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Renewable Fuel Standard 'Solid' Through Trump Era, Vilsack Says

November 20, 2016

By Bloomberg

The politically contentious Renewable Fuel Standard will survive a Donald Trump administration because ethanol is too well-established in rural areas to be dismantled, Agriculture Secretary Tom Vilsack said.

"There’s going to be a lot of saber-rattling, but it supports too many jobs and too much rural infrastructure is set up for it," Vilsack said in a Nov. 18 interview that also covered subjects such as trade and immigration. "The Renewable Fuel Standard is solid."

The U.S. Environmental Protection Agency is due to decide whether to raise its targets for national biofuels consumption from 14.5 billion gallons in 2016, bringing it more in line with the 15 billion-gallon mandate envisioned in energy legislation passed in 2007. Ethanol has been criticized for raising food and feed costs, but has been a boon for corn-growers and domestic jobs.

President-elect Trump told the Iowa Renewable Fuels Association earlier in 2016 that the U.S. should increase ethanol mandates, but in September his campaign published a fact sheet calling for removal of the biofuel blending credit system. His campaign later reissued the fact sheet without the language opposing the system. Vilsack, speaking in his U.S. Department of Agriculture office in Washington, said rural support for the rest of the RFS would be enough to withstand attacks on it from other quarters. "I think it will be very difficult for it to be repealed," he said.

Vilsack, the only member of President Barack Obama’s original cabinet still in his post, said U.S. agriculture is in good shape heading into 2017, despite lingering crop surpluses that have pushed down prices.

"Producers will make different decisions, and over time the surplus will be whittled down, and there will be a weather disaster someplace," said the former governor of Iowa. "I think the arrow is still pointing up."

But his successor may need to buck Trump on trade and immigration. Those
issues, on which the Republican candidate campaigned for more restrictive policies, are too important for agricultural prosperity to ignore, Vilsack said. He added that less regulation and lower taxes, two areas farmer groups have welcomed as they look forward to a Trump administration, are less important.

The U.S. "can’t declare war on China and Mexico, our number one and number three partners, and not be for immigration, which provides us with our workforce," he said. "You can do away with the EPA tomorrow. You can do away with what you call the ‘death tax’ tomorrow. But if you don’t a have a market, and you don’t have a workforce, what difference will it make?"

Vilsack, 65, said he doesn’t know what his plans will be after he leaves office.

Read the original story: Renewable Fuel Standard 'Solid' Through Trump Era, Vilsack Says

White House Decarbonization Report Addresses Biofuels, Biomass

Biomass Magazine

November 16, 2016

By Erin Voegele

The White House has published a mid-century strategy on decarbonization that addresses biofuels and bioenergy. On Nov. 16, the report was filed with the United Nations Framework Convention on Climate Change under the Paris climate deal.

The White House committed to release the strategy, titled “United States Mid-Century Strategy for Deep Decarbonization,” in March. At that time, the administration made a joint statement with Canada that indicated the two countries would work together to implement the Paris agreement as soon as feasible. In addition to implementing their respective Intended Nationally Determined Contributions, the leaders of both countries also committed to completing mid-century, long-term low greenhouse gas emission development strategies pursuant to the agreement.

The mid-century strategy spans more than 100 pages and lays out a national U.S. strategy to deeply decarbonize the economy by 2050, aiming to net GHG emissions reductions of 80 percent or more below 2005 levels by 2050. “The MCS demonstrates how the United States can meet the growing demands on its energy system and lands while achieving a low-emissions pathway, maintaining a thriving economy, and ensuring a just transition for Americans whose livelihoods are connected to fossil fuel production and use,” said the White House in the report. “It also shows how the momentum of technological progress created by global commitments to low-carbon innovation and policies will enable increasingly ambitious climate action from all countries.”

Regarding biofuels, the report notes U.S. government-funded research, development, and demonstration (RD&D) has played a foundational role in spurring technological advances throughout the last century. “With the full power of U.S. RD&D efforts unleashed on clean energy technologies, consistent with the Mission Innovation commitment to double clean energy RD&D spending, we can develop new technologies that will increase the pace and reduce the costs of decarbonization,” said the White House in the strategy. “In addition, potential high impact technologies such as CCUS, advanced nuclear, and second generation biofuels are in early stages of development or commercial deployment; to achieve meaningful scale by mid-century, deployment programs may be needed to bring the first set of commercial-scale facilities to market.”

The report also calls for increased support for public and private research, development, demonstration and deployment (RDD&D), noting that different sectors and technologies come with different priorities and needs with respect to RDD&D, as well as different approaches for government support. “For certain technologies at early stages of commercial deployment like carbon capture and storage, second generation biofuels, and emerging advanced nuclear energy, support programs can bring the first set of commercial-scale facilities to market, driving cost reductions through learning and economies-of-scale,” the White House said in the report. “Supporting a broad range of technologies is likely to lower the costs of decarbonization because we do not know today how technologies will progress over many decades.”

Specifically, the report finds RDD&D investment opportunities to reduce biofuel production costs, improve production efficiency, develop drop-in fuels, co-optimize engines with low-carbon fuel to maximize performance and greenhouse gas reductions, and ensure biomass is produced and used in ways that are carbon beneficial.

The report also addresses carbon beneficial forms of bioenergy plus carbon capture and storage (BECCS), which is defined as any facility that combusts biomass for electricity or converts biomass to fuel and captures the resulting carbon dioxide for utilization or storage in underground reservoirs. The report notes BECCS can be utilized across power generation, industrial applications and biofuel production, and highlights once such project in Illinois that captures carbon dioxide from an ethanol plant and sequesters it underground. That project, known as the Decatur Project, captures pure CO2 from a nearby ethanol plant and stores it at pilot scale in a saline aquifer. The report also notes there are other examples of ethanol production plus carbon capture, utilization and storage (CCUS) for enhanced oil recovery. According to the report, BECCS for power production has not yet been tested at scale and its full negative emissions potential depends on the upstream land carbon effects of biomass production.

