In the News

Senator Amy Klobuchar

Feb 4, 2021

WASHINGTON - U.S. Senators Amy Klobuchar (D-MN) and Chuck Grassley (R-IA) led a letter to Acting Administrator of the Environmental Protection Agency (EPA) Jane Nishida highlighting the need to restore integrity to the Renewable Fuel Standard (RFS) by reviewing small refinery waivers, swiftly issuing a proposed rule for the 2021 Renewable Volume Obligation, and advancing the proposed E15 streamlining proposal.

Hours before the inauguration, former EPA Administrator Andrew Wheeler took action to exempt three unidentified oil refineries from their 2018 and 2019 RFS obligations under the Clean Air Act. These exemptions betrayed earlier assertions made by the Trump administration that the EPA would not grant or deny additional waivers pending the resolution of ongoing litigation over the use of the small refinery waiver authority. In January 2021, the U.S. Court of Appeals for the Tenth Circuit found that EPA had “grossly exceeded” its authority by granting certain small refinery exemptions. As this litigation continues, the Senators asked Acting Administrator Nishida to review the three waivers issued by Mr. Wheeler and, should they be deemed unacceptable, immediately reverse them.

“Fortunately, on January 21, 2021, the U.S. Court of Appeals for the D.C. Circuit...ordered an administrative stay of the three exemptions pending further order by the court. The order granting a stay...provides you a timely opportunity to carefully review the three midnight waivers and examine the previous administration’s flawed approach to adjudicating waiver petitions. We urge you to take advantage of this opportunity,”the Senators wrote.

The Senators also proposed additional actions Administrator Nishida could take to provide certainty and stability to the renewable fuels marketplace, including swiftly issuing a proposed rule for the 2021 Renewable Volume Obligations (RVO) and moving forward with the proposed E15 streamlining proposal to expand market access for higher-blends of biofuels.

Klobuchar and Grassley were joined by Senators Tina Smith (D-MN), Joni Ernst (R-IA), Tammy Baldwin (D-WI), Roy Blunt (R-MO), Richard Durbin (D-IL), Ben Sasse (R-NE), Tammy Duckworth (D-IL), John Thune (R-ND), Debbie Stabenow (D-MI), Roger Marshall (R-KS), M. Michael Rounds (R-SD), Deb Fischer (R-NE), and Josh Hawley (R-MO).

Full text of the letter  HERE  and below:

Dear Acting Administrator Nishida:

As Senators who represent states with large agriculture interests, we write to highlight the pressing concern of restoring integrity to the Renewable Fuel Standard (RFS) and to alert you to pressing policy decisions that the Administration must make to bring regulatory certainty to the transportation fuels sector of the economy.

Your predecessor, former Administrator Andrew Wheeler, took action to exempt three unidentified oil refineries from their 2018 and 2019 Renewable Fuel Standard (RFS) obligations under the Clean Air Act just hours before the inauguration. These exemptions betrayed earlier assertions made by the Trump Administration that the Environmental Protection Agency (EPA) would not grant or deny additional waivers pending the resolution of ongoing litigation over the use of the small refinery waiver authority. In January 2020, the U.S. Court of Appeals for the Tenth Circuit found that EPA had “grossly exceeded” its authority by granting certain small refinery exemptions. On January 8, 2021, the Supreme Court indicated its intention to review the Tenth Circuit case (Renewable Fuels Association v. EPA), with oral arguments expected this spring and a decision by summer.

As this litigation is ongoing, we respectfully ask that you review the three waivers issued by Mr. Wheeler on January 19, 2021. If these waivers do not meet the three-part test laid out in the Tenth Circuit Court of Appeals then we urge you to immediately reverse them and deny the refiners’ waiver requests.

Fortunately, on January 21, 2021, the U.S. Court of Appeals for the D.C. Circuit, acting in response to an emergency motion, ordered an administrative stay of the three exemptions pending further order by the court. The order granting a stay – which does not require a response from EPA until February 3, 2021 – provides you a timely opportunity to carefully review the three midnight waivers and examine the previous administration’s flawed approach to adjudicating waiver petitions. We urge you to take advantage of this opportunity.

Because the Tenth Circuit decision is the most definitive legal pronouncement to date regarding EPA’s small refinery waiver authority, we encourage the Agency to adhere to that decision for the purposes of deciding all pending exemption petitions during the pendency of the Supreme Court’s review of the decision.

