Americans for Clean Energy
Date: 2020-03-27
Further to our 20th Jan. coverage, a coalition of the Renewable Fuels Association, National Corn Growers Association, American Coalition for Ethanol and National Farmers Union released the following statement:

"We are pleased the Trump administration has decided not to side with oil refiners in seeking a re-hearing of this unambiguous and well-reasoned court decision in the Tenth Circuit. We trust this also means the administration does not plan to petition the Supreme Court for an appeal. Abiding by the court's ruling is the right thing to do at a time when our industries and rural America are already suffering from the effects of COVID-19, the Saudi-Russia oil price war and ongoing trade disputes.

"We look to the RFS as a source of demand stability and certainty, especially in these troubling times. Requesting a re-hearing would have only prolonged uncertainty in the marketplace and exacerbated the pain and frustration already being experienced in the Heartland.

"With this key milestone now behind us, we look forward to EPA applying the Tenth Circuit decision nationwide to all SRE (small refiner exemption) petitions, beginning with the 25 pending petitions for 2019 exemptions."

The coalition also noted that fully restoring the integrity of the RFS means immediate action to restore 500 million gallons of inappropriately waived 2016 blending requirements, as ordered by the U.S. Court of Appeals for the D.C. District in 2017. (Source: Various Media, The Fence Post, 25 Mar., 2020) Contact: Renewable Fuels Association, Geoff Cooper, (202) 289-3835, www.ethanolrfa.org; American Coalition for Ethanol, Brian Jennings, CEO, (605) 334-3381 ext. 3389, www.ethanol.org; National Farmers Union, Roger Johnson, Pres., (202) 554-1600, www.nfu.org; NCGA, (636) 733-9004, (636) 733-9005 -fax, corninfo@ncga.com, www.ncga.com

More Low-Carbon Energy News RFS,  Americans for Clean Energy,  RFS "Hardship" ,  Waivers,  Renewable Fuels Associatio,  National Farmers Union,  National Corn Growers Association,  American Coalition for Ethanol,  

American Coalition for Ethanol
Date: 2020-03-20
With the need for a decision only days away, the Renewable Fuels Association, National Corn Growers Association, American Coalition for Ethanol and National Farmers Union -- the coalition that scored a unanimous court decision against the U.S. EPA -- is now calling for the agency to not appeal the decision.

The coalition took the EPA to court and won over several "hardship" exemptions the EPA granted to small refineries, releasing them from their renewable fuel obligations in 2016 and 2017. The Trump Administration sought and secured an extension of the appeal deadline until Tuesday, March 24, this year.

"With the renewable fuels industry reeling from coronavirus, trade disputes and small refinery exemptions, now is certainly not the time for the Trump administration to take any action that would cause further pain for ethanol producers or the farmers that supply them. The best thing they could do to support our industry and keep ethanol plants open is to announce immediately that they will not appeal," the coalition wrote.

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: American Coalition for Ethanol , Various Trade Media, 18 March 2020) Contact: 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; American Coalition for Ethanol, Brian Jennings, CEO, (605) 334-3381 ext. 3389, www.ethanol.org

More Low-Carbon Energy News American Coalition for Ethanol,  RFS,  "Hardship Wiver",  Renewable Fuel ,  

Renewable Fuel
Date: 2020-02-28
Reuters is reporting U.S. renewable fuel prices were up by 25 pct the week following a Bloomberg reports that the Trump administration has decided to cut back on "hardship waiver" exemptions for oil refineries from the renewable fuel standard biofuel blending laws.

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,  

USDA
Date: 2020-02-24
"When the U.S. Department of Agriculture (USDA) announced its 'innovation agenda' to align USDA's resources, programs, and research to help the agriculture industry meet the 'climate demands of the future' the first reaction at Citizens Against Government Waste (CAGW) is that this looks and sounds far too much like more taxpayers subsidies for programs that already exist. According to an April 30, 2018 Government Accountability Office report, the Office of Management and Budget found $13.2 billion in climate change funding across 19 agencies in 2017. The GAO reviewed six agencies and found that 94 pct of their reported climate change funding went to programs that touch on, but aren't dedicated to climate change, such as nuclear energy research. The government should determine whether those are effective and consolidate or terminate ones that are not before creating costly new mandates and programs.

"The plan to reach 30 pct for biofuels in 2050 is especially troubling. The USDA's historic approach to 'market-driven blend rates' has been to aggressively pursue unachievable biofuel mandates that put manufacturing jobs at risk, result in more emissions and create a reliance on foreign fuels. Ethanol is cheaper than gasoline and does not need a mandate. If the USDA is truly interested in 'market driven' approaches, it should advocate eliminating the renewable fuel standard (RFS) so that renewable energy can economically compete on its own, rather than trying to promote mandates that drive quantities of ethanol-laced fuels that consumers may not want, while putting jobs at risk and raising costs at the pump. In fact, the blend rate is gradually increasing despite falling renewable identification numbers and small refinery exemptions. This shows that ethanol is economic on its own and that markets, not mandates, should determine our nation's fuel mix.

"Calling for a 30 pct biofuels goal for 2050 is not something that should be coming out of the Trump administration. It sounds like an objective of the $93 trillion Green New Deal which President Trump and every free market and taxpayers group including CAGW has said is both unachievable and devastating to the economy. The USDA should withdraw its proposal and the RFS should be eliminated."(Source: The Waste Watcher - Against Government Waste , 21 Feb. 2020) Contact: The Waste Watcher -Against Government Waste www.cagw.org

More Low-Carbon Energy News USDA,  Biofuel Blend,  RFS,  

Growth Energy
Date: 2020-02-24
"We applaud USDA for setting these clear goals for E15 (by 2030) and E30 (by 2050) and Growth Energy's members are ready to deliver ahead of their timetable. Biofuels are a critical piece of meeting the demands of our future transportation needs while lowering our carbon footprint.

"Today's recognition by USDA and Secretary Perdue's unwavering support will help drive biofuel innovation in the coming years and decades. We look forward to continuing our longstanding working relationship with USDA to ensure that Americans across the country have expanded access to cleaner fuels like E15 and E30 at the pump."

Growth Energy is the leading biofuel trade association in the country. We represent producers and supporters of ethanol who are working to bring consumers better choices at the fuel pump, grow America's economy, and improve the environment for future generations. Our growing membership base now represents nearly half of all American ethanol plants along with many of the largest and most prominent fuel retailers in the country and the industry's top associate members whose businesses support the ethanol industry, according to the Growth Energy website.(Source: Growth Energy, 21 Feb., 2020) Contact: Growth Energy, Emily Skor, CEO, Elizabeth Funderburk, (202) 545-4000, EFunderburk@GrowthEnergy.org, www.growthenergy.org

More Low-Carbon Energy News USDA,  Growth Energy,  Biofuel,  Biofuel Blens,  RFS,  

USDA
Date: 2020-02-21
In Washington, as part of a new department-wide sustainability initiative the USDA is reported to have announced a goal for biofuels to make up 30 pct of U.S. transportation fuels by 2050.