Within the report, the White House notes a significant portion of the document is devoted to actions needed in the land sector, including the development of carbon-beneficial forms of biomass and negative emissions technologies because they have not received as much in-depth treatment elsewhere. Biomass is seen as playing a particularly important role in energy uses that are difficult to electrify, such as aviation, long-haul trucking, and heat production in certain industrial sectors. Overall, the report states that for the mid-strategy strategy, biomass production in the range of 1 billion dry tons could be produced while maintaining the strategy’s land sector objectives, such as carbon sink, wildlife habit and sufficient food production, assuming efficient land management. “Carbon accounting protocols based on the most up-to-date science can ensure carbon beneficial forms of biomass, or only those sources that result in net reductions of CO2 to the atmosphere, are utilized to support U.S. decarbonization,” said the White House in the report.

“An illustrative 2050 land use scenario consistent with [mid-century strategy] goals, which could entail 50 million acres of forest expansion and 40 million acres of biomass production from 2015 areas, would need to be managed carefully,” states the report. “However, these changes can be made ecologically and economically feasible by focusing on opportunities to deliver multiple products and services on the same acre, including agroforestry, precision agriculture, and bioenergy crop-pasture rotational strategies. For example, in Iowa alone, an estimated 27 percent of cropland, or 7 million acres, may not be profitable in commodity crop production but could be well-suited to perennial grasses or agroforestry (Brandes et al. 2016). Focusing nationally on such areas could minimize land use competition and help increase rural landowner incomes while delivering environmental benefits like improved soil health and reduced nutrient runoff.”

The report addresses several other factors related to the production of biomass and its use in several sectors. It also outlines several specific possible scenarios for the nation’s energy future. A fully copy of the report can be downloaded from the White House website.

Read the original story: White House Decarbonization Report Addresses Biofuels, Biomass

New Report Knocks the Stuffing Out of ‘Food vs. Fuel’ Turkeys

Renewable Fuels Association

November 16, 2016

Millions of Americans preparing for Thanksgiving next week are undoubtedly noticing that dinner will cost less than it did a year ago. According to the U.S. Department of Agriculture, overall grocery prices are roughly 2% lower than at this time last year, and prices specifically for poultry products — like turkey — are down 1.5% compared to last fall. Meanwhile, the amount of corn used for fuel ethanol is primed to set a new record in 2016, up roughly 3% from last year.

The Renewable Fuels Association (RFA), which released an independent analysis today on the impact of ethanol on food prices, says the current collision of falling food prices and record ethanol production should end the contrived “food vs. fuel” debate once and for all.

The new statistical analysis, conducted by Informa Economics IEG, retrospectively examined the effect of ethanol expansion on food prices, concluding that “…retail food prices were not impacted in any demonstrable way by expansion of U.S. grain ethanol production under the Renewable Fuel Standard (RFS) over the past decade.” In fact, the study finds that food price inflation has actually slowed during the “ethanol era.”

The analysis shows that growth in food prices slowed considerably after passage of the RFS2, with prices for groceries advancing at roughly half the rate seen prior to the program’s adoption. “Prior to the passage of RFS2, food away from home [e.g., restaurants] grew at an average of 3.4%, versus 3.2% for food at home [e.g., groceries]. After RFS2, food away from home grew at 2.6%, versus 1.8% for food at home,” the study found. “The increase in the food [consumer price index] actually decelerated as the usage of corn in ethanol production increased dramatically.”

The study also examines the impact of ethanol on corn prices, and in turn the impact of corn prices on retail food items. While the authors conclude that corn prices were positively impacted by ethanol expansion, higher corn prices did not necessarily translate into higher consumer food prices. “Statistical analysis shows that the link between corn prices and overall food prices has been weak,” according to the report, adding that changes in food prices are primarily driven by “…the costs of transforming farm products to retail grocery products, along with transportation and distribution at various levels of the supply chain.” The analysis shows that only 19% of consumer spending on food pays for the value of the farm commodities, with the remaining 81% paying for “…post-farm-gate activities (e.g., transportation, processing, marketing).”

Other factors that drive farm commodity and retail food prices were examined, with Informa concluding that core inflationary pressures, weather events (e.g., flooding and droughts), exchange rates, and energy prices all impacted commodity and food prices over the past decade. In fact, from 2009 to 2014, the impact of crude oil prices on consumer food price inflation was nearly nine times greater than the impact of corn prices.

“The U.S. ethanol industry is set to produce a record volume of high octane renewable fuel this year,” said RFA President and CEO Bob Dinneen “And at the same time, consumers are spending considerably less on food today than they did a year ago. Today’s lower food prices continue a trend of deceleration in food inflation rates that began nearly 10 years ago when the RFS2 was adopted. As the new Informa report clearly demonstrates, there is no discernible link between ethanol production and retail food prices — here in the U.S. or globally. It’s time to put an end to the ridiculous ‘food vs. fuel’ myth that has been propagated for far too long by self-interested opponents of biofuels and the RFS.”

View the analysis here.

Read the original story: New Report Knocks the Stuffing Out of ‘Food vs. Fuel’ Turkeys

Gevo (GEVO) Says Alaska Airlines to Fly Today on Its Cellulosic Renewable Alcohol to Jet Fuel

StreetInsider.com

November 14, 2016

Gevo, Inc. (NASDAQ: GEVO), announced that the first commercial flight using Gevo’s cellulosic renewable alcohol to jet fuel (ATJ) is expected to take place today originating in Seattle and flying to Ronald Reagan Washington National Airport.

