The agency proposed a new 2019 compliance deadline of 30 November 2021, with a 1 June 2022 deadline for refineries processing less than 75,000 b/d of crude a year. The 2020 mandates would have deadlines of 31 January 2022 and 1 June 2022 for small refineries, under the proposal. Deadlines to prove compliance for the 2019 mandates were last March, and for the 2020 compliance year March of this year.
As previously noted, "hardship waivers" were intended for refineries producing 75,000 bpd or less and suffered "disproportionate economic hardship" from the costs of RFS compliance. The waiver frees the refineries from an obligation to provide the EPA with biofuels credits proving compliance.
(Source: EPA, PR, 14 Jan., 2021)
More Low-Carbon Energy News EPA, Renewable Fuel Standard, , Hardship Waiver, Biofuel Blending,
Effective Jan. 1, 2021, the province will require 9.25 pct ethanol content in gasoline, up from the current 8.5 pct, increasing to 10 pct (E10) on Jan. 1, 2022. The biodiesel requirement will increase from the present 2 pct to 3.5 pct on Jan. 1, 2021, then increasing to 5 pct as of Jan. 1, 2022. (Source: Gov. of Manitoba, PR, 22 Dec., 2020)
More Low-Carbon Energy News Biofuel Blend, Manitoba Biofuel,
EPA administrator Andrew Wheeler stated that the agency would not act on waiver requests for compliance years since 2019 until ongoing court challenges to prior decisions are settled.
As previously noted, "hardship waivers" were intended for refineries producing 75,000 bpd or less and suffered "disproportionate economic hardship" from the costs of RFS compliance. The waiver frees the refineries from an obligation to provide the EPA with biofuels credits proving compliance. Under the now vanquished administrator Greg Pruitt's direction, the EPA handed out 54 exemptions over two years and not a single request for an exemption was denied.
On Sept 18 we reported Trump had suggested he'd provide $300 million to oil refiners and that those funds would come out of the USDA Commodity Credit Corp. (CCC) which is intended to provide farmers with Market Facilitation Program (MFP) payments. Trump later denied suggesting cash payments to refineries whose waiver applications had been rejected. (Source: EPA, Various Media, 19 Nov., 2020)
More Low-Carbon Energy News EPA, Renewable Fuel Standard, , Hardship Waiver, Biofuel Blending,
As part of Sweden's target to be fossil-free by 2040, the Swedish Government on September 11 announced its intention to introduce a greenhouse gas reduction mandate for aviation fuel. The mandated reduction level is expected to be 0.8 pct in 2021 increasing to 27 pct by 2030, with most of the savings expected to come from the use of SAF.
As previously reported, Norway announced it would introduce a 0.5 pct biofuel blending mandate leading to a 30 pct share of biofuels in the aviation sector by 2030.
GEVO notes its SAF product is approved for use in commerce and has already been used to power numerous commercial flights. The company says it "looks forward to increasing its SAF production to help countries like Sweden and Norway in the battle to reduce Greenhouse gas emissions." (Source: GEVO, Website PR, 21 Sept., 2020)Contact: GEVO Inc., Patrick Gruber, CEO, 303-858-8358, pgruber@gevo.com, www.gevo.com
More Low-Carbon Energy News GEVO, Aviation Biofuel, SAF,
"We need front-runners to lead the way in sustainable aviation. The ambitious target now set by the Swedish government is an example others should follow in order to support the aviation industry in meeting its emission reduction targets. It also creates the necessary certainty for sustainable aviation fuel producers to invest in increasing the production", says Neste VP for Renewable Aviation Europe, Jonathan Wood.
Earlier this year, Norway introduced a 0.5 pct biofuel blending mandate. There will be enough capacity on the market to supply the anticipated volumes of sustainable aviation fuel to Sweden and Norway. Neste is already producing commercial scale volumes of Neste MY Sustainable Aviation Fuel™, refined from renewable waste and residue raw materials. In its neat form and over the lifecycle, the fuel can reduce up to 80 pct of greenhouse gas emissions compared to fossil jet fuel, according to Neste.
Neste's sustainable aviation fuel capacity is currently 100,000 tpy. With Neste's Singapore refinery expansion on the way and possible additional investment in the Neste Rotterdam refinery, Neste will have the capacity to produce some 1.5 million tpy of sustainable aviation fuel by 2023.
