"We have extraordinary circumstances this year and we are looking at what relief we can provide everyone -- the ethanol industry is hurting as well." --
U.S. EPA Administrator Andrew Wheeler, 20 May, 2020
More Low-Carbon Energy News FRS Waiver, Andrew Wheeler,
"EPA's consideration of small refinery exemption petitions going back to 2011 flies in the face of the recent 10th Circuit decision. By rolling back the clock, there appears to be no length EPA won't go to help refiners undermine the RFS. Make no mistake -- this handout to the oil industry comes at the expense of biodiesel producers and soybean farmers across the country, and particularly the Midwest. Allowing these gap filings renders the program completely unpredictable for renewable fuel producers. The agency must immediately reject these petitions to restore confidence that it will abide by the law in administering the RFS." NBB VP for Federal Affairs Kurt Kovarik said.
NBB sent a June 1 letter to Administrator Wheeler saying, "EPA's first step upon receiving any petition for a small refinery exemption should be to evaluate its timeliness and validity before transmitting it to the Department of Energy." The letter makes the case that "gap" petitions or re-submissions of previously rejected petitions are inconsistent with the 10th Circuit's ruling. (Source: National Biodiesel Board, PR, NBB Website, 18 June, 2020) Contact: NBB, Kurt Kovarik, VP of Federal Affairs, (800) 841-5849, www.nbd.org
More Low-Carbon Energy News National Biodiesel Board, RFS, RFS Waiver, EPA Administrator Andrew Wheeler ,
The use of natural gas as an alternative fuel significantly reduces transportation-related emissions, improves air quality, and delivers economic savings, according to the release.
U.S. Gain is a leader in development, procurement and distribution of alternative fuel and renewable energy for the transportation and energy markets. Over the past 10 years, U.S. Gain has diversified throughout the renewable natural gas (RNG) supply chain -- investing in and managing development projects at farms, landfills and wastewater treatment plants; generating, trading and monetizing clean fuel credits under the RFS, LCFS and CFP programs; designing, building and operating alternative fueling stations, both private and a public GAIN Clean Fuel network. (Source: U.S. Gain, PR, 15 June, 2020)
Contact: Testa Produce, www.testaproduce.com; U.S. Gain, Ross Finlan, Business Development Manager, Bryan Nudelbacher, Dir. RNG Business Development, 920.381.2190; Stephanie Lowney, Director of Marketing & Innovation, slowney@usgain.com, www.usgain.com
More Low-Carbon Energy News U.S. Gain, RNG, Natural Gas, Alternative Fuel,
"This long-awaited move unlocked the door to future demand growth for ethanol and corn. It also meant consumers would have increased access to cleaner and more affordable fuel options at the pump.
"Just as expected, the marketplace responded quickly. In the year since the red-tape barrier was removed, E15 sales are up 50pct.
"But E15 growth would have been exponentially larger if not for your EPA continuing to excuse oil refiners from their legal obligations to blend renewable fuels. As we told you a year ago, EPA's refinery waivers have caused devastating demand losses for ethanol and corn, and they under mine the expansion of E15.
"Even after a federal court overturned some refinery waivers in January, your EPA continues to receive dozens of exemption requests from oil companies. EPA is now even considering giving retroactive waivers for years that pre-date your administration.
"This needs to stop. It is hurting farmers, costing consumers, and derailing progress on energy and environmental security.
"The economic pain in farm country caused by these refinery waivers was compounded this spring—first by the Saudi-Russia oil price war, and then by the COVID-19 pandemic. As a result of this 'perfect tsunami,' half of the ethanol industry was recently shut down, leading to layoffs across rural America. The ethanol industry and farmers are hurting like never before.
Mr. President, we need your help. We ask that you stand up for the Renewable Fuel Standard. Please direct your EPA to abide by the January court ruling and end the abuse of the refinery waiver loophole.
"You stood by us, farmers, and consumers when you directed EPA to allow year-round E15. Now, we humbly ask that you stand with us again and ensure ethanol demand is not eroded by illegal refinery waivers. Thank you,"
Geoff Cooper, Pres. & CEO Renewable Fuels Associationwww.EthanolRFA.org
More Low-Carbon Energy News RFS news, Refinery Waivers news, Biofuel Blend news, RFA news,
"We are writing to request further information about petitions reportedly received by the U.S. EPA from small refiners seeking exemption from the Renewable Fuel Standard (RFS) for past compliance years.
"The petitions in question were discussed during your testimony before the Senate Environment and Public Works Committee on May 20, 2020. On the same day, U.S. DOE Under Secretary Mark Menezes confirmed that EPA is 'send[ing] over' past-year petitions for DOE review. Mr. Menezes described the petitions as 'gap filings' intended to reconstitute after-the-fact a continuous string of exemptions for select oil companies 'to be consistent with the Tenth Circuit decision.'
"This attempt to circumvent the courts and the RFS should be rejected out of hand. Even if EPA granted retroactive 'gap' exemptions without simultaneously returning the number of RINs associated with the exemption to the petitioner, such exemptions would be inconsistent with EPA's own policies and regulations, legal precedent, and Congressional intent.