Previously, on October 11, 2016, Gevo announced that it had completed production of the world’s first cellulosic renewable jet fuel that is specified for commercial flights. Gevo successfully adapted its patented technologies to convert cellulosic sugars derived from wood waste into renewable isobutanol, which was then further converted into its ATJ. This ATJ meets the ASTM D7566 specification allowing it to be used for commercial flights. The cellulosic ATJ was produced in conjunction with the Northwest Advanced Renewables Alliance (“NARA”). NARA supplied the sugars that were derived from forest residuals in the Pacific Northwest. Gevo produced the cellulosic renewable isobutanol in St. Joseph, Missouri. The cellulosic renewable isobutanol was then transported to Gevo’s biorefinery facility in Silsbee, Texas, where the cellulosic renewable isobutanol was converted into ATJ.

oday’s flight follows on the back of the two commercial flights that were flown by Alaska Airlines on Gevo’s ATJ in June of this year. The ATJ for the June flights was derived from isobutanol produced at the Gevo’s facility in Luverne, MN, using sustainable corn as the sugar feedstock.

Gevo believes that its renewable ATJ has the potential to offer the most optimized operating cost, capital cost, low carbon potential, feedstock availability, scalability, and translation across geographies, as compared to other renewable jet fuel options.

“This first of its kind flight demonstrates Gevo’s commitment and ability to convert next generation cellulosic feedstocks into fungible hydrocarbons. We are pleased that we had the opportunity to prove, through the NARA project, that cellulosic sugars from wood can be used to successfully make commercial jet fuel. We congratulate all of our fellow NARA partners and thank the U.S. Department of Agriculture, National Institute of Food and Agriculture, for its unwavering support in the pursuit of renewable jet fuel. I also thank Alaska Airlines, who continues to be a great partner,” said Pat Gruber, Gevo’s Chief Executive Officer.

Read the original story: Gevo (GEVO) Says Alaska Airlines to Fly Today on Its Cellulosic Renewable Alcohol to Jet Fuel

NASCAR to Surpass 10 million Miles on Sunoco Green E15

Ethanol Producer Magazine

November 11, 2016

By NASCAR

NASCAR announced Nov. 11 that it will surpass 10 million competition miles on Sunoco Green E15, a biofuel blended with 15 percent American-made ethanol, by the end of the 2016 season. The achievement will be celebrated during the NASCAR Sprint Cup Series race at Phoenix International Raceway this weekend. The 10 million miles will have been accumulated across practice, qualifying and racing laps since the biofuel was adopted by the sport.

Six years ago, NASCAR entered into a groundbreaking partnership with Sunoco and American Ethanol, launching its long-term biofuels program to reduce emissions across its three national series. After an exhaustive analysis, Sunoco formulated Sunoco Green E15 to allow for a seamless transition, and the biofuel made its debut at Daytona International Speedway in 2011. All the ethanol for Green E15 is produced from American-grown corn at Sunoco’s ethanol manufacturing facility in Fulton, New York.

“As we approach 10 million miles on Sunoco Green E15 across our three national series, it’s evident that the renewable, higher ethanol blended fuel performs flawlessly against our rigorous racing conditions,” said Brent Dewar, NASCAR chief operating officer. “This remarkable milestone is the result of an industry-wide commitment to demonstrate high performance racing with reduced emissions, while educating our fans about the benefits of sustainable and renewable American ethanol.”

Since transitioning to the biofuel, NASCAR has helped validate the fuel’s qualities in front of an audience of millions of NASCAR fans and is helping shift attitudes and behaviors around the use of ethanol. According to new research conducted in July, when compared to non-fans, NASCAR fans are more likely to support the use of ethanol blended gasoline to fuel NASCAR race cars, their own car, and cars on the road today to increase U.S. energy independence. Source: Custom Environment-Related Tracker commissioned by NASCAR and conducted by Toluna (July 2016).

“We are thrilled to reach this important milestone with NASCAR and to be a part of the effort to reduce the sport’s impact on the environment with Sunoco Green E15, while increasing horsepower and standing up to the most demanding conditions on the track,” said Emily Skor, CEO of Growth Energy. “Like their favorite NASCAR drivers, consumers are now utilizing a fuel with a blend of 15 percent ethanol. Americans have already driven over 500 million miles on E15. Today, nearly 400 stations across 28 states sell E15 and those numbers continue to climb. Consumer demand is on the rise because Americans are finding out that E15 is the right choice for their engines, their wallets and the environment.”

The move to Sunoco Green E15 coincided with the incorporation of more technology into NASCAR race cars. In 2012, the NASCAR Sprint Cup Series transitioned from carbureted engines to electronic fuel injection using an electronic control unit (ECU)—the first computer technology used in a NASCAR race car. In addition, the series moved from analog gauges to a digital dashboard this season.

“As a lifelong fan and a proud team owner, I am certain that the switch to an ethanol blend has been a great move by NASCAR,” said Richard Childress, Chairman and CEO of RCR. “We’re proud of our connection to the ethanol industry and all of the good that it’s doing for our country, and could not be more pleased to celebrate passing 10 million miles with the industry.”

During the pace car laps at the start of the race on Sunday at Phoenix International Raceway, NASCAR fans at the start/finish line will be asked to participate in a coordinated American Ethanol green flag wave to help commemorate the 10 million-mile achievement.

The Chase for the NASCAR Sprint Cup will continue with the Can-Am 500 at Phoenix International Raceway on Sunday, Nov. 13 at 2:30 p.m. ET on NBC, MRN and SiriusXM NASCAR Radio.

Read the original story: NASCAR to Surpass 10 million Miles on Sunoco Green E15

EPA Aims to Reject Request to Move RFS Point of Obligation

Morning Consult

November 10, 2016

By Jack Fitzpatrick

The Environmental Protection Agency on Thursday proposed to reject requests to change the point of obligation to comply with the Renewable Fuel Standard.

The RFS currently requires importers and refiners to comply with requirements to mix ethanol and other renewable fuels into the gasoline supply, or to buy credits from those who have done so. Some refiners requested the agency consider moving the obligation to wholesale purchasers.

