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Biodiesel producers rejoice at new mandate for 2013

The renewable energy industry is applauding President Obama and the U.S. Environmental Protection Agency after the EPA approved a 28% increase in the amount of biodiesel mandated for use in trucks on the nation's highways for 2013. Biodiesel is made in a process that uses soybeans, while the production of ethanol is based on corn.
The president of the Iowa Renewable Fuels Association, Brad Albin, said, "I want to thank President Obama and his staff for listening to our concerns and recognizing the value and potential of America’s Advanced Biofuel—biodiesel.”
The biodiesel industry is celebrating because unlike mandates for the use of ethanol in the nation's fuel set forth in the 2007 Renewable Fuels Act, biodiesel didn't have a mandate until last year. That mandates set a goal of 800 million gallons. The new mandate for 2013 has been expanded to 1 billion gallons, and fell short of the 1.28 billion gallons that biodiesel producers wanted.
“This was an incredibly important decision, and the Obama Administration got it right,” said Joe Jobe, CEO of the National Biodiesel Board, the industry trade association.
“It will allow biodiesel plants across the country to invest and expand, creating thousands of jobs. At the same time, it sends a strong signal that the U.S. is standing firm behind its commitment to producing clean, American-made energy to strengthen our energy security and break our dependence on petroleum.”
When the mandate was introduced in 2011 at 800 million gallons, it helped prevent the closure of several of the nation's biodiesel plants.

Ethanol production has come under fire for driving up prices on the food crop, however, there is no indication that the same will happen for soybeans. 

Source: Desmoines Register

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RE: burn food just brilliant
By Ringold on 9/19/2012 10:26:34 PM , Rating: 2
Food prices have risen dramatically because regulations on trading food derivatives were lifted.

This has been put out in the public realm by fear-mongers and refuses to die. Liberal economists, from Nobel laureate Paul Krugman, conservative economists, both agree on one thing: Derivative contracts can have little to no impact on commodity prices. They by their very nature cancel themselves out. Several studies, including by industries, government agencies (such as CFTC), NBER and academic economists in published papers (MIT) all find little to no evidence of volatility not consistent with known information, and point out that various commodities that do not have futures contracts or any derivatives at all, such as onions, show the same patterns of volatility AND the same increase in price. First link I found from it was from left-leaning CNN, even those idiots got it right.

Also, as someone that's traded commodities on occasion, commissions are cheap. This isn't 1970.

But again, as much as I think Paul Krugman is a left-wing loon, google for his blog post "it takes two to contango" from a couple years ago. He explains how its nigh-impossible to impact real prices via derivatives markets.

Fact is, billions of people are working their way up the income ladder in post-Deng Xioping China and semi-reformed India, Brazil and elsewhere. And what do they want with that extra income? A lot of things, but chief among them, something other than pig fat and rice to eat. FFS, do you blame them? It's all econ 101.

"I'd be pissed too, but you didn't have to go all Minority Report on his ass!" -- Jon Stewart on police raiding Gizmodo editor Jason Chen's home
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