In the News
December 2019
By Jennifer Dlouhy
The Trump administration on Thursday set relatively flat quotas for plant-based fuels in 2020, rebuffing ethanol and biodiesel allies who said the targets don’t do enough to support the industry.
The Environmental Protection Agency will require refiners to use 20.09 billion gallons of renewable fuel in 2020, a 0.85% increase over the 2019 requirement for 19.92 billion gallons, largely tracking a proposal released in July. The agency is also sticking with its plan for adjusting blending requirements to offset waivers exempting some refineries from the mandates, despite criticism from biofuel allies in politically important farm states that the approach is inadequate.
EPA officials say that with those adjustments, the agency’s plan effectively lays out a 2020 target for 15.8 billion gallons of conventional renewable fuels, including corn-based ethanol, with that translating to 15 billion gallons once refinery waivers are factored in. A senior EPA official said the strategy allows the agency to better ensure targets are actually met while still giving small refineries relief from the requirements when appropriate.
“President Trump committed to our nation’s farmers that biofuel requirements would be expanded in 2020,” EPA Administrator Andrew Wheeler said in a news release. “At the EPA, we are delivering on that promise and ensuring a net of 15 billion gallons of conventional biofuel are blended into the nation’s fuel supply.”
Shares in biofuel producer Pacific Ethanol Inc. pared gains after the announcement, as did corn futures in Chicago.
Under the EPA rule, refiners are expected to use 5.09 billion gallons of advanced biofuel, including 590 million gallons of cellulosic biofuel. And in 2021, refiners and fuel importers will be required to use 2.43 billion gallons of biomass-based diesel made from soybeans and waste cooking oil -- identical to the 2020 target.
For weeks, biofuel producers, farmers and politicians from the U.S. Midwest unsuccessfully implored administration officials -- including President Donald Trump himself -- to alter the EPA’s approach so that it better assures biofuel quotas aren’t undermined by refinery waivers. They say the EPA measure falls short by basing adjustments on a three-year average of Energy Department recommendations on those refinery waivers -- rather than the higher number the EPA has actually granted.
“EPA is playing games and not helping President Trump with farmers,” said Senator Chuck Grassley, a Republican from Iowa. “No matter what EPA says about the impact of its waivers to oil companies making billions in profits, farmers and biofuels producers know and feel the negative impact of the agency’s actions.”
The EPA plan left both sides unhappy Thursday. In addition to the refinery waiver change, biofuel boosters had unsuccessfully sought more aggressive quotas to drive production. Meanwhile, oil companies broadly argued the measure will spur imports of foreign biofuel and complained the EPA’s reallocation plan forces larger refineries to bear an unfair burden as blending requirements are raised for those non-exempted facilities.
Oil industry leaders vowed to challenge the rule in federal court, with the American Fuel and Petrochemical Manufacturers calling the measure an “unprecedented overreach.” “There is no basis to consider forcing non-exempt refineries to subsidize their competitors,” the group said in an emailed statement.
The EPA said it will more closely adhere to Energy Department recommendations for refinery exemptions in the future, and a senior EPA official told reporters the agency will demonstrate that commitment with the next batch of waiver decisions, expected in early 2020.
But Senator Joni Ernst, a Republican from Iowa, stressed that voters in her state are hesitant “to trust the word of EPA to actually follow through on that commitment,” even though “President Trump wants to do right for the biofuels community.”
Biofuel advocates demonstrated their skepticism Thursday. The National Corn Growers Association said farmers were “underwhelmed” by the final rule, because of the risk future refinery waivers will exceed the EPA’s adjustments. And the National Biodiesel Board said the EPA’s approach “does not provide assurance to the biodiesel and renewable diesel market” because “there is nothing in today’s rule to ensure that the agency will get these exemptions under control.”
The National Farmers Union accused Trump of breaking his “promise to rural America,” with group vice president Rob Larew saying the administration wasn’t doing enough to “make amends” for years of refinery waivers.
