Under the U.S. Renewable Fuel Standard (RFS) oil refiners are required to blend some 15 billion gpy of corn-based ethanol into their gasoline, but small facilities can be exempted if compliance would hurt them financially.
The October proposal was intended to placate corn growers and compensate the biofuel industry for the administration's expanded use of refinery exemptions, but which the industry has largely panned as insufficient, according to Reuters. The EPA's October plan would raise the biofuels volumes that some refineries must blend in 2020 based on DOE recommendations for volumes that should be exempted.
As previously noted, "hardship waivers" were intended for refineries producing 75,000 bpd or less and suffered "disproportionate economic hardship" from the costs of RFS compliance. The waiver frees the refineries from an obligation to provide the EPA with biofuels credits proving compliance. (Source: Reuters, Various Media, 19 Dec., 2019)
For details see our Oct. 21 report as follows -- Proposed Volumes for 2020 and Biomass-Based Diesel Volume for 2021. The Trump administration EPA has issued the attached supplemental notice of proposed rulemaking seeking additional comment on the recently proposed rule to establish the cellulosic biofuel, advanced biofuel, and total renewable fuel volumes for 2020 and the biomass-based diesel volume for 2021 under the Renewable Fuel Standard (RFS) program.
The notice does not change the proposed volumes for 2020 and 2021. Instead, it proposes and seeks comment on adjustments to the way that annual renewable fuel percentages are calculated. Annual renewable fuel percentage standards are used to calculate the number of gallons each obligated party is required to blend into their fuel or to otherwise obtain renewable identification numbers (RINs) to demonstrate compliance.
Specifically, the agency is seeking comment on projecting the volume of gasoline and diesel that will be exempt in 2020 due to small refinery exemptions based on a three-year average of the relief recommended by the BOE, including where DOE had recommended partial exemptions. The agency intends to grant partial exemptions in appropriate circumstances when adjudicating 2020 exemption petitions. The agency proposes to use this value to adjust the way it calculates renewable fuel percentages. The proposed adjustments would help ensure that the industry blends the final volumes of renewable fuel into the nation's fuel supply and that, in practice, the required volumes are not effectively reduced by future hardship exemptions for small refineries. Consistent with the statute, the supplemental notice seeks to balance the goal of the RFS of maximizing the use of renewables while following the law and sound process to provide relief to small refineries that demonstrate the need.
Download the Renewable Fuel Standard Program -- Proposed Volumes for 2020 and Biomass-Based Diesel Volume for 2021 HERE. Contact: EPA Renewable Fuel Standard, 800-385-6164, www.epa.gov/fuels-registration-reporting-and-compliance-help/forms/fuels-program-helpdesk
More Low-Carbon Energy News RFS, "Hardship" Waiver, Ethanol.Ethanol Blend, Iowa Renewable Fuels Association, Red Trail Energy,
The coalition's brief noted,
"Even as the Trump Administration indicates it is taking steps to account for future small refinery exemptions, the coalition remains concerned that EPA's abuse of the small refinery exemption program diverges from the spirit and letter of the Clean Air Act. From a substantive and procedural perspective, this is not the way for a federal agency to make such a momentous decision."
(Source: Growth Energy, U.S. Grains Council, and Renewable Fuels Association , 23 Oct., 2019) Contact: Growth Energy, Emily Skor, CEO, Elizabeth Funderburk, (202) 545-4000, EFunderburk@GrowthEnergy.org, www.growthenergy.org; U.S. Grains Council, Tom Sleight, Pres., (202) 789-0789, (202) 898-0522, www.grains.org; Renewable Fuels Association, Geoff Cooper, (202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News RFS, Growth Energy, U.S. Grains Council, Renewable Fuels Association,
"It is unreasonable and counter productive to expect Iowans to put their faith in EPA to fix the SRE problem when they (EPA) were the ones who created the crisis in the first place." -- Monte Shaw, Exec. Dir., Iowa Renewable Fuels Association.