Under the Renewable Fuels Standard (RFS) refineries are presently required to blend 20.09 billion gallons of biofuel in 2020 – roughly 10 pct of projected crude oil production, according to the U.S. Energy Information Administration. (Source: KLO, Various Media, Reuters, 20 Feb., 2020)

More Low-Carbon Energy News USDA news,  RFS news,  Ethanol news,  Ethanol Blend news,  

Green Plains Inc
Date: 2020-02-12
Omaha-headquartered ethanol producer Green Plains Inc. reports it will invest $400 million over the next two years to refocus its business on the production of corn-based, high protein animal feeds at its various production facilities. With this refocusing, ethanol will become a low-margin byproduct for the company.

According to Reuters, the company's new game plan is in response to an uncertain ethanol market outlook, the Trump administration's continued issuance of RFS ethanol blending "hardship waivers" and an almost 20 pct drop in revenues from ethanol sales in 2019.

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 waiver request for an exemption was denied. (Source: Green Plains, Successful Farming, Feb., 2020)Contact: Green Plains, Jim Stark, VP-IR, (402) 884-8700, www.gpreinc.com

More Low-Carbon Energy News Green Plains Inc.,  DDGs,  Ethanol,  RFS,  

Oberon Fuels,SHV Energy
Date: 2020-02-12
San Diego-based ultra-low-carbon, renewable dimethyl ether (rDME) transportation fuel producer Oberon Fuels reports it is partnering with the Netherlands-headquartered global propane fuel distributor SHV Energy to accelerate the use of renewable DME to reduce the carbon footprint of transportation fuel. The two firms will collaborate on: further developing DME fueling infrastructure and vehicle development; using SHV Energy's technical resources to test the use of rDME blended with propane, and; using SHV's global distribution network to facilitate greater use of rDME in numerous energy applications worldwide.

Oberon Fuels, which raised over $30 million in private funding since 2010, received $2.9 million in California grant funding to upgrade its existing DME pilot facility to demonstration scale and facilitate -- the first production of rDME in the U.S., with a target production capacity of approximately 1.6 million gpy of DME.

DME is approved as a renewable fuel under the U.S. EPA Renewable Fuels Standard (RFS), and is eligible for RIN credits when made from biogas by the Oberon process. California Air Resources Board (CARB) has estimated that dairy manure converted to DME by the Oberon process has a CI of -278 gCO2e/MJ compared to ultra-low-sulfur diesel which has a CI of 100 gCO2e/MJ, according to the company. (Source: Oberon Fuels, PR, Feb., 2020) Contact: Oberon Fuels, Ruben Martin, CEO, 619.255.9361, 619.756.6470 - fax, info@oberonfuels.com www.obersonfuels.com; SHV Energy, Bram Graber, CEO, +31 (0) 23 5555 700, +31 (0) 23 5555 701 - fax., www.shvenergy.com

More Low-Carbon Energy News Oberon Fuels,  SHV Energy,  

Renewable Fuels Association
Date: 2020-02-07
New analysis from the Renewable Fuels Association (RFA) has revealed that around 500 million gallons of E15, a blend of 15% ethanol fuel, were sold across the US I 2019, setting a new record. The review, carried out by, extrapolated the Minnesota data nationally, finding that 499 million gallons of E15 were sold in 2019. This volume contained 75 million gallons of ethanol.

The data also suggests that the impact of small refinery "hardship" waivers under the RFS took a toll on the industry. On a per-station basis, sales of E15 were lower in the first few months of 2019 than during the same period the year before. This change can be attributed to the fact that the EPA granted numerous exemptions under the RFS to small refineries, causing the price of RFS compliance credits (RINs) to fall. thus reducing the incentive for retailers to offer blends of fuel with higher ethanol content, reducing their ability to discount higher blends relative to gasoline.

The full RFA analysis is HERE (Source: RFA, 4 Feb., 2020) Contact: RFA, Scott Richman, Economist, (202) 289-3835, www.ethanolrfa.org

More Low-Carbon Energy News Renewable Fuels Association,  RFA,  Ethanol,  Ethanol Blend,  

Renewable Fuels Association
Date: 2020-01-29
Further to Monday, 27 Jan. coverage -- Court Disqualifies Recent RFS "Hardship" Waivers -- the Renewable Fuels Association (RFA) and other biofuel industry groups are praising the 10th Circuit Court of Appeals ruling striking down three small refinery "hardship" exemption waivers.

The court ruled the EPA cannot "extend” exemptions to any small refineries whose earlier, temporary exemptions had lapsed" as was the case in the three over ruled exemptions.

Geoff Cooper, President and CEO of the Renewable Fuels Association (RFA)noted: "The Court has affirmed our long-held position that EPA's recent practices and policies regarding small refinery exemption extensions were completely unlawful. And while the decision addresses three specific exemptions, the statutory interpretation issues resolved by the court apply much more broadly."

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: Various Media, Agri-Pulse, 28 Jan., 2020) Contact: Renewable Fuels Association, Geoff Cooper, (202) 289-3835, www.ethanolrfa.org

More Low-Carbon Energy News Renewable Fuels Association,  RFA,  RFS,  "Hardship" Waiver,  Ethanol Blend,  

Renewable Fuel Standard
Date: 2020-01-27
It is being widely reported that a U.S. appeals court has ordered the EPA to reconsider three recently issued Renewable Fuel Standard small refinery "hardship waivers" on the grounds that the refineries did not qualify for the waivers and their issuance was "flawed."

The U.S. Court of Appeals for the 10th Circuit dated Jan. 24 came after a coalition of biofuel industry groups had challenged the 2016 exemptions for Holly Frontier's Woods Cross and Cheyenne refineries, as well as CVR Energy's Wynewood refinery.

The court ruled the EPA overstepped its authority and errored in granting the waivers because the refineries had not received exemptions in the previous year. The court said the RFS is worded in such a way that any exemption granted to a small refinery after 2010 must take the form of an "extension".

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 (Source: Successful Farming, Various Media, Reuters, 25 Jan., 2020)

More Low-Carbon Energy News RFS,  Renewable Fuel Standard,  "Hardship" Waiver,  

RFS,U.S. Government Accountability Office
Date: 2020-01-15
On Capitol Hill, the Government Accountability Office (GAO) has replied in the affirmative to a request from bi-partisan group of U.S House members led by Rep. Abby Finkenauer, (D-Iowa) -- Chairwoman, Subcommittee on Rural Development, Agriculture, Trade, and Entrepreneurship Committee on Small Business House of Representative -- urging the agency to examine the review and approval of small refinery exemptions (SREs), including the DOE's viability of scores for the 40 compliance year 2018 SRE applications that had been reviewed as of that date.

In its Jan. 10 reply, the GAO accepted the request as being within the scope of its authority and assigned Mark E. Gaffigan, managing director of Natural Resources and Environment to begin the investigation shortly.

"Granting more than 80 small refinery exemption waivers isn't just something this administration can sweep under the rug," Finkenauer said in a statement announcing the GAO investigation.

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: Office of US Rep. Abby Finkenaur, 10 Jan., 2020) Contact: Office of US Rep. Abby Finkenaur , https://finkenauer.house.gov/sites/finkenauer.house.gov; U.S. Government Accountability Office, (202) 512-3000, contact@gao.gov, www.gao.gov

More Low-Carbon Energy News Renewable Fuel Standard,  "Hardship" Waiver,  

Suncor Energy
Date: 2020-01-08
Denver-based Suncor Energy U.S.A. Inc., a unit of Calgary, Alberta-based Suncor Energy, reports it has filed an appeal of the US EPA's October 2019 decision in the U.S. Court of Appeals for the 10th Circuit in Denver. The agency recently finalized a rule designed to account for biofuel gallons waived from the Renewable Fuel Standard (RFS).

