Klobuchar on EPA Release of Proposed Renewable Fuel Standard Requirements
July 5, 2017
Press Release
WASHINGTON, D.C. – U.S. Senator Amy Klobuchar (D-MN), a member of the Senate Agriculture Committee, issued the following statement following the release of the Environmental Protection Agency’s proposed 2018 and 2019 Renewable Fuel Standard volume requirements.
“Renewable fuels are a homegrown economic generator for Minnesota and for our country. It is good that the Administration has maintained ethanol volume requirements for 2018 and 2019. At the same time, reducing the blend targets of advanced biofuels could short-change the growth of clean energy innovation that creates jobs and strengthens rural communities. It is critical that the final rule is stronger for advanced biofuels and I will work with the Administration to push for improvements that support biofuel production in Minnesota and around the United States."
For years, Klobuchar has led a bipartisan push for the EPA to release a stronger RFS to support American jobs and decrease dependence on foreign oil. Last November, the former Administration released a stronger final rule for 2017, which will require a record amount of biofuel to be mixed into our transportation fuel supply next year. Minnesota’s twenty ethanol plants and three biodiesel plants generate roughly $5 billion in combined economic output and have made our state the fourth-largest ethanol producing state in the country. In April, Klobuchar and Senator Chuck Grassley (R-IA) led a bipartisan group of 23 senators in urging the Administration to reject changes to the RFS that would upend stability and predictability for small businesses and rural communities.
Read the original release: Klobuchar on EPA Release of Proposed Renewable Fuel Standard Requirements
Sen. Franken’s Statement on the Proposed 2018 Renewable Fuel Standard Targets
July 5, 2017
Press Release
Sen. Al Franken issued the following statement after the Environmental Protection Agency (EPA) announced its proposed Renewable Fuel Standard (RFS) targets for 2018.
The new proposal would allow the biofuel industry to blend 4.24 billion gallons of advanced biofuels-like biodiesel-and 15 billion gallons of ethanol into our nation's fuel supply during 2018.
"The Renewable Fuel Standard creates good jobs, promotes homegrown energy, and decreases our nation's reliance on foreign oil," said Sen. Franken. "While I'm pleased that the administration plans to maintain the 15 billion gallon target for conventional ethanol, the targets for biodiesel and other advanced biofuels fall short of what the industry is capable of producing. EPA Administrator Scott Pruitt has said the final rule will be out by the end of November, and I'll be doing everything I can to push the administration to strengthen the RFS for producers in Minnesota and across our nation."
The RFS was created as a way to expand our country's energy portfolio by requiring that gasoline is blended with renewable fuels like ethanol and biodiesel.
Read the original release: Sen. Franken’s Statement on the Proposed 2018 Renewable Fuel Standard Targets
Proposed Volume Standards for 2018, and the Biomass-Based Diesel Volume for 2019
2017 Announcements for the Renewable Fuel Standard
Proposed Volume Standards for 2018, and the Biomass-Based Diesel Volume for 2019
Rule Summary:
On July 5, 2017 EPA issued proposed volume requirements under the Renewable Fuel Standard program for cellulosic biofuel, advanced biofuel, and total renewable fuel for calendar year 2018. EPA also proposed biomass-based diesel volume standards for calendar year 2019. The proposed volume requirements are listed in the table below.
Additional Resources:
Proposed rule (PDF)(89 pp, 849 K, pre-publication, signed July 5, 2017, About PDF)
Brazilian Ethanol Concerns Said to Drive Delay in EPA's Quotas
June 30, 2017
By Jennifer A Dlouhy and Mario Parker
Concerns that refiners will import ethanol from Brazil and biodiesel from Argentina to fulfill renewable fuel requirements prompted U.S. environmental chief Scott Pruitt to reconsider quotas for those fuels, according to people familiar with the program.
