We recently reported on the number of economic and physical issues associated with particulate emissions but a new study released from the National Bureau of Economic Research reports on the far reaching indoor effects of fine particulate pollution.

Morning Consult

July 6, 2016

By Bob Dineen

In a recent poll conducted by Morning Consult on behalf of the Renewable Fuels Association, voters support the Renewable Fuel Standard, a program to increase the amount of biofuels in the transportation pool, by a greater than 3:1 margin. Additionally, by a 2:1 margin, those same voters oppose efforts to reduce or repeal the RFS. Voters recognize that the program has been an unmitigated success and repealing or dramatically reforming it would reverse those gains already made to reduce petroleum dependency, boost rural economic development and slash greenhouse gas emissions.

That is the message I took to Congress recently, testifying before the House Energy and Commerce Subcommittee on Energy and Power. 

In 2015, 14.8 billion gallons of ethanol was produced, supporting 85,967 direct jobs, while net petroleum import dependence fell to just 25 percent, and would have been 32 percent without the addition of domestically produced ethanol to the nation’s fuel supply. The surge in ethanol production has reduced gasoline imports from nearly 10 billion gallons in 2005 to almost zero today. Looked at another way, the ethanol produced in 2015 displaced an amount of gasoline refined from 527 million barrels of crude oil. That’s roughly equivalent to the volume of oil imported annually from Saudi Arabia and Kuwait combined.

Meantime, the use of ethanol in gasoline in 2015 reduced greenhouse gas emissions from transportation by 41.2 million metric tons — equivalent to removing 8.7 million cars from the road for an entire year. 

While some continue to criticize the RFS on the false premise that it increases food prices (see “We’re Swimming in Fuel, Why Burn our Food Supply,” by Keith Mauck and published June 28 in Morning Consult), a report recently issued by the World Bank and others found that biofuels from crops do not harm food supplies.

We don’t use food for ethanol production. The corn used in the production of ethanol is field corn, not the sweet corn that compliments every back yard barbecue. Field corn is used for animal feed and a variety of industrial products, including high fructose corn syrup and pharmaceuticals. Moreover, we’re only using the starch in the field corn, allowing all the protein and nutritional value to be used as animal feed shipped all over the globe. 

But you wouldn’t know these benefits if you listened to the American Petroleum Institute and their sycophants, who repeatedly trot out false talking points of the oil industry to distract from the fact that they want to continue their 100-year-plus monopoly on the transportation sector. The incumbent industry has already lost 10 percent of the market. If the RFS is implemented consistent with the statute, the market will make the final push to see cellulosic ethanol and other advanced biofuels to fruition, resulting in the loss of 30 percent of the market. You can bet oil companies are not too happy with that prospect.

That’s why maintaining a strong RFS is essential. Congress did an excellent job of crafting the RFS, building in a great deal of administrative and market flexibility to deal with issues as they arise. Congress shouldn’t be bullied by the hyperbole and scare mongering by the incumbent industry that fundamentally disagrees with the need for alternative, low carbon options for consumers.

The American public clearly wants alternatives to Big Oil, and biofuels can help reduce our petroleum dependence, while cleaning the environment and boosting the rural economy. 

Bob Dinneen is the president and CEO of the Renewable Fuels Association.

Read the original story: How Biofuels Can Help Break Up Big Oil’s Marketshare Monopoly

Thursday, 30 June 2016 12:07

EPA Seeks Comments on RFS

Redwood Gazette

June 28, 2016

By Troy Krause

In 2005, U.S. Congress established a new national policy known as the renewable fuels standard (RFS). The program was developed as part of the national energy policy.

The RFS required that a certain volume of renewable fuel be used in everything from the gas in vehicles to the heating oil burned in homes in an effort to reduce the use of petroleum-based fuels.

The RFS is under the umbrella of the environmental protection agency (EPA), which has helped to define what constitutes a renewable fuel (such as ethanol) as well as proposing changes to the RFS. This past May, the EPA presented an amended RFS proposal, and the public has until July 11 to make comments regarding that proposal.

According to Collin Peterson, Minnesota’s Seventh District congressman, the EPA proposal needs some work.