The global aviation industry has set ambitious targets to mitigate greenhouse gas emissions from air transport, including carbon-neutral growth from 2020 and beyond, and a 50 pct reduction of net aviation carbon emissions by 2050. Aviation needs multiple solutions for reducing greenhouse gas emissions. Currently, sustainable aviation fuels offer the only viable alternative to fossil fuels for powering aircrafts, according to the Neste release. (Source: Neste Corporation, Press Release, Website PR, 17 September 2020)
Contact: Neste, +358 50 458 5076, media@neste.com, www.neste.com
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"Demand for renewable diesel, as well as other lower carbon fuels, is growing and taking market share based on both consumer preferences and support from substantial federal and state government incentive programs," according to a statement from HollyFrontier CEO Mike Jennings.
(Source: HollyFrontier, PR, Bloomberg, 3 June, 2020)
Contact: HoolyFrontier, Craig Biery, Inv. Relations, 214-954-6510, www.hollyfrontier.com
More Low-Carbon Energy News HollyFrontier, Renewable Diesel, Biouel Blending, RFS,
The Trump EPA previously waived $350 million in biofuels compliance costs for PES after its initial bankruptcy in 2018.
As reported in Jan., Philadelphia-headquartered bioenergy developer SG Preston dropped its previously expressed interest in redeveloping the shut-down fire-damaged 335,000 bpd Philadelphia refinery, which is now being sold by creditors for $252 million and redeveloped under a bankruptcy court approved plan. (Source: Various Media,Reuters, May, 2020)
More Low-Carbon Energy News Philadelphia Energy Solutions, RFS, Biofuel Blend, RINs,
Romania is 100 pct dependent on imports for the biofuel used in the gasoline blend, but it only imports 30 pct of the biofuel used in diesel blends.
As part of the Renewable Energy Directive (RED) and transport's decarbonisation push, EU countries are obliged to use 10 pct of renewables, basically biofuels, in the transport sector.
(Source: Various Trade Media, Euractiv, 17 April, 2020)
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"If implemented, such derogations would exacerbate the negative effects already experienced by our sectors. The resulting reduction in demand would cause the shutdown of biofuel plants. It would also jeopardize the supply of products needed to produce hand sanitiser products, impact the proper function of the EU internal market for fuels and reduce the supply of animal feed. In addition, European renewable energy and climate commitments would be jeopardized."
"The production of the European biofuels value chain is (already) severely affected by the strong drop in fuel consumption and the corresponding reduction for the demand for our products, accentuated by the drop in fuel prices. (Source: European Biodiesel Board, ePure, Various Trade Media, April, 2020) Contact: European Biodiesel Board, ; ePURE, Emmanuel Desplechin, Sec. General, +32 2 657 6679, info@epure.org, www.epure.org
More Low-Carbon Energy News Biofuel Blending, European Biodiesel Board, ePure, Biodiesel,
Since the pandemic's onset, the oil industry has asked for broad regulatory relief to help it survive sharply reduced global demand for fuel and to lower related costs.
(Source: US EPA, Reuters, 27 Mar., 2020) Contact: US EPA, Andrew Wheeler, Administrator, www.epa.gov/aboutepa/epas-acting-administrator
More Low-Carbon Energy News US EPA, Andrew Wheeler, Renewable Fuel Standard,
Following the Bloomberg report, renewable fuel credits for 2019 traded at 35 cents each , up 7 cents while credits for 2020 traded at 40 cents each.
As previously noted, "hardship waivers" were intended for refineries producing 75,000 bpd or less and suffered "disproportionate economic hardship" from the costs of RFS compliance. The waiver frees the refineries from an obligation to provide the EPA with biofuels credits proving compliance. Under the now vanquished administrator Greg Pruitt's direction, the EPA handed out 54 exemptions over two years and not a single request for an exemption was denied.Under the U.S. Renewable Fuel Standard, the nation's oil refineries are required to blend billions of gallons of biofuels such as ethanol into the fuel or buy credits from those that do. But the EPA can waive their obligations if they prove compliance would cause them financial distress.
(Source: Various Media, Successful Farming, Reuters, 26 Feb., 2020)
More Low-Carbon Energy News Renewable Fuel Standard, RFS, "Hardship" Waiver,
Under the U.S. Renewable Fuel Standard (RFS) oil refiners are required to blend some 15 billion gpy of corn-based ethanol into their gasoline, but small facilities can be exempted if compliance would hurt them financially.
The October proposal was intended to placate corn growers and compensate the biofuel industry for the administration's expanded use of refinery exemptions, but which the industry has largely panned as insufficient, according to Reuters. The EPA's October plan would raise the biofuels volumes that some refineries must blend in 2020 based on DOE recommendations for volumes that should be exempted.