The issue has delayed the Environmental Protection Agency’s publication of proposed mandates for 2018, as Pruitt seeks revisions, according to four people tracking the deliberations. That may include lowering the targets so refiners can rely mostly on U.S.-made biodiesel and corn ethanol, they said.
EPA had previously sent the White House proposed quotas that would require the use of 15 billion gallons of renewable fuel, but the new concerns are causing the agency to rethink that approach, according to the people, who asked for anonymity to discuss internal deliberations.
The EPA debate comes as President Donald Trump pushes an America-first approach to trade. The administration is considering slapping tariffs on foreign-made products such as steel and aluminum in a bid to help domestic producers and support national security. After a meeting with South Korean President Moon Jae-in Thursday, Trump said that nation must stop exporting “dumped steel” into the U.S. market.
As part of his American energy focus, Trump told an Iowa audience this month: "By the way, we’re saving your ethanol industries." He also just spent this week touting "American energy dominance," and the ability of U.S. exports to supply the world’s energy needs.
These trade issues have already seeped into the biofuel markets. U.S. biodiesel producers filed a trade complaint against imports from Argentina and Indonesia, asking the government to impose tariffs to counter what they say are unfair subsidies and dumping.
Unlike those trade investigations, the EPA has a limited ability to discourage the use of imported biofuels under the congressionally mandated program. That program aimed to spur production of American-made fuel, but its quotas apply to all renewable fuels -- no matter their origin.
If the EPA does take measures to restrict imports, the net result would be a spike in the price of credits tracking compliance with renewable fuel mandates and that would "drive up consumer cost significantly," said Mike McAdams, president of the Advanced Biofuels Association.
"If you want to stick it to the consumer, Mr. Administrator, just roll back the number for imported fuels with your misguided America-first policy," McAdams, whose members include Brazilian-based producers, said in an interview. "You need imports to satisfy targets."
The delays could also make it harder for the EPA to hit a Nov. 30 deadline in federal law to finalize biofuel quotas for the following year. The Obama administration missed that deadline repeatedly, until last year when they came out on time. Pruitt has promised to keep the program’s timing on track and "honor the intent" of Congress in creating the mandates.
Representatives from the EPA did not respond to requests for comment.
Under the Renewable Fuel Standard, first created by Congress in 2005, refiners can use imports to help satisfy multiple mandates in the program and make up for domestic shortfalls. For example, while refiners use U.S. corn-based ethanol to fulfill the bulk of a 2017 requirement to blend in 15 billion gallons of conventional renewable fuels, they are turning to some foreign supplies to help them hit the target.
The U.S. imported 36 million gallons of ethanol from Brazil last year, down from more than 400 million gallons in 2012, according to the Energy Information Administration. U.S. distillers produced a record 15.3 billion gallons of ethanol in 2016, it said.
The EPA is tasked with dictating specific annual quotas, but the agency has limited authority to waive the statutory goals and set lower targets. And the breadth of the EPA’s leeway is in doubt, as a federal court weighs a biofuel industry lawsuit challenging the agency’s waivers issued under former President Barack Obama.
In addition to the overall biofuel target, the agency sets standards for biodiesel, typically derived from soybean oil; advanced biofuel, which has lower carbon emissions; and cellulosic ethanol, which comes from sources such as crop waste or algae.
Sugarcane-derived ethanol made in Brazil qualifies as an "advanced biofuel," which means it can satisfy quotas for two different types of fuel in the program -- both for advanced biofuel and total renewable fuel. Corn-based ethanol doesn’t qualify as advanced.
Imported biodiesel is particularly useful because it can help satisfy quotas for three different required fuels -- advanced, total and biodiesel. Under the program, refiners receive 1.5 compliance credits for each gallon of biodiesel they blend into petroleum.
Read the original story: Brazilian Ethanol Concerns Said to Drive Delay in EPA's Quotas
American Oversight Sues EPA to Release Communications with Carl Icahn
June 27, 2017
Press Release
American Oversight today filed suit against the Environmental Protection Agency (EPA) to force the release of communications with investor and White House advisor Carl Icahn, along with calendars and phone logs for Administrator Scott Pruitt and other top agency officials.
