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

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

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


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

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

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

More Low-Carbon Energy News RFS,  Growth Energy,  


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

The coalition's brief noted, "Even as the Trump Administration indicates it is taking steps to account for future small refinery exemptions, the coalition remains concerned that EPA's abuse of the small refinery exemption program diverges from the spirit and letter of the Clean Air Act. From a substantive and procedural perspective, this is not the way for a federal agency to make such a momentous decision." (Source: Growth Energy, U.S. Grains Council, and Renewable Fuels Association , 23 Oct., 2019) Contact: Growth Energy, Emily Skor, CEO, Elizabeth Funderburk, (202) 545-4000, EFunderburk@GrowthEnergy.org, www.growthenergy.org; U.S. Grains Council, Tom Sleight, Pres., (202) 789-0789, (202) 898-0522, www.grains.org; Renewable Fuels Association, Geoff Cooper, (202) 289-3835, www.ethanolrfa.org

More Low-Carbon Energy News RFS,  Growth Energy,  U.S. Grains Council,  Renewable Fuels Association,  


RFS Proposed Volumes for 2020 and Biomass-Based Diesel Volume for 2021 (Ind. Report)
EPA, Renewable fuel Standard
Date: 2019-10-21
The Trump administration EPA has issued the attached supplemental notice of proposed rulemaking seeking additional comment on the recently proposed rule to establish the cellulosic biofuel, advanced biofuel, and total renewable fuel volumes for 2020 and the biomass-based diesel volume for 2021 under the Renewable Fuel Standard (RFS) program.

The notice does not change the proposed volumes for 2020 and 2021. Instead, it proposes and seeks comment on adjustments to the way that annual renewable fuel percentages are calculated. Annual renewable fuel percentage standards are used to calculate the number of gallons each obligated party is required to blend into their fuel or to otherwise obtain renewable identification numbers (RINs) to demonstrate compliance.

Specifically, the agency is seeking comment on projecting the volume of gasoline and diesel that will be exempt in 2020 due to small refinery exemptions based on a three-year average of the relief recommended by the Department of Energy (DOE), including where DOE had recommended partial exemptions. The agency intends to grant partial exemptions in appropriate circumstances when adjudicating 2020 exemption petitions. The agency proposes to use this value to adjust the way we calculate renewable fuel percentages. The proposed adjustments would help ensure that the industry blends the final volumes of renewable fuel into the nation's fuel supply and that, in practice, the required volumes are not effectively reduced by future hardship exemptions for small refineries. Consistent with the statute, the supplemental notice seeks to balance the goal of the RFS of maximizing the use of renewables while following the law and sound process to provide relief to small refineries that demonstrate the need.

Download the Renewable Fuel Standard Program -- Proposed Volumes for 2020 and Biomass-Based Diesel Volume for 2021 HERE. Contact: EPA Renewable Fuel Standard, 800-385-6164, www.epa.gov/fuels-registration-reporting-and-compliance-help/forms/fuels-program-helpdesk

More Low-Carbon Energy News Renewable Fuel Standard,  Biofuel,  Biofuel Blend,  


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

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

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


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

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


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

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

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


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

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

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

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

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

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

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

    As previously noted, "hardship waivers" were intended for refineries producing 75,000 bpd or less and suffered "disproportionate economic hardship" from the costs of RFS compliance. The waiver frees the refineries from an obligation to provide the EPA with biofuels credits proving compliance. Under the now vanquished administrator Greg Pruitt's direction, the EPA handed out 54 exemptions over two years and not a single request for an exemption was denied. (Source: American Fuel & Petrochemical Manufacturers (AFPM), EIA, Business & Industry Connection, 3 Oct., 2019) Contact: AFPM, Derrick Morgan, Snr, VP, (202) 586-8800, www.afpm.org; EIA, www.eia.gov

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


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

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

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

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


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

    The EPA appears to be acting on instructions from Trump who is no doubt preoccupied with his own whistleblower and impeachment worries.

    As previously noted, "hardship waivers" were intended for refineries producing 75,000 bpd or less and suffered "disproportionate economic hardship" from the costs of RFS compliance. The waiver frees the refineries from an obligation to provide the EPA with biofuels credits proving compliance. Under the now vanquished administrator Greg Pruitt's direction, the EPA handed out 54 exemptions over two years and not a single request for an exemption was denied. (Source: Fox News, Various Other Media, 2 Oct., 2019)

    More Low-Carbon Energy News Trump,  RFS,  "Hardship" Waiver,  Biofuel Blend,  


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

    "Dear President Trump,

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

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

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

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

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

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

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

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

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


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

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

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


    Trump Asked to Honor RFS Pledge (Opinions, Editorials & Asides)
    NBB,National Biodiesel Board
    Date: 2019-09-11
    "DearMr.President,

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

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

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

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

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

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

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

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

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


    Notable Quote
    POET, EPA
    Date: 2019-08-30
    "The Renewable Fuel Standard (RFS) was designed to increase the use of clean, renewable biofuels and generate grain demand for farmers. Our industry invested billions of dollars based on the belief that oil could not restrict access to the market and EPA would stand behind the intent of the Renewable Fuel Standard. Unfortunately, the oil industry is manipulating the EPA and is now using the RFS to destroy demand for biofuels, reducing the price of commodities and gutting rural economies in the process." -- Jeff Broin, CEO, POET Contact: POET, Jeff Broin, CEO., (605) 965-2200, www.poet.com

    More Low-Carbon Energy News POET,  EPA,  "Hardship" Waivers,  RFS,  


    Sonny Says Trump Will Take Action on Ethanol Waivers -- Whatever That Means? (Ind. Report)
    RFS,Sonny Perdue
    Date: 2019-08-30
    Speaking Wednesday in Decatur, Illinois -- corn country -- U.S. Secretary of Agriculture Sonny Perdue said President Trump will "take action to soften the effects of oil refinery exceptions for blending corn-based ethanol in motor fuel." It is "disappointing" that the Trump EPA granted the waivers, Sec. Perdue added.

    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,  


    House Reps Call for RFS "Hardship" Waiver Investigation (Ind Report)
    Biofuel,Renewable Fuel Standard
    Date: 2019-08-28
    In the nation's capitol, a dozen members of Congress, spurred on by Rep. Abby Finkenauer (D-Iowa) have writtn to U.S. Comptroller General Gene Dodaro urging the U.S. Government Accountability Office (GAO) to examine the review and approval of small refinery "hardship" waivers under the Renewable Fuel Standard (RFS) , including the DOE's viability scores for the 40 waivers reviewed to date by the DOE for the 2018 compliance year.

    As previously noted, "hardship waivers" were intended for refineries producing 75,000 bpd or less and suffered "disproportionate economic hardship" from the costs of RFS compliance. The waiver frees the refineries from an obligation to provide the EPA with biofuels credits proving compliance. 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.

    Download the letter HERE. (Source: Office of Rep. Abby Finkenauer, 21 Aug., 2019) Contact: Office of Rep. Abby Finkenauer, (202) 225-2911, finkenauer.house.gov

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


    More RFS "Hardship" Waivers! (Ind. Report)
    EPA,American Soybean Association
    Date: 2019-08-26
    On Friday the 23rd, the EPA announced it was granting 31 more Renewable Fuel Standard (RFS) "hardship" waivers -- a whopping 31 of 38 total Small Refinery Exemption (SRE) applications for the 2018 compliance year.

    In July, EPA announced biomass-based diesel and advanced biofuels volumes for 2021 will remain stagnant but again failed to account for the significant gallons lost because of SRE, which makes the proposed volume, in effect, a reduction for biofuels.