In its appeal, Suncor, which received waivers for what were previously two refineries in Commerce City, Colorado, argued the agency's action was "arbitrary, capricious, and not otherwise in accordance with law." The EPA reportedly rejected Suncor's petition because the refineries no longer meet EPA's definition of a small refinery, which produces 75,000 bpd or less. Suncor previously received waivers for what were two small refineries, one that produced nearly 33,000 bpd and another at nearly 67,000 in 2018. The refineries were among the original facilities to receive waivers in 2006.

According to the company's website, since 2006, Suncor has been making a significant impact in Canada's emerging biofuels industry. Suncor is using revenues from oil sands development to invest in biofuels, particularly ethanol produced from corn. Ethanol is a cleaner burning, renewable resource. The ethanol production industry is expanding in Canada and the United States. New government regulations require that a percentage of ethanol be blended into fuels to reduce the environmental impacts of vehicle emissions. Suncor operates Canada's largest ethanol facility -- the St. Clair Ethanol Plant in the Sarnia-Lambton region of Ontario. (Source: Suncor Energy, DTN, 6 Jan., 2019) Contact: Suncor Energy USA, 303-793-8000, www.suncor.com

More Low-Carbon Energy News Suncor Energy ,  RFS,  "Hardship Waiver",  

Valero Energy ,American Fuel and Petrochemical Manufacturers
Date: 2020-01-08
San Antonio-headquartered Valero Energy Corp., the second-largest U.S. oil processor by capacity, and the American Fuel and Petrochemical Manufacturers organization have filed a court petition asking the U.S. Supreme Court to determine whether the U.S. EPA is required to consider petitions to change the "point of obligation" under the Clean Air Act's Renewable Fuel Standard.

The petition notes: "The Clean Air Act's Renewable Fuel Standard (RFS) program requires EPA to undertake annual notice-and-comment rule making to determine a 'renewable fuel obligation' for the nation's transportation fuel supply. The first of three annual 'required elements' is to determine the point of obligation -- i.e., to ensure that the obligation shall be applicable to refineries, blenders, and importers, as appropriate. EPA admits that it initially placed the point of obligation on refineries and importers, but not blenders, for reasons of administrative convenience. EPA has repeatedly refused to re-examine that placement in annual rule making, and it denied petitions for rule making seeking reconsideration out-side the statutorily-mandated annual assessment."

The petition specifically questions: whether the requirement that EPA "shall" make a "calendar year" determination of the "appropriate" point of obligation requires EPA to consider in each annual rule whether the point of obligation remains appropriate.The petition also questions whether EPA can evade the annual duty by partitioning the point of obligation into a one-time collateral proceeding that ignores key evidence,relies primarily on the agency's own convenience, and claims more deference from a reviewing court than an annual rule would receive. (Source: AFPM Website, Valero Energy, Ethanol Producer, 6 May, 2019) Contact: American Fuel and Petrochemical Manufacturers, www.afpm.org; Valero Renewable Fuels, Joe Gorder, Pres., (800) 324-8464, www.valero.com

More Low-Carbon Energy News American Fuel and Petrochemical Manufacturers ,  RFS,  Point of Obligation,  Valero Energy ,  

USDA
Date: 2020-01-03
The USDA Rural Business-Cooperative Service has released a final rule for the Advanced Biofuel Payment Program. The program provides quarterly payments to producers of eligible advanced biofuels. To be eligible for payments, the advanced biofuels produced must be derived from renewable biomass other than corn kernel starch at a biorefinery located in the U.S.

Download the full Advanced Biofuel Payment Program HERE (Source: USDA Rural Business-Cooperative Service, USDA, 27 Dec., 2019) Contact: Rural Business-Cooperative Service, Bette Brand, Admin., (202) 690-4730, 202-690-4737 - fax., www.rd.usda.gov

More Low-Carbon Energy News USDA,  RFS,  Advanced Biofuel,  

National Biodiesel Board
Date: 2020-01-03
Each year the NBB conducts online surveys of U.S. voters to track trends and gauge awareness of biodiesel. This year the poll gathered responses from 1,064 registered voters nationwide and showed consistent results with prior polling from 2017 and 2018. Among this years survey findings:

54 pct of 2019 respondents had a positive impressions of biodiese, 44 pct had no impression and 3 pct negative;

57 pct of respondents agreed that federal policy should encourage use of biodiesel and renewable diesel; Nearly 80 pct expressed support for existing federal programs that encourage increased production and use of advanced biofuels;

78 pct of respondents support the federal tax incentive for biodiesel, 79 pct support the Renewable Fuel Standard (RFS), 79 pct of respondents would encourage local communities and governments to promote use of biodiesel.

83 pct of respondents agreed that the government should "stand with American workers, manufacturers, rural economies and businesses" to support a clean fuels industry and "follow the law to implement an existing mandate that creates jobs and economic development across the country." (Source: National Biodiesel Board, 31 Dec., 2019) Contact: NBB, Kaleb Little, Dir. Communications, Kurt Kovarik, VP Federal Affairs, (800) 841-5849, www.biodiesel.org

More Low-Carbon Energy News National Biodiesel Board,  Biodiesel,  

Date: 2019-12-31
that merely estimates future small refinery waivers based on DOE recommendations, according to Iowa Corn Growers Association. ICGA supports a simple, mathematical solution by averaging the past three years of actual waivers granted, then adding those gallons back into the RFS. ICGA’s supported resolution would have created market certainty, so as not to rely on the EPA or DOE Administrators for their annual decisions. “Apparently President Trump doesn’t care about his promise to Iowa’s farmers. He had the opportunity to tell his EPA to stick to the deal that was made on Oct. 4,” said ICGA President Jim Greif. “I can say for certain that ICGA pushed for a positive outcome, and we didn’t go down without a fight.” “The Environmental Protection Agency seems to be more concerned with politics than cleaner-burning, healthy air with renewable fuels. It was as simple as following the original Oct. 4 agreement with our elected officials and here we are with empty promises and no market certainty,” said Kelly Nieuwenhuis, ICGA member from Primghar and Chair of the Iowa Corn Industrial Usage and U.S. Production committee. During the comment period for the supplemental rule, ICGA sent out two calls to action with one directed at the EPA and the other at the President. Altogether the calls to action gathered over 1,000 farmer comments. Additionally, ICGA held a press conference along with other biofuels groups, worked with our entire delegation of public leaders, as well as attended roundtables, townhall meetings and EPA’s public hearing in Ypsilanti, Michigan. The final push was a meeting by ICGA with the director of the U.S. National Economic Council, Larry Kudlow, at the White House earlier this week. (Source: High Plains Journal, 29 Dec. 2019)

Renewable Volume Obligations
Date: 2019-12-30
The High Plains Journal is reporting corn growers and renewable fuel standard (RFS) advocates were more then a little disappointed by the recent EPA Renewable Volume Obligations (RVO) rule as signed on Dec. 19 by EPA Administrator Andrew Wheeler.