EPA could provide additional certainty and stability to the renewable fuels marketplace by swiftly issuing a proposed rule for the 2021 Renewable Volume Obligation (RVO) that provides growth in all renewable fuel categories and finally restores the 500 million gallons of blending requirements that were illegally removed from the 2016 RVO. Finally, in order to continue growing the market for cleaner, lower-cost biofuels, we respectfully ask that EPA move forward with the E15 streamlining proposal that was published just days before the end of the previous administration.

Not only would the actions requested in this letter restore integrity to the RFS and revive confidence throughout our nation’s farm communities, but they would also help fulfill commitments made by President Biden to expand the use of environmentally friendly renewable energy sources. 

Read the original press release here.

Renewable Fuels Association

Feb 1, 2020

Intellectual Property (INDECOPI) Tribunal announced Friday that the U.S. ethanol industry and the U.S. government won an appeal on a countervailing duty case brought against U.S. ethanol in Peru, reversing a previous decision handed down by Peruvian authorities that applied a 15-cent per gallon duty on U.S. ethanol and resulted in loss of market access in the country.

The Renewable Fuels Association, U.S. Grains Council and Growth Energy participated extensively in this case, arguing at hearings in both the initial investigation and the appeal in Peru on behalf of the U.S. ethanol industry. The following is a joint statement on the decision from Geoff Cooper, President and CEO, RFA; Ryan LeGrand, President and CEO, U.S. Grains Council; and Emily Skor, CEO, Growth Energy.

“We appreciate the thoroughness of the Competition Tribunal’s analysis, and the careful review process followed in Peru. This is a welcome development for our U.S. ethanol producers and our valued customers in Peru. 

“We are pleased that Peruvian authorities reached the right result, and we look forward to continuing our close work with Peru to further enhance our mutually beneficial trade relationship development efforts, including urging them to increase their blend rate beyond 7.8 percent. Doing so would also help Peru to meet its Paris Agreement commitments and lead to opening more global trade of ethanol.

“The U.S. ethanol industry remains focused on expanding the global use of low-carbon ethanol, reducing barriers to trade, and elevating the energy discussion, and we  favor continued collaboration and cooperation with Peru and other nations that share the vision of a free and open global ethanol market.” 

Read the original news release here

DuPont Nutrition & Biosciences

Jan 26, 2021

DuPont Nutrition & Biosciences today announced the launch of the SYNERXIA® Gemstone Collection, the next advancement in high-performance yeasts. The new collection from the XCELIS® platform includes SYNERXIA® SAPPHIRE and SYNERXIA® RUBY – two innovative, high-yield yeasts designed for the unique needs of ethanol producers. 

This marks the first time that DuPont has co-launched two high-yield yeasts. SYNERXIA® SAPPHIRE brings the most powerful combination of yield, robustness and enzyme expression in a yeast. It offers enhanced ethanol yield increase paired with revolutionary thermotolerance and infection robustness in fermentation and has been genetically engineered to withstand harsh stressors, while still finishing fermentation with ultra-low DP1. 

SYNERXIA® SAPPHIRE has been engineered to provide a strong ethanol yield increase compared to conventional yeast and powers through fermentation finishing clean when ethanol producers encounter hot fermentations or severe infections. The product also expresses enough glucoamylase to displace up to 80 percent of the glucoamylase injected to fermentation.  The yeast’s strong expression of the powerful glucoamylase offers reduced residual starch for many producers. 

SYNERXIA® RUBY is the highest yielding yeast available today from the XCELIS® platform, delivering exceptional performance to producers via a patented PKL pathway and additional targeted genetic modifications. It produces less acetic acid compared to SYNERXIA® THRIVE GX and enables up to 65 percent glucoamylase reduction.

“The SYNERXIA® Gemstone Collection will give ethanol producers flexibility in responding to their individual plant needs while ensuring high ethanol yield and minimal waste,” said Hans Foerster, global marketing director, DuPont Biorefineries. “These new yeasts represent a new standard in high-yield yeasts on the market for ethanol producers and is just the latest in DuPont’s innovative approach to ethanol solutions through the XCELIS® platform.”