“President Trump tapping Carl Icahn to give advice on energy regulations is the definition of conflict of interest,” said American Oversight Executive Director Austin Evers. “We need to know what kind of influence Mr. Icahn has at the EPA to see if he has been shaping energy policy to benefit himself at the expense of American families. It seems Mr. Icahn, like so many other Trump administration officials, may be using his position for his own personal financial benefit.”
On December 21st, President-elect Trump announced his intent to appoint Carl Icahn to serve as a “special advisor” to the president on regulatory reform. Subsequent reports have indicated that Mr. Icahn may have used his role in the administration to advocate for regulatory changes that would benefit him financially. In particular, reports indicate that Mr. Icahn has used his influence at the EPA to seek changes to ethanol regulations that would have saved CVR Energy, one of his holdings, over $200 million in 2016.
Scott Pruitt has repeatedly shown himself to be malleable to industry influence both in his former role as the Oklahoma Attorney General and now as EPA Administrator. As attorney general Mr. Pruitt maintained close ties with the oil and gas industry as well as other sectors that he was responsible for scrutinizing. American Oversight seeks to learn the extent to which Mr. Pruitt has continued his pattern of maintaining unduly close relationships with those he was charged with regulating.
On April 5, 2017, American Oversight filed Freedom of Information Act (FOIA) requests with the EPA seeking communications between senior agency officials, including Administrator Pruitt, and Carl Icahn, as well as representatives of CVR Energy. Separately, American Oversight also requested calendars and phone logs for Mr. Pruitt and his top aides and officials at the EPA. After failing to receive an adequate response from the EPA, American Oversight filed suit today in the U.S. District Court for the District of Columbia to force the administration to release the records.
Mr. Evers continued, “In just 6 months in office, it seems President Trump and Scott Pruitt are letting the foxes take charge of the henhouse and abdicating regulatory authority to companies that stand to profit by undermining regulations.”
Click HERE to read the complaint that was filed today.
Read the original release: American Oversight Sues EPA to Release Communications with Carl Icahn
More Energy, More Choice
June 27, 2017
By Robert Walther
The arrival of summer in Washington is typically marked by growing legions of tourists zipping along on Segways and a seemingly constant need to take shelter from sudden rainstorms better suited to the tropics. In the fuel business, because of one antiquated rule, the transition to summer is much more abrupt — and much less welcome. If not resolved, it could mean one thing evading the rest of the country is a cleaner, less expensive fuel option.
Every June 1, gas station owners must re-engineer their product offerings to accommodate a decades-old Environmental Protection Agency regulation that limits sales of E15, a fuel blend containing 15 percent homegrown, low-emission ethanol. The prohibition lasts until Sept. 15, and represents one of the greatest barriers to growth in America’s renewable energy industry. It also costs retailers millions of dollars to navigate the switch, and it forces E15 customers to buy less-appealing fuels for 5 to 10 cents more per gallon. Those costs can add up quickly during the summer driving season when prices are already above the norm.
In practice, the rule — a limit on Reid vapor pressure — was designed to hold down the evaporation of toxic petroleum-based chemicals during the warm summer months. But, because RVP limits were set years before higher ethanol blends were part of the calculation, the obsolete rule now forces retailers to offer less earth-friendly options at the pump for more than three months each year.
Fixing this technical glitch would be fairly simple, and even EPA Administrator Scott Pruitt has expressed his hope for a solution, but only an act of Congress can keep E15 beyond the reach of oil industry lawyers looking hold back any competition at the gas pump.
To overcome the opposition, Sens. Deb Fischer (R-Neb.), Joe Donnelly (D-Ind.), and Chuck Grassley (R-Iowa) brought together a broad, bipartisan coalition of lawmakers to introduce the Consumer and Fuel Retailer Choice Act, S. 517.
