Congressman Jim Hagedorn

December 2, 2019

Press Release

Last week, Rep. Jim Hagedorn (MN-01) filed comments with U.S. Environmental Protection Agency (EPA) Administrator Andrew Wheeler to express frustration with and demand changes to the agency’s practice of granting Renewable Fuel Standard (RFS) waivers to large or unqualified refineries.

“I am here today to make my position clear that I expect the EPA to uphold the President’s promise made on October 4, 2019, to rural America and to implement the Congress’s intent on the Renewable Fuel Standard. I write to you today in frustration. In the last three years, waivers granted to refineries by your agency have eliminated four billion gallons of ethanol. That's a quarter of the ethanol produced last year in the U.S. -- the equivalent of 50 ethanol plants. With two biodiesel and 11 ethanol plants across southern Minnesota, these exemptions have negative consequences for the First District of Minnesota,” wrote Hagedorn.

Hagedorn also laid out a list of demands for ending EPA’s loose interpretation of the Small Refinery Exemptions (SRE) Rule, which can be found below:

-Enforce the original biofuel targets that were agreed upon by President Trump, Agriculture Secretary Sonny Perdue, former Energy Secretary Rick Perry and yourself;

-Limit the ability of large and unqualified companies to use SRE’s;

-Restore all the lost gallons that were destroyed by retroactive SRE waivers granted for years 2016, 2017 and 2018; and,

-Boost the proposed volume requirements by the amount of retroactive exemptions EPA reasonably anticipates granting for 2019 and 2020.

The full text of the comments can be found here.

Read the original press release: Hagedorn Writes EPA about Renewable Fuel Standard, Small Refinery Exemptions

Congressman Collin Peterson

December 6, 2019

Press Release

Rep. Collin Peterson, chair of the House Agriculture Committee, sent a letter today to the Environmental Protection Agency (EPA), raising concerns that the Agency’s October supplemental proposed rule for the Renewable Fuel Standard (RFS) fails to uphold the integrity of the RFS.

“The bottom line is the EPA continues to undermine the RFS at the expense of our farmers and biofuel producers," Peterson said.  "I’ve said time and time again that any action from EPA that does not uphold the integrity of the RFS is unacceptable.”

In July, the EPA published a proposed rule for Renewable Volume Obligations for 2020 and 2021 as required by the RFS, and the Congressional Biofuels Caucus sent a comment letter on the overall rule. In October, the agency submitted a supplemental proposed rule and suggested changes to the formula EPA uses to restore gallons waived through the small refinery exemptions process.

BACKGROUND

Rep. Peterson serves as chair of the House Agriculture Committee and co-chair of the Congressional Biofuels Caucus, a bipartisan group of Members of Congress who advocate for homegrown renewable fuel policies that boost farmer incomes and reduce dependence on foreign oil. He is also the sponsor of the Renewable Fuel Standard Integrity Act of 2019, a bill which provides certainty to the biofuels industry by setting an annual deadline for small refinery exemption applications and bringing transparency to the process.  In October, he challenged the  EPA to follow Congressional intent of the RFS law in setting biofuel waivers which would shortchange the biofuels industry.  In recognition of his efforts to champion renewable fuels, Rep. Peterson received the Fueling Growth Award from Growth Energy – the country’s largest ethanol association. 

Read the original release: Peterson Critical of EPAs Proposed Actions on RFS

Renewable Fuels Association

December 5, 2019

By Ann Lewis

U.S. ethanol exports picked up in October, increasing 13% to 112.8 million gallons (mg), according to data issued today by the government and analyzed by the Renewable Fuels Association (RFA). Gains made in sales to India and midsized customers more than offset a reduction in shipments to Brazil and, to a lesser extent, Canada.

Canada was the top destination for the sixth consecutive month, despite a 7% decrease to 30.0 mg (27% of total U.S. ethanol sales in October). Exports to India at 17.7 mg (16% of global U.S. ethanol sales) were the largest in four months. U.S. ethanol exports to Brazil weakened, moving 33% below September sales to 11.7 mg for a five-month low. Brazil’s harvest and processing of sugarcane continued at a robust pace in October, and the Brazilian government implemented a restriction on the volume that can enter the country duty-free through February under the tariff rate quota. U.S. shippers also sent sizable volumes to Honduras (a record 10.9 mg), South Korea (9.3 mg, +4%), Colombia (8.5 mg, up more than 6 mg from September), and the European Union (8.3 mg, -16%).

