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Klobuchar Leads Letter Expressing Concern that the Newly Proposed Renewable Fuel Standard (RFS) Blending Targets Will Be Undermined by Continued Abuse of ‘Hardship’ Waivers

December 3, 2019

Press Release

U.S. Senator Amy Klobuchar (D-MN) led a public comment letter last week to Environmental Protection Agency (EPA) Administrator Andrew Wheeler expressing concern over the proposed supplemental rule establishing the Renewable Fuel Standard’s (RFS) 2020 Renewable Volume Obligations and 2021 Biomass-Based Diesel Volumes. The RFS has proven critical to strengthening states’ rural and agricultural economies while also helping to ensure a clean energy future. The senators argued that the proposed rule—which determines how much biofuel is required to be blended into our transportation fuel supply on an annual basis—fails to adequately account for the waivers, including those given to big oil companies. Since 2016, the Administration has granted 85 small refinery exemptions (SREs), effectively waiving over 4 billion gallons of biofuels.

Klobuchar was joined on the letter by Senators Debbie Stabenow (D-MI), Dick Durbin (D-IL), Ron Wyden (D-OR), Tammy Duckworth (D-IL), Sherrod Brown (D-OH), Michael Bennet (D-CO), Mazie Hirono (D-HI), and Tina Smith (D-MN).

“The biofuel industry supports hundreds of thousands of rural jobs across the country. This Administration’s failure to uphold the RFS has already led to the closure or idling of more than 35 ethanol and biodiesel plants, leaving rural America further behind. To ensure certainty to the marketplace and uphold Congressional intent of the RFS, we encourage the Administration to properly account for waived gallons by using the three-year rolling average of actual SREs and to increase advanced biofuel volumes for the 2020 compliance year. Our environment, farmers, and rural communities depend on this corrective action,” the senators wrote.

For years, Klobuchar has also been a leader in the fight to strengthen the RFS to support American jobs and decrease dependence on foreign oil. Klobuchar has led several letters urging the Administration to cease issuing small refinery waivers and reject changes to the RFS that would upend stability and predictability for small businesses and rural communities. In October, Klobuchar sent a letter to U.S. Department of Agriculture Secretary Sonny Perdue asking the agency to document the impact of small refinery waivers on farm income, commodity prices, and renewable fuel usage.

The full text of the letter can be found below:

Dear Administrator Wheeler:

We write to comment on the proposed supplemental rule establishing the Renewable Fuel Standard’s (RFS) 2020 Renewable Volume Obligations and 2021 Biomass-Based Diesel Volumes. The RFS has proven critical to all of our states in strengthening rural and agricultural economies while helping to ensure a clean energy future. That is why we are concerned that the proposed rule fails to respond adequately to the concerns that have been raised by biofuel producers and others in rural America that depend on certainty in the marketplace.

The proposed rule determines how much biofuel is required to be blended into our transportation fuel supply on an annual basis. While we appreciate the EPA’s modest increase of total renewable fuel volumes from previous years, this proposed rule fails to assure renewable fuel producers that the proposed blending targets will not be undermined by the approval of future SREs.

The EPA has asserted publicly that 15 billion gallons of conventional biofuel will be required for the 2020 year, yet these proposed volumes fail to account for the expanded use of small refinery exemptions (SREs) retroactively granted by the agency. Since 2016, the Administration has granted 85 SREs, effectively waiving over 4 billion gallons of demand for biofuels.

Over the last year, the U.S. Department of Agriculture has reduced its estimates for corn used in ethanol by nearly 229 million bushels. Our farmers are already struggling due to low prices, uncertainty with access to export markets, and erratic weather events that have caused planting and harvest delays and yield losses. The continued abuse of SREs is contributing to the declining economic conditions in rural America.

On October 15, 2019, the EPA announced the details of a supplemental notice of proposed rulemaking. These highly anticipated details fell short of the solution to properly account for waived gallons that was originally promised by the President on October 4, 2019. The proposed supplemental rule fails to account for actual waived gallons by instead using a three-year rolling average of volumes that the Department of Energy recommends. The EPA has continually exceeded the DOE’s recommendations on waived gallons and there is no guarantee that this proposed rule will reopen biofuel plants and restore integrity to the program.

The biofuel industry supports hundreds of thousands of rural jobs across the country. This Administration’s failure to uphold the RFS has already led to the closure or idling of more than 35 ethanol and biodiesel plants, leaving rural America further behind. To ensure certainty to the marketplace and uphold Congressional intent of the RFS, we encourage the Administration to properly account for waived gallons by using the three-year rolling average of actual SREs and to increase advanced biofuel volumes for the 2020 compliance year. Our environment, farmers, and rural communities depend on this corrective action.

Thank you for your consideration of our comments.

Sincerely,

Read the original release: Klobuchar Leads Letter Expressing Concern that the Newly Proposed Renewable Fuel Standard (RFS) Blending Targets Will Be Undermined by Continued Abuse of ‘Hardship’ Waivers

RFA Review of 2020 Vehicle Models Reveals Good News for E15, Bad News for Flex Fuels

Renewable Fuels Association

November 26, 2019

By Ken Colombini

A new analysis of vehicle owner’s manuals and warranty statements by the Renewable Fuels Association reveals that nearly all new 2020 automobiles are explicitly approved by the manufacturer to use gasoline containing 15 percent ethanol (E15). However, RFA’s annual review also shows automakers are offering far fewer model year 2020 flex fuel vehicles (FFVs) capable of running on blends containing up to 85 percent ethanol (E85).

According to the RFA analysis, manufacturers responsible for 95 percent of U.S. light-duty vehicle sales unequivocally approve the use of E15 in their model year 2020 automobiles. For the first time ever, BMW models will carry the manufacturer’s approval to use E15; in fact, the BMW Group approves the use of up to E25 in its 2020 models, including its line of Mini automobiles.