During a recent hearing of the Senate Committee on Environment and Public Works, Brooke Colman with the Advanced Biofuels Business Council testified that new markets for homegrown fuel are vital to attracting investment dollars and “critical to first-movers in commercial cellulosic ethanol production.” His point was reinforced in a letter from POET and dozens of other leaders in second-generation biofuels who noted that, “during the summer months alone E15 can reduce GHGs equivalent to taking 2.1 million vehicles off the road.”
A top executive from the nation’s largest E15 retailer, Sheetz, also explained to committee members that the fix would simply allow “greater consumer access for a fuel that is lower cost, higher performing, and better for the environment.”
And Janet Yanowitz at Ecoengineering Inc. summed up the science for committee members, reporting that “the available emissions test data indicates that replacing E10 with an E15 of the same vapor pressure will cause a slight decrease in emissions of ozone forming organic compounds and carbon monoxide, and no change in NOx.” Meanwhile, the U.S. Department of Agriculture, reported this year that homegrown ethanol reduces carbon emissions by 43 percent compared to gasoline, a number that continues to grow as petroleum production relies on increasingly destructive extraction methods. And if those carbon savings aren’t enough, the cellulosic ethanol produced at plants like POET’s Project Liberty can slash emissions by 85 to 95 percent or more. To be clear, cellulosic biofuels are the future of our industry and our company, but we need market headroom to scale up advanced energy sources.
The only real opposition comes from a few oil company executives who think that holding consumer choice hostage is a good way to force pro-biofuel lawmakers to negotiate with refinery owners such as Carl Icahn. They are even dusting off an old oil-funded study by the Coordinating Research Council, which claimed that E15 damaged engines, but was immediately rejected by the Department of Energy, which pointed out that the report was “significantly flawed” and relied on “unreliable and incomplete data.” No surprise then that legitimate testing by the DOE of 86 vehicles operated up to 120,000 miles each found “no statistically significant loss of vehicle performance.” In fact, the EPA approves E15 for all passenger vehicles built since 2001. And because E15 offers higher-octane, a lower cost, and cleaner air, it’s quickly gaining popularity among consumers in 29 states and counting.
That progress could be accelerated, and all it will take is a simple, bipartisan fix to one outdated summer fuel regulation. It’s time to act. Cleaner, less costly fuel is a goal that everyone can agree on, and we urge the Senate Committee on Environment and Public Works to act quickly to fulfill the promise of America’s growing biofuel industry and open a market that will continue to drive investment in the next generation of low-carbon fuels.
Read the original story: More Energy, More Choice
Marathon Winnetka New Hope
New Hope,Minnesota
United States 55427
Dairy and DDGS
June is National Dairy Month and to celebrate, we revisit the numerous benefits DDGS provide the dairy industry!
Representatives Press Pruitt On Icahn’s role In Shaping the RFS
June 23, 2017
By Erin Voegele
On June 21, democratic leaders in the House Energy and Commerce Committee sent a letter to U.S. EPA Administrator Scott Pruitt asking him to detail policies and procedures the agency has put in place to prevent Carl Icahn from influencing the EPA’s position on the Renewable Fuel Standard for personal financial gain.
Icahn is the majority owner of CVR Energy, which is a petroleum refining company involved in the renewable identification number (RIN) market. In late December, he was also named as a special advisor to President Donald Trump on issues related to regulatory reform.
The letter details several statements made by Icahn criticizing the RFS and questions financial gains made by Icahn and his companies following reports of policy recommendations he has made regarding the RFS. According to the letter, CVR saw shares rise 10 percent the day after Icahn was named as a special advisor to the president.
“Recent reports about Mr. Icahn’s actions with respect to the Renewable Fuel Standard (RFS) program have raised significant ethical and legal concerns given his oil refinery business interests,” the members wrote. “The Committee has a longstanding interest in ensuring that the Administration operates transparently and in compliance with all applicable conflict of interest regulations and policies.”