The Minnesota Corn Growers Association (MCGA)?would agree, as it has raised concerns with the proposal to hold the number of gallons of corn ethanol at 14.8 billion gallons rather than the 15 billion gallon standard under the RFS established by Congress.

That equates to 200 million gallons less of ethanol under the proposed RFS, said Adam Czech of MCGA.

“Congress originally called for 15 billion gallons,” said Czech, adding, according to information from the National Corn Growers Association that would result in 71.4 million bushels of corn going unsold and $271 million in lost revenue.

Czech said Minnesota was the first state in the nation to implement a 10 percent mandate in all gasoline sold, and actually the blend being sold is actually closer to 12 percent in Minnesota.

The 10 percent mandate is nationwide, added Czech, who said the corn production in the country easily is able to meet the national demand.

In fact, he added, there is a stockpile of corn in the country right now.

While Peterson said the cut is an issue, he added it could have been worse.

He also said one of the concerns he has with the proposed RFS is with the increase in advanced biofuels in the cellulosic fuel area.

Peterson said at this point there has not been a biomass product that has proven to be an efficient source of fuel and so the RFS mandate for those advanced biofuels is not very realistic. He said he would just as soon see that on hiatus until the availability of a product that works can be figured out.

Peterson said he continues to make efforts to communicate his concerns to the EPA, and he encouraged others to make public comment to the EPA regarding the RFS?proposal by the July 11 deadline.

Czech said the public can find a link to the EPA public comment page on the National Corn Growers Web site at www.ncga.org.

Peterson added the food vs. fuel debate has proven to be nonsense, as there is plenty of the commodity to go around. Czech said there is no timeline after July 11 for the EPA to make a decision regarding the RFS.

Read the original story: EPA Seeks Comments on RFS

Biodiesel Magazine

June 28, 2016

By the National Biodiesel Board

Nearly 100 biodiesel industry leaders are converging on Capitol Hill June 28 to call for strong clean-fuels policy as a new study found that the industry is supporting nearly 48,000 jobs nationwide.

The study, conducted by LMC International, found that the 2.1 billion gallons of biodiesel and renewable diesel used by Americans last year supported $8.4 billion in economic impact across a wide variety of economic sectors along with 47,400 jobs and $1.9 billion in wages paid.

The report also highlighted how growing biodiesel imports are eating into the domestic industry’s production and economic impact. It found that the industry would have supported 21,200 additional jobs last year if all the biodiesel and renewable diesel had been produced domestically. Instead, almost a third came from overseas.

Anne Steckel, vice president of federal affairs at the National Biodiesel Board, said the study underscores the benefits of strong policy that encourages further development of the domestic industry.

“Ending our dependence on oil is an opportunity, not just for the environment and our national security, but for the economy and for American workers,” Steckel said. “This industry is supporting tens of thousands of jobs from coast to coast, and we’re just getting started.”

Biodiesel—made from a diverse mix of resources such as recycled cooking oil, soybean oil and animal fats—is the first and only EPA-designated advanced biofuel to reach commercial-scale production nationwide. According to the EPA, biodiesel reduces greenhouse gas emissions by 57 percent to 86 percent compared with petroleum diesel.

Biodiesel producers, feedstock suppliers and other stakeholders were heading to Capitol Hill June 28 to highlight the benefits of strong biodiesel policy. They are calling for higher biomass-based diesel and advanced biofuel requirements under the renewable fuel standard (RFS) than EPA recently proposed along with extension and reform of the biodiesel tax incentive slated to expire at the end of the year. The reform would change the $1-per-gallon incentive to a domestic producer’s tax credit. Under the current blender’s credit, biodiesel imported to the U.S. qualifies for the incentive.

The LMC study, which was commissioned by NBB, found that biodiesel production has a significant positive impact across a variety of economic sectors, including processing and manufacturing, agriculture, transportation, and animal processing.

NBB believes EPA should set stronger volumes of biomass-based diesel under the RFS, calling for at least a 2.5-billion-gallon requirement in 2018. LMC found, with 2.5 billion gallons of production, the industry would support 81,600 jobs and $14.7 billion in total economic impact if all production were domestic. The impact is 55,000 jobs and $9.8 billion in total impact under a split of two-thirds domestic production and one-third imports.

