Euro Parliament’s Environment Committee, US House OK key farm, energy legislation

In Belgium, the European Parliament’s Environment Committee voted to raise the Fuel Quality Directive’s requirement for fuel producers to reduce the carbon intensity of their fuels by 9% by the end of 2025, up from 6% by 2020, the current requirement. The Committee also voted for a 5.5% ceiling on the use of food-based biofuels in Europe, and a 2% sub-target for promoting the production and consumption of advanced biofuels in transport fuel. The Committee also voted to begin including consideration of indirect land use change in 2020.

Dieter Bockey of UFOP, the German biodiesel trade group, commented: “The UFOP regards the restriction in biofuels from cultivated biomass to max. 5.5 percent of the final energy consumption in the transportation sector as catastrophic. Retaining the double apportionment of biofuels from waste oils and the share of renewable electricity in the transport sector to a 5.5 percent cap will considerable restrict the quantity requirement for biofuels of the first generation to such an extent that further insolvencies are foreseeable.”

In Washington, the US House of Representatives passed their version of the Farm Bill, which eliminated support for the Supplemental Nutrition Assistance Program, or food stamps, which represented 80 percent of the cost of the bill. The bill eliminated or consolidated some $20 billion in existing farm subsidy programs, but expanded crop insurance programming and included a reduced energy title.

Brian Jennings, Executive Vice President of the American Coalition for Ethanol commented: “Now that the U.S. House has adopted its version of the Farm Bill, ACE will be working to encourage the House-Senate conference committee to finalize legislation that mirrors the Senate Bill.  The Senate version contains support for important Energy Title initiatives, particularly mandatory funding for the Rural Energy for America Program (REAP). These REAP funds provide vital cost-share assistance to help petroleum marketers make upgrades or install new equipment at retail stations, ensuring consumers have access to renewable and affordable fuels such as ethanol.  We are hopeful Congress enacts a multi-year, comprehensive farm bill that resembles the Senate legislation before the September 30th deadline”.