Other biodiesel leaders struck a more hopeful tone, still buoyed by an agreement between the White House and Congress to retroactively renew a lapsed $1-per-gallon tax credit that helps the fuel compete against petroleum-based diesel. Gene Gebolys, chief executive of biodiesel producer World Energy Alternatives LLC, said he was encouraged “the president now recognizes the damage done and has committed to stopping it from happening again.”
Read the original article: Trump Rebuffs Corn Farmers With Status Quo on Biofuels
December 16, 2019
By Green Plains Inc
Green Plains Inc. and Novozymes today announced an exclusive partnership and commercialization agreement for biological solutions in the production of high protein ingredients. The partnership will be aimed at aquaculture, pet food, as well as novel ingredients to be used in the global protein markets.
The collaboration will utilize the biorefinery footprint, process know-how, and global distribution capabilities of Green Plains together with Novozymes’ vast expertise in microbiology to create a diverse range of value-added products resulting in functional proteins. Specifically, the biological solutions of Novozymes will be combined with Green Plains’ first high protein production facility and Optimal Aquafeed’s aquaculture laboratory in Shenandoah, Iowa, with the intention to create one of the leading end-to-end innovation platforms in the world for aquaculture nutrition.
“This exclusive technology partnership is another step in the transformation of Green Plains to a world class protein provider,” said Todd Becker, president and CEO of Green Plains. “By partnering with Novozymes, we believe we will be able to increase the value of the products we produce every day and together provide solutions for our nutritional partners in the aquaculture, animal feed, and companion animal food markets worldwide.”
“We are really excited to further utilize advanced biology to unlock additional commercial opportunities in protein production in biorefining together with our customers,” said Brian Brazeau, Novozymes’ vice president for bioenergy commercial and president of North America. “In line with our updated strategy, the partnership with Green Plains is yet another example of how we use enzymatic and microbial solutions to help bring biological answers to the challenge and opportunity of growth in global protein demand.”
Novozymes’ existing suite of biotechnology will help Green Plains achieve higher concentrations of protein. As part of the agreement, Novozymes will dedicate research and development resources to also look at new molecules and yeasts to test in Green Plains processes to further enhance protein products and ultimately create different, higher value outputs from Green Plains’ biofuels production facilities.
“As we continue to roll out high protein nutritional solutions for our customers, we expect to create a company with predictable and growing earnings and become much less dependent on our traditional business structure,” added Becker. “This is a continuation of the transformation of Green Plains to a leading nutritional and ag-tech company focused on developing value-added products for animal feed and aquaculture customers globally fully utilizing the production capabilities we have in place today.”
“This will extend Novozymes’ reach into the agricultural supply chain as our biological solutions will touch a much larger portion of the animal feed market,” finished Brazeau. “The collaboration will enable better business for our customers and help meet the need for evermore protein.”
The companies plan to begin implementation of the partnership in the first quarter of 2020.
Read the original article: Green Plains, Novozymes Partner on Protein Production
December 17, 2019
By Shuping Niu, Steven Yang, Miao Han, and James Mayger
Further details are emerging on how China would increase imports from the U.S. by as much as $200 billion over the next two years in order to meet its commitments under the phase one trade deal announced last week.
That accord, yet to be officially signed, includes reaching purchases of $40 billion to $50 billion per year in agricultural commodities, a level some analysts have doubted is feasible. To help attain that figure, Beijing plans to restart purchases of ethanol by lifting or waiving trade war tariffs on the fuel, said people familiar with the matter, who asked not to be identified discussing the plans.
In addition, China is considering re-routing trade that currently passes through Hong Kong to mainland ports, the people said. That could enable around $10 billion a year in goods transshipped there from the U.S. to be directly booked in the mainland, boosting the tally. The U.S. does not count shipments that go through Hong Kong as part of its trade with China.
Leaders are carefully weighing how to approach addressing the so-called entrepot trade via Hong Kong, as it would be a further blow to the city’s embattled economy and risks worsening political tensions there, one of the people said.