NBB is the U.S. trade association representing the biodiesel and renewable diesel industries, including producers, feedstock suppliers, and fuel distributors.

To read the LMC study click here.

Read the original story: Study Finds US Biodiesel Industry Supports Nearly 48,000 Jobs

Morning Consult

June 29, 2016

By Jan Koninckx

Recently, world leaders from the United States and more than 170 other countries met at the United Nations to sign an historic accord demanding urgent action to combat climate change. The landmark agreement marks a major milestone in international efforts to decarbonize the world’s energy supplies and to prevent a disastrous increase in global temperatures. To be successful, these efforts can and must address the transportation fuels that contribute a quarter of all human-made carbon dioxide emissions.

Fortunately, a decade ago Congress created the Renewable Fuel Standard (RFS), which is an on-ramp for low-carbon fuels. Thanks to this policy, we now have the capacity to offer motorists a clean choice at the gas pump while reducing the need and the cost for imported oil. By gradually increasing the share of renewable fuel in our gas tanks, the RFS has proven to be the single most effective policy tool in our arsenal to decarbonize liquid fuels, which remain one of America’s largest sources of greenhouse gas emissions.

Other policy options, including the deployment of electric vehicles, will play a major role in reducing emissions. However, even with a continuous commitment by policymakers, consumers and industry, phasing out the current fleet of internal combustion engines and building the energy infrastructure required to power a new generation of vehicles will span multiple decades. To have an immediate and lasting impact on global emissions, it is essential that policymakers embrace tools like the RFS that can go to work immediately, replacing the fuel in today’s gas tanks with sustainable, clean-burning alternatives.

Already, current U.S. blends of 10 percent ethanol allow American drivers to avoid over 40 million tons of CO2 emissions. Blends beyond 10 percent ethanol will increase these benefits.  New technologies are allowing every gallon of biofuel to achieve higher carbon savings. These technologies are the direct result of investments by companies like DuPont that are working to produce clean-burning alternatives from resources such as agricultural residues and other cellulosic biomass.

Today’s corn-based ethanol already produces fewer greenhouse gas emissions over its full life cycle – from field to wheel – than regular gasoline, reducing emissions by 34 percent. Second-generation cellulosic ethanol is substantially more efficient and getting better every day. In fact, DuPont’s new plant in Iowa will produce fuel with at least 90 percent lower carbon emissions than conventional gasoline.

Accelerating this progress requires a commitment by policymakers to drive to specific goals and to implement them across large markets. These polices provide the stability and economic driver needed to decarbonize our fuel supplies. That is why entrenched interests have worked aggressively to undermine the RFS and preserve the status quo. However, relying exclusively on oil as our only source of transportation fuel will never help us reduce human-made greenhouse-gas emissions or clean our air.

The choice is clear, and it is critical that all industries work together to support all forms of low carbon transportation. Allowing those efforts to be diverted or divided will only guarantee that America misses its last, best chance to revolutionize the entire energy sector and meet the aggressive climate goals that world leaders now recognize as vital to success in the fight against climate change.

With the RFS, America has shown that it is possible to embrace alternative energy supplies without harming consumers. Science holds the answers. Biofuels are a part of the solution now, and they belong at the center of any serious plan to protect our planet for future generations.

Jan Koninckx is global business director for biofuels for DuPont Industrial Biosciences.

Read the original story: Strategies to Combating Climate Change Must Include Biofuels

Fond Du Lac Reporter

June 24, 2016

By Jim Zimmerman

Henry Ford had it right in 1908 when he called ethanol “the fuel of the future.” Ford said ethanol would be far cheaper than gasoline, boost car performance with high octane ratings, clean the car engine and promote longer engine life, be environmentally friendly and be a more renewable energy source.

Ford’s assessment of the benefits of ethanol still rings true today. Ethanol improves air quality with reduced harmful emissions, reduces our dependence on foreign oil and provides consumers with better performing fuel.

Ethanol use started in the 1920s by Standard Oil to increase octane and reduce engine knocking. Ethanol has those same benefits today, including air quality improvements. Widespread use started in the late 1990s to replace the oxygenate Methyl-tert-butyl ether because MTBE was harming our drinking water.

