In the News

Renewable Fuels Association

May 27, 2015

The National Renewable Energy Laboratory (NREL) released a new study today that found most of the existing fuel dispensing infrastructure components — including underground storage tanks — are compatible with E15. The researchers interviewed retail fuel equipment experts and examined manufacturer warranty statements, official records, and industry trends in a multifaceted look into the compatibility of fuel blends beyond E10 with all retail station fuel dispensing equipment.

Key NREL findings:

“It is often stated that tanks cannot be used to store E15, but this assumption is incorrect as the majority of installed tanks can store blends above E10. For many decades, underground storage tank (UST) manufacturers approved their tanks for blends up to E100…”

“…there are UL testing standards available now for all gasoline–ethanol blends from 0% to 85% ethanol… Certain equipment types are typically UL listed—these include tanks, pipes, dispenser, hanging hardware, submersible turbine pumps, and shear valves.”

“A review was conducted with each manufacturer to determine compatibility with ethanol blends. There is an extensive list of E15 and E15+ compatible equipment available in the appendices.”

Bob Dinneen, president and CEO of the Renewable Fuels Association, commented on the study, noting, “This comprehensive analysis is both timely and relevant to the current debate about the so-called ‘blend wall’ that some would like to use to limit the growth opportunities for ethanol under the RFS. Clearly, the constraints to the increased use of E15 have more to do with the recalcitrance of refiners and marketers than they do any real infrastructure barriers. Today’s comprehensive study should once and for all belie the misplaced conclusion that infrastructure and ethanol demand limitations should justify a reduction in the RFS as it found most equipment at a retail fuel station today, including underground storage tanks, are compatible with E15. This study demonstrates that most retailers will not be required to break concrete and spend hundreds of thousands of dollars to offer E15.”

In addition to E15 compatibility, the report examined literature from the past 15 years to find out if “…there were any negative impacts during the multi-year deployment of E10 nationwide” and ultimately determined that “No incidents of E10 causing releases (also referred to as leaks) from UST systems were identified.” It concluded that “None of the reviewed literature noted any association between E10 and any specific UST release.”

This technical report will become a go-to resource for any retailer looking to complete an assessment of their retail fueling system before offering E15. It includes “an extensive list of E15 and E15+ compatible equipment available in the appendices” of retail fueling equipment manufacturer’s compatibility statements.

A webinar will be held at 1 p.m. CT on June 11 to review the report and answer any questions. A copy of the full report — commissioned by the RFA with financial support from the BYO Ethanol campaign — can be found here.

Read the original story here : New NREL Report : Most Retail Fueling Equipment Is Already E15 Compatible

The National Renewable Energy Laboratory (NREL) released a new study today that found most of the existing fuel dispensing infrastructure components — including underground storage tanks — are compatible with E15. The researchers interviewed retail fuel equipment experts and examined manufacturer warranty statements, official records, and industry trends in a multifaceted look into the compatibility of fuel blends beyond E10 with all retail station fuel dispensing equipment. - See more at: http://www.ethanolrfa.org/news/entry/new-nrel-report-most-retail-fueling-equipment-is-already-e15-compatible/#sthash.IBvUXRxB.dpuf

Ethanol Producer Magazine

May 21, 2015

By Erin Voegele

Several ethanol trade associations have weighed in on recent announcements by the American Petroleum Institute regarding demand for E0 and the use of E10 in marine and small engines.

On May 20, API held a joint press conference with the National Marine Manufacturers Association addressing E0 demand and urging the U.S. EPA to take small and marine engines into account when setting 2014, 2015, and 2016 renewable volume requirements (RVOs) under the renewable fuel standard (RFS).

“Once again, API and its allies are trying to keep Americans addicted to foreign oil, said Tom Buis, CEO of Growth Energy. “They are afraid of competition, plain and simple, and are using every possible tactic, whether it be legal, regulatory or through false public relations campaigns designed to fool people to buy into their false narrative to discourage the use of a cleaner, less expensive, homegrown renewable fuel.”

“All major manufacturers of outboard and marine motors, as well as small engines, are approved for the use of gasoline blended with up to 10 percent ethanol. The largest problems associated with engine failure in such equipment and machinery is associated with failure of proper maintenance, not ethanol. The Outdoor Power Equipment Institute, which represents manufactures of small engines, has even gone on the record to say, ‘We pump E10 without a second thought.’

“What probably does concern boaters is the amount of time they spend dry docked as a result of oil spills, like the one that dumped 21,000 gallons of oil along four miles of coastline in Santa Barbara, California just yesterday,” Buis added.