    The waivers announced Friday evening combined with those issued for 2016 and 2017 RFS volumes brings the total number to more than 80 retroactive waivers, which significantly reduces biodiesel demand and results in billions of dollars in economic harm to the U.S. biodiesel industry, including soybean farmers.

    Kentucky soybean grower and American Soybean Association (ASA) president Davie Stephens responded to the latest round saying "Of course ASA is unhappy. These exemptions undermine President Trump's pledge to support the RFS and undermine the Administration's efforts to support farmers who are already bearing the brunt of trade disruptions. EPA's decision is another blow to yet another market for soybean farmers." (Source: American Soybean Association, Daily American, Various Media, 26 Aug., 2019) Contact: American Soybean Association, Dave Stephens, Pres., (314) 576-1770, www.soygrowers.com

    More Low-Carbon Energy News EPA,  "Hardship" Waivers,  American Soybean Association,  


    Growth Energy CEO Rebuts EPA Zero Demand Destruction Claim (Opinions, Editorials & Asides)
    Growth Energy, RFS, EPA
    Date: 2019-08-21
    In response to the EPA's recent claim -- "There is zero evidence that EPA's congressionally mandated small refinery exemption program has had any negative impact on domestic corn ethanol producers" -- Growth Energy CEO Emily Skor issued the following statement.

    "The latest reports say President Trump 'felt misled' about the EPA's most recent batch of small refinery exemptions. That's hardly a surprise. The EPA spent months trying to paper over the devastating impact these refinery (waiver) handouts have had on farm communities and rural workers in America's biofuel sector. They can't hide the simple fact that dozens of biofuel plants have cut production, and ethanol consumption fell for the first time in 20 years in the wake of these exemptions. Closures in Iowa, Illinois, Kansas, Minnesota, Florida, Virginia, Texas, Pennsylvania, Missouri and Nebraska are only the beginning.

    "Just today, the world's largest ethanol producer closed a major plant in Indiana and cut production across seven states. Hundreds of millions of gallons of production are offline, and hundreds of millions of bushels of grain are falling in value, just as farmers face the worst economic conditions in a generation.

    "The Renewable Fuel Standard (RFS) creates an incentive that opens the market to biofuel blends, including the E15 that President Trump personally embraced. These exemptions destroy that incentive, pure and simple. You cannot carve billions of gallons from America's biofuel targets and still keep this administration's promises to farm families. EPA needs to account for these lost gallons immediately and start repairing the damage before more rural communities lose hope for a comeback."

    Growth Energy represents producers and supporters of ethanol working to bring consumers better choices at the fuel pump, grow America's economy and improve the environment. (Source: Growth Energy, 21 Aug., 2019) Contact: Growth Energy, Emily Skor, CEO, Elizabeth Funderburk, (202) 545-4000, EFunderburk@GrowthEnergy.org, www.growthenergy.org

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


    "We've Had Enough!" -- NBB Comments on EPA's RFS Waivers (Opinions, Editorials & Asides)
    NBB
    Date: 2019-08-16
    "Here we go again. Last week, the U.S. EPA granted 31 out of 38 retroactive small refinery exemptions for 2018. I can't contain the frustration and utter disappointment I have with how this administration is handling its responsibility of administering the RFS.

    "Congress passed the Renewable Fuel Standard (RFS) back in 2007, signed into law by George W. Bush -- a lifelong oil and gas guy. The law was passed to encourage investment in advanced biofuels like biodiesel, renewable diesel and renewable jet fuel. Biodiesel producers responded, making the investments and building an industry that today produces more than 2 billion gallons of transportation fuel each year. This market also provides added value to feedstocks such as soybean oil, used restaurant oil and animal fats.

    "The oil industry feverishly insists that the ethanol industry isn't harmed by small refinery exemptions because production has grown. But what about biodiesel? They never mention us because they know that small refinery exemptions disproportionately affect biodiesel because of the way the RFS is constructed.

    "We have said again and again -- biodiesel is very different from ethanol. The president (Trump) was instrumental in clearing the path for higher blends of ethanol year-round when he lifted the RVP waiver this summer, which we were supportive of. He and his EPA administrator have mentioned E15 when they have spoken about what they believe to be the minor impact of exempting RFS gallons. It's as though they think we are dumb enough to not understand that they are giving with one hand but taking away with the other.

    "Now, back to biodiesel. E15 does nothing to expand demand for biodiesel. Ethanol is not biodiesel. In fact, the RFS recognized this by establishing its own category for biodiesel, separate from ethanol, called biomass-based diesel. Policymakers at the time recognized the need to segment biodiesel and renewable diesel within the bigger RFS pool so that growth in those products could be differentiated in the overall program and we would see advancements of biofuels in both the gasoline and diesel sector.

    "Fast forward to 2019 and we now have an EPA that, two months ago, proposed a draft rule to hold the biomass-based diesel category flat for 2020, keeping it at 2.43 billion gallons for the second year in a row and then, just last week, the same EPA grants nearly one-half billion gallons of biomass-based diesel waivers. To highlight the hypocrisy in this action, while filing the draft rule two months ago, the EPA documented, in writing, the fact that they expected to grant zero (that's zero as in none, zilch, nada) gallons of small refinery waivers in 2020. And we're supposed to understand and accept that move?

    "Biodiesel and renewable diesel year after year fill more than 90 percent of the RFS volumes reserved for advanced biofuels. But EPA complains that advanced biofuels have not materialized quickly enough to meet the goals of the RFS. Now -- as seen last week -- the agency is holding its thumb on the industry and blocking growth. Not only blocking growth, but helping to reduce demand through small refinery exemptions.

    "As the agency continues to hand them out to every refiner that asks, the damage could reach $7.7 billion or 2.54 billion gallons, according to Scott Irwin, an agricultural economist from the University of Illinois. A 'small' oil refinery, by RFS definition -- one that processes 75,000 bpd of oil and produces nearly a billion gallons of fuel a year -- would have an RFS obligation to use just 20 million gallons of biodiesel or renewable diesel. Many U.S. biodiesel producers are smaller than that -- just one small refinery exemption would eliminate their entire market. And the EPA granted 31 of them.

    "President Trump vowed to protect and defend American farmers. In fact, he calls them patriots. But his actions will put the biodiesel producers those same farmers depend on for their market, out of business. It's already happening, and it's having a devastating impact on rural communities across the nation.

    "President Trump and EPA Administrator Wheeler should clearly know what this means to the workers, producers, farmers and investors in the biodiesel and renewable diesel industry -- their new round of unwarranted RFS exemptions just destroyed jobs and a valuable marketplace for hardworking Americans, including those patriotic soybean farmers who Trump has called on to be his willing allies in the trade dispute with China. If this is how the EPA administrator treats the president’s allies, I'd hate to see how he treats his enemies. (Source: NBB, 15 Aug., 2019) Contact: NBB, Donnell Rehagen, CEO, Kurt Kovarik, VP Federal Affairs, (800) 841-5849, www.biodiesel.org

    More Low-Carbon Energy News NBB,  Biodiesel,  


    NEB Comments on Latest EPA "Hardship Waivers" -- Notable Quote
    RPA, Nebraska Ethanol Board
    Date: 2019-08-14
    "Over the past two years, the EPA has granted hardship waivers to refineries owned by companies like Exxon Mobil and Chevron. Their continued handouts to the oil industry comes during a time when heartland farmers are really struggling due to depressed commodity prices, flooding and trade wars. Securing access and demand for homegrown, cleaner-burning biofuels should be top priority from an economic and environmental standpoint, not destroying the marketplace program the Renewable Fuel Standard (RFS) was created for." -- Roger Berry, Administrator, Nebraska Ethanol Board (NEB).