Last week Shaw commented: "We welcome the (Trump RFS) proposal to restore integrity to the RFS. We will work with our champions and the White House to make sure the EPA's final rules ensure that a 15 billion-gallon RFS will actually be a 15 billion-gallon RFS. If that is accomplished, the integrity of the RFS will have been restored and President Trump's promise to protect and uphold the RFS will have been redeemed." Contact: Iowa Renewable Fuels Association, Monte Shaw, Exec. Dir., (515) 252-6249, www.iowarfa.org
More Low-Carbon Energy News RFS, Trump, Iowa Renewable Fuels Association,
"It's up to each individual entity, but the innovation of taking advantage of low-carbon markets. I think if we can differentiate ourselves within the state of North Dakota, to take advantage of those and be long survivors in this industry." - Gerald Bachmeier, CEO, Red Trail Energy (Source: Red Trail Energy, West Dakota Fox, 5 Oct., 2019) Contact: Red Trail Energy, 701-974-3308, www.redtrailenergy.com
More Low-Carbon Energy News RFS, "Hardship" Waiver, Ethanol.Ethanol Blend, Iowa Renewable Fuels Association, Red Trail Energy,
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,
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, ,
Ten other ethanol plants in the country have also temporarily shut down and three others have reportedly closed due to what Iowa Renewable Fuels Association Executive Director Monte Shaw described as a "supply-demand imbalance" caused by waivers that federal officials are granting big oil refiners. (Source: Plymouth Energy Business Record, Radio Iowa, 1 Aug., 2019) Contact: Plymouth Energy, 712-938-2373, www.plymouth-energy.com; Iowa Renewable Fuels Association, Monte Shaw, Exec. Dir., info@IowaRFA.org (515) 252-6249, www.iowarfa.org
More Low-Carbon Energy News Ethanol, Iowa Renewable Fuels Association,
"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,
The Husker Ag facility was originally built by Fagen Inc. and designed by ICM of Colwich, KS. Husker Ag expanded its operations in the fall of 2007 and as of 2017 utilizes more than 26 million bpy of corn to produce about 76 million gpy of denatured ethanol and about 450,000 tpy of modified wet distillers' grain (DDG) for cattle feed.
(Source: Renewable Fuels Association, Husker Ag, 3 June, 2019) Contact: Renewable Fuels Association, Geoff Cooper, (202) 289-3835, www.ethanolrfa.org;
Husker Ag, Seth Harder, Gen. Mgr., (402) 582-4446, www.huskerag.com
More Low-Carbon Energy News DDGs, Corn Ethanol, Husker Ag, Renewable Fuels Association,
"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,
"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,
The report was authored by John Urbanchuck, managing partner at ABF Economics.
As we reported on 23 Jan., 2019, 2018 was a record year for ethanol production in Iowa with the state's ethanol production facilities producing 4.35 billion gallons -- 150 million gallons more than 2017 and 150 million gallons short of capacity. The Hawkeye State produces about 27 pct of total U.S. ethanol production.
Iowa's two cellulosic ethanol and 41 corn ethanol plants use more than 1.3 billion bpy of corn. Iowa also produced a record 365 million gallons of biodiesel in 2018 (Source: Iowa Renewable Fuels Assoc., Mar., 2019) Contact: IRFA, Monte Shaw, Exec. Dir., info@IowaRFA.org, (515) 252-6249, www.iowarfa.org
More Low-Carbon Energy News Iowa Biofuel, Monte Shaw, IRFA,
The Council was awarded just under $14 million from the one-time program, which granted a total of $200 million for organizations working in overseas market development for U.S. agriculture and food products Much of the funding will be used to dramatically expand the Council's ethanol programs, which it coordinates with corn and sorghum checkoff organizations, Growth Energy and the Renewable Fuels Association, as well as USDA.
The funding will build upon existing market development and marketing programs operated with support from Council members and USDA through the Market Access Program and Foreign Market Development program.
(Source: US Grains Council, PR, 23 Feb., 2019) Contact: U.S. Grains Council, (202) 789-0789, (202) 898-0522, www.grains.org
More Low-Carbon Energy News U.S. Grains Council, Ethanol,
The annual Outlook publication provides policymakers, regulators, consumers, the media and renewable fuel advocates with key statistics, trends, insight, and analysis on the latest developments in the U.S. renewable fuels industry, as well as commentary on what to expect in 2019. The publication also features a detailed listing of every fuel ethanol plant in the country, along with production capacity.
