Green Fields: EPA delays pollution rules for ethanol plants

The Environmental Protection Agency has put off regulations that could have required most ethanol plants in Iowa and elsewhere to have pollution permits because of the carbon dioxide they emit.

The EPA, which is starting to regulate greenhouse gas emissions, had planned to include the emissions that come from fermenting corn and burning biomass in power plants. However, the EPA is delaying regulations on those biogenic emissions for at least three years, effectively putting off the issue until after the 2012 election.

Many large ethanol plants already must get EPA permits because of other types of pollution they emit. But industry officials said that nearly every plant would have to get the permits as well if their carbon dioxide emissions are counted. Along with getting the permits, polluters have to report emissions and pay annual fees.

In a letter to lawmakers last week, EPA Administrator Lisa Jackson said the delay would give her agency time to do a "detailed examination of the science associated" with the issue.

"EPA's deferral of permitting requirements for biogenic emissions sources is good news and it is the right step, given that the science clearly shows using biomass for energy does not add to atmospheric CO2 levels on a net basis," said Bob Dinneen, president of the Renewable Fuels Association.

Grain, livestock traders take profits; prices dip

Grain and livestock traders made handsome profits last week and many decided to take them before the three-day weekend on the market.

Corn was down 4.2 cents per bushel to $6.38 for March delivery on Friday. Soybeans lost 8 cents per bushel to $14.18. Live cattle were down 70 cents to $109.20 and feeder cattle, which rose to record levels last week, cooled by 32 cents to $126.57.

Hogs were down 67 cents to $79.62 on news that average weights were up almost 2 pounds per animal from last year.

All of those commodities had risen last week on news of a U.S. Department of Agriculture report confirming a U.S. corn harvest low by recent standards and tight supplies of both corn and soybeans. Cattle and hog herds have also been reduced and the prospect of higher feed costs is expected to make producers reluctant to start rebuilding their herds.

Pork industry: Korean deal worth concession

The South Korean trade agreement that the Obama administration has finalized will be the best new trade deal ever for the U.S. pork industry, even though producers had to make a key concession to get the pact completed, industry officials say.

"We took one for the team, and we're so proud we did," said Sam Carney of Adair, president of the National Pork Producers Council.

The agreement was originally worked out in the Bush administration but ran into opposition from U.S. autoworkers. In return for concessions on autos, the Koreans demanded that the Obama administration agree to a delay in phasing out tariffs on pork.

"The highest levels of the U.S. government briefed us, they tried to rebuff the Koreans. They did everything they could," said Nick Giordano, vice president and counsel for international affairs for the pork group. "When all was said and done, the issue for us became do we want the Korean agreement to move or do we want to hold it up?"

The counsel delayed the end of the tariff to 2016, but the deal is expected to produce $687 million in additional pork exports annually, create 9,000 jobs in the pork industry and add $10 to the price of a market hog. Hogs currently sell for about $150 a head.

Korean pork production costs are as much as three times those of U.S. farmers, said Dermot Hayes, an Iowa State University economist.

Senate ag chair: Budget woes require creativity

The new chairwoman of the Senate Agriculture Committee says lawmakers need to find "creative solutions" to maintain a federal safety net for farmers in spite of concerns about spending.

"The safety net might look a little different than it does now, but we can't have family businesses going under because of a few days of bad weather," Michigan Democrat Debbie Stabenow said in what was billed as her first major speech since taking over the panel. She was speaking at the Michigan Agri-Business Association's annual winter conference.

Stabenow represents a state with a more diverse range of crops, including cherries and other fruits and vegetables, than most Midwest states. She's been an outspoken advocate for fruit and vegetable growers, who don't get anywhere near the level of subsidies that go to grain, oilseed and cotton producers.

"While 2010 was a great year for many in American agriculture, we've also seen wild fluctuations in dairy prices and, here in Michigan, a devastating year for grape growers because of a late frost. That's why, as we look forward to writing the next farm bill, I am fully committed to a strong safety net," she said.

She pledged to work with House Republicans to address concerns that agribusiness interests have with environmental regulations. Farm groups have been pushing back hard against environmental regulations being imposed or considered by the Obama administration.

Senators say E15 plan hurts boat owners

Ethanol's U.S. Senate critics are raising a new objection to the government's decision to allow more of the biofuel to be added to gasoline. In a letter to the Environmental Protection Agency, the senators say it will be harder for owners of boats and outdoor equipment to find pure gasoline that contains no ethanol.

The EPA is raising the ethanol limit in gasoline from 10 percent to 15 percent but only for use in newer cars and trucks, so stations may start selling two blends of ethanol and gasoline, one with 10 percent ethanol and the other with 15 percent. That means fewer stations may sell ethanol-free gasoline for use by consumers who are trying to avoid putting ethanol in boats and power equipment.

"This situation is occurring today in many rural regions of our country. Recently, the major distributor of pure gasoline in New England ceased providing this fuel to local distributors causing a scramble to locate additional supplies," wrote Republican Sens. Olympia Snowe of Maine and Jim Inhofe of Oklahoma. Inhofe is the ranking Republican on the Senate Environment and Public Works Committee.

A second letter to the EPA signed by Snowe, Inhofe and six other senators warns that introducing a fuel that can be used in some cars but not others will lead to inevitable misfueling.

"Many consumers have already experienced difficulties using gasoline with 10 percent ethanol (E10), finding that it causes problems in older cars, snowmobiles, boats, and lawnmowers. Given these experiences, it is incumbent upon EPA to evaluate the impact E15 can have on the engines of many vehicles and equipment prior to giving a waiver to E15," the letter said.
Valero to build wood-chip ethanol plant in Michigan

Valero Energy of San Antonio, operator of four corn-fed ethanol plants in Iowa, joined DuPont last week in moving toward the next generation of biofuels with an announcement that it will invest in a wood-chip ethanol plant in Kinross Township, Mich., on the eastern end of the state's Upper Peninsula.

Valero's announcement of the $50 million investment follows DuPont's commitment to build a corn stover-fired ethanol plant in either Story County or Webster County in Iowa.

The Michigan plant will use hardwood pulp gathered from nearby forests. DuPont's plant will use cobs, stalks and leaves raked and gathered immediately after the corn harvest.

source: desmoinesregister