On Thursday, the EPA proposed to reject that request.

“We believe that the current structure of the RFS program is working to incentivize the production, distribution, and use of renewable transportation fuels in the United States,” the agency wrote in its proposal.

It added, “We do not believe that the petitioners have demonstrated that changing the point of obligation would likely result in increased use of renewable fuels.”

Read the original story: EPA Aims to Reject Request to Move RFS Point of Obligation

AgMRC Looks At Drivers Behind High Ethanol Blending

Ethanol Producer Magazine

Nov 11, 2016

By Susanne Retka Schill

The economic drivers behind recent higher ethanol blending rates were examined by Iowa economic research Sampath Jayasinghe in the Renewable Energy Report from the Iowa Agricultural Marketing Resource Center.

In the week ending Sept 23, the percentage of ethanol in the U.S. gasoline market averaged 10.21, topping 10 percent for the first time. A few weeks later, Oct 14, the percentage went slightly higher to 10.4, as reported by the U.S. Energy Information Administration.

There are several economic drivers beyond the simple one, that the value of blending ethanol is determined by the value of petroleum-crude oil and gasoline, Jayasinghe writes.

"Ethanol blending is economically attractive when the gasline-ethanol price spread is larger," he wrote. And, when the economics of ethanol blending with gasoline is unfavorable based on current wholesale prices, a higher renewable indentification (RIN) price can reduce the cost of ethanol blending. He cited a 2015 analysis by S. Hill at the EIA that described this as the "net of RIN" - ethanol minus RIN value - which makes it harder to choose the option of purchasing RINs rather than blending ethanol. An earlier analysis by AgMRC found the value of RINs increases as the blending economics become unfavorable, and as the supply of RINs becomes tighter.

"The major assumption in the above descriptions is that the blender is the obligated party and has compliance options that must be met by either buying ethanol or buying RINs, and there is no other reason to buy ethanol," Jayasinghe writes, adding there are other factors that limit that reasoning, such as not all blenders are obligated parties and ethanol also is needed as an octane booster, particularly to meet reformulated gasoline specifications.

Read the original story here: AgMRC Looks At Drivers Behind High Ethanol Blending

RFA: September Ethanol Exports Balloon as China Returns to Market

Ethanol Producer Magazine

November 9, 2016

By the Renewable Fuels Association

U.S. ethanol exports totaled 99.6 million gallons (mg) in September, up 28 percent–nearly 22 mg–over August, according to government trade data released Nov. 4 and analyzed by the Renewable Fuels Association. This marks the highest monthly volume exported in almost five years (December 2011). Much of the upturn can be attributed to 27.9 mg in shipments to Canada, as trade across the northern border expanded by 33 percent over August rates. Brazil imported 18.1 mg in September, down 7 mg from August and falling back to second place. China reappeared as a significant buyer after taking the summer off, with imports of 17.8 mg of U.S. product in September. The Philippines (10.4 mg), the United Arab Emirates (9.2 mg) and South Korea (5.4 mg)–countries which tend to make larger purchases on an intermittent basis–all made larger purchases in September. Just six countries purchased 92 percent of U.S. ethanol exports in September. Year-to-date exports stood at 693.9 mg, implying an annual total of 925.2 mg for calendar year 2016.

September exports of U.S. denatured fuel ethanol more than doubled from the prior month to 44.1 mg. Canada (26.0 mg, or 59 percent), China (14.9 mg, or 34 percent) and Peru (3.1 mg, or 7 percent) were the primary markets—a change from the typically Canadian-dominated trade flow. Export sales of undenatured fuel ethanol in September held firm at high levels, increasing 2 percent over August levels to 51.5 mg. Brazil backed off from August undenatured imports, buying 18.1 mg (35 percent) in September. The Philippines export market was reinvigorated with 10.4 mg (20 percent) of undenatured product, while the 9.2 mg (18 percent) to the UAE reflected only the second time in two years that U.S. undenatured ethanol entered the country. South Korea, China and Singapore were other larger customers for undenatured fuel ethanol.

September sales of denatured ethanol for non-fuel use dropped back to a more normal volume of 2.1 mg after reaching nearly 6.5 mg in August. Canada was the primary customer with 1.9 mg, down from 3.0 mg the prior month, while the remaining volume was parceled out among several countries. September sales of undenatured fuel for non-fuel, non-beverage use increased 79 percent to 1.9 mg. South Korea purchased 1.5 mg (79 percent) in September–more product than it has brought in over the past two years combined–while Mexico returned to a more typical volume of 180,042 gallons (9 percent).

Following three straight months of sizable ethanol imports, September volumes entering the United States were fairly insignificant at just 5,535 gallons. About 5,000 gallons of undenatured ethanol were sourced from China and the remainder was Canadian denatured ethanol. Year-to-date total imports are 33.7 mg, suggesting annualized imports just shy of 45 mg. Should this volume be realized, the United States would import less than half of what it brought in for calendar year 2015.

September Ethanol Exports 2016

U.S. distillers dried grains with solubles (DDGS)—the animal feed co-product from dry mill ethanol production—in the global marketplace have been making measurable strides since the beginning of the year; however, September data showed a 15 percent pull-back from the prior month with 990,971 metric tons (mt) shipped. Once again China was the top market for U.S. exports with 166,650 mt, which is a third less than entered the country in August. China’s share of the total U.S. export market in September fell to just 17 percent–in sharp contrast to taking in half of all U.S. distillers grains exports in calendar year 2015. In September, South Korea increased its offtake to 166,650 mt (13 percent) and Vietnam purchased 123,267 mt (12 percent), while Mexico scaled back from August volumes by 39 percent to 122,513 mt (12 percent). Other larger markets include Thailand (87,506 mt), Egypt (56,461 mt), Turkey (46,200 mt) and Canada (41,291 mt). Through September, DDGS exports stood at 8.6 million mt, indicating an annualized total of 11.5 million mt. If realized, this would be the second largest DDGS export volume in history.

