US stimulus bill earmarks $14bn for CCC: Update
The US Senate has allocated $14bn to support agricultural price protection and farm income programs as part of its massive stimulus bill intended to provide economic relief from the coronavirus disruption.
The emergency funds will be sent to the Commodity Credit Corporation, a federal corporation which manages domestic farm income programs as well as foreign market development.
Sustained depreciation in product values and weakened demand stemming from measures implemented to stunt the spread of the coronavirus are set to squeeze farmer income in 2020, but could be mitigated if the senate's package is approved and signed into law.
Additionally, the bill also earmarks $9.5bn in emergency coronavirus funding to support agricultural producers affected by the pandemic, including specialty crop growers, producers that supply local food systems and livestock producers.
Congressional leaders negotiated the bipartisan $2 trillion deal in just five days, as the death toll in the US from the outbreak surpassed 700 and shuttered US businesses laid off what some analysts expect could be millions of workers. The deal would funnel the equivalent of nearly 10pc of US GDP to struggling businesses, states, hospitals and workers through a variety of grants, loans, cash payments and increased government benefits.
US Senate majority leader Mitch McConnell (R-Kentucky) said the deal would offer billions of dollars in emergency loans to businesses and rush new resources to healthcare facilities already struggling to manage the first wave of coronavirus patients. The agreement is also expected to send direct cash payments to most taxpayers.
"We are going to pass this legislation later today," McConnell said.
But the agreement will not include $3bn that would have gone to purchase 77mn bl of crude to refill the US Strategic Petroleum Reserve, something President Donald Trump wanted to help oil producers struggling from a collapse in prices. Senate minority leader Chuck Schumer (D-New York) touted the removal of the funds in a letter to Democratic colleagues this morning.
"Eliminated $3 billion bailout for big oil," the letter said.
The agreement, text of which has yet to be released, will save "hundreds of thousands of airline industry jobs," Schumer said in the letter. It will also prohibit airlines from stock buybacks and providing bonuses to chief executives. Crucial to the agreement was the inclusion of a Democratic demand for increased oversight of a $500bn fund for businesses, and a prohibition on Trump's hotel and other businesses from receiving loans and investments from those funds.
The prospect of a stimulus deal being reached helped send the US Dow Jones Industrial Average up by 11.4pc yesterday.
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Sustainability key for Australian beef trade: Beef2024
Sustainability key for Australian beef trade: Beef2024
Dalby, 8 May (Argus) — Production sustainability credentials are becoming increasingly important for Australian beef producers to secure export market access and source capital, industry panellists said at the Beef2024 event in Queensland this week. There is growing industry concern about the impact of the incoming EU deforestation regulation (EUDR) in December, which will require cattle exporters to provide evidence that the land used in production did not cause deforestation or forest degradation. Such regulations may present a barrier to access if applied without acknowledging local production systems, said Australian sustainability firm Organic Systems and Solutions chief executive Marg Will and private investment firm Macdoch's executive chairperson Alasdair Macleod. The EU represents a small fraction of Australia's beef exports, but Will and Macleod stressed that compliance with sustainability regulations will increasingly influence the cost of finance available to producers. But the Australian beef industry is making headway in achieving sustainability targets.There is continuing progress towards the five sustainability goals announced by the Red Meat Advisory Council in 2023, according to the Australian Beef Sustainability Framework (ABSF) annual update released on 8 May. All indicators of animal welfare and environmental stewardship goals were improving or steady, except for processor waste to landfill, according to the ASBF report. Approximately 81pc of producers were reported to be adopting practices to improve soil water retention in 2023, up from 46.9pc in the last report, although the data was compiled from a separate source. Australia's beef industry is aiming for carbon neutrality by 2030 and the sector reduced its net CO2 emissions by 78pc between 2005-21, mainly because of avoided land clearing and deforestation. By Edward Dunlop ABSF Annual Update - Select Goal Indicators % 2024 Report 2023 Report Best Animal Care Cattle properties covered by a documented biosecurity plan 75.6 86.0 Mortality rate of cattle exported on sea voyages 0.1 0.1 Environmental Stewardship Cattle producers adopting practices to improve soil water retention 81.0 46.9 Total CO2e reduced by beef industry from a 2005 baseline 78.2 64.1 Economic Resilience Value share of Australian beef exports covered by one or more preferential trade agreements 91.0 90.3 Source: ABSF Values based off varied reporting periods Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