“This latest charge by API and NMMA does, however, raises a more important question. In Brazil, consumers only have a choice of 27 percent or 100 percent ethanol,” Buis said. “To my knowledge, they have boats, outboard motors, lawnmowers, weed whackers and other outdoor power equipment, as well as cars identical to the ones that are sold right here in the U.S., which begs the question, how is the sky not falling there from ethanol use? The answer is pretty simple, ethanol is a safe, reliable alternative fuel that is taking away from the market share of Big Oil and they, along with their aligned special interests, will do and say anything to fool the American consumer and protect their bottom line.”

Bob Dinneen, CEO of the Renewable Fuels Association, also stressed that E10 can be safely used in marine engines. “There has been a fair amount of misinformation lately about the use of ethanol in marine engines,” he said. “But boating enthusiasts heading to the water this weekend need to know that E10 has been used successfully in marine engines for 30 years now. E10 has been approved for years in engines made by popular marine manufacturers including Johnson/Evinrude, Mercury Marine, Pleasurecraft and more. Indeed, E10 gives boaters the extra octane boost they need to pull skiers, tubers, or wake boarders while also keeping the water clean by reducing harmful exhaust emissions.”

Ron Lamberty, senior vice president of the American Coalition for Ethanol, has also weighed in on the information presented at API’s press conference. “Big Oil knows that small engines are built and warrantied to operate on any blend up to E10, but that doesn’t help their cause, so their presser included a chart showing dwindling E0 sales and availability, a boat lobbyist trying to frighten people about potential misfueling, and the requisite imagery of stranded boaters being swallowed by Moby Dick… The chart was ironic, because it showed that E0 makes up 5 percent of gasoline sales, which is about twice as much as every small engine in America would use, if every one of them were fueled with E0, every time. Put that together with 94.5 percent E10 (which, again, every small engine can also use), and that means the skipper of any given boat only has a 99.5 percent chance of buying the right fuel for his three-hour tour,” he said.

“But here’s the thing – oil companies don’t have to ask EPA to make sure there is plenty of E0 around. They can do it themselves,” Lamberty added. “The RFS doesn’t require ethanol in every gallon of gas, it says refiners must use a certain amount of renewable fuel or buy credits from other refiners. That means all Big Oil would have to do to make more ethanol-free fuel available is sell some fuel(s) that have ‘extra’ ethanol. How lucky are they that 80 percent of all cars and light trucks can use E15? If you’re a refiner, and you sell 10 gallons of E15, you earn enough extra credits (RINs) to sell 4 or 5 gallons of gasoline with no ethanol in it. In the real world, there is a 100 billion gallon market for E15, and it would only take two billion gallons – 2 percent of that market - to create ALL of the extra RINs refiners would need to maintain volume of E0 they say they is ‘required’ (but actually not needed at all).”

“None of this would be an issue if Big Oil were looking for solutions instead of erecting roadblocks to the RFS. Most retailers that offer E15 tell us it makes up between 15 percent and 25 percent of their fuel sales,” Lamberty continued. “One of those marketers, Bruce Vollan, provided the simple solution to Big Oil’s dilemma in some comments he made at an EPA hearing last year: ‘The best way to get over the blend wall is to TRY to get over the blend wall.’"

Read the original story here : Ethanol Industry Weighs In On API E0 Claims

Ethanol Producer Magazine

May 18, 2015

By Bob Dineen

There is nothing quite like the feeling of being on the water on a clear summer day. Tennis champion Rafael Nadal once described it as, “I like fishing. Not actual fishing, I like the peace and quiet of being at sea. It’s different.” Boating is a beloved pastime for many Americans, whether taking part in fishing, water skiing or simply enjoying the exhilarating feeling of cruising on the water.

Over the years, a lot of misinformation has been creating waves when it comes to ethanol use in marine engines. In a sign of their desperation, API actually ran ads last year claiming that ethanol—and the renewable fuel standard (RFS)—will strand boaters on the water. Nothing could be further from the truth. But as the summer months rapidly approach, we must once again equip the boating community with the facts they need to cut through the wake of misinformation being churned up by the petroleum industry.

All boaters must know that E10 can safely be used in their marine engines. Oftentimes marine publications will exaggerate concerns about E15 marine use to vilify all ethanol blends; but E15 is not approved for use in these engines. However, E10 is perfectly fine for marine engines. It doesn’t matter whether their boat has a two-stroke or four-stroke engine, an in-board or out-board motor, or a built-in or portable fuel tank.