    Berry was speaking in Lincoln, Nebraska on the EPA's granting of an additional 31 small refinery biofuel waivers for 2018. This follows the 54 waivers the Trump Administration granted in 2016 and 2017, which caused 2.6 billion gallons of demand destruction. These new waivers add another loss of 1.4 billion gallons, for a total loss of 4 billion gallons. Contact: Nebraska Ethanol Board, Roger Berry, (402) 471-2941, ethanol.nebraska.gov

    More Low-Carbon Energy News Nebraska Ethanol Board news,  Ethanol news,  EPA news,  "Hardship Waiver" news,  


    NBB Condemns EPA's Latest RFS "Hardship Waivers" (Ind Report)
    National Biodiesel Board
    Date: 2019-08-12
    "Less than two months after vowing to always protect and defend American farmers, President Trump is bowing to oil industry pressure and allowing his EPA to dismantle the Renewable Fuel Standard (RFS) program, force U.S. biodiesel producers out of business, and undermine the farm economy. EPA and administration personnel are well aware that the ongoing spree of big oil exemptions destroy demand for biodiesel and render the RFS program meaningless.

    "Biodiesel producers are already shutting down facilities and laying off workers, due to loss of demand. The ongoing demand destruction will undercut the industry's investments and choke off markets for surplus agricultural oils, adding to the economic hardship that farmers are facing. The Trump administration's action represents a fundamental betrayal of previous promises to farmers and the agricultural economy." (Source: National Biodiesel Board, 10 Aug., 2019) Contact: NBB, Kurt Kovarik, VP Federal Affairs, (800) 841-5849, www.biodiesel.org

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


    MORE Small Refinery "Hardship" Waivers Announced (Ind. Report)
    EPA,RFS,Renewable Fuels Association,American Coalition of Ethanol
    Date: 2019-08-12
    On Friday the 9th, the Trump administration EPA, under the administration of former coal industry lobbyist Andrew R, Wheeler, granted 31 more controversial "hardship waivers" allowing refiners to ignore Renewable Fuels Standard (RFS) ethanol blending requirements in what might be construed as the administration's and the agency's attempt to bury the RFS in blatant favor of Big Oil. The agency denied 6 waiver requests and left one additional waiver request undecided.

    Needless to say, the President has yet again misled his supporters and the biofuels industry -- along with just about everyone else both domestic and foreign. In response, ethanol and biofuels players and industry organizations wasted no time in venting their rightful outrage.

    "The Trump Administration's approval of 31 refinery exemptions from the Renewable Fuel Standard is just devastating news for our industry. With this action, President Trump has destroyed over a billion gallons of biofuel demand and broken his promise to Iowa voters to protect the RFS. The vast majority of these exemptions are not justified under the law. Since this news began to leak this afternoon, RFS credit prices have freefallen to nearly zero, destroying much of the incentive to blend an incremental gallon of ethanol." -- Monte Shaw, Iowa Renewable Fuels Association (IRFA) Exec. Dir.,

    "At a time when ethanol plants in the Heartland are being mothballed and jobs are being lost, it is unfathomable and utterly reprehensible that the Trump Administration would dole out more unwarranted waivers to prosperous petroleum refiners. Today's announcement comes as a total shock, as just two months ago Trump himself heard directly from Iowa farmers and ethanol plant workers about the disastrous economic impacts of these small refinery handouts. In response, he (Trump) told us he would 'look into it' and we believed that would lead to the White House and EPA finally putting an end to these devastating waivers. Instead, the Trump administration chose to double down on the exemptions, greatly exacerbating the economic pain being felt in rural America and further stressing an industry already on life support." -- Geoff Cooper, Pres., CEO, Renewable Fuels Association.

    "EPA's refiner-win-at-all-costs oversight of the RFS is doing real damage to America's farmers and renewable fuel producers who are already suffering from trade wars and volatile markets. The RFS is supposed to ensure the use of ethanol and biodiesel increases from one year to the next, but 85 Small Refinery Exemptions later and over 3 billion waived gallons represents an enormous step backwards." -- Brian Jennings, CEO, American Coalition of Ethanol.

    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, AgPro, 9 Aug., 2019) Contact: Iowa Renewable Fuels Association, Monte Shaw, Exec. Dir., info@IowaRFA.org, (515) 252-6249, www.iowarfa.org; Renewable Fuels Association, www.ethanolrfa.org; American Coalition of Ethanol, www.ethanol.org

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


    Pacific Ethanol Seeking Plant Purchasers, Partners (Ind. Report)
    Pacific Ethanol
    Date: 2019-08-07
    In the Golden State, Sacramento-based Pacific Ethanol, Inc. reports it is actively seeking new business partnerships or purchasers for some of its ethanol plants as it battles "negative margins".

    According to company president Paul Koehler, the industry continues to suffer from oversupply, a lack of trade with China and from small-refinery exemptions to the Renewable Fuel Standard that have reduced demand by about 2.6 billion ethanol-equivalent gallons since 2016. The company reported an operating loss of $2.7 million in Q2 this year, down from a $10.2 million loss in Q1, and is operating at roughly 80 pct capacity, according to a statement.

    Pacific Ethanol operates plants in Illinois, Nebraska, Oregon, Idaho and California, with a production capacity of 605 million gpy.(Source: Pacific Ethanol, DTN, Ohio AgNet, 5 Aug., 2019) Contact: Pacific Ethanol, Paul Kohler, Pres., CEO, (916) 403-2790, investorrelations@pacificethanol.com, www.pacificethanol.com.

    More Low-Carbon Energy News Pacific Ethanol ,  


    Ameresco Advocates for Renewable Natural Gas (Ind. Report)
    Ameresco
    Date: 2019-08-02
    In testimony at recent EPA hearings on 2020 Renewable Fuel Volume Standards and Renewable Natural Gas (RNG), Framingham, Mass.-based RBG developer and renewables and energy efficiency specialist Ameresco, Inc. Senior Project Manager Jeff Stander noted -- "We strongly encourage the EPA to set the 2020 cellulosic biofuel RVO to account for at least 650 million gallons of RNG."

    Stander led the 2018 development of Ameresco's RNG production facility at the Woodland Meadows Landfill in Canton, Michigan and was one of several industry experts representing the RNG Coalition at the EPA public hearing on July 31 in Ypsilanti, Michigan, for the EPA's proposed Renewable Fuel Standards for 2020, according to the release.

    Ameresco has developed 39 beneficial use projects involving biogas at wastewater treatment plants and landfills, including three RNG facilities in Arizona, Michigan and Texas that participate in the RFS program. The RNG facilities generate D3 Cellulosic Renewable Identification Numbers (RINs) and provide transportation fuel that is injected into the natural gas pipeline grid.

    Since 2014, the EPA has recognized the use of RNG to meet fuel volume standards under the Renewable Fuel Standard (RFS). RNG makes up more than 95 pct of the renewable fuel used to meet the RFS cellulosic biofuel requirement, according to the Ameresco release. (Source: Ameresco, PR, 31 July, 2019) Contact: Ameresco, Jeff Stander, Senior Project Developer, (508) 661-2288, www.ameresco.com

    More Low-Carbon Energy News Ameresco,  RNG,  RFS,  


    EPA Ignored DOE in Issuing RFS "Hardship Waivers" (Ind. Report)
    RFS
    Date: 2019-07-29
    Contrary to assertions by the EPA the U.S. DOE confirmed in a letter to Sen. Chuck Grassley (R-Iowa) that EPA issued so-called economic "hardship" exemptions under the Renewable Fuel Standard (RFS) to small refineries, often owned by billion-dollar oil companies, even when DOE found that the refineries faced little or no actual "hardship."