“As this analysis shows, virtually all new cars, SUVs, and pickups are approved by their manufacturers to use E15, a lower-cost, higher-octane, cleaner-burning fuel available today at more than 1,900 retail stations in 30 states,” said RFA President and CEO Geoff Cooper. “RFA has worked diligently with the automakers over the past decade to ensure a smooth market transition to E15, and we are thrilled that each year more manufacturers recognize the benefits of E15 to their customers. We are especially pleased that beginning with the 2020 model year, BMW now approves not just E15—but up to E25—in its new vehicle offerings.”

For the ninth consecutive year, all new General Motors vehicles are clearly approved to use E15, while Ford has explicitly endorsed E15 in eight straight model years. Among major manufacturers, only Mercedes-Benz, Mazda, Mitsubishi, and Volvo—representing less than 5 percent of U.S. sales collectively—do not include E15 as an approved fuel in their owner’s manuals.

RFA estimates that nearly 97 percent of the registered vehicles on the road today are legally approved by the U.S. Environmental Protection Agency to use E15, and almost half of those vehicles also carry the manufacturer’s endorsement to use E15. In 2011, the EPA approved the use of E15 in cars and light-duty trucks built in 2001 or later. However, automakers did not start including E15 as an approved fuel in owner’s manuals and warranty statements until 2012, the year E15 was first sold commercially.

Meanwhile, automakers continue to dramatically curtail production of FFVs. Only two automakers—Ford and General Motors—are offering FFVs in model year 2020. Just 16 models will be available as FFVs in 2020, with six of those models available only to fleet purchasers. That’s down from more than 80 different models from eight manufacturers being available to consumers as recently as 2015.

“It is frustrating and disappointing to see automakers hitting the brakes on FFVs, especially at a time when more consumers are actively seeking out E85 and other low-carbon flex fuels,” said Cooper, pointing out that E85 sales in California have quadrupled since 2013 and doubled in just the last two years. “EPA has failed to maintain meaningful incentives for FFV production, and the auto industry has responded by abandoning this low-cost, high-impact technology. Not only do flex fuels like E85 save drivers money at the pump, but they also significantly reduce greenhouse gas emissions and harmful tailpipe pollution. Rather than encouraging more petroleum use, our lawmakers, regulatory officials, and automakers should be taking definitive actions to put more—not fewer—FFVs on the road.”

As RFA advocates for more FFVs on the policy and regulatory front (such as with this correspondence to EPA on its recent FFV credit guidance to automakers), it also encourages drivers to make their voices heard—not just with political officials, but with the auto industry itself. One way to do that is by signing this online grassroots petition asking automakers to offer more models designed to run on “high-octane, low-carbon ethanol blends such as E20, E30 and E85.”

At present, there are more than 4,800 gas stations selling E85 and other flex fuels, and more than 1,900 selling E15. Click here for locations and a price tracker, and click here for more information on ethanol blends.

Read the original article: RFA Review of 2020 Vehicle Models Reveals Good News for E15, Bad News for Flex Fuels

New York Approves E15 Sales

Ethanol Producer Magazine

November 20, 2019

By Erin Voegele

The New York Department of Agriculture and Markets published a notice of adoption in the New York State Register on Nov. 20 allowing the sales of E15 within the state. The move opens the fourth-largest fuel market in the U.S. to sales of E15.

The process to allow E15 sales in New York has been lengthy. A proposed rule issued by the New York Department of Agriculture and Markets in August 2016 was withdrawn the following month. In a notice posted to the New York State Register Sept. 21, 2016, the department said the proposed rule was withdrawn because “several objections were received to the express terms of the proposed rule.”

The New York Department of Agriculture and Markets published a separate proposed rule to allow E15 sales on July 24, 2019. The proposal was a subject to a 60-day comment period. The Nov. 20 notice of adoption published by the agency notes the department received 47 letters and emails that set forth comments concerning the proposed rule.

According to the notice, Growth Energy, the American Coalition for Ethanol, the Renewable Fuels Association and other groups opposed the prohibition on mid-level blends with more than 15 percent and less than 51 percent ethanol. The department said it did not amend the proposed rule as requested by these commenters. In the notice, the department said it “feels that a gradual introduction of higher ethanol blends will allow consumers and the industry time to adjust to new fuel choices,” but noted it intends “to closely monitor the marketplace and will consider, at some future point, allowing additional blends if the marketplace adapts well to the introduction of E15.”

The agency also received comments from several parties regarding concerns over mis-fueling. In response, the department said that several other states have permitted E15 to be sold and there have been no reported cases of mis-fueling. The department also noted the rule requires service stations to post labels complaint with EPA misfuelling mitigation plan requirements. “The department also declines to revise this proposed amendment because it believes that consumers should have the choice whether or not to use E15,” the department said in the notice.

ACE issued a statement noting it supports part of the E15 rule finalized by the New York Department of Agriculture and Markets, but expressed disappointment that the rule prohibits market access for mid-level blends. “ACE applauds the New York Department of Agriculture and Markets for a rule recognizing E15 is a clean, safe and low-cost fuel which will give the state’s consumers the option to buy a higher quality product and save money at the pump,” said Brian Jennings, CEO of ACE. “As one of the largest gasoline markets in the U.S., New York’s action to allow E15 sales is a very encouraging step. Nonetheless, we are disappointed New York appears to be following the footsteps of the Environmental Protection Agency in trying to restrict consumer access to mid-level ethanol blends. With nearly one million flexible fuel vehicles on New York roads and approximately 100 stations equipped to offer mid-level blends along with E85, we are concerned the prohibition on blends between 16 and 50 percent ethanol by volume will take options away from retailers and consumers who could benefit from mid-level blends. We appreciate that the Department intends ‘to closely monitor the marketplace and will consider, at some future point, allowing additional blends if the marketplace adapts well to the introduction of E15’ and we look forward to assisting in the development of this market opportunity in the future.”

The RFA praised New York State for the decision to allow E15 sales, calling it a win for the state’s drivers, overall economy and environmental health. “This was a culmination of a long process over several years, and we’re thrilled to see it finally move forward,” said RFA Board Member Tim Winters, president and CEO of Western New York Energy in Medina, one of the leaders of the effort. “E15 is a higher-octane, lower-cost fuel that is not only better for the American consumer’s pocketbook, but also better for our environment. We are thrilled that New York drivers will soon be able to share in these benefits.”