Read the original story: RFA: September Ethanol Exports Balloon as China Returns to Market

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Emails Show Collusion Against Ethanol

Ethanol Producer Magazine

November 7, 2016

By Susanne Retka Schill

The Scoop Blog -- No, this is not about the email controversies surrounding the election. This one’s about the U.S. EPA and a Freedom of Information Act request that uncovered emails providing evidence of collusion between EPA and the oil industry to make sure ethanol looks bad.

Many in the industry are familiar with Steve VanderGriend’s work in identifying the problem with the test fuels used in EPA emissions testing. Steve looked into it because the results contradicted what he knew to be true about ethanol and emissions. And what he found is that the higher ethanol blend test fuels were spiked and the increased emissions blamed on ethanol, when they were caused by the toxic additives. It is well known that ethanol reduces NOX and PM but the EPAct study found the opposite. In 2014, EPA issued MOVES2014, a model for emissions modeling that states must use for writing their regs and the emissions factors used in the MOVES model were based on an earlier EPAct study.

The Urban Air Initiative has worked at laying out the case that EPA’s EPAct study was deliberately designed to show ethanol in a bad light, and the MOVES model must be corrected. Recently, UAI held a conference call where the UAI attorneys laid out what they found.

It took some time, explained Adam Gustafson, attorney with Boyden Gray Associates. EPA initially produced only three documents in response to the UAI’s Freedom of Information Act request, so the attorneys filed suit and the court required EPA to supply thousands more. The lawyers are going back to the court to require EPA broaden the search criteria to get more documents, and to remove the redactions to what already has been produced.

James Conde is the lawyer at Boyden Gray who drew the straw to review the 4,000 documents, many of which were emails to oil industry consultants and members of the Coordinating Research Council. In the UAI conference call, Conde quoted documents, one that was soliciting funds from oil industry contacts to run the study, saying in the solicitation that the study would give beneficial results for policy discussions and that they “expected bad results for ethanol.” He quoted segments of other emails where EPA said tests were being changed “to emphasize ethanol’s effects.”

The UAI provided a 20-page memo from the attorneys laying out the evidence of collusion. The memo shows correspondence indicating the oil industry influenced the EPAct study’s design from the beginning. When a DOE request to include higher ethanol blends was attached to DOE funding, there’s a trail of emails showing the request for higher ethanol content prompted more oil industry intervention. The EPA redesigned the fuel matrix to address the oil industry’s concerns and delegated the design of the EPAct study to an oil industry consultant. The attorneys also found evidence that EPA abandoned test results and test fuels that challenged its prior assumptions about ethanol’s emissions effects. “Among other strategies, EPA considered adding test fuels with more matched parameters to generate the desired anti-ethanol results,” the brief says.

UAI is trying to make hay with the FOIA document revelations. Inside the EPA, a subscription-based service that follows EPA news, was contacted and they did a rather lengthy piece on the latest evidence. Inside the EPA didn’t get a response to requests from comments from EPA and the American Petroleum institute on the latest charges, but referred to its November 2014 stories where API vigorously denied undue oil industry influence.

UAI and its attorneys are pursuing legal action. In the first round filed in Kansas, the judges ruled the petitioners did not have standing as they hadn’t shown injury. Gustafson said they intend to file suit again, perhaps in a different state. They also are laying a case for a second suit, saying “EPA’s secret consultation with a group of oil company employees about the test fuel parameters violated the requirement of the Federal Advisory Committee Act and EPA’s Scientific Integrity Policy that such committees be balanced, that they be publicly announced and that their meetings be open to the public.” The law firm is also using the FOIA documents in preparing to file a request for correction of information on the MOVES model, which will go into great detail on the scientific defects in MOVES, Gustafson said.

Legal actions and agency requests are slow moving. They could be moved along if there were a public outcry, but capturing the public attention for such a technical subject isn’t easy. UAI is putting together information, explaining in plain English what the emails revealed about the collusion to cook the results of the emissions testing by creating test fuels designed to make ethanol look bad. Industry supporters need to look for that information and pass it along.

There’s a long history of this sort of collusion between Big Oil and government agencies. The secret history of lead will be the subject of a future blog.

Read the original story: Emails Show Collusion Against Ethanol

Ethanol Advocates, Opponents Brace for Ruling

Des Moines Register

November 2, 2016

By Donelle Eller

Ethanol foes are expected to face off again over the federal mandate that requires ethanol and biodiesel to be blended into the nation's fuel supply later this month.

The U.S. Environmental Protection Agency is supposed to release its final Renewable Fuel Standard rule by the end of November.

The agency has been listening to arguments from oil, renewable fuel, environmental groups and others on where the standard should be set since May, when it released its proposed levels.

It's a decision that's critical to Iowa, the nation's largest producer of both biodiesel and ethanol.

The federal agency's proposed rule recommends increasing:

Ethanol made from corn to 14.8 billion gallons in 2017, 300 million gallons more than this year. Still, it falls short of the 15 billion gallons outlined in the federal law, says Monte Shaw, executive director of the Iowa Renewable Fuels Association.
Cellulosic ethanol made from grasses, wood chips and corn stalks to 312 million gallons, 82 million more gallons than this year. Iowa is home to three cellulosic ethanol plants, in Galva, Emmetsburg and Nevada.
Biodiesel made from soybean oil, cooking oil and animal fat to 2.1 billion gallons in 2018, inching 100 million gallons higher than the levels required in 2017.

While most gasoline purchased nationally is E10 — 10 percent ethanol and 90 percent gasoline — Shaw said U.S. motorists are getting more comfortable buying higher ethanol blends, such as E15 and E85.

Ethanol's share of the U.S. gasoline market has pushed past 10 percent a couple of times this fall, according to the U.S. Energy Information Administration.

"We already exceeding the blend wall," Shaw said.