Our country decided it needed to provide cleaner burning fuel (something big oil wouldn’t do on its own) and increase our energy dependence with renewable fuels. The Renewable Fuel Standard was established in 2005 to require specific levels of renewable fuels to be added to gasoline.

Over that time ethanol has been a success. In 2015, ethanol lowered CO2-equivalent greenhouse gas emissions from transportation by 41.2 million metric tons – equal to removing 8.7 million cars from roads. The American Lung Association calls E85 (fuel with up to 85 percent ethanol) the “Clean Air Choice” because ethanol reduces harmful emissions.

We’ve lowered how much we depend on foreign oil. The 14.8 billion gallons of domestically-produced ethanol in 2015 lowered net U.S. import petroleum dependence from 32 percent to 25 percent.

Consumers have been the beneficiaries of the Renewable Fuel Standard. It was needed to provide competitive choices for the purpose of opening the fuels market. The current fuel market is dominated by foreign companies, receiving anywhere from $10 billion to $52 billion a year in corporate welfare.

Today, ethanol is standing on its own as a clean burning, lower cost fuel option in the marketplace. The increase in overall fuel supplies from domestically-produced ethanol blended with gasoline has helped lower gas prices at the pump by anywhere from 50 cents to $1 per gallon.

What Ford recognized about engine safety and performance more than 100 years ago still holds true today. Automakers are responding to consumer demands with vehicles designed to support higher blends of clean-burning, high octane biofuels.

Because of this growing consumer acceptance, companies like Kwik Trip in Wisconsin, Sheetz in North Carolina and Kum & Go in Iowa are installing pumps to offer consumers E15 blends, a lower cost fuel with higher octane levels. It’s likely the auto you drive today can run on E15; just check your manufacturer’s warranty.

With advancements in corn farming and ethanol production technology in the last 20 years, ethanol production has a positive energy balance. One unit of energy invested in corn ethanol production creates 2.3 units of usable energy, and the process is only becoming more efficient as technology progresses. We’ve done this without hitting consumers in the pocketbook in higher food costs.

Ethanol is transforming how we make and use energy. Ethanol is a solution that offers drivers a renewable fuel source at a lower cost with engine performance benefits. Bottom line, there’s a place at the pump for both petroleum and ethanol, just like Henry Ford foretold. It’s just that ethanol is proving to be the cleaner, better performing fuel.

Read the original story: Ethanol Clean, Renewable, High Performing Fuel

Thursday, 23 June 2016 13:14

API Singing the Same Push Poll Tune

Renewable Fuels Association

June 21, 2016

Today, the American Petroleum Institute (API) unveiled new anti-ethanol results from a May Harris Poll. Renewable Fuels Association President and CEO Bob Dinneen had the following response:

“API, an oil trade group which has made its top priority to get rid of the renewable fuel standard (RFS), is yet again relying on push polling to foster its narrative that the public doesn’t support biofuels. With its push poll, API poll suggests a remarkable 77% of voters are concerned about higher ethanol blends.

“The API’s poll is bunk and stands in stark contrast to a poll that Morning Consult, on behalf of RFA, conducted last week, which found that by a greater than 3:1 margin, voters support the renewable fuel standard and continuing the nation’s commitment to biofuels. Additionally, the RFA found by a 2:1 margin, voters oppose efforts to reduce or repeal the RFS. The polling, of 2,001 registered voters, was conducted June 15-18, and has a margin of error of +/- 2%.

“API posed its two biofuel-related polling questions in a callously misleading way. By contrast, the RFA asked no leading questions. When voters are given a question devoid of prejudice, it’s amazing what happens. The American public clearly wants alternatives to Big Oil, and biofuels can help reduce our petroleum dependence, while cleaning the environment and boosting the rural economy.

Here’s API’s first misleading question:

‘As you may know, much of the gasoline in the U.S. market currently contains up to a 10% ethanol blend. Most auto manufacturers have said they will not cover vehicle damage caused by higher ethanol fuel blends. Given that situation, how concerned are you about government requirements that would increase the amount of ethanol in gasoline?’

“What’s the truth? Auto manufacturers explicitly approve of E15 (15% ethanol, 85% gasoline) use in more than 70% of MY2016 vehicles, according to a December 2015 RFA analysis of warranty statements and owner’s manuals. But you wouldn’t know it from API’s biased polling question. There is not a single example of E15 destroying a consumer’s engine. API’s reference is so prejudicial, the result they got was preordained.