“Today’s announcement is great news for New York drivers and great news for America’s ethanol producers,” added Geoff Cooper, president and CEO of the RFA. “Consumers in the Empire State can now enjoy the economic and environmental benefits of E15, and the opening of the state’s fuel market represents a growth opportunity for our industry at a time when new demand opportunities are sorely needed.”

Growth Energy also issued a statement celebrating New York’s move to E15. “It’s exciting to see New York regulators finalize this vital update, and we thank Governor Cuomo and the Department of Agriculture and Markets for giving Empire State motorists access to cleaner, more affordable choices at the pump,” said Emil Skor, CEO of Growth Energy. “Over the last five years, Growth Energy has worked continuously with state policymakers to bring higher-octane, lower-emissions biofuel blends to the nation’s fourth largest fuel market. New York has been a pioneer in the climate movement, and their adoption of E15 is consistent with their commitment to a low-carbon transportation future. If New York transitioned from E10 to E15, it would lower carbon emissions by 748,000 tons per year, which is the equivalent of removing approximately 129,400 vehicles from New York’s roads. We look forward to working with retailers across the state to quickly get E15 into the market and establish New York’s continued leadership in low-carbon fuels.”

A full copy of the notice of adoption is available on the New York State Register website.

Read the original article: New York Approves E15 Sales

Construction of First D3MAX Plant Nears Completion

BBI International

November 18, 2019

Press Release

Construction of the first commercial-scale D3MAX plant at Ace Ethanol in Stanley, Wisconsin, is nearly complete. “It has been a long haul since July of 2015 when we created D3MAX to commercialize the corn fiber-to-ethanol technology developed by BBI, to where we are today,” says Mark Yancey, vice president of BBI International and CTO of D3MAX. “Record snowfall in Stanley last February and, this fall, record cold has delayed construction, but we can now see the light at the end of the pretreatment reactor, so to speak, and we are looking forward to startup of the plant in December.”

Ace Ethanol will own and operate the plant under license from D3MAX. Construction of the plant began October 1, 2018. “Ace has been the perfect partner for this first-of-a-kind cellulosic ethanol plant,” says Yancey. “They have been a very active partner in this process, and we would not be where we are today without their leadership and dedication to the success of this first project. Startup will begin December and ramp up to full production capacity throughout the first quarter of 2020."

To learn more about D3MAX visit: www.D3MAXLLC.com.
To learn more about Ace Ethanol visit: www.aceethanol.com.

Some States Looking to End Prohibition of E15

Ethanol Producer Magazine

November 8, 2019

By Matt Thompson

Following the first summer driving season during which the sale of E15 was allowed, there are still areas of the country where it’s not an option for consumers. But, Chris Bliley, vice president of regulatory affairs for Growth Energy, believes it’s only a matter of time before drivers can fuel up with E15 in states like California and New York.

New York, he said, is currently evaluating comments it received after announcing a rulemaking to allow E15 earlier this year. “They took comments through the end of September, and right now they’re evaluating those comments and we’re hopeful that they can complete the rulemaking by the end of the year,” Bliley said, adding that the state is the fourth-largest gasoline market in the country. “It can offer real opportunity once the regulation’s finalized,” he said.

California, he said, is in the beginning stages of exploring how to allow E15. “They just held a workshop a couple weeks ago where they indicated that they’re going to be looking at E15,” Bliley said. He said early indications are that the state will aim for approving the sale of E15 in 2021.

Bliley said that while California and New York are the biggest markets that currently exclude E15, Montana, Nevada, Delaware and portions of Arizona also don’t allow the sale of the fuel. There are also no retailers in Oregon selling the blend, and there is debate about whether the states regulations allow the fuel or not.

Change will likely come from retailers who express interest in the fuel, Bliley said. “Where there’s been retail interest, I think everybody’s been in more direct engagement with the regulators,” he said. “As we see more and more retail interest in some of these states, you can certainly see action.”

While the details have yet to be released, there may be some assistance available for some retailers looking to expand E15. U.S. Deputy Agriculture Secretary Stephen Censky recently announced the USDA is working to on an infrastructure development program. Bliley said that program has the potential to entice more areas to offer E15. “USDA’s going to have to go through their process and whatever the funding may or may not be, that would certainly pique some interest of retailers and states alike, I would think,” he said.

Growth Energy has been working on expanding E15 sales to areas like California and New York, but the big push is on E15 in general. “I think the big push is on E15 broadly. How can we accelerate the market for E15? How can we get more gallons out?” Bliley said. He said the retailers Growth Energy works with sell about 19 billion gallons of gasoline, and there are nearly 2,000 locations in 30 states that offer E15.

Read the original article: Some States Looking to End Prohibition of E15

NASCAR, American Ethanol Celebrate Significant Milestone Together

American Ethanol Racing

November 8, 2019

News Release

On top of the exhilarating and exciting racing taking place this weekend at Phoenix to solidify the Championship 4 in the Monster Energy NASCAR Cup Series Playoffs, American Ethanol has something to celebrate, too. NASCAR is surpassing 15 million miles on Sunoco Green E15 fuel.

“Sunoco is proud to celebrate 15 million miles on Sunoco Green E15 in NASCAR,” said Fred McConnell, director of marketing and motorsports, Sunoco. “To have raced 15 million miles with zero defects is a testament to the quality and performance of Sunoco Green E15 fuel and the incredible team who has refined and distributed it since 2011.”

Since 2011, consumer adoption of higher blended ethanol fuels has continued to grow, with NASCAR competition a key leader in the endeavor.

“Reaching 15 million miles racing with Sunoco Green E15 across our three national series is a significant milestone,” said Elton Sawyer, Vice President, Officiating and Technical Inspection, NASCAR. “Tremendous partnerships with Sunoco and American Ethanol have paved the way toward an industry-wide commitment to deliver high-performance racing while reducing emissions. Under the most rigorous demands, each weekend NASCAR validates the benefits and viability of a fuel blended with 15 percent ethanol.”