The blend wall is a threshold that occurs when the required blending volume exceeds the amount that can be added into most gasoline.

Congress created the Renewable Fuel Standard in 2005 and expanded it in 2007 as part of an effort to reduce the nation’s dependence on foreign oil and curb greenhouse gas emissions.

The EPA has said it has the legal authority to adjust the numbers to below what Congress intended.

The EPA said in 2011 that E15 is safe to use in cars and trucks built since 2001. E85 can only be used in flex-fuel vehicles.

Kum & Go's Kristie Bell said she was among those concerned about using E15, but decided to take advantage of the convenience store chain's promotion this fall offering the higher ethanol blend for $1.15 a gallon.

"People are hesitant to try something new," said Bell, adding that the West Des Moines-based company had employees available to answer questions. E15 is about a dime cheaper than E10.

Gov. Terry Branstad has been critical of the EPA and Obama administration over the Renewable Fuel Standard.

He's blamed part of the fall in corn prices on the EPA's failure to set the renewable fuel mandate to levels outlined in the 2007 federal law.

"This administration has really reneged on its commitment to a strong Renewable Fuel Standard," Branstad said recently.

Chad Hart, an Iowa State University economist, said the mandate's lower levels probably hasn't impacted corn and soybean prices much.

"What EPA has enforced has a relatively small reduction in prices for corn," he said.

The Environmental Working Group said the renewable fuel mandate "will make air pollution worse and push farmers to grow corn for fuel instead of food."

The proposed standard "continues a wrong-headed policy that promotes a fuel that is bad for the environment, rather than pushing the market toward better renewable fuel options,” said Emily Cassidy, a research analyst at the Environmental Working Group.

Read the original story: Ethanol Advocates, Opponents Brace for Ruling

Novozymes Named to Climate “A-List”

November 1, 2016

By Joanna Schroeder

The international non profit CDP, an organization that runs a global carbon disclosure system, has announced its annual “A-List” of highest scoring companies on climate action. On the list was Novozymes for its efforts to reduce carbon emissions and mitigate the business risks of climate change.

“Apart from being honored to once again be recognized as a global leader on climate action, we are also extremely thrilled to see that business is making substantial effort to transit to a low-carbon world. The Paris Agreement and the SDGs are already working as the new compass for business,” said Claus Stig Pedersen, Novozymes’ Head of Corporate Sustainability. “It is exciting to witness the ongoing shift in the role of business as it realizes that some of the world’s most pressing challenges, including climate change, also represent some of the biggest future business opportunities.”

Novozymes implemented 40 different energy-saving and process optimization projects in 2015, helping reduce CO2 emissions in the company’s own operations by 7 percent, as compared with 2014. Last year, Novozymes’ customers avoided an estimated 60 million tons of CO2 emissions by applying the company’s products. The savings achieved are equivalent to taking approximately 25 million cars off the road.

According to Novozymes, its biological solutions save customers 100kg CO2 for every 1kg of product applied, on average. The company made history last year by becoming one of the first in the world to align its corporate strategy with the SDGs.

Read the original story: Novozymes Named to Climate “A-List”

SeaTac Aims to be National Leader in Jet Biofuels, Announces Study with Richard Branson’s Nonprofit

October 31, 2016

By John Stang

One big hurdle in getting airlines to use biofuels is the cost difference biofuels and petroleum-based fuels. Right now, petroleum-based jet fuels are cheaper. But biofuels produce fewer carbon emissions.

So the Port of Seattle, sustainable jet fuel company SkyNRG and Sir Richard Branson’s nonprofit Carbon War Room announced today that they are partnering on a study to find out how to compensate airlines for the difference in fuel prices. Backers of the study hope to have some results by February.

Their goal to set up a way so all airlines at SeaTac International Airport can economically use biofuel for their passenger jets. They want SeaTac to become the first American airport to provide biofuel for all of its passenger planes. Worldwide, only the airport in Oslo, Norway, does that. In the United States, United Airlines uses biofuel in its airplanes leaving Los Angeles International Airport.

“We’re intrigued by the Oslo model. … We’re interested in being the model for the rest of the country,” said John Creighton, president of the Port of Seattle Commission, in an interview.

SkyNRG supplies biofuels for jets worldwide. Branson founded the nonprofit Carbon War Room in 2009 to tackle carbon emissions with business-based solutions.

Biofuels do not totally replace petroleum-based fuels when used in jets. Instead, they are mixed with petroleum-based fuels to reduce carbon emissions.

In an interview, Creighton, Elizabeth Leavitt, the Port of Seattle’s director for the environment and sustainability, and Stephanie Meyn, the port’s senior environment program manager, pointed to a number of gaps in information needed to figure out how to compensate airlines for using biofuels.

One problem is that the prices of biofuels and petroleum-based fuels are constantly fluctuating. Also there are several processes — with varying expenses — for creating biofuels. And there are several sources for raw materials for biofuels: sugars, corn, other crops and wood. These sources have their own constantly shifting economic pictures.

“We have to drill down on what the costs will be,” Creighton said.

Another unknown is where the money will come from to compensate airlines for the greater cost of using biofuels, Creighton, Leavitt and Meyn said. A central question is how the production of more biofuels can be spurred so it becomes more economical at larger volumes.

The nation uses roughly 23 billion gallons of aviation fuel a year, according to the Commercial Aviation Alternative Fuels Initiative, a national coalition of airlines, biofuel producers and government agencies. CAAFI has set a target of manufacturing 400 million gallons of biofuels a year by 2020, or 1.7 percent.

A July 2016 U.S. Department of Energy report concluded that the nation has the partly-untapped potential to produce at least 1 billion tons of crops, biomass from forests and other waste materials capable of replacing 30 percent of the United States’ 2005 petroleum consumption. The airline industry and the federal government are aiming to cut commercial aviation carbon emissions to 50 percent of 2012 levels by 2050.

