In her comments, Skor argued that biofuels like ethanol play a critical role in achieving the USDA's goals and called for building on current investments to expand renewable fuels role in the nation's transportation infrastructure. "Supporting programs like the Renewable Fuel Standard (RFS) and initiatives to expand access to higher biofuel blends like E15, E30, and E85 can build on biofuels' environmental progress and expand the market for American agriculture,", said Skor. "USDA's Higher Blends Infrastructure Incentive Program (HBIIP) is a prime example how the agency can support the productivity of our farmers, while decreasing greenhouse gas (GHG) emissions and encouraging further adoption of sustainable farming practices across our agriculture sector."
Skor also notes the biofuels industry's continued advancements to capture CO2 and the plant-based fuel's ability to replace harmful toxics and improve air quality. "We have a better option in ethanol, the single most affordable and abundant alternative to petroleum-based fuel additives that threaten air quality in communities across the globe. To expand on these benefits, USDA should continue to promote programs that boost biofuels access and use throughout the country.
As the department works to streamline programs and seek opportunities to improve sustainable farming across the country, Skor encouraged USDA to continue exploring the strong link between U.S. agriculture and our biofuels industry, and promote the increased use of biofuels so our nation's farmers can continue to rely on these markets as we work to reduce the environmental impact of the agriculture sector.
The organizations have asked the United States District Court for the District of Columbia to order the following: EPA should not withhold the name of the company submitting an application for an SRE nor the name and location of the refinery for which relief is requested; EPA should immediately produce the information that was unlawfully withheld for Renewable Fuel Standard compliance years 2015, 2016, and 2017, and; EPA should not withhold any of the five data elements identified in the proposed Renewables Enhancement and Growth Support (REGS) rule (Source: Growth Energy, Website PR , 28 Oct., 2020)
Contact: Growth Energy, Emily Skor, (202) 545-4000, www.growthenergy.org
More Low-Carbon Energy News Growth Energy, USDA, RFS, Biofuel,
In her comments, Skor argued that biofuels play a critical role in achieving the department's goals and called for building on current investments to expand renewables fuels' role in the nation's transportation infrastructure.
"Supporting programs like the Renewable Fuel Standard (RFS) and initiatives to expand access to higher biofuel blends can build on biofuels' environmental progress and expand the market for American agriculture. USDA's Higher Blends Infrastructure Incentive Program (HBIIP) is a prime example of how the agency can support the productivity of our farmers while decreasing greenhouse gas emissions and encouraging further adoption of sustainable farming practices across our agriculture sector," Skor noted.
Growth Energy is the world's largest association of biofuel producers representing 89 U.S. plants that produce more than 7.5 billion gpy of renewable fuel, 96 businesses associated with the production process, and tens of thousands of biofuel supporters across the country, according to its website.
Download Skorr's full comments HERE. (Source: Growth Energy, Website PR, 28 Oct., 2020)
Contact: Growth Energy, Emily Skor, CEO, (202) 545-4000, www.growthenergy.org
More Low-Carbon Energy News Growth Energy, Biofuel, USDA, RFS, Biofuel Blends, HBIIP,
Peterson is calling for transparency to be achieved before the 2021 oil refinery renewable volume obligations are released by the EPA.
(Source: Office of Minnesota Congressman Collin Peterson, WNAX, Sept., 2020)
Contact: Office of Minnesota Congressman Collin Peterson, (507) 637-2270, collinpeterson.house.gov
More Low-Carbon Energy News RFS, Refinery Waivers, Biofuel Blend,
In a blatant move to win support and placate the biofuels and refinery interests, Trump has suggested he'd provide $300 million to oil refiners and that those funds would come out of the USDA Commodity Credit Corp. (CCC) which is intended to provide farmers with Market Facilitation Program (MFP) payments.
Commenting on Trump's possible cash payments to refiners scheme, former Agriculture Secretary Tom Vilsack said he "strongly expects that no action will be taken on the remaining waivers until after the election." Vilsack was critical of the reports that the President indicated that he would offer $300 million through the CCC fund in lieu of the waiver approvals, as the CCC is designed specifically to be used by USDA for the purpose of helping farmers.
As previously noted, "hardship waivers" were intended for refineries producing 75,000 bpd or less and suffered "disproportionate economic hardship" from the costs of RFS compliance. The waiver frees the refineries from an obligation to provide the EPA with biofuels credits proving compliance. (Source: EPA, Feedstuffs, 17 Sept., 2020)
More Low-Carbon Energy News Trump, RFS, Refinery Waivers, Biofuel Blend, Tom Vilsack ,
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.