The members continued, “These reports raise significant concerns regarding Mr. Icahn’s ability to advise President Trump impartially on regulatory matters that impact Mr. Icahn’s financial interests. This is especially troubling because, as an unpaid adviser, Mr. Icahn presumably has not undergone a review by the Office of Government Ethics and is not subject to conflicts of interest regulations applicable to government employees.”
The letter asks Pruitt to explain Icahn’s role in the discussion and development of agency actions regarding the RFS and asks the EPA to provide a copy of all communications or memos exchanged between Icahn and EPA personnel related to the RFS program. The letter also asks Pruitt to explain what disclosure is required by the EPA when it receives communication from unpaid advisors of the president; provide information pertaining to meetings and calls between EPA personnel and Icahn; explain EPA policies and procedures that govern disclosure of non-public, confidential or otherwise privileged information to individuals serving as unpaid advisors to the president; describe policies or procedures that ensure unpaid advisors do not have undue access to EPA officials; and discuss other actions the EPA has taken to safeguard against undue influence by the president’s unpaid advisors.
The letter is signed by Energy and Commerce Committee Ranking Member Frank Pallone, Jr., D-N.J.; Energy Subcommittee Ranking Member Rep. Bobby L. Rush, D-Ill.; Oversight and Investigations Subcommittee Ranking Member Rep. Diana DeGette , D-Colo.; Subcommittee on Environment Ranking Member Rep. Paul D. Tonko, D-N.Y.; and Democracy Reform Task Force Chair Rep. John Sarbanes, D-M.D.
The letter is the latest in a series of actions by federal lawmakers seeking answers to Icahn’s role in setting RFS policy. In May, a group of senators issued a letter to the heads of the U.S. Commodities Futures Trading Commission, the Securities and Exchange Commission and the U.S. EPA calling for an investigation of Icahn for potential insider trading, market manipulation and other securities and commodities law violations related to the market for RINs. In June, a separate group of senators sent a letter to Pruitt requesting any information the agency has on Icahn’s role in crafting policy and regulations at the EPA, particularly with regard to the RFS.
Read the original story: Representatives Press Pruitt On Icahn’s role In Shaping the RFS
Nissan Brazil Ends Initial Tests of Ethanol Fuel Cell
June 16, 2017
Nissan was the auto industry's first company to develop a vehicle prototype powered by a solid oxide fuel cell (SOFC) that works with bio-ethanol. By combining this and two other technologies (electric motor and a 24 kW/h battery) range is in excess of 600km (375 miles).
Brazil was chosen by the Japanese automaker for the global reveal of the technology and initial testing due to its huge, nationwide ethanol supply network and being the world's second largest ethanol producer.
Testing was done with two SOFC-equipped e-NV200 electric vans made in Spain and fitted with an ethanol fuel tank of just 30 litres (6.6 imperial gallons).
The first testing cycle in daily use was accomplished in the last few months by the Nissan Brazil research and development team. The technology fitted perfectly with day to day use and with Brazil's 5% water, hydrous ethanol fuel.
The Fuel Cell e-bio's research and development programme was announced by Nissan in Yokohama, Japan, in June 2016. It was first unveiled on the eve of the Rio 2016 Olympic Games opening in Rio de Janeiro City in August last year at an event for smart mobility organised by Nissan.
The motor is clean, highly efficient and it works 100% on straight ethanol or on a mix of ethanol with up to 50% water, which would make it easier to use in countries with no ethanol production dependent on imports. Its emission are classified as carbon-neutral well to wheel.
The Fuel Cell e-Bio provides the usual strong acceleration and silent drive of any electric vehicle, together with low maintenance costs, but with the range of a fossil fuel-powered vehicle.
Bio-ethanol comes mainly from sugar cane and corn available in North and South American countries.
Read the original article: Nissan Brazil Ends Initial Tests of Ethanol Fuel Cell