"I'm disappointed the EPA chose to ignore the concerns voiced by renewable fuels producers, farmers and consumers. The flawed formula used to account for waived gallons creates unnecessary uncertainty in our markets, detrimental to so many across rural America. We must continue to work together to hold the EPA accountable for ensuring the 15 billion gallons mandated by the RFS are met. We must also continue to invest in infrastructure that builds demand and increases the availability of higher blends of biodiesel and ethanol across the state of Iowa."-- Mike Naig, Iowa Secretary of Agriculture, Iowa Department of Agriculture and Land Stewardship

The Iowa Department of Agriculture and Land Stewardship administers the Iowa Renewable Fuel Infrastructure program, which offers cost-share grants to help fuel retailers install infrastructure to increase the availability of ethanol and biodiesel. To date, the program has distributed or obligated over $33 million with $200 million added in private economic activity. (Source: Iowa Department of Agriculture, High Plains Journal, 29 Dec. 2019) Contact: Iowa Department of Agriculture and Land Stewardship, Mike Naig, Sec., 515-281-5321, www.iowaagriculture.gov

More Low-Carbon Energy News ANdrew Wheeler,  Renewable Volume Obligations,  RVO,   RFS,  "Hardship" Waiver,  Ethanol.Ethanol Blend,  EIA,  

Illinois Farm Bureau
Date: 2019-12-23
"Illinois farmers expected more than what EPA managed to deliver in its final supplemental rule. More than 1,600 Farm Bureau members told the agency in person and in writing that maintaining the integrity of the RFS only occurs by replacing each and every gallon in the annual Renewable Volume Obligation (RVO) that is waived for the benefit of small oil refiners. The EPA seems to be missing a real opportunity to rebuild trust with farmers and the biofuels industry.

"IFB also urges USDA to move quickly on an infrastructure package to accommodate higher blend levels."

The Illinois Farm Bureau (IFB) represents 75 pct of the state's farmers with membership of more than 386,291 and a voting membership of 79,159. Illinois is the nation's third-largest producer of ethanol with roughly 75 pct of it corn production being converted into ethanol. (Source: Illinois Farm Bureau, 21 Dec., 2019) Contact: Illinois Farm Bureau , t Richard Guebert, Jr, Pres. www.ilfb.org

More Low-Carbon Energy News RFS,  Biofuel,  Ethanol Blend,  USDA,  US DOE,  Renewable Volume Obligation ,  

RFS,EPA,National Farmers Union
Date: 2019-12-23
In Washington, the US EPA's just released final renewable volume obligations (RVOs) under the Renewable Fuel Standard (RFS) for the year 2020 is already drawing flak.

As outlined, RVOs will account for a portion of the 4 billion gallons of demand for biofuels eliminated over the past three years due to the rampant misappropriation of small refinery "financial hardship" sexemptions (SREs). Rather than determine relief using an actual three-year average of exempted gallons, the agency has instead used much lower values recommended by the DOE The former would have increased the amount of biofuels in the transportation sector by approximately 1.35 billion gpy, while the latter will increase it by just 770 million gpy.

National Farmers Union (NFU), a strong proponent of biofuels and the RFS, reports it was disappointed with EPA's proposal when it was first released and urged the agency to account for all 4 billion gallons worth of demand in the final rule. In a statement, NFU Vice President of Public Policy and Communications Rob Larew restated the organization's mounting frustration with the administration's destructive approach to biofuels policy.

The NFU NFU represents more then 200,000 family farmers, fishers and ranchers across the country, with formally organized divisions in 33 states. (Source: National Farmers Union, Aberdeen News, 20 Dec., 2019) Contact: National Farmers Union, Roger Johnson, Pres., (202) 554-1600, www.nfu.org

More Low-Carbon Energy News RFS,  EPA,  National Farmers Union,  

Renewable Fuel Standard
Date: 2019-12-20
Reuters is reporting the Trump administration plans to stick with its proposed 2020 Renewable Volume Obligations (RVO) biofuel blending requirements as proposed in October, despite the farming sector's complaint that the plan does too little for corn growers.

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,  

RFS
Date: 2019-12-06
Last week, The Milwaukee-based Association of Equipment Manufacturer (AEM) filed the following comments with the EPA urging them to support American agricultural equipment manufacturing jobs by reallocating Renewable Fuel Standard gallons lost through small refinery exemptions (SREs).

"The current EPA proposal would base the number of reallocated gallons on Department of Energy (DOE) recommendations, not actual gallons waived. Basing the three-year average of waived gallons on DOE recommendations is an illogical approach that hurts our nation's farmers. Using the DOE recommendations results in 770 million gallons of reallocated biofuels. However, this is far short of the 1.36 billion three-year average when based on actual gallons lost -- a difference of 590 million gallons. Failure to reallocate real gallons lost would reduce corn demand in 2020 by 210 million bushels.

"The current EPA proposal on gallon reallocation will hurt both farmers and equipment manufacturers. A modified proposal to properly reallocate gallons keeps the Administration's promise to our industries, and it also supports an environmentally friendly solution that strengthens our energy independence. Additionally, increased ethanol sales will benefit farmers, equipment manufacturers, and the greater U.S. economy. We encourage the EPA to base reallocated gallons on the real numbers, instead of a short-sighted, bureaucratic recommendation.

"With commodity prices already low and the link between farm income and equipment sales well established, AEM strongly encourages the EPA to address our concerns." (Source: AEM, PR, 5 dec., 2019) (Source: AEM, Dennis Slater, Pres., Nick Tindall, (414) 272-0943 ntindall@aem.org, www.aem.org

More Low-Carbon Energy News Renewable Fuel Standard,  "Hardship" Waiver,  

POET, Poet-DSM
Date: 2019-11-22
Sioux Falls, South Dakota-based POET-DSM Advanced Biofuel reports it is temporarily halting production of cellulosic biofuels at its Emmetsburg, Iowa, facility due in part to the uncertainties surrounding the EPA's Renewable Fuel Standard (RFS) policies.

The company, a 50/50 joint venture between Royal DSM and POET, LLC., will now focus on R&D aimed at improving mechanical reliability, creating additional technological efficiencies and licensing technologies in countries that support the use of low carbon fuels from crop residue and other biomass, according to the company. (Source: Poet-DSM, Biofuels 20 Nov., 2019) Contact: POET-DSM Advanced Biofuels, Steve Hartig, General Manager, (630) 780-8171, steve.hartig@dsm.com, www.poetdsm.com

More Low-Carbon Energy News Project Liberty,  POET,  Poet-DSM,  Cellulosic Biofuel,  Advanced Biofuel,  

Advanced Biofuels Association
Date: 2019-11-15
Following up on our 26th April coverage, the Washington, D.C., District Court of Appeals has dismissed the Advance Biofuels Association's (ABA) lawsuit challenging the EPA's use of small refinery exemptions on the grounds that the ABA failed to "identify a final agency action."

In its suit, the ABA claimed the EPA was exceeding its authority when it granted a larger number of waivers under the Renewable Fuels Standard (RFS) to small oil refineries. The court did, however, note "the EPA's briefing and oral argument paint a troubling picture of intentionally shrouded and hidden agency law that could have left those troubled by the agency's actions without a viable avenue for judicial review."

Since 2016, the EPA has granted a total of 85 waivers accounting for 4.04 billion gallons of biofuels that were not blended into the nation's fuel supply.

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: Various Media, NAFB News Service, 13 Nov., 2019) Contact: Advanced Biofuels Association, www.advancedbiofuelsassociation.com

More Low-Carbon Energy News Advanced Biofuels Association,  EPA RFS,  RFS Waiver ,  

Grassley,RFS
Date: 2019-11-08
"As the number one producer of corn, ethanol, biodiesel and cellulosic ethanol, the renewable fuels industry is an important sector of Iowa's economy. It generates nearly $5 billion of Iowa's GDP, over $2.4 billion in household incomes and supports 47,000 jobs across Iowa.

