week, and the House of Representatives is expected to adjourn for the year on December 13, 2013. With the little time remaining to conduct official Congressional business this year, two of the four principal Farm Bill conferees working to join the House and Senate versions of the Farm Bill into one...
Last week, part of EPA's much anticipated 2014 proposed RFS rule, or at least a draft of the rule, was leaked and widely disseminated. If the text of the leaked proposed rule is representative of the actual proposed rule, the oil and gas industry would likely view it more favorably than would the biofuels industry. In the leaked version of the proposal, EPA would use its authority under the RFS to adjust downward the cellulosic, advanced, and overall renewable fuel volume requirements for...
On September 30, 2013, the U.S. Department of Agriculture (USDA) announced it had completed its second sale of sugar under the Food, Conservation and Energy Act of 2008 (the 2008 Farm Bill) Feedstock Flexibility Program (FFP). Reportedly, USDA purchased the sugar for $65.9 million and sold it immediately for $12.6 million, a $53.3 million loss. Currently, no information is available about the sale on USDA's website because the website is suspended during the government shutdown. The 2008...
Not only did the U.S. government shut down at midnight on Monday, but so did the nine month extension of the 2008 Farm Bill. With no new five-year Farm Bill, the future is uncertain for rural energy programs supported by the U.S. Department of Agriculture (USDA), including the Biorefinery Assistance Program that promotes the development of biorefineries in the U.S. As we have reported earlier this year, the U.S. Senate passed its version of the next five-year Farm Bill, including funding for...
September 27, 2013
USDA To Buy More Sugar For Biofuels Production
Last week, the U.S. Department of Agriculture (USDA) announced that it is seeking bids from bioenergy producers to purchase sugar from the Department as part of the Food, Conservation and Energy Act of 2008 (the 2008 Farm Bill) Feedstock Flexibility Program (FFP). This will be the second time that USDA will utilize the FFP. The 2008 Farm Bill directs USDA to keep sugar prices at or above certain levels, and authorizes USDA to either acquire sugar through forfeiture of sugar loans made by the...
September 19, 2013
USDA Announces Funding For Advanced Biofuels
USDA is continuing its work to promote the U.S. biofuels industry, which USDA Secretary Tom Vilsack believes helps bolster the U.S. agriculture sector and rural economy. On September 12, 2013, USDA announced that it will provide a total of $15.5 million to 188 advanced biofuel producers under USDA's Advanced Biofuel Payment Program, which was created under the 2008 Farm Bill (P.L. 110-234, the "Food, Conservation and Energy Act of 2008"). It is reported that through that program to...