    In a response to an April 10 letter from Grassley, Energy Secretary Rick Perry indicated that EPA had, on at least one occasion, issued an exemption when his department recommended no exemption and ignored recommendations to grant only partial exemptions in other cases. Perry also noted that the agency has not changed how these analyses are applied or scored from the prior Obama Administration.

    Perry also noted that he was aware of instances in which DOE recommended a partial or even no exemption for certain refineries, yet EPA subsequently granted a full exemption. This contradicts former oil industry lobbyist and EPA Administrator Scott Pruitt's claim before Congress that EPA simply followed DOE's recommendations.

    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 Pruitt's direction, the EPA handed out 54 exemptions over two years and not a single request for an exemption was been denied. (Source: DOE, FeedStuff, 29 July, 2019)

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


    EPA Releases 2020 RVOs Proposal (Ind. Report, Reg & Leg)
    EPA, RVO
    Date: 2019-07-24
    The US EPA's recently proposed 2020 and 2012 renewable volume obligations (RVOs) under the Renewable Fuel Standard (RFS) require 91 billion litres of renewable fuels to be blended into the US fuel supply in 2020, up from 90.5bn litres in 2019 -- 23 billion litres of advanced biofuels, 11 billion litres of biomass-based diesel - which was set last year and is the same for 2021, and 2.4 billion litres of cellulosic biofuel -- up 545 million litres from the 2019 figure.

    The proposed RVO would require biofuels to make up 10.92 pct of US transportation fuel, including 2.75 pct advanced biofuels, 1.99 pct biomass-based diesel and 0.29 pct cellulosic biofuel.

    The rule making also proposed amendments to the RFS regulations including: clarification of diesel RVO calculations; pathway petition conditions; a biodiesel esterification pathway; distillers corn oil and distillers oil pathways; renewable fuel exporter provisions allowing the production of biomass-based diesel from separated food waste; flexibilities for renewable fuel blending for military use; heating oil used for cooling; RFS facility ownership changes; additional registration deactivation justifications; a new Renewable Identification Number (RIN) retirement; a new pathway for co-processing biomass with petroleum to produce cellulosic diesel, jet fuel and heating oil; public access to information; and other revisions. The amendments came as part of the as yet finalized Renewables Enhancement and Growth Support rule. (Source: EPA, Oils & Fats Int'l., 22 July, 2019)

    More Low-Carbon Energy News Renewable Fuel Standard,  RVO,  Biofuel Blend,  


    Small Refiners Threaten "Hardship Waivers" Legal Action (Ind. Report)
    EPA
    Date: 2019-07-19
    In Washington, Reuters is reporting a coalition of small U.S. refineries are planning on legal action against the the US EPA unless the agency issues issue its decisions on 2018 petitions for "hardship waivers" from the Renewable Fuel Standard (RFS) within 60 days.

    The Trump administration EPA has more than quadrupled the number of waivers it has granted to refinerswhile at the same time raising the ire of the corn industry who claim the move threatens ethanol demand.

    The small refinery coalition's letter to the EPA said the "EPA is required to act on a petition within 90 days after receipt" and that it also failed to issue decisions on the outstanding 40 petitions for 2018 by March 31, 2019, which the letter said was the compliance deadline.

    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. In 2017, the number of small refineries filing for exemptions retroactively for 2016 jumped from 14 the previous year to 20. The rate in which EPA granted these petitions also increased dramatically from 53 pct to 95 pct. (Source: Reuters, Various Media, 18 July, 2019)

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


    EPA's RFS Obligations Another Setback for American Farmers, says NFU (Ind. Report)
    NFU,EPA,RFS
    Date: 2019-07-19
    The US EPA's recently proposed renewable volume obligations (RVOs) under the Renewable Fuel Standard (RFS) for the year 2020 would set required biofuel use at 20.04 billion gallons next year, a marginal increase over this year's 19.92 billion gallons. The difference is primarily attributable to an expansion of cellulosic biofuel, from 420 million to 540 million gallons. The rule maintains the current 15-million-gallon target for corn ethanol, according to a NFU release.

    In the face of the EPA's proposal, the National Farmers Union (NFU) has expressed its disappointment in the almost unlimited issuance of RFS refinery "hardship waivers", the newly released RVO's and the that the agency's failure not only to factor the lost demand into its proposed RVOs but to increase biofuel use at all. "At every turn, EPA and this (Trump) administration have undermined the intent of RFS and destroyed demand for billions of gallons of ethanol", NFU President Roger Johnson added. (Source: The Cattle Site, National Farmers Union, PR, July, 2019) Contact: National Farmers Union, Roger Johnson, Pres., (202) 554-1600, www.nfu.org

    More Low-Carbon Energy News RFS news,  NFU news,  National Farmers Union news,  "Hardship Waiver" news,  


    Notable Quote from the Hawkeye State
    Renewable Fuel Standard
    Date: 2019-07-17
    "I am incredibly disappointed to see that the EPA has failed to reallocate the millions of lost gallons due to their brazen and unprecedented use of small refinery exemption ("hardship") waivers. A robust RFS (renewable fuel standard) is essential to a healthy ag economy in Iowa and across the country." -- Iowa Gov. Kim Reynolds (R), July, 2019 Contact: Iowa Gov. Kim Reynolds, 515-281-5211, www.governor.iowa.gov/contact

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


    Neb. Gov., Ethanol Board Slam EPA's RFS RVO Proposal (Ind Report)
    Nebraska Ethanol Board
    Date: 2019-07-10
    The Nebraska Ethanol Board and the Cornhusker States Governor Peter Ricketts (R) have expressed their disappointment with the US EPA's recently proposed renewable volume obligations (RVOs) for 2020 under the Renewable Fuel Standard (RFS).

    "While Nebraska appreciates the EPA's timely release of renewable volume obligations, this proposal does not reflect the agency's legal duty to enforce a robust RFS or the president's commitment to our farmers," Governor Ricketts said while urging the EPA to "reallocate waived gallons and ensure that the agency is giving our farmers and ethanol producers the predictability they need, especially during tough times for agriculture."

    Nebraska Ethanol Board Administrator Roger Berry said the "Nebraska Ethanol Board is "extremely disappointed in the proposed Renewable Volume Obligation (RVO) numbers released by the EPA. The fact that EPA did not account for any of the lost gallons due to Small Refiner Exemptions directly undermines demand for the quality fuel produced by our hard-working farmers and the 1,400 Nebraskans employed in the ethanol industry."

    Nebraska is the second-largest ethanol producer in the U.S. with over 2 billion gallons production capacity from 25 ethanol plants processing over 700 million bpy of corn for a $5 billion per year economic impact in the state. (Source: Nebraska Ethanol Board, The Independent, 9July, 2019) Contact: Office of Gov. Pete Ricketts, www.governor.nebraska.gov; Nebraska Ethanol Board, Roger Berry, Administrator, (402) 471-2941, www.ne-ethanol.org

    More Low-Carbon Energy News RFS,  Renewable Fuel Standard,  RVO,  Nebraska Ethanol Board ,  


    Are EPA's Proposed RFS 'Obligations' Actually Just Suggestions?" asks RFA (Opinions, Editorials & Asides)
    RFA, RFS
    Date: 2019-07-08
    By neglecting to prospectively reallocate small refinery exemptions and blatantly ignoring a court order to restore improperly waived gallons, the U.S. EPA's proposed 2020 renewable volume obligations (RVOs) completely betrays President Trump's commitment to uphold the integrity of the Renewable Fuel Standard (RFS), according to the Renewable Fuels Association (RFA).