Access the RFA 2019 Ethanol Industry Outlook -- Powered with Renewed Energy
HERE. (Source: RFA, Feb., 2019) Contact: RFA, Robert White, VP Ind. Relations, (202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News RFA, Renewable Fuels Association, Ethanol, Biofuel,
The study credits the larger-than-expected GHG reductions to: the adoption of technology improvements in the production of corn-based ethanol, resulting in far greater GHG reductions than originally estimated by EPA; the GHG emissions of petroleum are higher than the baseline estimates originally projected by EPA; and advanced biofuels like biodiesel, renewable diesel, and renewable natural gas have contributed additional GHG reductions, even though actual cellulosic biofuel production has been lower than initially projected. The study also notes that the conventional ethanol consumed in 2018 reduced GHG emissions by 43 pct compared to EPA's initial projections that conventional ethanol would achieve only a 20 pct GHG reduction versus petroleum.
Download the study HERE. (Source: RFA, 6 Feb., 2019) Contact: Renewable Fuels Association, Geoff Cooper, Pres., CEO, (202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News GHG Emissions, Renewable Fuel Standard, Renewable Fuels Association, Climate Change, RFA ,
The IRFA credits the increase to record ethanol exports, refinery exemptions to the Renewable Fuel Standard, and the trade dispute with China. Iowa's ethanol is projected to make up 27 pct of total U-S ethanol production.
On Jan. 4 we reported the Iowa's 12 biodiesel plants produced a record-breaking 365 million gallons of biodiesel in 2018. The record production is due in part to the plummeting level of biodiesel imports following a verdict against Argentina and Indonesia for illegally subsidizing imports to the U.S.
According to the IRFA, Iowa's biodiesel production is expected to make up nearly 20 pct of total U.S. production for 2018. The IRFA also emphasized that the state could do even more if the Renewable Fuel Standard (RFS) level for biodiesel was set to at least mirror projected U.S. biodiesel consumption and not undermined by small-refinery exemptions. (Source: Iowa Renewable Fuels Association, Jan., 2019) Contact: Iowa Renewable Fuels Association, Monte Shaw, Exec. Dir., (515) 252-6249, email@example.com, http://iowarfa.org
More Low-Carbon Energy News Ethanol, Biodiesel, Ethanol, Iowa Renewable Fuels Association,
According to the IRFA, Iowa's biodiesel production is expected to make up nearly 20 pct of total U.S. production for 2018. The IRFA Shaw also emphasized that the state could do even more if the Renewable Fuel Standard (RFS) level for biodiesel was set to at least mirror projected U.S. biodiesel consumption and not undermined by small-refinery exemptions.
Compared to 2017, there was a shift in feedstock usage across the state toward more soybean oil. Soybean oil increased its market share to nearly 81 pct while animal fat usage declined from 11 pct to nearly 5 pct. Corn oil continued to make up about 10 pct of feedstock while used cooking oil (UCO)increased to about 4 percent. (Source: Iowa Renewable Fuels Association, KMA Land, 3 Jan., 2019) Contact: Iowa Renewable Fuels Association, Monte Shaw, Exec. Dir., (515) 252-6249, firstname.lastname@example.org, http://iowarfa.org
More Low-Carbon Energy News Iowa Renewable Fuels Association, Biodiesel,
According to the brochure, "There are now approximately 4,500 retail stations throughout the country that offer E85 or other ethanol flex fuel blends, at least 500 more than last year and growing every week."
Consumers can locate E85 stations to fuel their FFVs at E85prices.com, and also view what pricing experiences other users have reported. RFA offers hard copies of the brochure to fuel retailers and member companies at no cost.