To learn more about the SYNERXIA® Gemstone Collection and the XCELIS® platform, visit www.xcelis.com or  https://www.linkedin.com/showcase/xcelis-ethanol-solutions

Read the original news release here

Renewable Fuels Association

Jan 26, 2021

A  comprehensive new study  by scientists from Harvard University, Tufts University and Environmental Health & Engineering Inc. shows that using corn ethanol in place of gasoline reduces greenhouse gas emissions by almost half. The “central best estimate” of corn ethanol’s carbon intensity is 46% lower than the average carbon intensity of gasoline, according to the study’s authors, with some corn ethanol in the market today achieving a 61% reduction. The study credits recent efficiency improvements and the adoption of new technologies for the steady reduction in the lifecycle carbon intensity of corn ethanol. The new study will be published in an upcoming volume of Environmental Research Letters, a well-respected academic journal.

“This new study provides further validation that ethanol is a highly effective tool that for decarbonizing liquid transportation fuels and significantly reducing greenhouse gas emissions from the transportation sector,” said Renewable Fuels Association President & CEO Geoff Cooper. “And with ethanol, we don’t have to wait and hope for technological and economic breakthroughs. It’s here today at a low cost and already has a proven track record. Ethanol can and should be allowed to do more to contribute to the fight against climate change, and that starts by breaking down the barriers to higher blends like E15, E30, and flex fuels like E85. As President Biden’s administration and the new Congress consider actions and policies to address climate change, we encourage them to examine the best available science and properly account for the critical role ethanol and other renewable fuels can play in securing immediate GHG reductions.”

Cooper pointed out that the scientists found that emissions from land-use change are only “a minor contributor” to the overall carbon footprint of corn ethanol, accounting for just 7% of total GHG emissions.

According to EH&E’s Chief Science Officer David MacIntosh, one of the study’s authors, “This research provides an up-to-date accounting of corn starch ethanol’s GHG profile in comparison to that of gasoline refined from crude oil. The results of this research are timely for the scientific, public health, legislative, and business communities seeking to establish a net-zero carbon economy while addressing related technological, political and economic challenges.”

Read the original news release here

Ethanol Producer Magazine

Jan 22, 2021

U.S. ethanol production was up less than 1 percent the week ending Jan. 15 while weekly ending stocks were down slightly, according to data released by the U.S. Energy Information Administration on Jan. 22.

U.S. ethanol production averaged 945,000 barrels per day the week ending Jan. 15, up 4,000 barrels per day when compared to the 941,000 barrels per day produced during the previous week. When compared to the same week of last year, production was down 104,000 barrels per day.

Production of fuel ethanol has stabilized in recent months after falling to historic lows in the spring of 2020 due to market impacts caused by the COVID-19 pandemic. Ethanol production hit a low of 537,000 barrels per day the week ending April 24, but began to recover in May and June as travel restrictions associated with the pandemic began to ease and demand for transportation fuels started to recover. Production levels since July have been maintained at a level above 900,000 barrels per day, but are down roughly 10 percent when compared to the same period of last year.

Weekly ending stocks of fuel ethanol fell to 23.628 million barrels the week ending Jan. 22, down 64,000 barrels when compared to the 23.692 million barrels of stocks reported for the previous week.

Stocks of fuel ethanol trended down for several months after reaching a record high of 27.289 million barrels the week ending April 17 and remained at levels below those reported for the same period of 2019 through mid-November. Ending stocks, however, have been trending higher in recent months. When compared to the same week of last year, ethanol stocks for the week ending Jan. 15 were up 403,000 barrels.

Read the original story here

Renewable Fuels Association

Jan 21, 2021

In response to an  emergency motion filed Tuesday evening by the Renewable Fuels Association, the U.S. Court of Appeals for the D.C. Circuit today ordered that EPA’s action on Tuesday to grant three small refinery petitions must be “administratively stayed pending further order of the court.”

The order prevents EPA from further processing the small refinery exemptions, at least until the court has had “sufficient opportunity to consider the emergency motion for stay.” EPA has until February 3 to respond to the motion, and any replies are due to the court by February 10.

The stay comes roughly 36 hours after EPA approved two 2019 waiver petitions and one 2018 petition, which—if allowed to stand—would erase another 260 million gallons of Renewable Fuel Standard blending requirements.