But, don’t just take my word for it. Every marine engine manufactured today provides warranty coverage for E10. The Honda owner’s manual for the BF25A/30A Outboard Motor states that “You may use gasoline containing up to 10 percent ethanol by volume.” Additionally, Yamaha owner’s manual for the F115 notes that “Gasohol containing ethanol can be used if ethanol content does not exceed 10 percent and the fuel meets minimum octane ratings.” Manufacturers would certainly not approve a fuel that would harm the product or the consumer. Similar language appears in the owner’s manuals for Kawasaki, Mercury Marine, OMC (Johnson/Evinrude), Pleasurecraft, Tigershark (Artco) and Tracker marine engines.

In addition to the owner’s manuals clearly approving E10, Vernon Barfield, former vice president and technical chairman of the National Boat Racing Association said that “There is a myth out there that 10 percent ethanol is not good for marine engines, but we have been operating for over 20 years and have not had any issues with it whatsoever.”  He continues, “…there are absolutely no problems running on 10 percent ethanol.”

We now have the facts from manufacturers and experts alike. So how do we disseminate the information? The new digital age offers a plethora of opportunities to easily get the word out at very little cost. It can be as easy as posting the information on Facebook or Twitter.  E-mail also offers a quick and easy way to send the information to family and friends.

But, let’s not forget traditional media and the power of one-on-one interaction. Individuals or groups can write an op-ed or submit a letter to the editor of the local paper, ultimately reaching a larger audience. But, nothing can compete with one-on-one conversation. Have a conversation with boaters filling up at the local gas stations, strike up a discussion when launching your boat at the boat dock or chat with the local gas station owner to make sure they have the correct facts for their customers. Every little bit helps calm the waves of ethanol misinformation and create a more informed boating community.

Read the original story here : Waves Of Ethanol Misinformation

Ethanol Producer Magazine

May 12, 2015

By Erin Voegele

On May 12, representatives of two biofuel trade organizations discussed the choice the White House and U.S. EPA face in proposing upcoming renewable volume requirements (RVOs) under the renewable fuel standard.

Bob Dinneen, president and CEO of the Renewable Fuels Association, kicked of the media call by discussing a letter the American Petroleum Institute and American Fuel & Petrochemical Manufacturers issued to the EPA earlier this month advocating for the agency to continue using the flawed methodology contained in the original 2014 RVO proposed rule. The RFA was among a group of 10 biofuel trade associations and companies that sent a letter EPA Administrator Gina McCarthy last week in response to the API/AFPM statement.

During the call, Dinneen noted that the heart of the controversy around the EPA’s initial 2014 RVO rulemaking is whether the agency, as a matter of law, is allowed to consider the so-called E10 blend wall in determining RFS volumes.

“The oil industry says ‘yes,’” he said, adding that the petroleum industry indicated we’ve reached the maximum level of ethanol that can be blended into gasoline because there aren’t enough vehicles or infrastructure to accommodate higher blends. “We say that’s nonsense because the RFS legislation was designed to break the blend wall, to force the investment in infrastructure and technology that would drive increased consumer choice,” Dinneen said. “The fact the law ultimately requires 36 billion gallons of renewable fuel to be used, far more than can be used in a 10 percent blend, certainly suggests where a bipartisan Congress landed on this issue in 2007.”

Dinneen also argued that API is wrong about its belief about the blend wall for other reasons. “The law provides a waiver from the required volumes for two circumstances: severe harm to the economy, which can’t be demonstrated when ethanol is less expensive than gasoline, and inadequate domestic supply. But, congress specifically rejected versions of the bill that included infrastructure and demand as a factor in such a waiver,” he said.

“Second, as a practical matter, API is also wrong about the market’s ability to consume more than 10 percent ethanol,” Dinneen continued. “There are now 17.5 million FFVs on the road capable of using anything from E10 to E15 to E85, and while EPA has approved E15 for as much as 85 percent of the vehicles on the road, manufacturers themselves now provide warranty coverage for E15 for as many as 41 million vehicles, that’s more than three times as many cars warrantied for E15 than are currently required to use premium gasoline. We don’t have a problem locating premium fuel in this country and there is no reason, other than greed, that E15 is so scarce. This is not a market or consumer issue, this is a clear case of an incumbent industry unwilling to acknowledge a changing landscape and trying desperately to hang on to its monopoly, refusing to make investments in infrastructure or allow franchisees to offer consumers a lower-priced higher-octane renewable fuel.”