With a goal of reducing emissions, making the sport greener and displaying the performance needed on and off the race track, drivers are very thankful to American Ethanol for the 15 million miles of high-performance fuel.

Be sure to check out Austin Dillon’s Richard Childress Racing No. 3 Chevrolet on track this weekend, sporting an American Ethanol paint scheme in honor of the milestone.

Additionally, a special green flag emblazoned with American Ethanol and honoring the achievement will drop at the start of the all-important Round of 8 finale. Cars will also run a special “15 million miles” decal that will be affixed, fittingly, near the fuel port.

“American Ethanol’s partnership with NASCAR has been a fantastic platform to promote the benefits of cleaner-burning ethanol ever since the sport adopted Sunoco Green E15 — a high octane fuel blended with 15 percent ethanol in 2011,” Growth Energy CEO Emily Skor said. “NASCAR fans have now seen the fuel perform flawlessly for 15 million miles under the most demanding circumstances imaginable. Meanwhile, consumers have put E15 to the test for more than 11 billion miles of commutes, road trips, and picking their kids up from school. Whether on or off the track, day after day, mile after mile, E15 continues to be the smart choice for drivers who care about their engines, reducing emissions, and saving money at the fuel pump.”

Read the original article: NASCAR, American Ethanol Celebrate Significant Milestone Together

Agenda Released for 13th Annual International Biomass Conference & Expo in Nashville, Tennessee

BBI International

November 8, 2019

Press Release

Biomass Magazine announced this week the agenda for the 13th Annual International Biomass Conference & Expo taking place February 3-5, 2020 at the Gaylord Opryland Resort & Convention Center in Nashville, Tennessee. The three-day agenda will be divided into four tracks covering pellets & densified biomass, biomass power & thermal, biogas & waste-to-energy, and advanced biofuels & biobased chemicals, as well as a pre-conference event titled, the Biomass Preparation, Handling and Storage Workshop. The pre-conference event is a full-day session taking place Monday, February 3rd, prior to the evening opening reception in the expo hall and will detail the latest advancements in material handling. More information can be found here.

“We were overwhelmed and excited with the number of abstracts submitted this year,” said John Nelson, vice president of marketing and sales for BBI International. “This is the largest biomass event in North America covering biomass power & heat, biogas, pellets and advanced biofuels and the agenda will truly provide in-depth content for all parts of the biomass industry.” The agenda, which was gathered from biomass industry experts from around the world and rated by the conference selection committee will give attendees the ability to hear and learn from nearly 90 industry experts and professionals on a variety of pressing topics including, but not limited to:The speakers will discuss on a variety of topics in the biomass industry under the following categories:

-Pellets & Densified Biomass

-Biomass Power & Thermal

-Biogas & Waste-to-Energy

-Advanced Biofuels & Biobased Chemicals

There will also be a special presentation by biomass industry association leaders to discuss new and upcoming policy, regulations, and technology. Association leaders include:

-Tim Portz, Executive Director, Pellet Fuels Institute

-Jeff Serfass, Executive Director, Biomass Thermal Energy Council

-Patrick Serfass, Executive Director, American Biogas Council

-Bob Cleaves, President & CEO, Biomass Power Association

“We are bringing technical sessions paired with the expertise of our technology vendors, consultants and service providers exhibiting in our expo hall,” said program developer and executive director of the Pellet Fuels Institute, Tim Portz. “The International Biomass Conference & Expo is arguable the world’s largest annual All Things Biomass event.”

Registration for the International Biomass Conference & Expo is now open and attendees have the opportunity to save $200 if registered by January 8th, 2020.

To view the online agenda click here.

About Biomass Magazine
Biomass Magazine is a bi-monthly trade publication tailored to serve companies and organizations engaged in producing or utilizing biomass power and heat, advanced biofuels, biogas, wood pellets and biobased chemicals. In addition to policy, regulation, project finance, technology, and plant management, the publication maintains a core editorial focus on biomass logistics. Its international readership includes owners and managers of biomass power, CHP, and district heating facilities; pellet manufacturing plant owners and managers; professionals working in captive feedstock industries-from food processing and waste management to agriculture and forest products manufacturing-and a growing number of industrial manufacturers, municipal decision makers, researchers, and technology providers engaged in biomass utilization in 40 countries. Biomass Magazine is committed to editorial excellence and high-quality print production and distribution.

Contact
John Nelson
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Governors Say EPA’s Proposed Rule Fails to Honor President Trump’s Biofuel Agreement

Governors' Biofuels Coalition

October 30, 2019

News Release

Last month, President Trump directed the U.S. Environmental Protection Agency to restore the biofuels lost when EPA granted excessive small refinery waivers. In the past three years, the EPA has issued 85 small refinery exemptions, representing a loss of over 4.3 billion gallons of biofuels.

The President ordered EPA to follow the Renewable Fuel Standard that requires 15 billion gallons of corn-based ethanol blended into the nation’s fuel supply, beginning in 2020. The President also directed EPA and USDA to take steps to address barriers to the use of E15 and to expand ethanol’s infrastructure.

Biofuel and agriculture representatives praised the President’s agreement but pointed out that EPA must follow through with a proposed rule that accurately implements the agreement. President Trump also praised the agreement, saying, “We’ve come to an agreement and it’s going to be … getting close to 16 billion [gallons].”

Today, Minnesota Governor Tim Walz and South Dakota Governor Kristi Noem in comments to EPA Administrator Wheeler said the proposed rule “… demonstrates that EPA is oblivious to the harm it has caused” and is ignoring the agreement President Trump reached with the nation’s biofuels community

“EPA chose to approve these waivers at a time when farmers and biofuel producers were already hurt by adverse weather conditions, flagging export market opportunities, and chronically low commodity prices. Approving these waivers when the agriculture economy was struggling represented a callous disregard for the economic interest our nation’s farmers.” The governors pointed out that at least 30 plants remain closed and that the rule will not allow those facilities to open and “put people back to work.”

The governors urged Administrator Wheeler to use a three-year rolling average of actual exempted gallons as the basis to estimate 2020 exempted volumes. “This approach would ensure the 15 billion gallon requirement is actually enforced and truly results in actual blending of at least 15 billion gallons of conventional renewable fuel,” the governors said.