"President Trump made a commitment to Iowa and other biofuels producing states, and I look forward to seeing this promise fulfilled. The EPA shouldn't undercut President Trump's support of the Renewable Fuels Standard. I urge EPA to adjust the proposed supplemental rule to account for actual waived gallons using hard data from past practice to provide certainty to the marketplace." -- Sen. Chuck Grassley (R-Iowa) in a letter to EPA Dir. Wheeler this week on the EPA's proposed supplemental rule on the Renewable Fuel Standard. Contact: Sen. Chuck Grassley (R-Iowa), www.grassley.senate.gov

More Low-Carbon Energy News Grassley,  RFS,  Ethanol,  

Growth Energy, EPA, RFS
Date: 2019-11-01
In testimony before the US EPA on the agency's proposed supplemental rule on 2020 biofuel targets under the Renewable Fuel Standard (RFS) Growth Energy CEO Emily Skor called on EPA to fix this flawed draft proposal and reverse the demand destruction that has shuttered biofuel plants across the heartland. "As drafted, EPA's plan fails to accurately account for lost gallons and betrays President Trump's promise to rural America. It cuts the fix we were promised in half, if not more, and destroys what may be our last chance to bring back the ethanol plants that have shut down and help ease the burden facing American farmers," Skor said.

To begin repairing the damage, Skor called on the EPA to uphold the president's commitment to farmers and biofuel workers. "Midwestern lawmakers and governors have seen the damage firsthand and worked with the president to secure a deal that would start to undo the damage -- a deal that would honor this administration's commitments to farmers, biofuel producers, rural America, as well as small refineries. But instead, the EPA has undercut the president's promise and has yet again tilted the table in favor of the nation's largest oil companies -- all at the expense of the American farmer," Skor said.

Skor urged regulators to use the rolling average of actual exempted volumes from the three most recently completed compliance years in the final rule, as promised by the administration. She also called on the agency to formally bind itself to the revised methodology for future years and expedite work to remove additional barriers to the sale of E15. "EPA must fix this rule immediately by properly accounting for exempted gallons and restoring lost demand. American biofuel producers and farmers cannot afford anything less," concluded Skor. (Source: growth Energy, PR, 30 Oct., 2019)Contact: Growth Energy, Emily Skor, CEO, Elizabeth Funderburk, (202) 545-4000, EFunderburk@GrowthEnergy.org, www.growthenergy.org

More Low-Carbon Energy News RFS,  Growth Energy,  

Siouxland Energy
Date: 2019-11-01
Following up on our 16th September coverage, Siouxland Energy Cooperative reports its 88 million gpy ethanol plant in Sioux Center, Iowa, is back in production at 50 pct capacity thanks to a carbon emissions-linked ratings system in California that put a greater premium on their product. As previously reported, the plant began a "hot idle" Sept. 9, the first such extended shutdown since it opened in 2000.

Earlier this week in Washington, Siouxland CEO Kelly Nieuwenhuis told a House panel that the "EPA's abuse of small refinery exemptions under the RFS is crippling rural America." (Source: Siouxland Energy Cooperative, Sioux City Journal, 30 Oct., 2019) Contact: Siouxland Energy Cooperative, Kelly Nieuwenhuis, CEO, 712-722-4904, www.siouxlandenergy.com

More Low-Carbon Energy News Siouxland Energy ,  Ethanol,  

Carbon Emissions
Date: 2019-10-28
According to a report in Airdrei Today, scientist have found Arctic soil has warmed to the point where it releases more carbon in winter than northern plants can absorb during the summer. The finding means the extensive belt of tundra around the globe -- a vast reserve of carbon that dwarfs what's held in the atmosphere -- is becoming a source of greenhouse gas emissions responsible for climate change.

Until recently, scientists assumed the microbial processes that release methane and CO2 from permafrost came to a halt in the cold. With this study, scientist found CO2 emissions of about 1.7 billion tpy -- twice the previous estimates -- just over one 1 billion tpy of CO2 Arctic plants are thought to take in from the atmosphere during growing season. The net result is that Arctic soil around the globe is probably already releasing more than 600 million tpy of CO2.

Under a business-as-usual scenario, emissions from northern soil would be likely to release 41 pct more carbon by the end of the century, even if significant mitigation efforts are made, those emissions will increase by 17 pct, said the report. (Source: Airdrie Today, Canadian Press, 22 Oct., 2019)

More Low-Carbon Energy News CO2,  Carbon Emissions,  

Growth Energy, U.S. Grains Council,Renewable Fuels Association
Date: 2019-10-25
Previously this week in Washington, a coalition of the American Coalition for Ethanol, Growth Energy, National Biodiesel Board, National Corn Growers Association, National Farmers Union, and Renewable Fuels Association filed a petition with the Court of Appeals for the District of Columbia Circuit, challenging the process by which the U.S. EPA issue economic "hardship waivers" to over 30 small refineries from their respective Renewable Fuel Standard (RFS) biofuel blending obligations for 2018.

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,  

EPA, Renewable fuel Standard
Date: 2019-10-21
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 Department of Energy (DOE), 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 we calculate 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 Renewable Fuel Standard,  Biofuel,  Biofuel Blend,  

RFS
Date: 2019-10-21
"All along, I've said what farmers and biofuels producers want is what was promised by Congress. And that's adhering to the biofuels blending targets in law. Ultimately, this will come down to trust and implementation at EPA. The ethanol and biodiesel industries have a lot of cause to distrust EPA and that is understandable. But President (Donald) Trump brokered this deal and any attempt to undermine it from EPA would represent a betrayal of the president. I expect EPA would not do that after all the work that's gone into this issue." -- Sen. Chuck Grassley, (R-Iowa) www.grassley.senate.gov

"We're incredibly frustrated and very disappointed." -- Emily Skor, CEO, Growth Energy, (202) 545-4000, www.growthenergy.org

More Low-Carbon Energy News Chuck Grassley,  Emily Skor,  RFS,  

NATSO
Date: 2019-10-16
Alexandria, Virginia-based NATSO, representing America's travel plazas and truckstops, today issued the following statement on the Environmental Protection Agency's plan to implement the RFS deal that President Trump negotiated less than two weeks ago:

"Unfortunately, EPA's plan does not stay true to the President's promise to account for gallons that are waived as part of the RFS's small refinery exemption program.

"Specifically, today's plan would provide accounting relief for just a fraction of the gallons that have actually been waived and base that relief on the far smaller number of gallons that the DOE recommended be waived.

"When the deal was first announced on Oct. 4, many champions in the biofuels industry lauded the President because they thought that EPA received and understood the President's message. Apparently this is not the case.

"In the deal President Trump negotiated, EPA was supposed to ensure that it would account for all of the gallons that are waived as part of the small refinery exemption process. Today's plan simply does not do that. It is another 'EPA bait and switch' where the White House announces a deal that, at a high level, is favorable for the biofuels community, and EPA later decides to bail out refiners at the expense of farmers. I've seen this movie before.