New Zealand’s Genesis Energy to resume coal imports
New Zealand’s Genesis Energy to resume coal imports
Sydney, 8 May (Argus) — New Zealand's upstream firm and utility Genesis Energy plans to resume thermal coal imports later this year to feed its dual gas- and coal-fired Huntly power plant. The resumption was because of lower domestic gas production and rapidly declining coal stockpiles, and will mark the firm's first coal imports since 2022. Coal inventories at the 953MW Huntly plant, — New Zealand's largest power station by capacity and the country's only coal-fired facility — recently slipped below 500,000t, down from 624,000t at the end of March, and will fall below 350,000t by the end of the winter. This will trigger a need to purchase more coal to maintain a target operational stockpile of around 350,000t ahead of winters in 2025 and 2026, the company said on 8 May. Imports are currently the most efficient option for the quantity the company will need, with a delivery time of around three months, chief executive Malcolm Johns said. Genesis typically imports from Indonesia, the company told Argus . Gas production in New Zealand has dropped at a faster rate than expected, with major field production in April down by 33pc on the year, Genesis said. Lower gas availability typically leads to more coal burn, because the Huntly plant runs on gas and coal. This is in addition to an extended period of low hydropower inflows in recent months, which required higher thermal generation to ensure supply security. A prolonged outage at Huntly's unit 5 gas turbine between June 2023 and January 2024 also led to an even greater need for coal-fired generation, Genesis said. Biomass transition The company — which is 51pc owned by the state — is the second-largest power retailer in New Zealand, behind domestic utility Mercury, according to data from the Electricity Authority. It has a NZ$1.1bn ($659mn) programme for renewable power generation and grid-scale battery storage , which includes a potential replacement of coal with biomass at Huntly. But the transition to biomass "will take some years," Johns said. Genesis has successfully completed a biomass burn trial at Huntly last year and has collaboration agreements with potential New Zealand pellet suppliers, but there is currently no local source for the type of pellets needed for the plant. Genesis is hoping to move to formal agreements "as soon as counterparties are able". The company will not consider importing pellets, it told Argus . "We will only use biomass if we can secure a local New Zealand supply chain that is sustainable and cost-effective," it said. Domestic gas production New Zealand's three-party coalition government said separately on 8 May that the "material decline" in local gas production threatens energy security, blaming the previous Labour party-led government for "policy decisions which have disincentivised investment in gas production." The decisions — which were part of the former government's pledge to achieve a carbon-neutral economy by 2050 — led to a reduction in exploration for new gas resources since 2021, while suppressed maintenance drilling reduced production from existing gas fields, according to a joint release from energy minister Simeon Brown and resources minister Shane Jones. "Due to this significant reduction in gas production, the government has also been advised that some large gas consumers are expressing concern about their ability to secure gas contracts," the government said. Major industrial users such as Canada-based methanol producer Methanex have been forced to reduce production as a result, it noted. "We are working with the sector to increase production, and I will be introducing changes to the Crown Minerals Act to parliament this year that will revitalise the sector and increase production," Jones added. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Doubts abound over US midcon E15 shift: NATSO
Doubts abound over US midcon E15 shift: NATSO