View a copy of the brochure HERE
(Source: Renewable Fuel Association, 4 December, 2018) Contact: RFA, Robert White, VP Ind. Relations,
(202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News Renewable Fuels Association, , Biofuel, Flex Fuel,
"EPA's failure to properly account for small refinery exemptions will continue to destroy biodiesel demand. EPA recognizes that the biodiesel and renewable diesel industry is producing fuel well above the annual volumes. The industry regularly fills 90 percent of the annual advanced biofuel requirement. Nevertheless, the agency continues to use its maximum waiver authority to set advanced biofuel requirements below attainable levels. The method is inconsistent with the RFS program's purpose, which is to drive growth in production and use of advanced biofuels such as biodiesel." -- National Biodiesel Board, Donnell Rehagen, CEO, (800) 841-5849, www.biodiesel.org
"Of the 418 million gallons of cellulosic biofuel called for in the RFS, the vast majority, 388 million gallons, are requested from biogas and that represents a 45 pct increase in production from the 2018 volumes." -- American Biogas Council, Patrick Serfass, Executive Director, (202) 640-6595, www.americanbiogascouncil.org
"When the EPA continues to grant waivers and does not account for those volumes in this rule, domestic demand for our crop is lost, impacting farmers' livelihood and the economy of rural America." -- National Corn Growers Association (NCGA), Lynn Chrisp, (202) 326-0644, www.ncga.com
More Low-Carbon Energy News American Biogas Council, NCGA, , RFS, Iowa Renewable Fuels Association, National Biodiesel Board ,
Aemetis operates a 60 million gpy ethanol and DDGs animal feed production facility in Keyes, California and operates a 50 million gpy distilled biodiesel and refined glycerin biorefinery on the East Coast of India. The company also maintains a research and development laboratory and holds granted patents on technology related to the production of renewable fuels and renewable chemicals. (Source: RFA, PR, 28 Nov., 2018) Contact: Renewable Fuels Association, Bob Dinneen, Pres., (202) 289-3835, www.ethanolrfa.org;
Aemetis, Eric McAfee, CEO , Todd Waltz, (408) 213-0940, email@example.com, www.aemetis.com
More Low-Carbon Energy News Renewable Fuels Association, Aemetis,
The RFA noted it will continue to work with interested retailers serviced by the six Growmark-owned terminals to assist them with the transition to offering E15 at retail. (Source: Renewable Fuels Association , Growmark Energy, 5 Nov., 2018)
Contact: Growmark Energy, (309) 557-6000, firstname.lastname@example.org,
www.growmark.com; RFA, Bob Dinneen, Pres., (202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News RFA, Biofuel Blend, E15,
The comments highlight the benefits of ethanol for fuel and draw on the experience of the United States in implementing a similar nationwide E10 fuel blend. They also support moving directly to an E10 blended fuel, as the overwhelming majority of gasoline-powered vehicles are approved for this fuel. Doing so would offer benefits for consumers and ensure certainty for U.K. producers, the groups note.
Read the comments submitted to the UK Department of Transport HERE
(Source: Renewable Fuels Association, Growth Energy, U.S. Grains Council , 19 Sept., 2018): Contact: RFA, Bob Dinneen, Pres., (202) 289-3835, www.ethanolrfa.org; Growth Energy, Emily Skor, CEO, (202) 545-4000, www.growthenergy.org; U.S. Grains Council, (202) 789-0789, www.grains.org;
UK Department of Transport, www.gov.uk/government/organisations/department-for-transport
More Low-Carbon Energy News Growth Energy, E10, Biofuel, Ethanol, Ethanol Blend, U.S. Grains Council, Renewable Fuels Association,
In a joint letter, the groups stress that small-refinery waivers have given refiners "exactly what they asked for: artificially low RIN (renewable identification numbers) credit prices and weaker biofuel blending requirements." Ethanol RIN prices have been trading between 20 and 30 cents since May as a result of the waivers, or a decrease of about 80 pct since last fall, the groups said.
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: RFS, WNAX Radio, 2 Aug., 2018)Contact: RFA, Bob Dinneen, Pres., (202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News RFS Waivers, Renewable Fuels Association, Renewable Fuel Standard ,
At the halfway point for 2018, Brazil was the leading market for U.S. ethanol exports, receiving 345.9 mg -- about 37 pct of total shipments. Exports to Brazil in the first half of 2018 were up 28 pct over the same period in 2017.
Canada came in as the second-largest export market, with 159.5 mg of U.S. ethanol in the first six months of the year -- up 8 pct from the same period a year ago.
Other top markets for the first half of 2018 were India at 70.1 mg, China at 52.9 mg, South Korea at44.5 mg, followed by the Philippines for 43.7 mg.
RFA provides monthly export updates on its E-blog (including a summary of the June data released today) and annual statistical summaries for exports of both ethanol and distillers grains.
(Source: Renewable Fuels Association, SE AGNet, August 3, 2018) Contact: RFA, Bob Dinneen, Pres., (202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News Ethanol, Renewable Fuels Association, Biofuel, Ethanol ,
"He had completely undermined the ethanol industry. He was handing out waivers like candy. The last number I saw was 2.25 billion gallons of ethanol had been waived from the RFS. President Trump continues to talk about giving E15 full-year access, and these refiner waivers are just unacceptable." -- Lisa Richardson, Exec. Dir., South Dakota Corn Growers Association
More Low-Carbon Energy News Pruitt, Ethanol, RFS, Ethanol Blend, Renewable Fuels Association,
in their action, the plaintiffs claim the federal agency, led by the increasingly controversial Trump appointee Scot Pruitt, awarded the waivers to two refineries owned by HollyFrontier Corp. and the Wynnewood Refining Co., a subsidiary of Carl Icahn's CVR Refining, without publishing the actions in the Federal Register and that the refineries were profitable and did not qualify for the waivers.