    "As long as EPA continues to dole out compliance exemptions to oil refiners without reallocating the lost volume, the agency may as well start referring to the annual RFS levels as 'renewable volume suggestions' rather than renewable volume 'obligations'. It is a complete misnomer to call these blending volumes 'obligations' when EPA's small refinery bailouts have essentially transformed the RFS into a voluntary program for nearly one-third of the nation's oil refineries.

    "In its announcement today, EPA has proposed a total renewable fuel volume of 20.04 billion gallons, of which 5.04 billion gallons are advanced biofuel, including 540 million gallons of cellulosic biofuel. That leaves, on paper, a 15-billion-gallon requirement for conventional renewable fuels like corn ethanol, unchanged from 2019.

    "Most notably, EPA failed to prospectively account for any expected small refinery exemptions in the 2020 proposal, even though it is almost a foregone conclusion at this point that the Agency will continue to grant more exemptions.

    "Congress gave EPA the direction and tools necessary to ensure that the statutory RFS volumes are enforced, and that includes prospectively reallocating exempted volumes to non-exempt parties. Instead, EPA has chosen to continue its demand destruction campaign that has been crippling to both ethanol producers and the farmers who supply our industry. Enough is enough.

    "EPA approved 54 exemptions for 2016 and 2017 and an additional 38 requests for 2018 exemptions are pending. Not a single exemption request has been denied by EPA since 2015. The exemptions effectively lowered the total RFS requirement for 2017 by 1.82 billion gallons and cut the 2016 requirement by nearly 800 million gallons.

    "Making matters worse, EPA's proposal continues to flout the D.C. Circuit Court's 2017 order requiring the Agency to restore 500 million gallons of renewable fuel obligations that it inappropriately and illegally waived from the 2016 RVO. Unbelievably, the Agency is proposing to snub the court's ruling by refusing to restore the 500 million gallons remanded volume. EPA's stubborn refusal to obey a court order to restore lost demand is yet another kick in the teeth to U.S. renewable fuel producers and farmers already facing the worst market conditions in a generation. EPA's suggestion that following the court's directive would place an 'additional burden' on obligated parties is an insult and an affront to the farmers and ethanol producers who trusted this administration would follow the law. The RFS wasn't intended to make oil refiners comfortable; it was intended to change the status quo by guaranteeing renewable fuels would have access to a marketplace otherwise closed to competition.

    "EPA appears to be selling out to oil refiners -- again -- at the expense of rural America. The court found in favor of renewable fuel producers in 2017 because it was clear our industry had been harmed by EPA's illegal use of a general waiver -- now EPA is doubling down on that harm to the ethanol industry and farmers.

    "Today's proposal undermines the pledge President Trump made to farmers and renewable fuel producers that his administration would enforce the statutory RFS volumes. By failing to prospectively reallocate, failing to commit to a more judicious and restrained approach to refinery waivers, and failing to follow a court's order to restore lost demand, EPA is blatantly undercutting President Trump's commitment to ethanol, which he restated less than a month ago when he visited the Southwest Iowa Renewable Energy ethanol plant. We urge the President to resolve the disconnect between the oval office and EPA and get the RFS back on track." (Source: RFA, PR, 8 July, 2019) Contact: Renewable Fuels Association, Geoff Cooper, (202) 289-3835, www.ethanolrfa.org

    More Low-Carbon Energy News RFA,  RFS,  


    EPA's RFS Obligations Another Setback for American Farmers, says NFU (Ind. Report)
    RFS,EPA,National Farmers Union
    Date: 2019-07-08
    Last Friday, the EPA released its proposed renewable volume obligations (RVOs) under the Renewable Fuel Standard (RFS) for the year 2020. The proposal would set required biofuel use at 20.04 billion gallons next year, a marginal increase over this year's 19.92 billion gallons. The difference is primarily attributable to an expansion of cellulosic biofuel, from 420 million to 540 million gallons. The rule maintains the current 15-million-gallon target for corn ethanol.

    In the face of the EPA's proposal, the National Farmers Union (NFU) has expressed its disappointment in the almost unlimited issuance of RFS refinery "hardship waivers", the newly released RVO's and the that the agency's failure not only to factor the lost demand into its proposed RVOs but to increase biofuel use at all.

    "At every turn, EPA and this (Trump) administration have undermined the intent of RFS and destroyed demand for billions of gallons of ethanol", NFU President Roger Johnson added. (Source: The Cattle Site, National Farmers Union, PR, 8 July, 2019) Contact: National Farmers Union, Roger Johnson, Pres., (202) 554-1600, www.nfu.org

    More Low-Carbon Energy News "Hardship Waiver",  RFS,  National Farmers Union,  Biofuel,  Ethanol Blend,  


    Senators Want Ag Sec. Out of RFS "Hardship Waiver" Decision Process (Opinions, Editorials & Asides)
    RFS
    Date: 2019-07-03
    Following up on our June 12 coverage, DTN Progressive Farmer is reporting thirteen Republican senators from oil-producing states are calling for President Trump to keep Secretary of Agriculture Sonny Perdue out of EPA Renewable Fuel Standard (RFS) small refinery "hardship waiver" decision-making process which the Senators claim the Agriculture Secretary has no authority. Under the Clean Air Act, the EPA administrator decides, after consulting with the Energy secretary, which refiners receive or are denied a hardship waiver, the Senators note.

    "We strongly oppose giving the Secretary (Perdue) any role in the decision-making process over the petitions. We would view any decisions to further delay, reduce, or deny hardship relief to small refineries, or reallocate the obligations of small refineries to other refineries, as the result of the Secretary of Agriculture's impermissible interference. We are confident that others, including the federal courts, would do the same," the thirteen Senators wrote.

    The small-refinery exemptions have reduced ethanol use by about 2.6 billion gallons, and 38 refiners are waiting for EPA to decide on new exemptions.

    Senators writing the letter included Sen. John Barrasso (R-Wyo.) as well as senators representing Louisiana, Montana, Oklahoma, Pennsylvania, Texas, Utah and West Virginia.

    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. In 2017, the number of small refineries filing for exemptions retroactively for 2016 jumped from 14 the previous year to 20. The rate in which EPA granted these petitions also increased dramatically from 53 pct to 95 pct (Source: Various Media, DTN, Progressive Farmer, July, 2019) Contact: Office of Secretary of Agriculture Sonny Perdue,(202) 720-2791, feedback@oc.usda.gov, www.usda.gov/contact-us

    More Low-Carbon Energy News Hardship Waiver,  Ethanol,  Ethanol Blend,  RFA,  Sonny Perdue,  


    Attis Praises EPA's Approval of Year Around E15 Dales (Ind. Report)
    Attis Industries
    Date: 2019-06-21
    Milton, Georgia-headquartered corn ethanol producer and technology holding company Attis Industries Inc. is lauding the Trump Administration's May 30th approval of the expansion of 15 pct (E15) ethanol blends in on-road transportation fuels. Previously, the sale of E15 was restricted to just eight months of the year.