Houston, 7 May (Argus) — An effort by eight US midcontinent states to start selling 15pc ethanol (E15) gasoline blends year-round starting in 2025 remains unlikely, according to US fuel retailer trade association NATSO. The US approved last month the request from Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin for year-round E15 gasoline sales starting next year. But even with that approval there are many barriers to making those sales a reality, said David Fialkov vice president of government affairs for NATSO, which represents truck stops and travel center operators. This includes a lack of investment from pipelines and refiners to prepare for the changes, as well as the higher costs of separating and selling different gasoline specifications at the retail level. "I remain pessimistic that it will come to fruition," Fialkov said Tuesday at a conference held by fuel retail industry group SIGMA in Austin, Texas. Political pressure to delay or abate the change in the midcontinent states will probably continue until refiners, pipeline companies and retailers begin to make the investments necessary, said Fialkov. E15 has been available for sale across the US since 2019, but a federal court in 2021 found that the Clean Air Act offers a fuel volatility waiver to refiners to produce only 10pc ethanol gasoline. The Environmental Protection Agency (EPA) has worked around this ruling for the last two summers by issuing temporary emergency orders allowing the sale of E15 because of the war in Ukraine's squeeze on crude prices. A group of midcontinent refiners has petitioned the EPA to delay implementation of the E15 rule until the summer of 2026. The EPA has not yet ruled on the request. Fialkov said a legislative solution to the issue at the federal level would provide a clear and uniform pathway to E15, as opposed to the the EPA's rule which leaves some states still relying on the waiver and others opting to go with year-round E15. By Zach Appel Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EPA sets new oil and gas methane reporting rules
EPA sets new oil and gas methane reporting rules
Washington, 7 May (Argus) — Federal regulators have updated emissions reporting requirements for oil and gas facilities as they prepare to implement a methane "waste" fee for the industry. The US Environmental Protection Agency (EPA) on Monday finalized new rules it says will improve the accuracy of data from the oil and gas sector under the federal greenhouse gas emissions reporting program. Oil and gas facility owners and operators will be required to estimate emissions from additional types of equipment under the rule, and they can draw on newer technologies, like remote sensing, to help estimate emissions. "EPA is applying the latest tools, cutting edge technology, and expertise to track and measure methane emissions from the oil and gas industry," agency administrator Michael Regan said. "Together, a combination of strong standards, good monitoring and reporting, and historic investments to cut methane pollution will ensure the US leads in the global transition to a clean energy economy." Data to support new fee The revisions to the "Subpart W" reporting requirements will be used to determine the amount of methane that will be subject to a "waste emissions charge" created by the Inflation Reduction Act. Under the law, the charge will be calculated based on the annual data that about 8,000 oil and gas sources are now required to report. The charge will begin at $900/t for 2024 methane emissions above a minimum threshold using current measurement data. It will then rise to $1,200/t in 2025 and $1,500/t in subsequent years. Industry officials had raised "serious concerns" about several aspects of the original proposal , warning it could lead to inflated emissions data. "We are reviewing the final rule and will work with Congress and the administration as we continue to reduce GHG emissions while producing the energy the world needs," American Petroleum Institute vice president of corporate policy Aaron Padilla said. The industry group previously said it will ask Congress to repeal the fee, which is only likely to occur if Republicans win control of the White House. Data collected since 2010 Oil and gas facilities have reported emissions under Subpart W since 2010. To simplify reporting, operators often count the equipment they have deployed, and use industry-wide averages to estimate emissions, in addition to other direct and indirect measurements. The industry has argued the Subpart W data is not accurate enough to collect the methane charge, which is expected to cost operators more than $6bn over the next decade. Environmental groups have had their own criticisms of the data, which they say omits vast amounts of emissions such as those from "super-emitter" events and poorly maintained flares. The final rule seeks to respond to some of those concerns by relying on updated emission factors, incorporating additional empirical data on emission rates, collecting data at a more granular level and relying on remote sensing technologies to detect large emission events. EPA also revised Subpart W to include more types of sources, including produced water tanks, nitrogen removal units and crankcase venting. The final rule also sets a threshold of 100 kg/hr of methane for requiring the reporting of emissions from "other large release events." The new data rules will take effect on 1 January 2025 and will first apply to reports submitted in early 2026 for next year's emissions. EPA is allowing the use of the new methodologies for calculating 2024 emissions, but operators can still use the existing rules. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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