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: Various Media, NewsOK, 31 May, 2018)Contact: RFA, Bob Dinneen, Pres., (202) 289-3835, www.ethanolrfa.org; National Corn Growers Association, Kevin Skunes, Pres., (202) 326-0644, www.ncga.com
More Low-Carbon Energy News Hardship Waiver, National Corn Growers Association, RFA, EPA Scott Pruitt, RFS,
According to the RFA, "The EPA data strongly implies that small refiner exemptions have effectively lowered the 2017 required volume of renewable fuels by 1.1 billion gallons, or six percent." (Source: US EPA, NAFB, Others, 28 April, 2018)Contact: RFA, Bob Dinneen, Pres., (202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News Renewable Fuels Association, RFA, RFS, Ethanol Blend,
The biofuels producers allege that EPA Administrator Pruitt has repeatedly and relentlessly sought ways to subvert Trump's RFS promises and to undermine, if not destroy, the RFS program. "His anti-RFS actions must be put to an end because today Scott Pruitt is essentially making a liar out of President Trump," the group said.
(Source: IRFA, Spokesman-Review, Various Media, 6 April, 2018)Contact: Iowa Renewable Fuels Association, Monte Shaw, Exec. Dir., (515) 252-6249, email@example.com, http://iowarfa.org
More Low-Carbon Energy News Pruitt, Renewable Fuels, Biofuel, Iowa Renewable Fuels Association, RFS, Ethanol, Biofuel,
"Several media reports over the past week have confirmed the fears we voiced in January about EPA's expansive and abusive administration of the small refiner exemption provision," said RFA President and CEO Bob Dinneen. 'One article even quoted a refining executive as saying EPA is 'handing out those exemptions is like trick or treat candy.' EPA's unbelievable issuance of secret compliance bailouts to refining giants like Andeavor goes far beyond the pale and stomps all over President Trump's commitment to protect the RFS and support America's family farmers, whom he called 'the backbone of our nation.' Combined with the free pass EPA handed out this week to Philadelphia Energy Solutions (PES) and the Agency's refusal to enforce the 2016 RFS requirements as remanded by the courts, these subversive actions are literally destroying demand for both ethanol and corn.
"EPA's secretive actions are having real impacts on the marketplace. Every new revelation about EPA's latest handout or kickback to refiners serves as yet another gut punch to markets that are already reeling from the impacts of new Chinese tariffs. Make no mistake, EPA's underhanded refinery waivers are negatively affecting the welfare of our nation's ethanol producers and the very livelihood of America's family farms. At the very least, they deserve some answers about EPA's cloak-and-dagger decision-making process on small refiner exemption petitions."
(Source: Renewable Fuels Assoc., 5 April, 2018) Contact: RFA, Bob Dinneen, Pres., (202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News RFS, Renewable Fuels Association,
Hubbard also requested Congress provide a multi-year extension and expansion of the Alternative Vehicle Refueling Property Credit, which provides a tax credit equal to 30 pct -- up to $30,000 -- of the cost of any qualified alternative fuel vehicle refueling device. The tax credit currently is limited to single-use, dedicated pumps, but should be expanded to take into account the increased use of blender-style pumps. (Source: Renewable Fuels Assoc., 14 Mar., 2018)
Contact: RFA, Edward Hubbard, RFA General Counsel, (202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News Renewable Fuels Association, Biofuel, Biofuel Tax Credit,
The states with the highest average ethanol content in 2016 were Minnesota and Iowa. In Minnesota, the ethanol blending rate was 12.4 pct. About one out of eight gas stations in the state offer E85. Iowa's average ethanol content in 2016 was 11.4 pct, according to EIA data.
States pushing past the 10 pct blending average for the first time in 2016 were Colorado, Idaho, Montana, Wyoming and Texas. The lowest blending rate among the states was 9.43 pct , with blending averages of 10 pct and lower primarily in the mid-Atlantic and Southeastern regions.