    The rule change has the potential to create a significant increase in market demand for corn-based ethanol as well as other advanced fuels such as cellulosic ethanol. Even so, the administration continues to undermine the enforcement of the Renewable Fuel Standard (RFS) through its abuse of the small refiner "hardship" exemptions (SREs) which have had a drastic effect on renewable fuel demand over the past two years, according to Attis. "Attis encourages the Administration to continue its support of the nation's farmers and renewable fuel producers by limiting SREs to those refiners who truly have encountered hardships by complying with the Renewable Fuel Standard," the Attis release notes.

    Attis Biofuels, LLC, a wholly owned subsidiary of Attis Industries Inc., currently operates a 100 million gpy corn-based ethanol facility in Fulton, NY and has plans to expand the production of renewable fuels to include cellulosic ethanol and various other advanced biofuels, according to the release. (Source: Attis Ind., PR, June, 2019) Contact: Attis Ind., David Winsness, President of Attis Innovations, Jeff Cosman, CEO, 678-580-5661, www.attisind.com

    More Low-Carbon Energy News Attis Industries,  Biofuel,  E15,  Ethanol Blend,  RFS,  


    Senators Call for RFS "Hardship Waiver" Halt (Reg. & Leg.)
    RFS,"Hardship Wsivers"
    Date: 2019-06-12
    Last week in Washington, a dozen Democrattic US Senators wrote to the Trump Administration appointed EPA Administrator Andrew Wheeler advising that the small refiner "hardship waiver" provision was NOT intended to undermine the Renewable Fuel Standard (RFS). Accordingly, the Senators added,

    "We request that you cease issuing any further small refinery exemptions, immediately reallocate the remaining gallons, and make public the information regarding any recipients of these exemptions

    "We are extremely concerned about the EPA's recent actions to continue to improperly grant small refinery hardship waivers under the RFS. EPA's continued manipulation and misuse of the small refiner waiver authority is undermining the integrity of the RFS and disadvantaging farmers. Rather than follow congressional intent in the RFS and follow through on the promises made to rural America, the EPA and the (Trump) Administration are providing waivers, in secret, to help some of the largest oil companies and refiners evade their compliance obligations under the Clean Air Act.

    The letter's signatories included Senators Amy Klobuchar (D-MN) and Tammy Duckworth (D-IL), Senators Tammy Baldwin (D-WI), Michael Bennet (D-CO), Sherrod Brown (D-OH), Dick Durbin (D-IL), Kirsten Gillibrand (D-NY), Mazie Hirono (D-HI), Jeff Merkley (D-OR), Tina Smith (D-MN), Debbie Stabenow (D-MI), and Ron Wyden (D-OR).

    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. In 2017, the number of small refineries filing for exemptions retroactively for 2016 jumped from 14 the previous year to 20. The rate in which EPA granted these petitions also increased dramatically from 53 pct to 95 pct. (Source: Farm Journal, Various Media, AgPro, 11 June, 2019)

    More Low-Carbon Energy News Biofuel Blend,  RFS,  "Hardship Waivers" ,  Andrew Wheeler,  


    Attis Completes Sunoco Corn Ethanol Plant Acquisition (M&A)
    Attis Industries,Sunoco LP
    Date: 2019-06-05
    Milton, Georgia-headquartered Attis Industries Inc is reporting completion of its $20 million acquisition of Sunoco LP's 100 million gpy corn ethanol plant and grain malting operation in Fulton, New York.

    The transaction includes a 6-month transition services agreement as well as a 10-year offtake agreement for the ethanol produced at the facility.

    According to an Attis release, "today, the United States consumes roughly 19 billion gallons of renewable fuel on an annual basis; however, Attis believes firmly that through the deployment of its innovative and transformative suite of green technologies, yearly production can nearly double while taking advantage of more carbon neutral feedstocks. Desperately needed innovation is required to realign existing production to the Renewable Fuel Standard's goal of 36 billion gallons by 2022." (Source: Attis Industries, Inc. , Website 3 June, 2019) Contact: Attis Ind., Jeff Cosman, CEO, (678) 580-5661, www.attisind.com; Sunoco LP, www.sunocolp.com

    More Low-Carbon Energy News Corn Ethanol,  DDGs,  Attis Industries,  Ethanol,  Sunoco LP,  


    Renewable Fuel Standard Integrity Act 2019 Introduced (Reg. & Leg.)
    Renewable Fuel Standard
    Date: 2019-05-31
    Last week in Washington, Chairman of the US House Committee on Agriculture, Collin Peterson (D-Minn), together with Rep. Dusty Johnson (R-S.D.), Rep.Dave Loebsack (D-Iowa), Rep. Rodney Davis (R-Ill.) and Rep. Roger Marshall (R-Kan.) introduced the bipartisan Renewable Fuel Standard Integrity Act of 2019.

    The Act, which is intended to bring transparency to the EPA's small refinery "hardship" exemption (SRE) programme under the Renewable Fuel Standard (RFS), will also set a deadline for refineries to submit petitions for RFS exemptions of 1 June to ensure that any waivers granted are "prospectively reallocated to non-exempt obligated parties, as well as require that key information surrounding the SREs is publicly available" according to a statement from the American Coalition for Ethanol (ACE).

    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. In 2017, the number of small refineries filing for exemptions retroactively for 2016 jumped from 14 the previous year to 20. The rate in which EPA granted these petitions also increased dramatically from 53 pct to 95 pct.(Source: ACE, Various Media, 29 May, 2019)

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


    ABC Decries Indiscriminate RFS Refinery Exemptions (Ind. Report)
    American Biogas Council
    Date: 2019-05-24
    The American Biogas Council (ABC) released the following statement in response to the Trump Administration's continued attempts to erode the Renewable Fuel Standard (RFS) by the indiscriminate granting of small refinery "hardship" exemptions:

    "The continued issuance of small refinery exemptions undermines the integrity of the Renewable Fuel Standard and imperils the ability of biogas and other renewable fuel producers to create new investments and jobs, especially in rural communities.

    "As a program, the Renewable Fuel Standard (RFS) works for the biogas industry. It has boosted American production of renewable fuels, brought new revenue streams to farmers and catalyzed investment in biogas systems. In fact, the number of biogas systems that have been built or upgraded to participate in the RFS has grown at a rate of 30 pct annually supplying valuable renewable fuel that can replace conventional natural gas. In the RFS, biogas and renewable natural gas (RNG) related projects represent the fastest growing sector of the RFS and are therefore critical to addressing the gap between the congressionally mandated fuel volumes and the EPA-lowered fuel volumes.

    "But the recent management of the RFS program, in particular, the Administration's frequent issuance of small refinery ("hardship") exemptions has killed demand in this market-based program and is now impeding growth, development, infrastructure investments and the creation of quality American jobs. The prevalent issuance of exemptions has created the impression that any refinery can get one. As a result, small refineries and some larger ones, both in growing numbers, have stopped purchasing biogas hoping that each one might also be granted an exemption by the Administration to not comply with this congressionally mandated program. Due to the volume of fuel that most biogas systems produce, a large proportion of biogas systems sell to small refineries.

    "The Administration must dramatically slow the issuance of small refinery exemptions (SREs) to small refineries and stop granting SREs to large or unqualified refineries. Indiscriminate and frequent issuance of SREs undermine the integrity of the RFS and imperil economic prosperity and energy security. The Administration needs to follow the law that Congress passed." (Source: American Biogas Council, PR, 23 May, 2019) Contact: ABC, Patrick Serfass, Exec. Dir., (202) 640-6595, info@americanbiogascouncil.org, www.AmericanBiogasCouncil.org

    More Low-Carbon Energy News RFS,  Hardship Waiver,  Biofuel,  American Biogas Council ,  Biogas,  


    EPA Proposes Slight RFS Biofuel Mandate Increase (Reg & Leg)
    RFS, US EPA
    Date: 2019-05-15
    In Washington, the Trump administration EPA is reported to be proposing to increase volume of biofuels refiners must blend into their fuel annually from the present 19.92 billion gallons to 20.04 billion gallons in 2020. The proposed mandated increase is awaiting review by other government agencies before being finalized.