Interestingly, it is being widely reported that Trump is suggesting cash payments to refineries that have had waiver applications rejected, thus placating the biofuels and oil industries in a thinly-veiled move to win re-election in Nov. (Source: Various Media, OilPrice, 14 Sept., 2020)
More Low-Carbon Energy News Trump, RFS, Refinery Waivers, Biofuel Blend,
The president's could be seen as an effort to shore up his support in the Corn Belt states.
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: Chronicle Herald, 10 Sept., 2020)
More Low-Carbon Energy News Trump, RFS, Refinery Waivers, Biofuel Blend,
"We want to be building stronger global markets with free trade. We want expansion of E15. As drivers are hitting the road again as we are recovering from Covid, there's more opportunity to get higher blends like E15. We, ultimately, want to focus on that road to recovery conversation because that's what our future is going to be all about.
"At this point, I think we may be okay. I think it will have different impacts in different areas regionally, and then certainly in the value chain. We're going to have to just wait and see. It's very disheartening to know what everybody has gone through."
-- Emily Skor, Growth Energy, CEO , discussing ethanol industry stability.
More Low-Carbon Energy News Ethanol, Growth Energy,
NBB wants farmers to go to their website and complete a pre-written request to the President and EPA administrator to reject those gap small refiner waivers, 85 bof which have been issues over the past three years.
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: NBB, WNAX 26 Aug., 2020) Contact: NBB, Paul Winters, Pres., Kurt Kovarik, VP of Federal Affairs, (800) 841-5849, www.nbd.org
More Low-Carbon Energy News National Biodiesel Board, NBB, RFS Waivers ,
The EPA is proposing to penalize the current Tier 3 test fuel that all automakers will use to meet CO2 emission standards because it contains 10 pct ethanol. This Tier 3 test fuel lowers CO2 emissions compared to the prior E0 test fuel from 1975. The EPA is creating this new penalty against ethanol by manipulating test procedures to inflate the tailpipe CO2 emissions of vehicles certified as using E10. Since the penalty would presumably increase with higher ethanol volumes, this rule would be a major disincentive for automakers to transition to higher ethanol blends.
"Basically ethanol can't win. First EPA ignores ethanol's ability to reduce toxic aromatics, and now it wants to penalize ethanol for being a more efficient, lower-carbon fuel additive. The EPA is making this more complicated than it needs to be. It's creating rules based on older, non-representative fuels in its testing. Plus, EPA has no authority to penalize a particular fuel. Automakers can take advantage of high octane ethanol but not if they are penalized before they even start. In short, let the market work," Urban Air President Dave VanderGriend commented.
"EPA's anti-ethanol bias is not limited to how it has badly mismanaged the Renewable Fuel Standard, it extends to the Agency's proposal to artificially inflate CO2 emissions from vehicles being tested on E10 blends for Tier 3 Test Fuel Procedures," ACE CEO Brian Jennings commented.
(Source: Urban Air Initiative, PR, 17 Aug., 2020) Contact: Urban Air Initiative, Dave VanderGriend, Pres., www. fixourfuel.com; Clean Fuels Development Coalition, 301-718-0077, www.cleanfuelsdc.org; American Coalition for Ethanol, Brian Jennings, (605) 334-3381, www.ethanol.org
More Low-Carbon Energy News RFS, American Coalition for Ethanol, ACE, Urban Air Initiative, Ethanol, Ethanol Blend,
"As you'll see in this report, the RFS has been a smashing success," said RFA President and CEO Geoff Cooper. "In addition to decreasing reliance on imported petroleum, the RFS has reduced emissions of harmful tailpipe pollutants and greenhouse gases, lowered consumer fuel prices, supported hundreds of thousands of jobs in rural America, and boosted the agricultural economy by adding value to the crops produced by our nation's farmers." The report details how, since 2005:
The report also includes historical perspective from RFA Senior Strategic Advisor Bob Dinneen, who led RFA through this important policy change. "We've probably all seen the Schoolhouse Rock version of 'How a Bill Becomes a Law', Dinneen writes. "It does a great job of explaining the legislative process. But it cannot capture the circuitous adventure and machinations that occur before an idea materializes into legislative language. That is particularly true when it comes to the 2005 Energy Bill and the Renewable Fuel Standard." (Source: RFA, 6 Aug., 2020) Contact: Renewable Fuels Association, (202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News RFA, RFS.Ethanol, Renewable Fuels,
Sevana Bioenergy will serve as the development partner, service provider, and long-term co-investor of the project, the second phase of which is expected to start in Q3 -- upgrading the facility to produce renewable natural gas (RNG) transportation fuel to be marketed under the renewable fuel standard ( RFS) programmes in the federal and California market.