Here’s API’s second misleading question:

‘Do you agree or disagree that using even more corn for ethanol production could increase consumer prices here in the U.S. and increase hunger among the world’s poor?’

“A report issued just last week by the World Bank and others found that biofuels from crops do not harm food supplies, and besides, corn used for ethanol comes from field corn, not the sweet corn that humans consume. API’s claim that ‘even more corn for ethanol production could increase consumer prices here in the U.S. and increase hunger among the world’s poor’ doesn’t pass muster and is another example of the desperate lengths they will go to mislead and misinform the public.”

Read the original: API Singing the Same Push Poll Tune

Iowa Farmer Today

June 16, 2016

By Bill Tiedje

After weathering a winter of big stocks and low oil prices, the U.S. biofuels industry is looking forward to a strong year, thanks to growth in domestic gasoline demand and higher vehicle emissions standards ahead.

Brad Davis, Ag Processing Inc. (AGP) board chairman and CEO of Gold-Eagle Co-op and the CORN, LP ethanol plant in Goldfield, Iowa, said a burdensome supply of ethanol stocks early this year, which limited optimism, was met by a strong disappearance in stocks in the first quarter.

“Ethanol really looks like we’re going to have a good year for 2016,” he said. “It is hard to predict. I think it just surprised a lot of folks. We steadily dropped our stocks.”

That’s a good thing, since there’s a lot of corn that needs to move, he said.

“When we built our plant, one of the points we were trying to make was when the ethanol industry is very strong, you have more of a tendency to see the production side less robust. When production ag has fairly high corn prices, it is a little tougher on ethanol side,” Davis said.

Most ethanol plants have been paid off and can now manage production to meet needs; however, if a plant slows output to match decreased demand, production efficiencies also decrease, he said.

Record gasoline demand

Driving domestic ethanol demand is near-record levels of U.S. gasoline consumption. The U.S. Energy Information Administration’s June Short-Term Energy Outlook projected the highest annual average gasoline consumption on record in 2016, due to a 2.5 percent increase in highway travel.

Renewable Fuels Association Senior Vice President Geoff Cooper said, “Obviously what’s driving that is we see lower gas prices today, so people are driving more.”

Of the 143-144 billion gallons of gasoline that EIA projects will be consumed in the U.S. this year, more than 10 percent will be ethanol, Cooper explained.

To achieve the 10 percent usage, most gasoline is mixed with 10 percent ethanol; but some gasoline has no ethanol, while some, such as E-15 or E-85, contain higher percentages, he said.

Davis described ethanol’s 15 billion gallon market as a milestone for the industry.

“This is one of those things we’ve watched in the ethanol industry for years. Once we hit 9 percent, everybody was pretty excited about it,” Davis said.

High octane needs

Both Cooper and Davis said another key aspect of ethanol demand is the need for a clean, high-octane fuel.

Cooper said nearly all U.S. oil refiners have retooled their plants to produce low-octane fuels.

Despite crude oil prices in the $40 to $50 per barrel range, Cooper said ethanol still competes against other octane sources.

“Ethanol remains by far the cheapest octane. Not only that, it’s the cleanest octane source,” Cooper said.

Ethanol exports are also playing an increasing role.

“We’re on pace to export slightly more than 1 billion gallons of ethanol this year, the second most in history,” Cooper said. “... We’ve seen China really emerge as a very robust export market just in the last six months.”

Looking ahead, Cooper said the industry is working with automakers to meet future vehicle fuel economy and emissions standards by utilizing ethanol’s high-octane properties.

“We see ethanol as having a major role in that,” Cooper said. “Ethanol has a very bright future because the world wants more octane.”

Biodiesel

On the biodiesel side, Iowa Biodiesel Board Executive Director Grant Kimberley said commercial fleets and ag users continue to be strong sources of demand for biodiesel.

Certainty regarding regulations in the market continue to be an issue for biodiesel processors, but consolidation has helped the industry manage tough market conditions, he said.

“Remember, we’re still a relatively young industry,” Kimberley said. “The industry is in a pretty decent place.”