"The math here is simple. In 2016, EPA waived 790 million gallons under the small refinery exemption program. In 2017, it waived 1.82 billion gallons, and in 2018 it waived 1.43 billion gallons. This averages out to 1.346 billion gallons waived per year over the past three years. To provide the accounting relief that President Trump negotiated in his deal just two weeks ago, EPA would need to ensure that 1.346 billion gallons are added to the 2020 renewable fuel obligations.

"Instead, the proposal EPA Administrator Wheeler issued today would provide accounting relief for just 580 million to 770 million gallons -- far less than the 1.346 billion gallons that President Trump promised. The irony in all of this is that by basing accounting relief on DOE's recommendations, rather than the actual volume waived, this proposal shines a bright light on the damage that EPA has directly inflicted on the biofuels community in recent years by disregarding DOE's recommendations and waiving more gallons than was recommended. It will undoubtedly generate the same level of opposition that the most recent round of small refinery exemption announcements generated, at a time when this Administration has enough on its plate already."

NATSO is the trade association of America's travel plaza and truckstop industry. Founded in 1960, NATSO represents the industry on legislative and regulatory matters; serves as the official source of information on the diverse travel plaza and truckstop industry; provides education to its members; conducts an annual convention and trade show; and supports efforts to generally improve the business climate in which its members operate. (Source: NATSO, PR, 15 Oct., 2019) Contact: NATSO, David Fialkov, VP Gov. Affairs, Tiffany Wlazlowski Neuman, (703) 739-8578, www.natso.com

More Low-Carbon Energy News RFS,  NATSO,  Trump,  

Iowa Renewable Fuels Association
Date: 2019-10-16
"The (Trump EPA) proposal today essentially asks Iowa farmers and biofuels producers to trust that EPA will do the right thing on SREs in 2021 when they have spent the last two years weaponizing SREs to unfairly undermine the RFS.

"It is unreasonable and counter productive to expect Iowans to put their faith in EPA to fix the SRE problem when they (EPA) were the ones who created the crisis in the first place." -- Monte Shaw, Exec. Dir., Iowa Renewable Fuels Association.

Last week Shaw commented: "We welcome the (Trump RFS) proposal to restore integrity to the RFS. We will work with our champions and the White House to make sure the EPA's final rules ensure that a 15 billion-gallon RFS will actually be a 15 billion-gallon RFS. If that is accomplished, the integrity of the RFS will have been restored and President Trump's promise to protect and uphold the RFS will have been redeemed." Contact: Iowa Renewable Fuels Association, Monte Shaw, Exec. Dir., (515) 252-6249, www.iowarfa.org

More Low-Carbon Energy News RFS,  Trump,  Iowa Renewable Fuels Association,  

Scania,Refuelling Solutions
Date: 2019-10-11
In the Land Down Under, Scania Australia reports the inking of a biodiesel distribution Memorandum of Understanding Under the terms of the MOU, Refuelling Solutions will support Scania's effort to expand sales of trucks, buses and industrial and marine engines that can run on biofuels.

The company has similar agreements with Just Biodiesel, Ecotech Biodiesel, ethanol fuel supplier Wilmar Bioethanol Australia, and biogas infrastructure suppliers and consultantsthe ENGV Group.

Refuelling Solutions is a 30-year-old Australian-owned and run business that began supplying fuel through its Mini-Tankers operation to onsite equipment in 1987. (Source: Scania Australia, Fleet Owners Network, 10 Oct., 2019) Contact: Scania Australia, +61 3 9217 3300 www.scania.com; Refueling Solutions, www.rfs.com.au

More Low-Carbon Energy News Scania,  Biodiesel,  

National Biodiesel Board
Date: 2019-10-11
According to a recently released National Biodiesel Board (NBB) poll of registered U.S. voters, 81 pct of respondents indicated that a candidate's position on renewable fuels is important, 86 pct said a candidate's position on clean energy is important or very important and 85 pct agreed that it is important that Pres. Trump keep his promises on the RFS.

Nearly 80 pct expressed support for existing federal advanced biofuels programs, 78 pct support the federal tax incentive for biodiesel, and 79 pct support the Renewable Fuel Standard (RFS) while 79 pct would encourage local communities and governments to promote use of biodiesel. (Source: NBB,Oct., 2019) Contact: NBB, Kurt Kovarik, VP Federal Affairs, (800) 841-5849, www.biodiesel.org

More Low-Carbon Energy News National Biodiesel Board,  RFS,  Biodiesel,  Ethanol,  Biofuel ,  

EPA,RFS
Date: 2019-10-09
U.S. Environmental Protection Agency (EPA) Administrator Andrew Wheeler and U.S. Department of Agriculture (USDA) Secretary Sonny Perdue announced that President Donald Trump is promoting a new Renewable Fuel Standard (RFS). Under the agreement, the following actions will be undertaken by EPA and USDA. In a forthcoming supplemental notice building off the recently proposed 2020 Renewable Volume Standards and the Biomass-Based Diesel Volume for 2021, EPA will propose and request public comment on expanding biofuel requirements beginning in 2020. EPA will seek comment on actions to ensure that more than 15 billion gallons of conventional ethanol be blended into the nation’s fuel supply beginning in 2020, and that the volume obligation for biomass-based diesel is met. This will include accounting for relief expected to be provided for small refineries; the EPA intends to take final action on this front later this year. In the most recent compliance year, EPA granted 31 small refinery exemptions. Building on the president’s earlier decision to allow year-round sales of E15, EPA will initiate a rule making process to streamline labeling and remove other barriers to the sale of E15; EPA will continue to evaluate options for RIN market transparency and reform; and USDA will seek opportunities through the budget process to consider infrastructure projects to facilitate higher biofuel blends. (Source: Talk Business & Politics , 7 Oct., 2019)

More Low-Carbon Energy News Trump. RFS news,  Renewable Fuel Standard news,  "Hardship" Waiver news,  

Gevo
Date: 2019-10-09
"Friday's (renewable fuels standard) announcement by the EPA is a step in the right direction and will hopefully put the RFS back on track after 31 oil refineries received exemptions back in August. I'm glad President Trump supported this step. A robust renewable fuel standard is important for our farmers, the biofuel industry, and reducing greenhouse gases. Every drop of biofuel we get into the market is a win and helps to change the conversation about what is possible from low carbon, sustainable biofuels.

"With Gevo it is possible, for example, to replace an entire gallon of transportation fuel with fuels that are renewable with net zero, or even carry a negative, GHG profile. That is a game changer. Good for farmers, good for consumers, good for the environment." -- Patrick Gruber, CEO, Gevo, 8 Oct., 2019 Contact: Gevo, Patrick Gruber, CEO, 303-858-8358, pgruber@gevo.com, www.gevo.com

More Low-Carbon Energy News Gevo,  RFS,  Renewable Fuel Standard,  

US EPA, USDA, Renewable Duel Standard
Date: 2019-10-07
On Friday in Washington, the Trump administration U.S. Department of Agriculture (USDA) and the Environmental Protection Agency (EPA) announced a long awaited agreement on the Renewable Fuels Standard (RFS) and will now request public comment on expanding biofuel requirements beginning in 2020.

The agreement will ensure the blending of 15 billion gallons of ethanol with fuel supplies starting in 2020 and will also ensure the biomass-based diesel volume is met. EPA will also start the process for streamlining labeling and removal of other barriers for the sale of E15 fuel.