As previously noted, "hardship waivers" were intended for refineries producing 75,000 bpd or less and suffered "disproportionate economic hardship" from the costs of RFS compliance. The waiver frees the refineries from an obligation to provide the EPA with biofuels credits proving compliance. (Source: Reuters, Various Media, 19 Dec., 2019)
For details see our Oct. 21 report as follows -- Proposed Volumes for 2020 and Biomass-Based Diesel Volume for 2021. The Trump administration EPA has issued the attached supplemental notice of proposed rulemaking seeking additional comment on the recently proposed rule to establish the cellulosic biofuel, advanced biofuel, and total renewable fuel volumes for 2020 and the biomass-based diesel volume for 2021 under the Renewable Fuel Standard (RFS) program.
The notice does not change the proposed volumes for 2020 and 2021. Instead, it proposes and seeks comment on adjustments to the way that annual renewable fuel percentages are calculated. Annual renewable fuel percentage standards are used to calculate the number of gallons each obligated party is required to blend into their fuel or to otherwise obtain renewable identification numbers (RINs) to demonstrate compliance.
Specifically, the agency is seeking comment on projecting the volume of gasoline and diesel that will be exempt in 2020 due to small refinery exemptions based on a three-year average of the relief recommended by the BOE, including where DOE had recommended partial exemptions. The agency intends to grant partial exemptions in appropriate circumstances when adjudicating 2020 exemption petitions. The agency proposes to use this value to adjust the way it calculates renewable fuel percentages. The proposed adjustments would help ensure that the industry blends the final volumes of renewable fuel into the nation's fuel supply and that, in practice, the required volumes are not effectively reduced by future hardship exemptions for small refineries. Consistent with the statute, the supplemental notice seeks to balance the goal of the RFS of maximizing the use of renewables while following the law and sound process to provide relief to small refineries that demonstrate the need.
Download the Renewable Fuel Standard Program -- Proposed Volumes for 2020 and Biomass-Based Diesel Volume for 2021 HERE. Contact: EPA Renewable Fuel Standard, 800-385-6164, www.epa.gov/fuels-registration-reporting-and-compliance-help/forms/fuels-program-helpdesk
More Low-Carbon Energy News RFS, "Hardship" Waiver, Ethanol.Ethanol Blend, Iowa Renewable Fuels Association, Red Trail Energy,
The coalition's brief noted,
"Even as the Trump Administration indicates it is taking steps to account for future small refinery exemptions, the coalition remains concerned that EPA's abuse of the small refinery exemption program diverges from the spirit and letter of the Clean Air Act. From a substantive and procedural perspective, this is not the way for a federal agency to make such a momentous decision."
(Source: Growth Energy, U.S. Grains Council, and Renewable Fuels Association , 23 Oct., 2019) Contact: Growth Energy, Emily Skor, CEO, Elizabeth Funderburk, (202) 545-4000, EFunderburk@GrowthEnergy.org, www.growthenergy.org; U.S. Grains Council, Tom Sleight, Pres., (202) 789-0789, (202) 898-0522, www.grains.org; Renewable Fuels Association, Geoff Cooper, (202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News RFS, Growth Energy, U.S. Grains Council, Renewable Fuels Association,
The EPA appears to be acting on instructions from Trump who is no doubt preoccupied with his own whistleblower and impeachment worries.
As previously noted, "hardship waivers" were intended for refineries producing 75,000 bpd or less and suffered "disproportionate economic hardship" from the costs of RFS compliance. The waiver frees the refineries from an obligation to provide the EPA with biofuels credits proving compliance. Under the now vanquished administrator Greg Pruitt's direction, the EPA handed out 54 exemptions over two years and not a single request for an exemption was denied. (Source: Fox News, Various Other Media, 2 Oct., 2019)
More Low-Carbon Energy News Trump, RFS, "Hardship" Waiver, Biofuel Blend,
Under the plan, the EPA will calculate a three-year rolling average of total biofuels gallons exempted under its Small Refinery Exemption program and add that figure to its annual biofuel blending quotas each year -- about 1.35 billion gallons in 2020. That would come in addition to a tentative agreement to boost 2020 blending volumes by 1 billion gallons, including 500 million gallons for conventional biofuels like corn-based ethanol and 500 million gallons for advanced biofuels like biodiesel, according to the Reuters report.