(Source: RFA, EIA, CSP News, Feb., 2018)Contact: U.S. EIA, www.eia.gov; RFA, Bob Dinneen, Pres., CEO,(202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News Renewable Fuels Association, EIA, Ethanol, Ethanol Blend, RFS,
According to the study, Overall, food price inflation in 2007 was 4 pct and in 2017 it was 1 pct. The 20 year average is 2.5 pct. Food price inflation has actually been significantly lower during the past 10 years of the RFS."
Download the full report HERE. (Source: RFA, Brownfield Ag News, Nebraska Public Radio, 25 Jan., 2018) Contact: RFA, Bob Dinneen, Pres., CEO,(202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News Renewable Fuels Association, Ethanol,
The company contends compliance with the RFS "point-of-obligation" was too costly. Under the RFS, Valero and other oil refiners are required to blend ethanol with gasoline or purchase credits to comply. In 2016, Valero spent $750 million on fuel credits.
(Source: Renewable Fuels Association, Reuters, Valero, 22 Jan., 2018)
Contact: Valero Renewable Fuels, Joe Gorder, Pres., (800) 324-8464, www.valero.com; RFA, Geoff Cooper, Snr. VP, (202) 289-3835, www.ethanolrfa.org; RFA, Bob Dinneen, Pres., CEO,(202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News Valero Energy, RFS, Renewable Fuels Association,
The campaign describes bifuels as "the fastest and easiest way" to reduce transportation sector greenhouse gases and calls for Canada's present 5 pct ethanol blend mandate raised to 10 pct (E10).
Renewable Industries Canada, founded in 1984 as the Canadian Renewable Fuels Association, represents the leaders of Canada's bioeconomy -- producers of renewable fuels and value added products that reduce GHG emissions.
RIC members provide renewable, clean-burning biofuels such as ethanol and biodiesel -- fuels that help fight climate change and combat pollution and smog. At the same time, they produce value added products from renewable resources and continuously innovate to provide environmental and economic benefits.
The organization aims to promote the use of value-added products made from renewable resources through consumer awareness and government liaison activities.
(Source: Renewable Industries Canada, Dec., 2017)
Contact: Renewable Industries Canada, (833) 446-3385, www.ricanada.org
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The report's lead author Seth Spawn said the study showed the mandate had "far-reaching impacts on the climate through its effects on the land and the carbon that is stores." The Renewable Fuels Association (RFA) questioned the research and said previous similar studies "have been thoroughly debunked and disputed."
Download the full UW Madison report HERE. (Source: 15 Nov., 2017)
(Source: UW Madison. Wisc. Public Radio,National Wildlife Federation, PR, Reuters, 15 Nov ., 2017) Contact: University of Wisconsin, Seth Spawn, firstname.lastname@example.org, www.gibbs-lab.com/seth-spawn
More Low-Carbon Energy News Biofuels, Carbon Emissions, RFS,
The EPA predicted in 2007 that U.S. cellulosic ethanol production could hit 1 billion gpy by 2020, but output this year is expected to reach only 7 million gallons, according to the Renewable Fuels Association (RFA). (Source: DowDuPont, DesMoines Register, 2 Nov., 2017) Contact: DowDuPont,Dow Chemical, www.dow.com; DuPont Industrial Biosciences, William F. Feehery, Pres., www.biosciences.dupont.com; DowDuPont, (800) 422-8193, www.dow-dupont.com
More Low-Carbon Energy News DowDuPont , Cellulosic Etanol,
Magellan operates the longest pipeline system for refined products and L-P-Gs in the United States, extending about 9,700 miles from the Gulf Coast and covering Iowa and 14 other states across the central U.S.
(Source: Magellan Midstream Partners, Iowa Renewable Fuels Assoc., Radio Iowa, 27 September 27, 2017) Contact: Iowa Renewable Fuels Association
Magellan Midstream Partners, (918) 574-7000, www.magellanlp.com
More Low-Carbon Energy News E-15, Ethanol Blend, Iowa Renewable Fuels Association,
The EPA fuel waiver will make it easier for gasoline and diesel supplies to be distributed by relaxing Clean Air Act regulations that require special blends be made available to meet state-specific emission requirements.
Current EPA emission rules don't allow for E15 to be blended in the summer because of its high fuel volatility and pressure rating. The new waiver relaxes those requirements for reformulated gasoline and low volatility gasoline through Sept. 15, opening up an opportunity to sell more E15 from the Gulf Coast to the Mid-Atlantic.