Read the original news release: Governors Say EPA’s Proposed Rule Fails to Honor President Trump’s Biofuel Agreement

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Members of Congress Urge Wheeler to Change SRE Proposal

Ethanol Producer Magazine

October 28, 2019

By Erin Voegele

Nearly two dozen members of the U.S. House of Representatives sent a letter to U.S. EPA Administrator Andrew Wheeler on Oct. 23 urging him to reconsider the agency’s recently small refinery exemption (SRE) proposal and uphold the White House’s commitment to farmers.

The letter references the supplemental notice of proposed rulemaking issued by the EPA on Oct. 15 seeking comments on the agency’s plan for accounting for future SRE waived volumes in annual Renewable Fuel Standard rulemakings.

The representatives stressed the rulemaking does not fulfill the agreement reached by the White House, EPA and USDA as conveyed to stakeholders by way of the EPA’s announcement on Oct. 4.

The letter notes that 85 SREs have been approve since the start of 2016, resulting in a net loss of more than 4 billion gallons of renewable fuels. That loss has been devastating to the lawmakers’ local economies.

“Given the vast number of [SREs] that have been granted since 2017, we are disappointed in the proposed rule as it would not change the proposed volumes for 2020 to wholly account for a realistic average of SREs that have been granted and may be granted in the future,” the members of Congress wrote.

“This announcement does more harm than good for our producers and lends to even greater uncertainty in this challenging farm economy,” they continued. “As published, the proposed rule, despite outlining several potential approaches to reallocate a fraction of the lost gallons, states that the EPA may consider adjusting methodology for projecting the exempt volumes of gasoline and diesel. This is problematic, and not only because the various calculations are based on prior years and do not account for most recent damages, but because it leaves room for the possibility of an even more detrimental calculation.”

The lawmakers urge Wheeler “to publish a rule that lends confidence in the process, requiring the EPA to use the average number of [SREs] granted in the previous three calendar years when formulating the renewable volumes obligation for an upcoming year, as conveyed to stakeholders.” They also argue that the final rule must bring assurance to farmers and producers not just for the 2020 renewable volume obligations (RVOs), but permanently, given the damages caused by the SREs.

“We cannot support a proposal that does not set our farmers and producers on a path toward certainty by ensuring that a fix applies to all future years,” they continued. “As you move forward, on behalf of the EPA, USDA and the White House, we strongly urge you to reconsider the proposal and uphold the commitment that was made to our farmers.”

The letter is signed by Reps. Rodney Davis, R-Ill.; Roger Marshall, R-Kan.; Mike Bost, R-Ill.; Sam Graves, R-Mo.; Jeff Fortenberry, R-Neb.; James Comer, R-Ky.; Don Bacon, R-Neb.; Dusty Johnson, R-S.D.; Tom Emmer, R-Minn.; Ann Wagner, R-Mo.; Darin LaHood, R-Ill.; Steve Watkins, R-Kan.; Steve King, R-Iowa; Adam Kinzinger, R-Ill.; Mark Pocan, D-Wisc.; Paul Mitchell, R-Mich.; James R. Baird, R-Ind.; Vicky Hartzler, R-Mo.; Jim Hagedorn, R-Minn.; Ron Kind, D-Wisc.; Ron Estes, R-Kan.; Blaine Luetkemeyer, R-Mo.; and Adrian Smith, R-Neb.

A full copy of the letter can be downloaded from Davis’s website.

Read the original article: Members of Congress Urge Wheeler to Change SRE Proposal

Klobuchar Addresses Renewable Fuel Standard Hardship Waivers

KEYC

October 22, 2019

By Ryan Sjoberg

Presidential Candidate and U.S. Senator Amy Klobuchar has spent months calling for an end to the harm caused by the abuse of the Renewable Fuel Standard ‘hardship’ waivers.

These ‘hardship’ waivers were originally meant to help a small refinery if they were struggling to stay in business.

In a typical year, five or six waivers were granted.

In just a short time, the Trump administration has issued over 80, including waivers to big oil companies such as Exxon and Chevron, which Klobuchar says gives big oil companies a major advantage.

“It’s really been a gut punch to the Midwest. I believe we should be investing in the farmers and the workers in the Midwest instead of the oil cartels of the Middle East and instead of these big oil companies. They seem to have a different view,” Klobuchar said.

According to Klobuchar, approaches to help this cause moving forward would include stop giving the waivers, make the process more transparent, try to get back fuel lost and fix the standard.

Read the original article: Klobuchar Addresses Renewable Fuel Standard Hardship Waivers

Peterson Statement on House Energy and Commerce Hearing on Small Refinery Exemptions

Rep Collin Peterson

October 22, 2019

Press Release

House Agriculture Committee Chairman Collin Peterson of Minnesota voiced his support following an announcement today that the House Energy and Commerce Subcommittee on the Environment and Climate Change will review the nation’s biofuel-blending requirements, and specifically the Environmental Protection Agency’s granting of Small Refinery Exemption waivers and the Administration’s plans to reallocate those waived gallons of biofuel.

“I would like to thank Chairmen Pallone and Tonko and the House Committee on Energy and Commerce for scheduling an oversight hearing on the Administration’s operation of the Renewable Fuel Standard’s Small Refinery Waiver provision. Our farmers and rural communities rely on the RFS for their economic viability, and EPA’s actions have done nothing but provide uncertainty and the potential for economic ruin.”

Chairman Peterson is a co-chair of the Congressional Biofuels Caucus, a bipartisan group of Members of Congress who advocate for homegrown renewable fuel policies that boost farmer incomes and reduce dependence on foreign oil. He is also the sponsor of the Renewable Fuel Standard Integrity Act of 2019, a bill which provides certainty to the biofuels industry by setting an annual deadline for small refinery exemption applications and bringing transparency to the process.