China’s Ministry of Commerce did not immediately respond to a fax seeking comment.
China will also grant more regular waivers on retaliatory tariffs to local buyers of U.S. farm products including soybeans and pork, the people said. In November, China lifted its ban on U.S. poultry shipments as part of trade negotiations, with the U.S. estimating exports would top $1 billion a year.
Trade Representative Robert Lighthizer has said the Chinese made detailed commitments on agriculture that would see them purchase at least an additional $16 billion annually in commodities on top of the pre-trade war level of $24 billion and endeavor to buy as much as $50 billion annually. But detailed purchase targets on each commodity won’t be made public, he said.
Importing corn-based ethanol from the U.S. would help China make up for a slowdown in domestic production and meet a goal of expanding the blending of the cleaner fuel into gasoline in the world’s largest car market.
China imported about 200 million gallons of U.S. ethanol in 2016, according to the U.S. Energy Information Administration, but that door was shut in 2018 when taxes on imports were raised to around 70% because of the trade dispute. The U.S. exported a total of $2.4 billion of ethanol in 2017, a report by the Renewable Fuels Association showed.
Read the original article: China Plans to Buy Ethanol, Count Hong Kong Trade in U.S. Pledge
December 2, 2019
By Matt Thompson
A recently released report from the U.S. Department of Agriculture’s Foreign Agricultural Service says that while Thailand has relied on domestic ethanol production, the country could benefit from importing ethanol and other biofuels.
While the country allows imports of ethanol for industrial use, the country does not import ethanol for use as a transportation fuel. Traders of ethanol in Thailand are required to receive a permit from the country’s Ministry of Energy; however, “to date, the MOE has never approved any imports of fuel ethanol due to sufficient supplies of locally produced ethanol,” the report says.
But the report says the country could benefit from allowing fuel ethanol imports. Feedstocks for domestic ethanol production in Thailand are sugar cane, molasses and cassava. Because of shortages of those feedstocks, Thailand “will be forced to temporarily lower biofuel use targets or price surges when weather-related feedstock shortages occur,” and the country’s lack of ethanol imports will prevent it from meeting higher ethanol-use targets. It is also likely to see higher greenhouse gas emissions from land use change, the report said. “Permitting some role for imports unlocks the full positive potential contribution biofuels can make.”
And the country is set to lower it’s consumption goals for 2037. The report says a new 20-year Alternative Energy Development Plan was approved in April, and “the government is in the process of reviewing ethanol and biodiesel consumption targets.” Those targets are expected to be lower than the targets set out in the 2015 plan, due the concerns over feedstock supply. The new targets are expected to lower the consumption target in 2037 to 2.4 billion liters. That’s 41 percent below the target set out in 2015.
According to the report, the country’s ethanol and production rates are expected to increase in 2019, but not as quickly as they once had. In 2017, the country saw its highest ethanol consumption growth rate in 2017 at 12 percent. In 2019, ethanol consumption is expected to increase by 6 percent over 2018 levels. The reduced rate of ethanol production and use in the country, the report says, is “due to the delay in the cessation of Octane 91 E10 sales.” That cessation was scheduled for Jan. 1, 2018.
Despite the delay, the report says ethanol-blend levels in the country have reached 13.5 percent in this year as a result of strong E20 sales.
Read the original article: Report: Thailand Could Benefit From Ethanol Imports
By James Cogan
December 10, 2019
Transport accounts for a quarter of climate-harming greenhouse gas emissions and, at a glance, a quarter of COP25 talks are about cutting transport emissions. They’re the hardest kind to cut, writes James Cogan.
James Cogan is a policy advisor to Ethanol Europe.
The issue is the sheer size of the world’s still-growing fleet of internal combustion engine (ICE) vehicles, and how electromobility and modal shift – no matter how optimistic the forecasts for transition – will take a couple of decades yet to develop into even a modest “significant” portion of transport supply.
The world is so heavily invested in oil, roads and rubber that there seems to be no scenario under which a big enough and early enough shift will happen. It’s the ultimate example of the slow-to-turn supertanker.