As previously noted, "hardship waivers" were intended for refineries producing 75,000 bpd or less and suffered "disproportionate economic hardship" from the costs of RFS compliance. The waiver frees the refineries from an obligation to provide the EPA with biofuels credits proving compliance. Under the now vanquished administrator Greg Pruitt's direction, the EPA handed out 54 exemptions over two years and not a single request for an exemption was denied. (Source: Reuters, Various Media, 16 Sept., 2019)
More Low-Carbon Energy News RFS, "Hardship" Waiver, Ethanol Blend,
Soybean oil is the most commonly used vegetable oil for biodiesel production, and inputs reached 7.1 billion pounds during the latest soybean oil marketing year which ran from Oct. 1, 2017, to Sept. 30, 2018.
Between marketing year 2010-2011 and marketing year 2017-2018, U.S. domestic biodiesel production grew from 700 million gpy to 1.8 billion gpy.
The production increase was largely driven by the Renewable Fuel Standard (RFS) biofuel blending mandate.
(Source: US EIA, Xinhua, 8 May, 2019)
More Low-Carbon Energy News US EIA, Soybean, Soybean Oil, BiodieselBiofuel,
The new biofuel facility will create a new market cash flow for Punjab farmers as well as support the national government's biofuel blending and air quality targets.
(Source: Energy InfraPost, 12 Feb., 2019) Contact: Virgo Corporation, +91 11 43588335-37,
+91 11 43588338 - fax, virgo@vsnl.com, www.virgogroup.com
More Low-Carbon Energy News Virgo Corporation, India Biofuel, Biofuel,
In 2019, the minimum blending rate for biodiesel and ethanol was 7.5 pct. The bleand rate target for 2030 is 15 pct. (Source: Various Media,Renewables Now, 10 Jan., 2019)
More Low-Carbon Energy News Biofuel Blend,
For the 2017 compliance year, the EPA has received 37 small refinery petitions, up from the 36 it had received as of Nov. 10. Twenty-nine of the 37 petitions have been approved , 7 ar pending and 1 was withdrawn. The 29 approved petitions exempted 13.62 billion gallons of gasoline and diesel from meeting the RFS blending targets.
Under the RFS, oil refiners must increasingly blend ethanol and other biofuels into their fuel each year or purchase blending credits from those that do. The 2005 regulation was intended to help farmers and to cut fuel imports. But small oil refineries can be exempted from the standard if they prove compliance would cause disproportionate hardship. The EPA granted 29 waivers for the 2017 compliance year, up from 14 in 2015 and 20 in 2016. (Source: EPA, Dec. 20, 2018)
More Low-Carbon Energy News Renewable Fuel Standard, Hardship Waiver, Biofuel Blending,
Under the RFS, oil refiners must increasingly blend ethanol and other biofuels into their fuel each year or purchase blending credits from those that do. The 2005 regulation was intended to help farmers and to cut fuel imports.
But small oil refineries can be exempted from the standard if they prove compliance would cause disproportionate hardship. The EPA granted 29 waivers for the 2017 compliance year, up from 14 in 2015 and 20 in 2016. (Source: Various Media, 28 Nov., 2018)
More Low-Carbon Energy News Renewable Fuels Standard, Hardship Waiver, Ethanol, Biofuel Blend,
The EPA had proposed requiring refiners to blend 19.88 billion gallons of biofuels next year, a 3.1 pct increase over current quotas. That target included a 15 billion gallon quota for corn-based ethanol and other conventional renewable fuels, the maximum allowed under federal law and the same amount required in 2018. The agency also is set to finalize a 2020 requirement for using biodiesel, after proposing a 15.7 pct increase in the target.
The EPA reportedly plans to establish new biofuel blending targets for 2020 through 2022 and is poised to lower congressional goals for cellulosic biofuels as part of the RFS "reset" process. (Source: EPA, Bloomberg, Farm Journal, 27 Nov., 2018)
More Low-Carbon Energy News RFS news, Biofuel Blend news, Cellulosic news,
In a joint letter, the groups stress that small-refinery waivers have given refiners "exactly what they asked for: artificially low RIN (renewable identification numbers) credit prices and weaker biofuel blending requirements." Ethanol RIN prices have been trading between 20 and 30 cents since May as a result of the waivers, or a decrease of about 80 pct since last fall, the groups said.
Read the letter HERE. (Source: RFA, DTN/Progressive Farmer , Others, 12 Sept., 2018)
More Low-Carbon Energy News Ethanol, "Hardship Waiver", RFS,
As previously reported, "hardship" waivers were intended for small refineries producing 75,000 bpd or less and thos that suffered "disproportionate economic hardship" from the costs of RFS compliance. The waiver frees the refineries from an obligation to provide the EPA with biofuels credits proving compliance.
(Source: WSAU, Reuters, 20 June, 2018)
More Low-Carbon Energy News RFS, EPA, Hardship waiver, Hardship Exemption,