Read the original release: Peterson Statement on House Energy and Commerce Hearing on Small Refinery Exemptions

New Court Documents Detail Rampant EPA Abuse of Small Refinery Exemption Program

Renewable Fuels Association

October 22, 2019

News Release

Newly available court documents assert that the U.S. Environmental Protection Agency inappropriately granted Renewable Fuel Standard (RFS) compliance exemptions to certain small refineries that did not even qualify for the waivers, and that there was division within the Trump administration about its new approach to small refinery hardship exemption requests.

Specifically, the briefs and supporting documents show EPA granted disproportionate economic hardship exemptions to small refineries whose previous exemptions had fully lapsed, meaning the Agency disregarded the requirement that refiners may only obtain an “extension” of an existing exemption.

The redacted briefs and other documents filed in the Tenth Circuit Court of Appeals pertain to Renewable Fuels Association et al. v. EPA, which addresses EPA’s decisions to retroactively grant hardship exemptions to two refineries owned by HollyFrontier and one refinery owned by CVR’s Wynnewood subsidiary. An audio file of the oral argument was also recently made available by the Court.

The exemptions, which include two granted for RFS compliance year 2016 and one for compliance year 2017, were impermissible under the statute and based on analysis that rendered EPA’s actions arbitrary and capricious, according to the opening and reply briefs filed by RFA, along with the American Coalition for Ethanol, the National Corn Growers association, and National Farmers Union.

The petitioners’ briefs argue that EPA, in addition to ignoring the commonsense meaning of “extension,” also misinterpreted the phrase “disproportionate economic hardship”—the statutory criteria required to extend an exemption. EPA’s interpretation is also undermined by the agency’s own published conclusions that RFS compliance costs are generally passed through to purchasers of fuel and are borne proportionately for small and large refineries alike.

The parties’ filings also revealed what ethanol interests had suspected for quite some time – that EPA was granting full exemptions not only where the Department of Energy had recommended only a partial exemption, but even where DOE had recommended a denial of the small refinery exemption extension in its entirety. EPA’s supplemental proposed rulemaking for the 2020 RVO, while proposing an inadequate solution to the small refiner exemption problem, reveals the extent to which EPA departed from DOE’s recommendations. For the 2016-2018 compliance years, DOE on average recommended that 7.6 billion gallons of gasoline and diesel from small refineries be exempted from RFS obligations; however, EPA disregarded those recommendation and actually exempted an average of 12.8 billion gallons.

Although EPA maintained that the statute gives it final say on whether to extend the exemptions, EPA’s decision to grant a full exemption where DOE recommended full denial is at odds with the recently released EPA decision document for 2018 small refinery exemptions, where EPA indicated that it denied all exemption requests where DOE had recommended denials.

Although the issues have been fully briefed by the parties, on October 15, RFA and the other petitioners filed a request for the Court to consider three new documents that reveal disagreement within the administration regarding its approach to small refinery exemptions.

The first document, a memo authored by Francis Brooke, Special Assistant on the President’s National Economic Council, describes a 2018 proposal to resolve the differences between ethanol and oil interests in part by a “restructuring” whereby “EPA will grant future small refinery exemptions based on only true disproportionate economic hardship,” implying the administration was knowingly issuing waivers to small refineries who were not truly experiencing disproportionate economic hardship. The second document details the reservations of David Schnare, one of the senior aides to Former EPA Administrator Scott Pruitt, regarding the Agency’s granting of small refinery exemptions that Schnare maintained were unlawful. The third document is the EPA decision document for 2018 exemption extensions, showing inconsistencies in EPA’s adherence to DOE recommendations.

A decision by the court, which could impact how EPA grants other retroactive small refinery exemptions in the future, may come by early 2020.

Read the original news release: New Court Documents Detail Rampant EPA Abuse of Small Refinery Exemption Program

Global Ethanol Use to Grow Dramatically, Says USGC Analyst

Successful Farming

October 15, 2019

by Chuck Abbott

China, Brazil, and the United States will help drive a dramatic global increase in ethanol consumption in the next 10 years, said a U.S. Grains Council analyst on Monday. However, the Sino-U.S. trade war will blunt the opportunity for ethanol from the United States, the world’s largest exporter, to win a share of the Chinese market in the near term.

Ethanol production hit 110 billion liters in 2018 and could expand significantly in the next decade, said Mike Dwyer, chief economist for the export-promoting Grains Council, at the Global Ethanol Summit. Some 400 people from 60 nations attended the conference in Washington.

“We think that number (110 billion liters) is set to grow dramatically, especially with developments in China, Brazil, and the United States itself as we make our transition to mid-level blends and higher,” said Dwyer.

Farm groups and ethanol makers expect ethanol sales to rise now that E15 can be sold year-round. Until this year, sales of E15, a 15% blend of ethanol into gasoline, were banned during the summer. The traditional ethanol blend is 10%, which Grains Council president Ryan LeGrand called “just a starting point. It will work in any vehicle.”

About 10% of global ethanol production is sold on the world market, with the United States holding a 61% market share. Brazil, second to the United States as a producer and also second in exports, accounts for one fifth of sales.

Speakers at the ethanol summit extolled ethanol as an octane-enhancing fuel that reduces air pollution and could help nations meet their pledges under the Paris Accord to reduce greenhouse gas emissions. The biofuel also reduces dependence on petroleum, they said. Five dozen countries have policies that encourage use of biofuels.

China, the world’s most populous nation, says it will adopt E10 beginning in January. But it can produce only one-third of ethanol that is needed to meet its goals, so large-volume imports may be necessary, said Dwyer.

“That is what is so unfortunate about the trade war we are having with them right now. The United States could provide more ethanol to China, but we face 70% duties,” he said. If the trade war tariffs were removed, “we could find a pretty good home in China,” even with the previous 30% tariff.

Brazil’s RenovoBio policy, taking effect in the new year, will encourage use of E100, said Dwyer. Over time, it could increase ethanol use by 20 billion liters annually, enough to nearly double consumption.

In the near term, Asia offers the greatest potential for growth, because of a rising middle class and low ethanol consumption at present, followed by Central and South America, said Dwyer.