Among other changes, the EPA will begin to account for projected numbers of gallons exempted when coming up with Renewable Volume Obligations (RVO) for refiners, which means greater certainty for farmers and producers. It will ensure that more than 15 billion gallons of conventional ethanol are blended into the nation's fuel supply starting in 2020. Additionally, the USDA will invest in infrastructure projects to facilitate higher blends of biofuel, such as E85. (Source: US EPA, McDonough County Voice, Various Other Media, 4 Oct., 2019)

More Low-Carbon Energy News RFS,  Biofuel,  Ethanol Blend,  USDA,  US DOE,  

RFS,Iowa Renewable Fuels Association,
Date: 2019-10-07
"We welcome the (Trump RFS) proposal to restore integrity to the RFS. We will work with our champions and the White House to make sure the EPA's final rules ensure that a 15 billion-gallon RFS will actually be a 15 billion-gallon RFS. If that is accomplished, the integrity of the RFS will have been restored and President Trump's promise to protect and uphold the RFS will have been redeemed." - Monte Shaw, Iowa Renewable Fuels Association, (Source: Iowa Renewable Fuels Association, Waterloo Cedar Falls Courier, 5 Oct., 2019)Contact: Iowa Renewable Fuels Association Monte Shaw, Exec. Dir., info@IowaRFA.org, (515) 252-6249, www.iowarfa.org

"It's up to each individual entity, but the innovation of taking advantage of low-carbon markets. I think if we can differentiate ourselves within the state of North Dakota, to take advantage of those and be long survivors in this industry." - Gerald Bachmeier, CEO, Red Trail Energy (Source: Red Trail Energy, West Dakota Fox, 5 Oct., 2019) Contact: Red Trail Energy, 701-974-3308, www.redtrailenergy.com

More Low-Carbon Energy News RFS,  "Hardship" Waiver,  Ethanol.Ethanol Blend,  Iowa Renewable Fuels Association,  Red Trail Energy,  

EIA
Date: 2019-10-04
As previously reported, ethanol industry proponents have petitioned the EPA to cease issuing Small Refinery "Hardship" Exemptions (SREs) allowable under the Renewable Fuel Standard (RFS). The ethanol industry is trying to convince the EPA that the waivers are hurting their business and, therefore, the agency should stop issuing them.

Month-over-month, official government data tells a very different story. According to the US Energy Information Administration (EIA), the ethanol blend rate has remained within normal statistical variation, despite the flood of "hardship" waivers. EIA data shows:

The overall physical ethanol consumption for Q1 2019 (the most recent, complete data available) is higher than it was in 2018.

The average ethanol blend rate was higher in Q1 2019 (10.21 pct) than in Q1 2018 (10.09 pct).

In February 2019, the ethanol blend rate was 10.53 percent -- the highest in the 12 months preceding. And the March 2019 ethanol blend rate was 10.18 percent -- higher than the March 2018 blend rate of 9.75 percent.

These blend rates have been stable for the past few years, underscoring the truth that ethanol demand is premised partially on the RFS, partially on demand for clean octane and partially on other factors -- not SREs.

Similarly, when it comes to mid-level ethanol blends like E15, there is no data indicating that SREs are reducing demand. E15 and other mid-level ethanol blend sales have been growing all year and, in the case of E15, sales are higher at this point than they were last year, according to the Minnesota Bio-Fuels Association.

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: American Fuel & Petrochemical Manufacturers (AFPM), EIA, Business & Industry Connection, 3 Oct., 2019) Contact: AFPM, Derrick Morgan, Snr, VP, (202) 586-8800, www.afpm.org; EIA, www.eia.gov

More Low-Carbon Energy News RFS,  "Hardship" Waiver,  Ethanol.Ethanol Blend,  EIA,  

RFS, Trump
Date: 2019-10-02
"The farmers are going to be so happy when they see what we are doing for ethanol, not even including the E-15, year around, which is already done. It will be a giant package, get ready!

"At the same time I was able to save the small refineries from certain closing. Great for all!" -- Pres. "The Donald" Trump's Aug. 11 Twitter update of ongoing RFS Policy Change Negotiations which have now been stalled.

More Low-Carbon Energy News Trump,  RFS,  

Diamond Green Diesel
Date: 2019-10-02
Honeywell is reporting the Valero Energy and Darling Ingredients joint venture Diamond Green Diesel facility in Norco, Louisiana, will invest $1.1 billion to expand its annual production capacity of renewable diesel using Honeywell UOP's Ecofining™ process technology to meet growing demand for renewable fuels in North America and Europe.

Producing 275 million gpy of Honeywell Green Diesel™, Diamond Green Diesel is the largest commercial advanced biofuel facility in the US. The expansion, which will increase the facility's annual production by nearly 150 pct to 675 million gpy, will also produce about 60 million gpy of renewable naphtha when completed and operational in late 2021.

Diamond Green Diesel's product is a qualified Advanced Biofuel under the US EPA Renewable Fuel Standard (RFS). (Source: Honeywell, Hydrocarbon Engineering, Oct., 2019) Contact: Diamond Green Diesel, sales@diamondgreendiesel.com, www.diamondgreendiesel.com; Valero Renewable Fuels, Joe Gorder, Pres., (800) 324-8464, www.valero.com; Darling Ingedients, Melissa A. Gaither, VP IR , (972) 281-4478, mgaither@darlingii.com, www.darlingii.com; Honeywell UOP, Bryan Glover, VP Petrochemicals & Refining Technologies, www,uop.com

More Low-Carbon Energy News Honeywell UOP,  Diamond Green Diesel,  Renewable Diesel,  Valero,  Green Diesel,  Darling Ingedients,  

RFS,"Hardship Waivers"
Date: 2019-10-02
It is being widely reported by Fox News and others that the EPA has stalled on updates to the Renewable Fuel Standard (RFS) biofuels policy regarding biofuel blending "hardship" waivers (exemptions) that have been issued at near wholesale levels.

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,  

W2 Fuel
Date: 2019-09-30
In the Hawkeye State, Crawfordsville-based biodiesel producer W2 Fuel LLC reports the shutdown of its 10 million gpy biodiesel plant in Crawfordsville in southeast Iowa, along with a plant in Michigan.

The company cited RFS "hardship" waiver uncertainty and growing losses for the move. (Source: W2 Fuel, Des Moines Register, 25 Sept., 2019) Contact: W2 Fuel, Roy Strom, CEO, 319-658-2003, www.w2fuel.com

More Low-Carbon Energy News Biodiesel,  W2 Fuel,  Biofuel,  Renewable Fuel,  

Trump
Date: 2019-09-30
In a recent letter to Pres. Donald Trump, corn grower organizations in 23 states called on the President to direct his administration's EPA to account for projected waivers beginning with the pending 2020 RFS volume rule and to simply uphold the law.

"Dear President Trump,

"We are writing on behalf of the more than 300,000 corn farmers across the country who are being negatively impacted by a perfect storm of challenges in rural America. The 31 new Renewable Fuel Standard (RFS) waivers to big oil companies, recently approved by the Environmental Protection Agency (EPA) and bringing total waivers issued under your Administration to 85, could not have come at a worse time for agriculture.

"Ethanol plants in several states, including Iowa, Ohio, Wisconsin, Michigan, Indiana, Minnesota and Mississippi have closed or idled. These closures have cost 2,700 rural jobs and impacted demand for more than 300 million bushels of corn. Corn farmers are beginning harvest and continuing to lose markets to deliver their corn. Frustration in the countryside is growing.