Kimberley said mandates for clean air standards in big cities are likely to be a source of growth for the industry. He sees a bigger desire from around the country, especially the coasts, for a lower carbon-intensity fuel.

For farmers, there’s a lot of reasons why it makes sense to use biodiesel, Kimberley said.

Studies have shown biodiesel adds around 63 to 65 cents per bushel to soybean prices and also helps reduce the price of meal for livestock producers, since processors are making more meal, he said.

Over-the-road trucking is also an important source of demand, where the fuel is available at the pump, he said. Thanks to federal and state tax advantages, “it is kind of a no-brainer” for diesel use here in Iowa, Kimberley said.

Read the original story: Biofuels Industry Looks to Meet Strong Demand, Emission Needs

Biodiesel Magazine

June 15, 2016

By Global Renewable Fuels Alliance

On June 13, Bliss Baker, the President of the Global Renewable Fuels Alliance, called on parties to the climate agreement reached at the 21st Conference of the Parties (COP21) to take immediate action to significantly reduce carbon emissions from the transportation sector and incorporate increased biofuels blending as part of their national plans. Of the 195 parties that adopted the agreement in Paris, 177 have now demonstrated their commitment by officially signing the agreement.

Baker noted that the transportation sector produces an estimated 25 to 30 percent of the world’s greenhouse gas (GHG) emissions, and that low-carbon transport fuel alternatives to crude oil like ethanol and biodiesel are a cost-effective and immediately available option for countries to adopt.

“The GRFA is encouraged by the support for strong action to address climate change coming out of COP21,” he said. “But if we are to have any hope of meeting the ambitious targets laid out in that agreement, substantial action is going to have to be taken soon. Biofuels represent a significant step in the right direction that governments can take today.”

Of the 162 intended nationally determined contributions (INDCs) submitted to date, more than 60 recognized the advantages of biofuels-supportive policies by including them in their carbon emission reduction plans.

Baker pointed out that in addition to the parties to the agreement at COP21, third-party groups like the B Team coalition of chief executives and the Carbon Pricing Leadership Coalition have expressed their support for strong public emissions reduction policies that will provide the predictability necessary for the private sector to be able to develop long-term plans.

“Introducing biofuels supportive policies to reduce emissions from the transportation sector in the short and medium term just makes sense,” Baker said. “The biofuels industry will have a significant role to play in international efforts to transition away from carbon-intensive fossil fuels in the transport sector, and the GRFA looks forward to working with governments to develop policies to achieve those goals.”

Read the original story: GRFA: Commit to Biofuels Policies to Achieve COP21 Targets

Ethanol Producer Magazine

June 15, 2016

By Erin Voegele

The U.S. ethanol industry set a new weekly ethanol production record the week ending June 10, with production reaching an average of 1.013 million barrels per day, according to data published by the U.S. Energy Information Administration. The previous record was set the week ending Nov. 20, 2015, when production averaged 1.008 million barrels per day

EthanolProductionBlog

The U.S. ethanol industry has surpassed the 1 million barrel per day mark only five times, all within the past year. The first was the previous recording-setting week of Nov. 20, 2015. Less than a month later, during the week ending Dec. 11, 2015, production reached an average of 1 million gallons per day. During the week ending Jan 8, 2016, production again topped the 1 million barrels per day mark, reaching 1.003 million barrels per day. The week ending June 3, production reached near-record levels of 1.006 million barrels per day.

Prior to November 2015, the ethanol production record sat at 994,000 barrels per day, which was set the week of June 19, 2015. New records were also repeatedly set in 2014. The week of June 13, 2014, the U.S. produced 972,000 barrels per day of ethanol, breaking a production record set several years earlier in late 2011. The week of Nov. 21, 2014 the record was again broken with 982,000 barrels per day of ethanol production. In December 2014, new records were set three consecutive weeks in a row, with average daily production of 988,000 barrels per day the week of Dec. 5, 2014; 990,000 barrels per day the week of Dec. 12, 2014; and 992,000 barrels per day the week of Dec. 19, 2014. The week of June 5, 2015, the industry tied the 992,000 barrels per day record.

Additional weekly ethanol production data can be found on the EIA website.

Read the orignal story: US Ethanol Production Sets New Weekly Record