To help McCarthy, members of Congress and President Obama understand the choice they face in setting the RFS RVOs, Fuels America has launched a six-figure ad buy in Washington, D.C., that includes television and digital advertisements. Dinneen stressed the choice in how to implement the RFS is essentially a choice between American innovators or oil industry profits; low carbon fuels or fracking; value-added markets for farmers and jobs in rural America or imports; and a sustainable energy future or a return to the failed energy policies of the past. “It seems like a pretty clear choice,” he said. 

Brooke Coleman, executive director of the Advanced Ethanol Council, said the question is whether the EPA will, for the first time, waive the RFS if the oil industry refuses to distribute renewable fuels. “If oil companies know they can avoid the RFS by simply refusing to enter into contracts to buy and distribute our fuel, advanced biofuels will cease to have a U.S. market, and U.S. investment will dry up,” he said.

According to Coleman, the EPA’s initial proposal for 2014 RVOs has already impacted the willingness of some advanced biofuel companies to commit to additional U.S. investments. “Almost without exception, our companies are looking in China, in Brazil, in some cases in India and in some cases in Europe, to develop their second and third projects, while the first ones wait to see what the president is going to do,” he said.

Coleman also noted that the issue with the RFS rulemaking could have far-reaching impacts. If Big Oil’s refusal to comply with the RFS works, Coleman indicated that refusal could become the playbook for other industries on how to avoid compliance with Clean Air Act programs.

When asked about plans to meet with the White House to discuss the upcoming RVO proposals, Dinneen was unable to offer any specific details, but said those meetings are likely to occur. He also noted that the EPA has not held any stakeholder meetings during the initial rulemaking process.

Regarding the administration’s rulemaking decision, Dinneen added that while the RFS rule will be the EPA’s, the content of the rule will essentially be the White House’s call. He also noted that there have been so many personnel changes at the White House, it’s hard to determine what the decision will be.

Coleman added that he is fairly certain White House advisors are still considering the bad methodology, primarily because it alleviates political pressure from the oil industry. “We don’t know where they are going to go. We suspect there is more than one option on the table,” he said, adding that the Fuels America ad buy is only the first in a long series of strategies that will be deployed over the course of the month to help explain to those in Washington, D.C., and consumers as a whole, what the choice is all about.

Coleman also said that he expects the EPA to issue the RVO proposal within the June 1 timeline agreed to in court documents. While the White House Office of Management and Budget technically has up to 90 days to consider a proposed rule, Coleman said the OMB has acknowledged the EPA’s timeframe in announcing an expedited review of the rule. “I would be quite surprised if the administration was not able to get the proposal out in the timeframe that they’ve agreed to with the courts,” he said.

The EPA submitted the proposed rule for the 2014, 2015 and 2016 RVOs to the OMB on May 7. In April, the agency announced its intent to release proposed rulemaking for the 2014, 2015, and 2016 RFS renewable volume requirements (RVOs), along with 2017 RVOs for renewable diesel, by June 1. Final rulemaking is scheduled to be issued by Nov. 30.

Read the original story here : Biofuel Trade Groups Discuss RFS Rulemaking, Announce Ad Campaign

Reuters

May 12, 2015

By Chris Prentice

May 12 In a long-running battle between oil refiners and the U.S. farm lobby over the future of ethanol fuel, biofuel producers may have just made a small, but important dent in big oil's formidable defenses.

Over the past few months, privately held retailers Kum & Go and Sheetz have become the first significant chains to announce plans to start selling E15, a gasoline with 15 percent of ethanol, 50 percent more than the typical U.S. blend.

By the end of 2016, those two retailers plan to add E15 at pumps at 125 stations. That will more than double the number of U.S. outlets offering cheaper fuel with a higher ethanol content than the standard E10 blend that contains 10 percent of ethanol.

If retailers continued to add stations at a similar pace over the next five years, there would be some 1,300 stations offering E15.

That would still be just a fraction of the 150,000 stations nationwide, but the roll-out of the fuel by two significant operators with outlets in 17 states challenges a central pillar of oil industry's opposition to ethanol's wider use.

Effectively forced to surrender a tenth of the U.S. market by government policies promoting biofuels, oil firms have argued the U.S. market for ethanol has reached a saturation point.

Yet retailers' expansion plans suggest room for greater E15 acceptance.

"Until now, the conversation around E15 was: why in the world would you have that?" said John Eichberger, Executive Director of the National Association of Convenience Stores' Fuels Institute. "Now, it's that there may be a reason, an economic incentive."