"Corn farmers are not asking for a special deal. We are simply asking, as we have been for the past two years, that your EPA uphold the law. To effectively stop the harm caused by RFS waivers, EPA needs to account for projected waivers beginning with the pending 2020 RFS volume rule. Accounting for waivers in the annual RFS volume process restores integrity to the RFS. It also allows your Administration to continue granting waivers, as allowed by the law, while keeping the RFS whole."

"While adding gallons and improving market access for higher blends of ethanol are all policies farmers appreciate and support, future waivers will continue to minimize the RFS, unless your Administration acts to account for waivers beginning this coming year first.

"We were pleased to see press reports indicating that, following a meeting with farm-state lawmakers, an agreement had been reached to address the harm caused by waivers. With more than 4 billion gallons waived out of the RFS, we appreciate you listening to our elected representatives about what is needed to restore meaning to the RFS. Farmers across the country are anxiously awaiting the release of more details about this agreement. Ethanol plants will continue to close if you don't act soon, creating a rippling effect throughout the rural economy.

"Corn farmers are appreciative of your past support for agriculture and ethanol. We especially appreciate your efforts to remove the barrier to year-round sales of E15, but EPA's current use of waivers undermines growth potential for higher blends of ethanol, reduces demand, lowers the value of our crop, and puts the outlook for the rural economy in jeopardy.

"Mr. President, we firmly ask that you uphold your commitment to America's farmers and the RFS." (Source: Ag Ohio, Various Trade Media, Sept., 2019)

Editor's Note: For our reader's convenience, we have underlined the few lines that actually call on Trump to honestly do his job and uphold the RFS. The remaining five paragraph's are, in our opinion, little more than flattery to the White House.

More Low-Carbon Energy News Trump,  "Hardship" Waivers,  Corn Ethanol,  

W2 Fuel,Iowa Renewable Fuels Association
Date: 2019-09-27
In the Hawkeye State, Radio Iowa is reporting W2 Fuel LLC has temporarily shuttered its 10-million gpy biodiesel plant in in Crawfordsville due to market conditions and uncertainties swirling around the Renewable Fuel Standard (RFS).

According to the Iowa Renewable Fuels Association, the Crawfordsville facility is one of 12 biodiesel plants in Iowa. Last year, 365 million gallons of biodiesel was produced in Iowa -- roughly 20 pct of all the biodiesel made in the U.S. (Source: RadioIowa, 25 Sept., 2019) Contact: Iowa Renewable Fuels Association Monte Shaw, Exec. Dir., info@IowaRFA.org, (515) 252-6249, www.iowarfa.org; W2 Fuel LLC, Roy Strom, CEO, (319) 658-2003, www.w2fuel.com

More Low-Carbon Energy News Biodiesel,  W2 Fuel,  Iowa Renewable Fuels Association,  

RFS
Date: 2019-09-23
"More difficult than dealing with the Taliban." -- Pres. Donald Trump commenting on negotiations with ethanol producers and refineries on the RFS blending mandate "hardship waiver" negotiations

More Low-Carbon Energy News Trump news,  RFS news,  RFS "hardship waivers" news,  

EPA,Chuck Gressley
Date: 2019-09-18
"We want 15 billion gallons to be 15 billion gallons -- so that means basically you can waive all you want to waive for small refineries, just make sure we get 15 billion gallons." -- Sen. Chuck Grassley (R--Iowa) commenting of the Trump EPA's RFS "hardship" waivers. (Source: Iowa Radio, EnergyAg Wired, 18 Sept., 2019) Contact: Sen. Chuck Grassley, www.grassley.senate.gov

More Low-Carbon Energy News Chuck Grassley,  RFS,  "Hardship" waivers,  Ethanol,  

Teump
Date: 2019-09-16
Reuters is reporting U.S. Pres. Trump has tentatively approved a plan to increase the amount of biofuels that oil refiners are required to blend each year to compensate for the large number of financial "hardship" exemptions granted to "small" -- 75,000 bpd or less -- refiners by the EPA.

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,  

NBB,National Biodiesel Board
Date: 2019-09-11
"DearMr.President,

"We are writing to express dismay at your recent decision to grant 31 waivers from the Renewable Fuel Standard (RFS) program. Plainly stated, that decision is putting U.S.biodiesel producers out of business and worsening the year's outlook for soy farmers. And while you have expressed concern to save small petroleum refineries, you should also understand that small U.S. biodiesel producers need a positive signal.

"Within a week of your decision on the 31 waivers, one U.S. biodiesel producer announced plans to close three plants -- in Pennsylvania, Georgia, and Mississippi. Other producers have announced closings and laid off workers. More than 200 million gallons of domestic biodiesel production has been idled this year, due to instability in federal policy. We anticipate that additional facilities will close over the next several months if you do not take quick action to restore RFS volumes for biodiesel and renewable diesel.

"Every small refinery waiver issued by the EPA has the potential to put a U.S.biodiesel producer out of business. A small oil refiner processing 75,000 barrels of oil per day can produce nearly 1 billion gallons of fuel in a year. The RFS program requires that oil refiner blend about 20 million gallons of biodiesel or renewable diesel during the year -- a very small fraction of overall fuel production. However, there are dozens of biodiesel producers who produce 20 million gallons of fuel or less each year; three-fifths of U.S. producers are small, non-integrated facilities.

Small refinery waivers destroy demand for all biofuels across the board, with a significant impact on domestic biodiesel and renewable diesel producers. According to University of Illinois economist Scott Irwin, the exemptions especially harm biodiesel and renewable diesel producers because of the way the RFS is constructed. The 1.4 billion gallons of renewable fuel eliminated from the 2018 RFS through the 31 waivers includes hundreds of millions of gallons of biodiesel and renewable diesel in the biomass-based diesel, advanced and overall volumes.

"The small refinery exemptions are compounding the policy headwinds our industry is facing. Biodiesel producers have waited more than 20 months for Congress to address expired tax incentives. Additionally, your U.S. Department of Commerce is proposing to virtually eliminate countervailing duties on unfairly subsidized Argentine biodiesel. Those duties were put in place to counteract years' worth of unfair trade practices by Argentina. Soy farmers have faced closed markets, depressed crop prices, and weather-related challenges. Those forces have reduced soy planting by 15 percent for the current marketing year. Biodiesel is a value-added market driver for America's soybeans, at a time when markets have been shut or diminished.

"The biodiesel industry continues to rely on the RFS to incentivize growth. Biodiesel and renewable diesel can be used in any existing diesel engine without special equipment for blending or dispensing. Producers therefore rely on a positive signal and support from federal programs to continue opening the transportation market to higher volumes.

"Biodiesel producers and soy farmers rely on the RFS program. Growth in the biodiesel market is the only way to keep domestic producers operating and protect U.S. workers' jobs. Unfortunately, EPA is proposing zero growth for biomass-based diesel. We have asked the agency to do two things: first, properly account for the small refinery exemptions handed out over the past few years and going forward; and second, provide growth in the biomass-based diesel market for 2020 and 2021.

"We ask that you continue to support the RFS and save small biodiesel producers. (signed) National Biodiesel Board (NBB)" (Source: NBB, 9 Sept., 2019) Contact: NBB, Donnell Rehagen, CEO, Kurt Kovarik, VP Federal Affairs, (800) 841-5849, www.biodiesel.org

More Low-Carbon Energy News NBB,  Biodiesel,  RFS,