“We took this action immediately to prevent the agency from doing further economic damage to an industry already reeling from the impacts of COVID-19,” said RFA President and CEO Geoff Cooper on Tuesday when the motion was filed. “To avert additional harm to the ethanol industry, EPA must be prevented from returning any compliance credits (RINs) to the unidentified refiners who were given these last-minute exemption handouts.”

Read the original press release here.

Ethanol Producer Magazine

Jan 18, 2021

The ethanol sector continued to recover during the fourth quarter of 2020 with production levels up 3.5 percent when compared to the third quarter, according to a new quarterly report released by CoBank’s Knowledge Exchange on Jan. 14. Margins, however, were down.

Average daily production was at 14.7 billion gallons or 90 percent of pre-COVID supply and demand during the fourth quarter, up from 14.2 billion gallons in the third quarter or approximately 87 percent of pre-COVID supply and demand during the third quarter.

According to CoBank, average daily operating margins for a representative Iowa dry mill fuel ethanol plant fell by 10 cents during the quarter to 11 cents per gallons. The report notes that input costs increased dramatically during the three-month period, with corn prices up 26 percent and natural gas prices up 19 percent.

CoBank said it is closely monitoring industry operating margins given the risk that ethanol fuel prices could stagnate relative to increasing corn prices. The report indicates, however, that facilities producing distillers grains coproducts may continue to see margin expansion should distillers grains values remain elevated relative to corn.

In the near-term, CoBank said the incoming Biden administration’s urgency in addressing climate change through its recommitment to the Clean Air Act will be a positive for the ethanol industry. Longer term, however, electric vehicles threaten to erode ethanol demand.

CoBank also predicted the production outlook for fuel ethanol could somewhat improve in 2021 if COVID-19 vaccine deployment fosters a return to workplaces.

For the U.S. economy as a whole, CoBank predicts it will be summer before the economy really begins to gain steam. The second half of the year, however, is expected to power the economy to annual growth of approximately 4.5 percent to 5.5 percent.

A full copy of the quarterly report can be downloaded from the CoBank  website.

Read the original story here

Reuters

Jan 14, 2021

The U.S. Environmental Protection Agency said on Thursday it would propose to extend deadlines for refiners to prove compliance with biofuel laws, but signaled it would not decide on a slew of pending waiver requests submitted by the industry.

The agency's proposal represented mixed news for refiners hard hit by slumping energy demand during the coronavirus pandemic and eager to sidestep regulatory costs associated with U.S. biofuel blending policy. It also marks one of the last actions from President Donald Trump's EPA before he leaves office on Jan. 20.

The agency said it is proposing to extend the compliance deadline for 2019 biofuel blending obligations to Nov. 30, 2021, and an associated deadline for submission of attest engagement reports to June 1, 2022. The EPA is also proposing to extend the 2020 deadlines to Jan. 31, 2022, and June 1, 2022. 

Refiners must hand in credits to the EPA each year to prove they complied with their annual biofuel blending obligations for the previous year. 

The agency also said it was not taking a position on the availability of 2019 small refinery waivers, which can exempt oil refiners from biofuel blending obligations. The agency said the decision was related to pending litigation regarding the waiver program. 

EPA could not be reached by Reuters to clarify whether that meant the agency was not issuing any additional waivers before Trump leaves office. 

The proposal was outlined in a document seen by Reuters that is scheduled to be posted on the Federal Register on Friday.

Under the U.S. Renewable Fuel Standard, refiners must blend billions of gallons of biofuels like corn-based ethanol into their fuel mix, or buy credits from those that do. Refiners can apply for exemptions if they can prove the obligations would cause them financial harm.

Because of the coronavirus pandemic, EPA had not enforced compliance for some refineries for the 2019 compliance year.

"While we don’t agree that EPA needs to wait as long as it is proposing, particularly for the 2020 compliance year, we do agree with EPA that the outgoing administration should refrain from any further action on the pending small refinery petitions," said Geoff Cooper, president of the Renewable Fuels Association.

U.S. senators including Joni Ernst and Chuck Grassley of Iowa urged EPA Administrator Andrew Wheeler in a letter dated Thursday not to grant small refinery exemptions until ongoing litigation is resolved. 

Renewable fuel (D6) credits for 2020 traded at 90 cents each on Thursday, up from 79 cents in the previous session, traders said.

Read the original story here