For retailers that blend their own fuel, the incentives are clear.

$15 BILLION PRIZE

Bumper crops have sent corn prices tumbling and shaved a quarter off ethanol's cost over the past year. At the same time blenders, such as Kum & Go and Sheetz get government credits for mixing in ethanol, which they can sell to oil companies that need them to meet federal biofuels targets.

Ultimately at stake is about $15 billion oil firms would lose to ethanol producers in a motor-fuel market worth $370 billion, based on futures and retail prices compiled by the U.S. government, if E15 replaced E10 as the new standard.

Based on last year's E10 consumption, Aakash Doshi, vice president at Citigroup in New York, estimates countrywide adoption of E15 would boost ethanol-for-fuel consumption by 40 percent to some 20 billion gallons.

That increase would propel consumption in the United States beyond the level set by the 2007 biofuels policy of some 15 billion gallons annually through 2022.

"It'll be years before E15 really takes off, but it is becoming a larger market," Doshi said.

Even incremental increases in E15 use would be a boon for corn producers as ethanol inventories stay at multi-year highs.

Eichberger, whose group represents gas retailers and fuel blenders, warns E15 has yet to win broader acceptance among retailers and drivers.

Long painted by oil firms as an engine-killer, E15 has been cleared by the U.S. authorities as safe for most newer cars and several manufacturers including Audi, Ford Motor Co and General Motors have approved its use in newer models.

However, the majority of automobiles on the road are still not approved to run on E15 and drivers who use it could risk losing their warranty, said a spokesman for the American Automobile Association.

Gas station owners' fears that they might be held liable for engine problems have largely limited E15's availability to some 100 mom-and-pop stations, primarily in the U.S. Corn Belt states that support the ethanol industry.

Selling for 5-10 cents a gallon less than an already cheap E10, the higher blend may still appeal to cost-conscious drivers and an important test of its popularity will be whether it can spread beyond the Midwest, the U.S. farm and biofuel heartland.

Kum & Go started its roll out in April in Iowa, the largest ethanol-producing state and the center of political support for the renewable fuels, and will add it at pumps in six more states.

Sheetz plans to start offering the fuel by the end of this month and will have it at 60 stations throughout North Carolina by spring 2016, a company spokeswoman said.

"We are getting closer to a point of critical mass," said Kum & Go vice president of fuels Jim Pirolli.

Read the original story here : At The Gas Pump, US Biofuel Lobby Scores A Point Against Big Oil

Star Tribune

May 11, 2015

By David Shaffer

Increased driving and gasoline consumption are helping the ethanol industry pull out of a first-quarter slump.

Producers of the corn-based fuel reported steep declines in operating income for the first quarter, marking a sudden end to companies’ record 2014 profits.

“The industry as a whole had a tough go in the first quarter,” said Mark Warren, partner and CFO for ­Ascendant Partners, a Denver-based financial advisory firm that tracks ethanol plants’ performance. “We are seeing things turn a little bit as of late.”

Industry officials say that Americans are driving more, and are projected to use more fuel in 2015. Demand for ethanol is expected to increase. Some ethanol plants are making investments to boost output.

“U.S. gasoline consumption continues to improve,” Juan Luciano, CEO of the nation’s largest ethanol producer Archer Daniels Midland (ADM), told analysts on a conference call last Tuesday. “That will translate into stronger domestic demand for ethanol. These, combined with strong exports, will keep our assets running hard, especially as we move through the summer driving season.”

ADM, which has an ethanol plant in Marshall, Minn., reported a 73 percent decline in its ethanol-related operating profit, to $42 million for the three months ending in March. The biofuel segment reported $156 million in operating profit in the first quarter of 2014.

Ethanol makers largely attributed the quarter’s slump to the drop in the wholesale price of ethanol, which typically is blended at 10 percent at the pump. As crude oil and gasoline prices began to decline in late 2014, ethanol sold for less, squeezing some ethanol producer margins.

“They certainly did get slammed — a year ago they were having record margins,” said Alex Breitinger, a commodities futures broker at Paragon Ag Advisors.

Of seven Minnesota-affiliated ethanol makers tracked by the Star Tribune, Green Plains, the nation’s ­fourth-largest producer, reported the only ethanol-related operating loss — $3 million — in the quarter ending in March. Other producers said first-quarter operating profits declined by two-thirds or more from the same period last year.

Valero Energy Corp., the nation’s third-largest ethanol producer and owner of Minnesota’s largest biofuel plant in Welcome, reported a 95 percent drop in quarterly ­ethanol operating profits to $12 million. A year ago, Valero’s record first-quarter generated $243 million in ethanol operating profits.