Total year-to-date exports of U.S. ethanol stand at 1.22 billion gallons. This implies an annualized export volume of 1.46 billion gallons which, if realized, would be the second-largest volume on record.

Shipments of U.S. undenatured fuel ethanol jumped in October, increasing 48% to 59.2 mg. Half of exports were destined for India (17.7 mg following zero the prior month) and Brazil (11.7 mg, -33%). Honduras imported its first batch of U.S. undenatured ethanol, coming in at a sizable 10.9 mg. Other key destinations included the United Kingdom (3.6 mg, +100%) and South Korea (2.8 mg, -41%). Notably, U.S. undenatured exports to Mexico nearly tripled to 2.2 mg (however, there were no U.S. denatured exports following two consecutive months of sales).

Sales of U.S. denatured fuel ethanol eased in October, declining 21% to 45.8 mg. Nearly two-thirds of exports crossed the border into Canada (28.5 mg, -8%). Other top importers included Colombia (7.2 mg following zero exports the prior month), South Korea (5.7 mg, +40% to a 12-month high), Peru (2.2 mg, -73%), and the Philippines (2.1 mg, -69%).

Exports of U.S. ethanol for non-fuel, non-beverage purposes bounced back from a two-year low, up 5.8 mg to 7.8 mg. American shipments of undenatured product were distributed among a handful of countries, to include Nigeria (2.9 mg), Japan (1.3 mg), and Canada (1.0 mg). Most of the denatured ethanol for non-fuel, non-beverage purposes landed in Canada (28.5 mg), Colombia (7.2 mg), and South Korea (5.7 mg).

Imports from Brazil remained elevated as the U.S. purchased 21.9 mg of sugarcane ethanol in October. The U.S. has imported more ethanol from Brazil than it has exported to the country for three of the last four months for which data has been reported. Total U.S. ethanol imports for the first ten months of the year stand at 163.9 mg—nearly triple the volume imported last year during the same period. In fact, year-to-date U.S. ethanol imports have already surpassed collective volumes entering our borders over the past three years.

U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—declined 27% to an eight-month low of 759,979 metric tons (mt). However, shipments to Mexico climbed 8% to 147,471 mt as our southern neighbor once again secured its status as the top buyer of American DDGS (19% of our global market in October). Vietnam (117,897 mt, -6%), South Korea (69,633 mt, -25%), Indonesia (64,538 mt, -8%), Canada (42,071 mt, +4%), and Egypt (38,380 mt, +112%) rounded out our top markets. Notably, nearly all Latin American customers boosted imports of U.S. DDGS in October, collectively buying 24% more than the prior month. Total year-to-date exports of U.S. DDGS stand at 9.11 million mt. This implies an annualized export volume of 10.93 million mt.

E15, E85

Senator Amy Klobuchar

December 3, 2019

Press Release

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

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

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

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

The full text of the letter can be found below:

Dear Administrator Wheeler:

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

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

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

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

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

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

Thank you for your consideration of our comments.

Sincerely,

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

Renewable Fuels Association

November 26, 2019

By Ken Colombini

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

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

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

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

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

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

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

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

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

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

Janesville, Nov 26 – Twenty-two high school students from Mankato toured Guardian Energy today to gain a better understanding of renewable fuel production.

During the tour, the students learned about several components of ethanol production including incoming grain grading, grain handling, fermentation, grain storage, dried distiller grain production and storage, ethanol storage and shipment.

The students, from grades 9 to 12, were from Mankato East High School and Central High School.

“The ethanol industry plays an important role in reducing harmful greenhouse gas emissions while boosting Minnesota’s economy,” said Jeanne McCaherty, CEO of Guardian Energy.

The tour was organized by the Minnesota Bio-Fuels Association (MN Biofuels), a non-profit trade organization that represents the ethanol industry in Minnesota. Guardian Energy, which produces 150 million gallons of ethanol a year, is a member of MN Biofuels.

“Today’s visit concludes our school tour program for 2019, which brought over 500 students to their local ethanol plant,” said Tim Rudnicki, executive director of MN Biofuels.

Ethan Dado, Agriculture, Food, and Natural Resources Instructor for Mankato Area Public Schools, accompanied the students during today’s tour.

“The majority of students in high school have little to no experience with ethanol and biofuels. The goal of the tour is to show how what they are learning in class applied to the workplace. Students had the opportunity to learn about careers in this field,” said Dado.

Ethanol Producer Magazine

November 20, 2019

By Erin Voegele

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

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

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

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

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

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

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

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

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

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

Read the original article: New York Approves E15 Sales