    The mandate includes 15 billion gallons of conventional biofuels -- ethanol -- unchanged from 2019, and 5.04 billion gallons of advanced biofuels, up from 4.92 billion in 2019. The biodiesel mandate of 2.43 billion gallons for 2021, would be unchanged from 2020. (Source: US EPA, AgWEB, 14 May, 2019)

    More Low-Carbon Energy News Biofuel Blend,  RFS,  Renewable Fuel Standard ,  


    U.S. Soybean Oil for Biodiesel Production Rising (Ind. Report)
    US EIA
    Date: 2019-05-10
    According to the U.S. Energy Information Administration (EIA), the share of total soybean oil consumed as a biodiesel feedstock doubled from the current 15 pct to 30 pct as the total U.S. soybean oil supply grew from about 22.5 billion pounds to nearly 26.0 billion pounds between marketing year 2010-2011 and 2017-2018.

    Soybean oil is the most commonly used vegetable oil for biodiesel production, and inputs reached 7.1 billion pounds during the latest soybean oil marketing year which ran from Oct. 1, 2017, to Sept. 30, 2018. Between marketing year 2010-2011 and marketing year 2017-2018, U.S. domestic biodiesel production grew from 700 million gpy to 1.8 billion gpy. The production increase was largely driven by the Renewable Fuel Standard (RFS) biofuel blending mandate. (Source: US EIA, Xinhua, 8 May, 2019)

    More Low-Carbon Energy News US EIA,  Soybean,  Soybean Oil,  BiodieselBiofuel,  


    EPA Signals No Timeline for Decisions on RFS Exemption Requests (Reg. & Leg.)
    EPA
    Date: 2019-05-03
    Reuters is reporting the EPA's decision relative to Renewable Fuel Standard (RFS) obligation small refiner "hardship waiver" may come in late May, although the date remains uncertain.

    Although the DOE has provided their scoring of the exemption requests to EPA relative to the 40 requests that have been received for the 2018 compliance year, the agency has not yet to acted on any of those requests. "No decisions regarding 2018 SREs [small refiner exemptions] have been made," Michael Abboud, a spokesman for the EPA said. "Many aspects of the decisions for exempting individual refineries are based on confidential business information."

    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. In 2017, the number of small refineries filing for exemptions retroactively for 2016 jumped from 14 the previous year to 20. The rate in which EPA granted these petitions also increased dramatically from 53 pct to 95 pct. (Source: EPA, Various Media, Progressive Farmer, 3 May, 2019)

    More Low-Carbon Energy News EPA,  RFS,  "Hardship Waiver",  Biofuel Bleand,  


    Hawkeye State Ag Sec. Supports Year-Round E15 (Ind. Report)
    E15
    Date: 2019-05-01
    Iowa Secretary of Agriculture Mike Naig submitted the following comments in support of the US EPA's proposed changes to E15 fuel-blend regulations to allow year-round sales of E15:

    "The Iowa renewable fuels industry accounts for more than $5 billion (roughly 3 pct) of Iowa's GDP, generating $2.5 billion of income for Iowa households and supporting almost 50,000 jobs throughout the state. Year-round access to E15 represents a long-overdue step toward creating a truly competitive fuel market, where cleaner, lower-cost biofuel blends are available to all consumers. This means stronger markets for farm families across Iowa who have been struggling with ongoing low commodity prices and trade tensions." Naig said.

    "In addition to allowing year-round sales of E15, the EPA's proposed regulatory changes would modify certain elements of the Renewable Fuel Standard (RFS) compliance system to improve the renewable identification number (RIN) market." Iowa is expected to have nearly 1,000 E-15 pumps at 200 stations statewide by the end of 2019. (Source: Iowa Dept. of Agriculture, Crop Life, 30 April, 2019) Contact: Iowa Dept. of Agriculture, Mike Naig, Sec., (515) 281-5321, www.IowaAgriculture.gov

    More Low-Carbon Energy News RFS,  Ethanol Blend,  E15,  


    ABA Asks Court to Quash EPA RFS "Hardship Waivers" (Reg. & Leg.)
    Advanced Biofuels Association
    Date: 2019-04-26
    According to a recent brief filed by attorneys on behalf of the Advanced Biofuels Association (ABA) in a U.S. Court of Appeals for the District of Columbia Circuit court in Washington, the US EPA broke away from Renewable Fuel Standard (RFS) requirements for granting small-refinery waivers starting in May 2017 and continued to deny a congressional order regarding which refiners qualify.

    The suit contends the EPA approved waivers for small refiners that didn't meet the minimum U.S. DOE score to qualify, and improperly considered the debts of small-refiners' parent companies when considering waiver requests. The brief also noted the agency considered small-refiners' operating losses whether or not they were related to RFS compliance. The agency also considered what small refiners might spend on biofuel credits, without looking at revenue the refiners would later generate from sales of Renewable Identification Numbers (RINs). Accordingly, the ABA suit asked the court to declare the EPA's methodology for determining disproportionate economic hardship "unlawful" and to strike down the agency's economic "hardship" policy.

    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. In 2017, the number of small refineries filing for exemptions retroactively for 2016 jumped from 14 the previous year to 20. The rate in which EPA granted these petitions also increased dramatically from 53 pct to 95 pct. (Source: ABA, DTN, April, 2019) Contact: Advanced Biofuels Association, www.advancedbiofuelsassociation.com

    More Low-Carbon Energy News Advanced Biofuels Association,  "hardship Waiver: RFS,  


    IRFA, Iowa Ag. Sec. Challenge RFS Exemptions (Ind. Report)
    IRFA, RFS
    Date: 2019-04-22
    In a joint news conference last Wednesday, Monte Shaw, executive director of the Iowa Renewable Fuels Association (RFA), and the Hawkeye State Secretary of Agriculture, Mike Naig, commented on the small-refinery "hardship" exemptions being considered by the EPA, saying the federal plans to make small refineries exempt from renewable fuel rules "would irreversibly undermine" the nation's Renewable Fuel Standard (RFS).

    "We believe it is time for the EPA to address this threat to the Renewable Fuel Standard," Naig said, adding that over the last two years, the agency has granted waivers accounting for 2.6 billion gallons of ethanol or about 1 billion bushels of corn. "This happens at a time when our farmers and rural America can least afford it" he said adding there are currently 39 small-refinery exemption applications before the EPA. Refiners with a capacity of less than 75,000 bpd can receive a waiver as long as they can prove that complying with the Renewable Fuel Standard would cause "disproportionate economic harm."

    According to Shaw, the nearly 40 exemptions out there could "rip the heart out"of the Renewable Fuel Standard. "If you can justify granting a small-refinery exemption under today's circumstances -- where you can buy a Renewable Identification Number (RIN) for 8 cents, then what the EPA would really be saying is that it's always going to grant small-refinery exemptions, and the hope of ever having a true 15 billion-gallon RFS is dead," Shaw said.