But executives said ­ethanol margins have rebounded since March. At Green Plains, the Omaha-based owner of 12 ethanol plants including large operations in Fergus Falls and Fairmont, CEO Todd Becker projected ethanol will be ­profitable for the year.

U.S. ethanol exports should range from 800 million to 1 ­billion gallons, Becker told analysts. The nation’s producers exported 836 million gallons of ethanol in 2014, a 35 percent increase over 2013, but short of the 2011 record, according to the Renewable Fuels Association.

On the domestic market, wholesale ethanol is trading at least 40 cents per gallon less than gasoline, Becker said. That’s important because even with government blending mandates, ethanol’s penetration of the fuel market still relies heavily on price.

Minnesota, which requires a 10 percent ethanol blend, has 21 ethanol plants with a total capacity of 1.1 billion gallons annually. The industry refined 36 percent of the state’s 2014 corn crop into fuel, corn oil and animal feed, contributing $2.4 billion to the state’s gross domestic product, according to a report issued last week by the Minnesota Biofuels ­Association.

Although low gasoline prices hurt the industry’s margins early this year, the long-term effect may be quite the opposite.

U.S. gasoline consumption is on the rise. For the six months ending in March, consumption rose 2.7 percent over the same period last year. The U.S. Energy Information Administration says it expects another 1.6 percent hike this year, mainly because of lower fuel prices and a better economy.

If the consumption and export projections are correct, U.S. ethanol plants could be running at full capacity and still need to draw on stocks in storage, Becker said.

Warren of Ascendant Partners said some ethanol producers, including Green Plains, have announced upgrade projects to boost output. After the banner year in 2014, many producers are in a position to make such investments, he added.

“Last year a lot of these plants paid down a lot of debt,” Warren added. “A lot of them are in pretty good financial shape … These guys aren’t strapped.”

Another pressure on ­ethanol plants — high corn prices — also has gone away for now. A bushel of corn has been trading at a relatively low $3.60, below the break-even point for many farmers.

“Since the first of the year, I would expect every ethanol producer is much happier,” said Breitinger of Paragon. “Corn is down 40 cents a bushel and ethanol has gone up pretty substantially at the same time. So their margins should be looking better.”

Read the original story here : Ethanol Industry Looks To Drivers and Exports For Path Out Of A Slump

The Hill

May 6, 2015

By Timothy Cama

The Obama administration is conducting the last step in its review of proposed annual ethanol blending mandates for three separate years.

The Environmental Protection Agency (EPA) sent the proposal, which has not been revealed publicly, to the White House Office of Management and Budget, Reuters reported, citing industry sources.

The proposal would cover ethanol and biodiesel blending requirements for fuel refiners for 2014, 2015 and 2016 under the renewable fuel standard.

The EPA agreed in court last month to propose the levels for 2014 and 2015 by June and to release the final mandates by November. The 2014 level should have been out in November 2013, and the 2015 one a year later.

White House review is the final step before the EPA can release the proposals publicly and gather comments from the public on them.

The declined to comment on the Tuesday report.

Read the original story here : EPA Sends Ethanol Proposals For Final Review

Yahoo! News

May 4, 2015

By Chris Prentice

NEW YORK (Reuters) - U.S. government delays in rolling out renewable fuels policy have stymied some $13.7 billion in investments and have prevented advanced biofuels companies from meeting mandated target volumes, according to an industry group analysis.

The U.S. Environmental Protection Agency's (EPA) slow rulemaking on the Renewable Fuel Standard program over the past two years has "chilled" an influx of capital needed to boost commercial production, according to the Biotechnology Industry Organization (BIO).

The Washington firm represents biotechnology companies like Abengoa Bioenergy and DuPont.

Production of advanced and cellulosic renewable fuels, which use plant waste as a feedstock, has failed to meet targets set by Congress in 2007, stoking debate over the policy. Corn-based ethanol represents the vast majority of renewable fuels in use.

The EPA has been late in meeting annual deadlines to set volumes of renewable fuels required to be blended into the transportation fuel pool, which critics say has created uncertainty throughout the industry. The agency is late in announcing mandates for both 2014 and 2015.

The EPA has to approve new ways companies have designed to qualify a fuel under RFS policy. Delays in that process have helped dry up funding, according to BIO.

Read the original story here : EPA Delays Prompt $13.7 billion Shortfall In Biofuels Investment : Report