"These 'gap filings' appear to be little more than the latest in a string of oil industry tactics designed to subvert the law and sidestep a court order to uphold the RFS.
Read the full letter HERE. (Source: Renewable Fuels Assoc., 9 June, 2020) Contact: RFA, www.fuelsamerica.org
More Low-Carbon Energy News Renewable Fuels Association, RFS Waiver, RFS, RFA, Ethanol, Ethanol Blend,
"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,
"We are writing to urge you to uphold the Renewable Fuel Standard (RFS) and immediately reject the requests for a waiver of the RFS under Section 211(o)(7) of the Clean Air Act recently received by the Environmental Protection Agency(EPA) from five state governors.
"Across our states, biofuels lower fuel prices, create hundreds of thousands of jobs in the new energy economy, many of which are in rural areas, provide an important market for farmers, cut our reliance on foreign oil, reduce emissions and harmful air pollutants, and provide critical inputs to our food supply.
"Our nation is facing unprecedented challenges as a result of the global health pandemic caused by COVID-19, with the impacts being felt across all of society. Waiving the RFS would cause further harm to the U.S.economy, especially our most vulnerable rural communities. It would also exacerbate the effects experienced by the biofuel sector as a result of COVID-19, causing far-reaching detrimental impacts on employment, farmers, food security, fuel prices, and the environment. The resiliency of America's renewable fuel industry has already suffered as a result of the EPA's drastic expansion of the small refinery waiver program in recent years.
"The U.S. Department of Homeland Security identified the biofuels sector as an essential critical infrastructure workforce during the COVID-19 response. However, as motor fuel demand has plummeted, prices have slumped to record lows and producers are suffering heavy losses. At this point more than 70 ethanol facilities with an annual production capacity of 6.1 billion gallons have been fully idled, and approximately 70 more plants have reduced their operating rates by a combined amount of 1.9 billion gallons annualized. At least 46 pct of the ethanol industry's total production capacity is now idled, and eight biodiesel and renewable diesel facilities remain offline. Highly-skilled jobs across the country are being lost at an alarming rate.
"Biofuel plant closures have ripple effects through the U.S. economy. Farm income is directly linked to the health of the renewable fuel industry. Plant shutdowns are causing commercial CO2 supply shortages and inhibiting the ability of meat packers and other food sectors to refrigerate, preserve,and supply food and beverages at current, affordable rates. Ethanol plants also produce low cost, high-protein animal feed (distillers grains). Supply shortages as a result of biofuel plant closures are impacting livestock feed procurement, rations, and prices. Biodiesel producers provide value to surplus and waste oils, fats and greases from food, feed and other biofuel production. Without the biodiesel industry, excess feedstocks will clog the supply chain, causing livestock producers to potentially raise prices for consumers. Removing biofuels from gasoline and diesel will also lead to an increase of greenhouse gas emissions, particulate matter, and toxics-causing degradation to our air quality.
"Recent requests for a waiver of the RFS are unjustified and clearly do not satisfy the rigorous requirements necessary for EPA consideration. RFS waivers can only be granted by EPA if there is a demonstration of 'severe harm' to the economy or environment of a state, region or the United States that is directly caused by the RFS. None of these standards are met today and the following reasons clearly demonstrate the case for rejecting the waiver requests:
"We urge you to direct the EPA to reject all calls to waive the RFS. The RFS is more important now than ever as farmers, the biofuel sector, and rural America struggle to remain operational during the COVID-19 crisis." (Source: US Senate, 8 May, 2020)
More Low-Carbon Energy News RFS, Renewable Fuel Standard, "Hardship" Waiver,
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,
According to the Energy Information Administration (EIA) the states currently under the COVID-19 pandemic "stay at home orders" account for 95 pct of US fuel demand. Meanwhile, ethanol market producers and players say that it is a "convenient reason for them (oil refiners) to escape a US law", and that doing so would further harm ethanol demand.
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 Trade Media, ICIS, 17 April, 2020)
More Low-Carbon Energy News RFS, Hardship Waiver, Biofuel Blend,
In this tender, a project is expected to have two components -- a solar photovoltaic (SPV) system or a wind energy system or a hybrid system of both technologies, Projects selected under this RfS were eligible for two-part tariffs: Peak Tariff and Off-Peak Tariff.
(Source: SECI, Energy Infra Post, 19 April, 2020) Contact: Solar Energy Corporation of India, +91 011 7198 9200, corporate@seci.co[.in,
www.seci.co.in
More Low-Carbon Energy News Solar Energy Corporation of India,
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,
"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,
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 ,
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,
"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,
"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,
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,
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, 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,
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,
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,
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,
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,
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",
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 ,
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,
"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,
"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 ,
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,
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 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,
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,
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 ,
"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,
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,
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,
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,
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 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,
"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,
"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,
"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,
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,
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 ,
"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,
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,