    The Renewable Fuels Association noted overall U.S. ethanol consumption declined last year. The association also noted 48 small refinery exemptions approved last year by former EPA Administrator Scott Pruitt as a main factor for the drop in ethanol use. (Source: Iowa RFA, PR, The Courier, 21 April, 2019) Contact: IRFA, Monte Shaw, Exec. Dir., info@IowaRFA.org, (515) 252-6249, www.iowarfa.org

    More Low-Carbon Energy News Monte Shaw,  RFA,  IRFA,  RFS,  "Hardship" Exemption,  


    Perdue Notes "Positive" Chinese Ethanol Tariff Talks (Ind. Report)

    Date: 2019-04-10
    "There have been conversations with China on reducing that tariff on ethanol, which would obviously be good for our domestic corn industry. While things look positive, it's never over till it's over with the Chinese." -- U.S. Agriculture Secretary Sonny Perdue, 9 April, 2019

    U.S. Agriculture Secretary Sonny Perdue was commenting on the progress of his "positive" talks with China about reducing Beijing's 70 pct "retaliatory" tariff on U.S. ethanol products. In his comments, Perdue also noted that he wanted the EPA to more tightly control its use of small refinery "hardship" waivers that exempt plants from their obligation to blend biofuels like corn-based ethanol under the Renewable Fuel Standard. Perdue added that he'd discussed the matter with EPA chief Andrew Wheeler. (Source: Voice of America, NASDAQ, 9 April, Contact: U.S. Agriculture Secretary Sonny Perdue, (202) 720-2791 -- general information, https://twitter.com/SecretarySonny, www.whitehouse.gov/people/sonny-perdue

    More Low-Carbon Energy News Ethanol,  Corn Ethanol,  


    RFA Comments on New EPA Approved RFS "Hardhip Waivers" (Opinions, Editorials & Asides)
    Renewable Fuels Association
    Date: 2019-03-22
    The EPA reports approval of five more 2017 Small Refiner "Hardship" Exemptions to the Renewable Fuel Standard (RFS) and noted that two more petitions have been received for 2018 exemptions, bringing the total to 39. Renewable Fuels Association (RFA) President and CEO Geoff Cooper offered the following statement:

    "It's extremely disappointing and outrageous to see EPA once again allow oil refiners to undermine the RFS and hurt family farms, ethanol producers and our environment by exploiting and abusing a statutory provision that exempts them from their obligations to blend renewable fuels. The RFS was created to preserve the environment, protect America's energy security and give Americans more affordable options at the pump. These exemptions undercut those goals, and today's exemptions mean more than 2.6 billion gallons of RFS blending obligations have been erased with the stroke of EPA's pen. RFA will continue to fight these exemptions through the courts and urge EPA to adopt a more judicious and restrained decision-making process on refiner exemptions, as well as restore lost volume obligations from previous 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.(Source: Renewable Fuels Association, 21 Mar., 2019) Contact: Renewable Fuels Association, Geoff Cooper, Pres., (202) 289-3835, www.ethanolrfa.org

    More Low-Carbon Energy News Renewable Fuels Association,  EPA,  RFS Hardship Waiver,  Biofuel Blend,  


    EPA Proposes E-15 Fuel Regulatory Changes (Ind. Report, Reg & Leg)
    EPA
    Date: 2019-03-18
    In Washington, the US EPA has proposed regulatory changes to allow E-15 ethanol blended gasoline to take advantage of the 1-psi Reid Vapor Pressure (RVP) waiver for the summer months that has historically been applied only to E10. Under the proposed expansion, E15 would be allowed to be sold year-round without additional RVP control, rather than just eight months of the year.

    EPA is also proposing regulatory changes to modify elements of the renewable identification number compliance system under the Renewable Fuel Standard program to enhance transparency in the market and deter price manipulation. Proposed reforms to RIN markets include: prohibiting certain parties from being able to purchase separated RINs; requiring public disclosure when RIN holdings exceed specified thresholds; limiting the length of time a non-obligated party can hold RINs; and increasing the compliance frequency of the program from once annually to quarterly.

    Download details on proposed rulemaking HERE. (Source: US EPA, Irrigation & Green Energy, Mar., 2019) Contact: US EPA, www.epa.gov

    More Low-Carbon Energy News E-15,  E15,  Biofuel Blend,  EPA,  Alternative Buels,  Renewable Fuel,  Biofuel,  


    Research Links Biofuel Mandate to Environmental Harm (Ind. Report)
    Biofuel,Renewable Fuel Standard
    Date: 2019-03-11
    New research prepared by the University of California-Davis, Kansas State University, and University of Wisconsin contends that the Renewable Fuel Standard (RFS) and its implementation are draining western aquifers, accelerating climate change and fueling numerous other environmental disasters.

    The new research, provides a detailed and comprehensive assessment of the direct connection between U.S. biofuels policy and specific economic and field-level environmental changes following passage of the Renewable Fuel Standard 10 years ago.

    Download a report overview HERE. Download the full research report HERE. (Source: National Wildlife Federation, 8 Mar., 2019) Contact: National Wildlife Federation, www.nwf.org

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


    ABA Claims EPA Strayed on RFS "Hardship Waivers" (Reg & Leg)
    EPA,Advanced Biofuels Association
    Date: 2019-03-11
    According to a brief filed by attorneys on behalf of the Advanced Biofuels Association (ABA) in a U.S. Court of Appeals for the District of Columbia Circuit court in Washington last Wednesday, the US EPA broke away from Renewable Fuel Standard (RFS) requirements for granting small-refinery waivers starting in May 2017 and continued to deny a congressional order regarding which refiners qualify.

    The suit contends the EPA approved waivers for small refiners that didn't meet the minimum U.S. DOE score to qualify, and improperly considered the debts of small-refiners' parent companies when considering waiver requests. The brief also noted the agency considered small-refiners' operating losses whether or not they were related to RFS compliance. The agency also considered what small refiners might spend on biofuel credits, without looking at revenue the refiners would later generate from sales of Renewable Identification Numbers (RINs).

    Accordingly, the ABA suit asked the court to declare the EPA's methodology for determining disproportionate economic hardship "unlawful" and to strike down the agency's economic "hardship" policy.

    As previously reported, "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. In 2017, the number of small refineries filing for exemptions retroactively for 2016 jumped from 14 the previous year to 20. The rate in which EPA granted these petitions also increased dramatically from 53 pct to 95 pct. (Source: ABA, DTN, 8 Mar., 2019) Contact: Advanced Biofuels Association, www.advancedbiofuelsassociation.com

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


    Growth Energy Suing Over RFS "Hardship" Waivers (Reg & Leg)
    Growth Energy
    Date: 2019-02-15
    Ethanol trade association Growth Energy, the ethanol trade association reports it has taken legal action challenging the US EPA's (EPA) "disingenuity" and "failure" to address small refinery "hardship" exemptions from the Renewable Fuel Standard (RFS) in its 2019 renewable volume obligation (RVO) rulemaking.

    According to Growth Energy CEO Emily Skor, the "EPA's inaction on addressing lost gallons due to small refinery exemptions in this rulemaking is a clear violation of law. In doing nothing to remedy these and other deficiencies, EPA has again failed to meet its statutory obligation to ensure that annual RVOs are met each year. Today's filing calls for greater accountability from EPA to ensure that every renewable fuel obligation is fulfilled as the law intended."

    As previously reported, "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: Growth Energy, Various Media, Biofuels Int'l, 13 Feb., 2019) Contact: Growth Energy, Emily Skor, CEO, (202) 545-4000, www.growthenergy.org

    More Low-Carbon Energy News Growth Energy,  RFS Hardship Waiver,  RFS,  EPA,  

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