Meridiam is a global investor and asset manager specialized in developing, financing and managing long-term public infrastructure projects. Founded in 2005, Meridiam invests in public infrastructure in Europe, North America and Africa, according its website. (Source: Meridiam Website, July, 2020) Contact: Sevana Bioenergy, info@sevanabioenergy.com, www. sevanabioenergy.com; Meridiam ,+33 1 53 34 96 99, 212 798 8690 -- NY Office, www.meridiam.com
More Low-Carbon Energy News RNG news, Biogas news, Sevana Bioenergy news,
The agency now lists seven pending requests each for 2011 and 2012, 11 each for 2013 and 2015, 12 in 2014, eight in 2016 and two in 2018, as well as 27 listed for 2019 and one for 2020. The agency granted 85 waivers for the period 2016 to 2018.
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: EPA,DTN, 16 July, 2020)
More Low-Carbon Energy News RFS, Hardship Waivers, Biofuel Blend,
"My House colleagues and I have written President Trump twice recently, asking him to protect the RFS. This message is clear -- the EPA must follow the law and stop reducing the amount of renewable fuel in our fuel supply. Our farmers need this market. South Dakota's biofuels industry can produce more than 1 billion gallons annually, adding more than $980 million to the economy -- but this only happens if there is reliable market access. The EPA can get this done.
"The nation's eyes were on South Dakota during President Trump's visit to Mount Rushmore. I'll continue to deliver agriculture's request that the EPA support clear, homegrown biofuels. The president supports farmers -- and it's time the EPA does, too." -- South Dakota congressman Dusty Johnson (R).
Editor's Note: 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: Rep. Dusty Johnson , Mitchell Republic, 12 July, 2020)
Contact: Rep. Dusty Johnson , (202) 225-2801, www.dustyjohnson.house.gov
More Low-Carbon Energy News US EPA, Andrew Wheeler, Renewable Fuel Standard, RFS Waiver,
The EPA normally issues the Renewable Volume Obligations (RVO) petroleum companies must meet under the RFS by July 4, but have missed that deadline for 2021 and there's no indication when they may be released, according to ACE CEO Brian Jennings.
EPA also has not responded to an April ACE request for an emergency interim final rule on RVOs to restore RFS volumes to help ethanol producers hurt by the pandemic.
The EPA is also being inactive on dealing with small refinery waiver requests which they need to deny in accordance with a January court ruling that will likely will take Congressional intervention to enforce, Jennings added.
(Source: American Coalition for Ethanol, July, 2020) Contact: American Coalition for Ethanol, Brian Jennings, CEO, (605) 334-3381, www.ethanol.org
More Low-Carbon Energy News American Coalition for Ethanol , Ethanol. RFS, Renewable Fuels Standard,
In a letter to the EPA' Administrator Andrew Wheeler, NWF President and CEO Collin O'Mara echoed the requests of six state governors and stressed the need for smaller biofuel mandates. In its letter, the AFPM noted:
The NWF letter concludes: “"In short, the corn ethanol mandate has led to the loss of important wildlife habitat, particularly in regions critical for monarch butterflies, ducks and other ground-nesting birds, and many other species -- threatening outdoor recreation opportunities as well as the economy. The mandate has also resulted in deteriorated water quality and harmful algal blooms in important surface waters as a result of increased farm runoff. Increasing mandated blending levels increases the potential for further land conversion, presenting a marked threat to the battle against global climate change, with its consequent catastrophic effects on human health and the environment. Higher blends of ethanol necessitated by unrealistic RVOs diminish public health. In light of the clear and present danger to the environment, we join with the Governors of six states in asking for a waiver to the RVO." (Source: National Wildlife Federation, AFPM, Hydrocarbon Engineering, 7 July, 2020) Contact: National Wildlife Federation, Colin O'Mara, CEO, www.nwf.org
More Low-Carbon Energy News RFS, Renewable Fuel Standard, Ethanol,
"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,
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,
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,
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,
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 ,
"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,
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,
"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,
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,
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,
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:
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,
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,
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,
"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,
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,
"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,
Perdue either couldn't or wouldn't say what action the president will or might take, but noted that Trump believes the EPA waivers were "way overdone." Ethanol advocates contend that oil refinery waivers have reduced ethanol production by 2.6 billion gallons since Trump moved into the White House.
When grilled on the Trump administration's biofuels, trade and Renewable Fuel Standard and related policies Perdue replied "EPA will continue to consult with our federal partners on the best path forward to ensure stability in the Renewable Fuel Standard. The president will always seek to engage with stakeholders to achieve wins for the agriculture and energy sectors." So sayeth Sonny!(Source: St. Louis Post-Dispatch, CBS, Various Media, 28 Aug., 2019) Contact: Office of US Sec of Agriculture, Sonny Perdue, (202) 720-2791, feedback@oc.usda.gov, www.usda.gov, twitter.com/SecretarySonny
More Low-Carbon Energy News RFS, "Hardship" Waivers, Ethanol, Sonny Perdue, Trump,