In a press release, Jules Kortenhorst, CEO of Carbon War Room, pointed to a December 2015 agreement signed by 192 nations to hold global warming to less than an increase of two degrees. That goal “cannot be achieved without the participation of the aviation industry, with its emissions projected to consume approximately a quarter of the world’s remaining carbon budget by 2050,” he said.

Creighton said SeaTac is interested in reducing the Seattle region’s carbon footprint. “We need to work really hard to be a good neighbor,” he said.

Meanwhile, two major steps in Washington’s infant jet biofuel industry are expected to take place in the next few months. A study group is expected to provide the Port of Seattle with a report studying the feasibility of a biofuel-blending operation for jets using SeaTac airport.

In addition, Alaska Airlines is expected to fly its first cross-country wood-based biofueled passenger jetliner from Seattle to somewhere on the East Coast. Alaska Airlines has been test flying passenger planes with biofuels throughout 2016. The airline has already used corn-based biofuel for a cross-country trip in July. The upcoming Alaska Airlines flight will use biofuel created by adapting chemical processes used by the wood-pulping industry. Farmers can sell corn for food or biofuel — depending on which industry provides better prices. Wood-based biofuel facilities won’t have to compete against agricultural prices.

“The state of Washington is trying to stay three to four steps ahead of everyone else,” said Leavitt, the port’s director for the environment and sustainability.

Read the original story: SeaTac Aims to be National Leader in Jet Biofuels, Announces Study with Richard Branson’s Nonprofit

USDA Awards $327 Million in REAP Funding

Ethanol Producer Magazine

October 25, 2016

By Erin Voegele

On Oct. 25, the USDA announced it is investing more than $300 million to help hundreds of small businesses adopt renewable energy sources or implement more efficient energy options. The investment includes $327 million to support 423 businesses through the Rural Energy for America Program and a $68 million loan awarded to the Pedernales Electric Cooperative of Johnson City, Texas, through the Energy Efficiency and Conservation Loan Program to fund system-wide energy efficiency improvements to assist a rural portion of the co-op’s service territory.

"Cutting our energy waste is one of the fastest, easiest and cheapest ways to help families save money on their energy bills while reducing harmful carbon pollution. Over the course of nearly eight years, the Obama Administration has taken strong actions to advance energy efficiency in our homes and businesses," said Agriculture Secretary Tom Vilsack. "Through efficiency upgrades and private-sector partnerships, America has been able to cut its carbon emissions, create jobs and save families hundreds of dollars at the pump and on their utility bills every year. The Rural Energy for America Program alone has helped roughly 15,000 rural small businesses, farmers and ranchers improve their bottom lines by installing renewable energy systems and energy efficiency solutions. When businesses lower their energy costs, they are also able to expand their services and contribute to stronger local economies."

Recipients of the REAP funds will use the loans and grants to install renewable energy systems, such as biomass, geothermal, hydropower and solar. The funds can also be used to make energy efficiency improvements to heating, ventilation and cooling systems; insulation; or lighting and refrigeration units.

Bioenergy-related REAP awards made through the current round of funding include:

Gwitchyaa Zhee Utility Co. (Alaska): $250,000 grant to purchase and install a biomass boiler renewable energy system.

WOF SW GGP 1 LLC (Arizona): $444,000 grant to purchase and install an anaerobic digester renewable energy system.

Desert View LLC (California): $88,111 grant to purchase and install an anaerobic digester renewable energy system.

Lone Oak Energy LLC (California): $438,899 grant to purchase and install an anaerobic digester renewable energy system.

Synergy Solutions Crisp County LP (Georgia): $371,292 grant to purchase and install a biomass boiler renewable energy system.

Wheeler Logging LLC (Georgia): $95,980 grant to purchase and install a wood chipper renewable energy system.

Little Sioux Corn Processors LLC (Iowa): $165,000 grant to make energy efficiency improvements with the retrofitting of an ethanol refinery.

Siouxland Energy Cooperative (Iowa): $165,000 grant to make energy efficiency improvements with the retrofitting of an ethanol refinery.

Lincolnland Agri-Energy LLC (Illinois): $77,984 grant to purchase and install a fermenter for ethanol production.

Bruce Stedman (Maine): $42,226 grant to purchase and install two biomass boiler renewable energy systems.

Chippewa Valley Ethanol Cooperative LLP (Minnesota): $250,000 grant to make energy efficiency improvements with the evaporator of an ethanol refinery.

Holliday Investments Inc. (Missouri): $42,775 grant to purchase and install a biomass boiler.

Siouxland Ethanol LLC (Nebraska): $500,000 grant to purchase and install the equipment for the retrofiting of an ethanol facility.

Greene Bioenergy LLC (Ohio): $500,000 grant and $1.015 million loan to purchase and install an anaerobic digester renewable energy system.

Natural Bioenergy LLC (Ohio): $309,805 grant to purchase and install an anaerobic digester renewable energy system.

Northwest Bioenergy (Ohio): $166,000 grant to purchase and install a drying and gasification renewable energy system.

Drew E. Remley (Pennsylvania): $231,356 grant to purchase and install an anaerobic digester renewable energy system.

New River Hardwoods Inc. (Tennessee): $125,243 grant to purchase and install a steam biomass renewable energy system.

Kingdom Pellets LLC (Vermont): $2.5 million loan to purchase and install a biomass renewable energy system.

Spaulding Construction Inc. (Vermont): $134,422 grant to purchase and install a wood chipper to produce biomass fuel for electricity generation.

WOF PNW POG 1 LLC (Washington): $500,000 grant to make energy efficiency improvements to an anaerobic digester.

Badger State Ethanol LLC (Wisconsin): $492,327 grant to purchase and install the equipment for the retrofiting of an ethanol facility.

A full list of awards can be downloaded from the USDA website.