About 35% to 40% of the U.S. corn crop is used to make ethanol. The USDA says corn-for-ethanol has hit a plateau of around 5.4 billion bushels a year. Domestic ethanol consumption declined for the first time ever in 2018.

Read the original article: Global Ethanol Use to Grow Dramatically, Says USGC Analyst

Farm, Renewable Fuel Groups Angered by EPA Plan to Replace Lost Demand for Ethanol, Biodiesel

Des Moines Register

October 15, 2016

By Donnelle Eller

Iowa farm and renewable fuel groups say a proposal that the U.S. Environmental Protection Agency released Tuesday fails to keep President Donald Trump's promise to boost the sagging market for ethanol and biodiesel.

“We had a deal with the president … but what the EPA rolled out isn’t that deal,” said Monte Shaw, the Iowa Renewable Fuels Association's executive director.

Jim Greif, president of the Iowa Corn Growers Association, said his group "is outraged" that the EPA's proposal Tuesday doesn't reflect what the administration outlined "only 11 days ago."

On Oct. 4, the EPA said it would begin accounting for the reduction in demand for corn-based ethanol and soybean-based biodiesel that resulted when the administration granted some refineries exemptions from a federal mandate called the Renewable Fuel Standard.

The law, known as RFS, outlines how many gallons of ethanol and biodiesel that oil refiners must blend into the nation's fuel supply each year.

The EPA said Tuesday it plans to use a three-year average to account for the reduction in demand for ethanol and biodiesel resulting from the waivers, using the number of gallons that the U.S. Department of Energy recommends waiving.

But the Trump administration earlier this month told farm groups it would use the average of the actual number of renewable fuel gallons that are waived, which is much larger. "Any proposal that does not account for actual waived gallons under the Renewable Fuel Standard fails to restore the integrity of the law," Greif said in a statement.

The difference between the two is significant, said Monte Shaw, executive director of the Iowa Renewable Fuels Association.

The energy department, which provides an initial review of small refinery exemption requests, most recently recommended granting waivers for 770 million gallons of renewable fuels. The EPA, however, approved waivers for 1.4 billion gallons during its last round of exemptions.

Since taking office, the Trump administration has granted 85 waivers to oil refineries, freeing them from using 4 billion gallons of renewable fuel. The exemptions have killed demand for 1.4 billion bushels of corn used to make ethanol, industry officials say.

"It's not a shock that the EPA is trying to water down" the plan the Trump administration announced earlier this month, Shaw said.

The administration in the Oct. 4 announcement said Trump had made a deal with Iowa Republicans, including U.S. Sens. Chuck Grassley and Joni Ernst, and Gov. Kim Reynolds, to increase renewable fuel demand.

Grassley said in a statement Tuesday that Iowa farmers and renewable fuels plants will have to trust the EPA to adequately account for the waived gallons.

"The ethanol and biodiesel industries have a lot of cause to distrust EPA and that is understandable," Grassley said. "But President Trump brokered this deal and any attempt to undermine it from EPA would represent a betrayal of the president. I expect EPA would not do that after all the work that’s gone into this issue.”

Ernst and Reynolds said in separate statements they would do everything they could to hold the EPA accountable.

“I understand the biofuel industry’s frustration and distrust following the EPA’s announcement today,” Reynolds said. “The next 30-day comment period is crucial to making sure the EPA follows through on the president’s commitment.”

A public hearing is scheduled to be held Oct. 30 in Ypsilanti, Michigan.

Growth Energy, a Washington, D.C., ethanol association, called on the EPA to hold the public hearing in Iowa “so more Midwest families racing to complete this year’s harvest will have an opportunity to share their views.

“The farm families hit hardest by EPA exemptions deserve a seat at the table, and that can’t happen if the EPA refuses to hold a hearing in a central location, closer to millions of voices who cannot afford to leave the farm for days at a time,” said Emily Skor, Growth Energy's CEO.

The decline in demand for ethanol and biodiesel has been a double blow to farmers already dealing with depressed prices for corn and soybeans because of the administration's trade wars with China, Mexico, Canada and other countries.

The current corn ethanol requirement is 15 billion gallons.

Shaw said it will be tough for many farmers to trust EPA.

“We couldn’t trust the EPA to stick to the deal for 11 days,” Shaw said. “We haven’t been able to trust EPA for the last two years with the RFS.”

Few Iowa renewable fuels or farm groups would have supported the Oct. 4 plan if they had known how the EPA planned to implement it, Shaw said.

“We all said it has to be real numbers. It has to be accountable," Shaw said. "And it has to send a market signal.

Grant Kimberley, Iowa Biodiesel Board's executive director, said he believed the EPA's proposal would be "likely to inflict further damage on the already struggling biodiesel industry and farm economy."

Nearly 30 U.S. ethanol and biodiesel plants have closed either temporarily or permanently because of the exemptions. Four are in Iowa.

U.S. Rep. Dave Loebsack, an Iowa Democrat, said the EPA's proposed rule "is another in a long string of broken promises for our farmers and biofuel producers."

The proposal leaves “farmers and biofuel producers with no guarantee that the billions of gallons of biofuels exempted from the mandate would ever be restored, as has long been promised by the Trump Administration and EPA,” Loebsack said.

The Renewable Fuels Association called the EPA's proposal a "step backward."

"It falls short of delivering on President Trump’s pledge to restore integrity to the Renewable Fuel Standard and leaves farmers, ethanol producers, and consumers with more questions than answers," Geoff Cooper, the group's CEO, said in a statement.

"This proposal is not what was promised by the administration just over a week ago and fails to answer President Trump’s personal call for a stronger conventional biofuel requirement of more than 15 billion" gallons, Cooper said.

The Iowa Renewable Fuels Association said the EPA's proposal "reneges on the core principle" of Trump's plan earlier this month.

"It is unreasonable and counterproductive to expect Iowans to put their faith in EPA to fix the small refinery exemption problem when they were the ones who created the crisis in the first place," Shaw said.

The EPA released details of its plan as part of a supplemental document to the 2020 biofuels requirement. It was required to be filed by Nov. 30.