(Source: RFA, Washington Examiner, 30 Aug., 2017)
Contact: RFA, Geoff Cooper, Snr. VP, (202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News E15, Ethanol Blend, RFA, Fuel Emissions , EPA, Scott Pruitt,
"While EPA's August 26 waiver of certain reformulated gasoline (RFG) and Reid Vapor Pressure (RVP) requirements was a welcome step, it is not delivering meaningful relief from escalating gasoline prices in Texas and across the rest of the country. Specifically, RFA is asking EPA to relax the RVP limits to 10 psi for all finished gasoline blended with ethanol in conventional and RFG areas nationwide, through Sept. 15. In effect, this could be achieved by specifying that gasoline containing up to 15 percent ethanol by volume qualifies for the "special provisions for alcohol blends" found in 40 C.F.R. 80.27(d) (i.e., the 1.0 psi "waiver" for 9 -- 10 pct ethanol blends.
"In the days since EPA issued the August 26 fuel waiver, market conditions have worsened and supply shortages are expected to be more severe than previously thought. Gasoline futures prices have surged nearly 10 percent since August 24, 2017, the day before Hurricane Harvey made landfall.
"It is being broadly reported that at least 10 percent of the nation's refining capacity has been shuttered as a result of the hurricane, and analysts now expect further price surges in the wake of hurricane-related refinery and terminal outages. In addition, both offshore and onshore drilling rigs have been idled, leading to lower crude oil production and tighter supplies for refineries in the weeks ahead.
"The action we are requesting would significantly enhance flexibility for blenders and refiners and help alleviate the logistical challenges and shortfalls that are causing gas prices to spike. Relaxing RVP requirements to 10.0 psi nationwide would immediately allow gasoline blenders to produce fuel that complies with EPA regulations using any available gasoline blendstock on the market. It would also immediately allow blenders to use up to 15 percent ethanol by volume in all finished gasoline in all areas of the country, proving a badly needed source of additional supply and helping to offset gasoline shortfalls resulting from refinery and terminal outages.
"While the waiver issued August 26, 2017, allows gasoline with less than 9 pct ethanol by volume to qualify for the
special provisions for alcohol blends requirement (i.e., the 1 psi waiver for E10), it
did not allow blends containing up to 15 percent to qualify for the provision. Extending this temporary waiver to 15 percent ethanol blends would greatly assist in alleviating current price spikes and
supply crunches." (Source: RFA, 28 Aug., 2017) Contact: RFA, Bob Dinneen, Pres., CEO,(202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News Renewable Fuels Association, RFS, Ethanol Blend,
The Watertown plant uses more than 43 million bpy of locally grown corn to produce 100 million gpy of ethanol and 340,000 tpy of distillers grain (DDGs). GLE also operates an ethanol plant in Mina, South Dakota.
(Source: Renewable Fuels Association , Ethanol Prod., 18 July, 2017) Contact: Glacial Lakes Energy, (605) 882-8480, www.glaciallakesenergy.com
More Low-Carbon Energy News Glacial Lakes Energy , Ethanol,
The increase is part of ongoing energy reforms in Mexico and follows input from stakeholders in the government, private sector, research scientists and social interest groups.
Mexican regulators moved in August 2016 to allow ethanol in local fuel supplies, except in its three largest metropolitan areas -- Monterrey, Guadalajara and Mexico City.
(Source: Mexican Energy Regulatory Commission, AgWired, Other, 19 June, 2017) Contact: Mexican Energy Regulatory Commission, +52 55 5233 1500, email@example.com, cre.gob.mx
More Low-Carbon Energy News Ethanol Blend, E10,
Ethanol stocks were 22.0 million barrels, down 3.5 pct from last week to the lowest level since late January. Average weekly gasoline demand plunged 5.1 pct from the previous week's record volume. Gasoline demand tallied at 391.3 million gpd for an annualized rate of 142.8 billion gallons. Refiner/blender input of ethanol fell 4.3 pct to 909,000 bpd. (Source: US EIA, Renewable Fuels Association, June, 2017) Contact: US EIA, www,eia.gov; RFA, Geoff Cooper, Snr. VP, (202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News EIA, Ethanol, US Ethanol, Renewable Fuels Association, ,
The RFA says it will share its analysis with the EPA and Congress in order to prevent any push back against the RFS. (Source: RFA, WNAX Radio, 24 April, 2017)
Geoff Cooper, Snr. VP, (202) 289-3835, www.ethanolrfa.org
More Low-Carbon Energy News RFA, Ethanol, Blend Wall,