Since 2009, REAP has helped finance more than 11,600 renewable energy and energy efficiency projects that have reduced energy costs for roughly 15,000 rural businesses. In mid-October, the USDA announced it is currently accepting applications for the next rounds of REAP funding.

Applications for energy audit and renewable energy development assistance grants are due Jan. 31. Applications for renewable energy systems and energy efficiency grants of $20,000 or less are due Oct. 31 for the first funding cycle and March 31 for the second. Applications for renewable energy system and energy efficiency grants of greater than $20,000 and all combination grants and guarantees are due March 31. According to the USDA, it will set aside 20 percent of the funds for grants of $20,000 or less. The agency also said applications for renewable energy system and energy efficiency grants or for loan-grant combinations that are received after March 31 will be considered in fiscal year 2018, which starts Oct. 1, 2017. Guaranteed loan applications will be reviewed and processed when received, with periodic completions.

Read the original story: USDA Awards $327 Million in REAP Funding

RFA: Data Show the So-Called “Blend Wall” is Crumbling

Renewable Fuels Association

October 19, 2016

Gasoline supplied to the U.S. market last week contained an average of 10.4 percent ethanol, according to data released this morning by the Energy Information Administration (EIA). It was the second time in the last four weeks that the ethanol blend rate topped 10.0 percent, a level the oil industry has suggested could not be breached. Renewable Fuels Association (RFA) President and CEO Bob Dinneen said the data confirms that the so-called “blend wall” is nothing more than a fiction created by oil companies in an effort to undermine support for the Renewable Fuel Standard (RFS).

“These EIA figures show once again that the oil industry’s false blend wall narrative is not rooted in reality. This clearly shows that there’s no reason for the administration to roll back the 2017 RFS conventional biofuel blending levels required by the statute,” said Dinneen. “It also shows that supporters of legislative proposals to cap ethanol content at 9.7 percent are completely out of touch with what is really happening in the marketplace.”

EIA data show that an average of 8.798 million barrels per day (mbpd) of gasoline were supplied to the market last week. Ethanol blending averaged 0.915 mbpd, meaning gasoline contained an average of 10.4 percent ethanol. This is the highest weekly blend rate on record, topping the 10.21 percent rate seen just three weeks earlier.

The weekly data come on the heels of EIA’s October Short-term Energy Outlook, which similarly projected that gasoline consumed in 2016 will contain an average of 10.1 percent ethanol. That is up from 9.9 percent last year. In September, RFA ran ads showing that nearly half of the states in the U.S. had already blown by the 10.0 percent threshold as early as 2014.

Weekly Ethanol Blend Rate Oct2016

Read the original story: RFA: Data Show the So-Called “Blend Wall” is Crumbling

White House OMB Reviews 2017 RFS Rule

Ethanol Producer Magazine

October 20, 2016

By Erin Voegele

On Oct. 19, the U.S. EPA delivered its proposed rule to set renewable fuel standard (RFS) volume standards for 2017 and biobased diesel standards for 2018 to the White House Office of Management and Budget. OBM review marks a final step before a final rule is issued.

The proposed rule was first issued by EPA on May 18. It aims to set RFS renewable volume obligations (RVOs) for 2017, along with the 2018 RVO for biomass-based diesel. In the proposed rule, the agency set the 2017 RVO for cellulosic biofuel at 312 million gallons, with the advanced biofuel RVO at 4 billion gallons and the RVO for total renewable fuel at 18.8 billion gallons. The 2018 RVO for biomass-based diesel has been proposed at 2.1 billion gallons.

The proposed percentage standards call for renewable fuel to comprise 10.44 percent of the transportation fuel pool next year. The cellulosic standard would be 0.173 percent, with the biomass-based diesel standard at 1.67 percent, and the advanced biofuel standard at 2.22 percent.

A public comment period on the proposal closed in mid-July. During the comment period, more than 42,500 public comments were filed on the proposal.

The EPA’s Regulatory Development and Retrospective Review Tracker currently states a final rule is expected to be published in the Federal Register in December.

Read the original story: White House OMB Reviews 2017 RFS Rule

UAI: EPA Emails Show Oil Industry Helped Design Test Fuels

Ethanol Producer Magazine

October 19, 2016

By the Urban Air Initiative

The Urban Air Initiative has discovered that the U.S. EPA relied heavily on the oil industry to help design test fuels used for the EPAct Study. This is a critical development because the data in the EPAct Study erroneously shows that blending ethanol into gasoline increases pollution. The information was uncovered through a Freedom of Information Act request submitted by Boyden Gray & Associations on behalf of UAI.

The emails released under the FOIA show that the EPA asked oil industry employees what test fuels they would “prefer to see tested” and then revised the test fuels in response to their input. Internal documents also show that the EPA threw out three test fuels after preliminary results showed that ethanol lowered emissions of nitrogen oxides and other pollutants and otherwise altered its slate of test fuels to “emphasiz[e] ethanol effects.”

This new evidence of collusion between Chevron, BP, and EPA is important, because EPA used the results of the EPAct study to update its vehicular emissions model, MOVES2014. As a result of the oil industry's influence, the model reports that ethanol increases emissions of many pollutants, even though other studies have demonstrated the opposite.

UAI and scientists from Ford, GM, and other organizations have demonstrated that the EPAct study and MOVES2014 model are inaccurate and biased against ethanol. UAI's FOIA project goes a step further by seeking out the source of that bias, the petroleum industry's direct influence in EPA's own emails and other records.

The information uncovered directly ties to UAI's regulatory and legal efforts to reform the MOVES2014 model. This emissions model, which States must use when developing implementation plans to comply with EPA's air quality standards, promotes anti-ethanol state and federal policies because it erroneously reports that higher-ethanol fuels emit more pollution than gasoline with lower levels of ethanol.

UAI will use this internal evidence of oil industry involvement with the EPA to seek a corrected emissions model through regulatory and legal channels.

Read the original story: UAI: EPA Emails Show Oil Industry Helped Design Test Fuels

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