In a statement earlier this month, the EPA said that under its plan, it would seek comments on actions "to ensure that more than 15 billion gallons of conventional ethanol be blended into the nation's fuel supply." But it did not specify how many gallons will be restored beginning next year.

Read the original article: Farm, Renewable Fuel Groups Angered by EPA Plan to Replace Lost Demand for Ethanol, Biodiesel

New Study: Renewable Fuel Standard Saves Consumers at Pump, Enhances Energy Security

Renewable Fuels Association

September 19, 2019

News Release

A new study from energy policy expert Dr. Philip K. Verleger, Jr., has found that consumers save 22 cents on every gallon of gas thanks to the Renewable Fuel Standard. That’s a savings of nearly $5 every time you fill up, or $250 per American family every year. Additionally, the report demonstrates how renewable fuels enhance energy security and help act as a counterbalance to consolidation in the oil refining industry.

The Renewable Fuel Standard Program: Measuring the Impact on Crude Oil and Gasoline Prices looks at the impact of the Renewable Fuel Standard program (RFS) on crude oil and gasoline prices over the last four years (2015-2018). The findings highlight how the RFS has helped keep prices down at the pump by requiring oil refiners to blend a certain amount of renewable fuel into the fuel they produce.

Key Report Findings:

-The RFS program has provided economic benefits to consumers in the United States and worldwide. Retail gasoline prices are lower thanks to the program. The findings from an econometric analysis show that the savings to consumers resulting from the RFS averaged $0.22 per gallon from 2015 through 2018.

-The blending of approximately one million barrels per day of ethanol into U.S. motor fuels under the RFS over the 2015 through 2018 period has lowered the average price of crude by $6 per barrel.

-Because gasoline demand is price inelastic, consumers have been able to allocate a smaller percentage of their total consumption budget to fuel purchases. This has allowed them to expend more on other goods. Over four years, U.S. consumers have been able to spend almost $90 billion per year more on other goods because of gasoline prices being pulled down by renewable fuel use.

-If ethanol were eliminated from the fuel supply, as some opponents of renewable fuels have advocated, gasoline prices would surge by more than $1 per gallon.

-There have been 19 oil market disruptions over the last 46 years, starting with 1973’s Arab Oil Embargo. A modest amount of renewable fuels can significantly moderate the price impact of market disruptions. Renewable fuels can limit the process that pushes product prices higher. The suppliers of products, especially gasoline, can and will increase the amount of ethanol blended into motor fuels if the regulations allow and ethanol can be obtained at a favorable price.

-Consumers would likely pay even higher prices if the mergers that created the large oligopolistic independent refiners had not been accompanied by a second trend: the creation of an aggressive, competitive petroleum marketing sector.

-The procedures used for introducing renewable fuels into gasoline allow the competitive petroleum marketing sector to counter the market power enjoyed by U.S. refiners. This independence allows the marketer to vary the amount of ethanol blended depending on the price.

-Consumers will see increasing benefits from lower prices as marketers are allowed to blend additional ethanol into gasoline (or other renewables into motor fuels) when the ethanol can be acquired at a discount to the price of the petroleum-based blendstock. The benefit results from the high level of competition in gasoline marketing and the absence of refinery control over marketers.

Read the original article: New Study: Renewable Fuel Standard Saves Consumers at Pump, Enhances Energy Security

Alcohol School: Yancey Delivers D3Max Project Update

Ethanol Producer Magazine

September 13, 2019

By Lisa Gibson

Minimizing feedstock cost is one rule for a successful cellulosic ethanol project, according to Mark Yancey, chief technology officer for D3Max. “That can be a very large component of your project costs.”

Yancey spoke Sept. 13 at Lallemand Biofuels & Distilled Spirits’ Alcohol School, held this week in Montreal. The final day of the event focused on cellulosic ethanol.

D3Max partnered with Ace Ethanol in Stanley, Wisconsin, to construct a cellulosic ethanol plant, which is expected to start up in October. Yancey said the D3Max development plan has always been to colocate with an existing ethanol plant.

In a cellulosic project, Yancey continued, avoid feedstock harvest and transportation, make sure it’s available year-round and has a high coproduct value.

Other rules Yancey shared from his experience included those in pretreatment: ensure high solids loading, a low-cost catalyst, and minimize inhibitor production. In Enzymatic hydrolysis, minimize enzyme cost, avoid dilution after pretreatment, and use hemicellulase and cellulase enzymes. In fermentation, ensure both C5 and C6 sugar fermentation, use a robust and low-cost yeast, and aim for a high product yield.

Yancey said issues a cellulosic ethanol plant might face include: feedstock supply, feedstock cost, capital cost per gallon of ethanol, ethanol yield, coproduct value, wastewater and project financing.

The feedstock for the D3Max system is wet cake, making a pretreatment step crucial. The wet cake goes into a reactor, then a clash tank, then to fermentation, beer column, and to dehydration or decanters to recover ethanol or produce feed.

“This is considered separate processing,” Yancey said. “There’s no mixing of the starch or sugars between the two plants. That makes us what EPA calls separate processing.” The separate processing status makes permitting much easier, he added.

Corn oil yield is expected to be 1.2 pounds per bushel, with a dried distillers grains with solubles yield of 10.5 pounds per bushel. That’s an improvement of DCO yield from 0.7 pounds per bushel from a standard dry mill ethanol plant, Yancey said, and a decrease of DDGS from 14 pounds per bushel, but an increase in protein of 27 percent.

“Ace is very happy with the results,” Yancey said.

Key players in the project include Ace and D3Max, as well as Fagen Inc., AdvanceBio, Fluid Quip Process Technologies, DSM, Lallemand and Whitefox Technologies.

The D3Max plant is expected to produce about 3.4 MMgy, increasing Ace’s overall yield of 2.9 gallons per bushel to 3.1 gallons per bushel, Yancey said.

In response to questions about starch in feedstock and the effects of nutrients, Yancey said, “when this is all up, we’ll need to reoptimize the whole facility.

“Everyone is waiting for our plant to start up. The proof will be in the actual commercial demonstration.”

Read the original article: Alcohol School: Yancey Delivers D3Max Project Update

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