Transport industry analysts estimate that it will likely be 2040 before “peak ICE” is reached and 2050 before ICE-mobility dips back down to today’s levels, reaching parity with electromobility and other fossil-free modes.
COP25 isn’t celebrating this clearly. It is grappling with the big questions of how to cut carbon emissions when much of the world’s population is only now joining the urban car-owning classes, when many developed countries are still holding off on embracing low carbon transport and when the conditions of affluent early-adopter regions like California and Norway aren’t readily transferring to the rest of the world.
Nobody at COP25 disagrees with electromobility, cycling, modal shift and fossil-free fuels as the key measures for cutting emissions. It’s about the mix, the timing, who pays, and voter and political appetites.
One engineer in Madrid said that since gasoline and diesel are the culprits then the first thing political leaders should do is cut back on gasoline and diesel. With oil so cheap and abundant, she said, there’s no compelling reason for engineers to design down the amount of it they incorporate into their systems.
Vehicles are getting more efficient but they’re also getting bigger, and numbers are growing. A 30% cut in transport emissions in ten years will require – as any engineer worth her salt will tell you – an annual decrement of three percent per year.
Society’s engineers will find ways to achieve it, using a mix of solutions, looking in parallel at long term measures, things they can do now and at the relative costs and barriers. But someone has to tell them to go ahead and do it, she said.
Ethanol falls into the category of fossil-free, quick, economical, works-in-the-current-fleet and compatible with the do no harm principle of Ursula von der Leyen’s European Green Deal. Ethanol hasn’t the curb appeal of a Tesla or single-speed bike, but it doesn’t require consumer behavioural change either.
Gasoline vehicles account for a third to a half of transport energy demand in most countries. Ethanol could displace a fifth of that gasoline, and this would give the climate engineer two of the ten decrements she seeks.
The other eight decrements, plus any more on top (the EU is considering a whopping 50% GHG cuts by 2030), will be found in electromobility, cycling, other fossil-free fuels, public transport and more efficient mobility patterns. The ethanol two will be the easiest two, by a long shot.
Ethanol is already fuelling the equivalent of a hundred million cars worldwide, blended into the gasoline supply of a half a billion vehicles at rates of 3% to 100%. Thanks to the boxes it ticks, a dozen countries are introducing higher blends of it this year.
Much of Europe uses E5 or E10 (5% or 10% ethanol blending), the USA is rolling out E15, the average blend rate in Brazil is about 30% while France is developing E85 across its retail network.
Climate action doesn’t stop when everybody goes home from Madrid. COP26 in Glasgow will be the “COP of specific solutions”.
Between now and next December, climate policy engineers everywhere will be doing the math to see just how they’ll get 30% of the GHGs out of their transport systems in just ten years. COP26 will be the engineer’s COP.
Read the original article: COP25 – Ethanol Brings Welcome Contribution to Transport Climate Action
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
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
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.
More...
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
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
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
November 18, 2019
Press Release
Construction of the first commercial-scale D3MAX plant at Ace Ethanol in Stanley, Wisconsin, is nearly complete. “It has been a long haul since July of 2015 when we created D3MAX to commercialize the corn fiber-to-ethanol technology developed by BBI, to where we are today,” says Mark Yancey, vice president of BBI International and CTO of D3MAX. “Record snowfall in Stanley last February and, this fall, record cold has delayed construction, but we can now see the light at the end of the pretreatment reactor, so to speak, and we are looking forward to startup of the plant in December.”
Ace Ethanol will own and operate the plant under license from D3MAX. Construction of the plant began October 1, 2018. “Ace has been the perfect partner for this first-of-a-kind cellulosic ethanol plant,” says Yancey. “They have been a very active partner in this process, and we would not be where we are today without their leadership and dedication to the success of this first project. Startup will begin December and ramp up to full production capacity throughout the first quarter of 2020."
To learn more about D3MAX visit: www.D3MAXLLC.com.
To learn more about Ace Ethanol visit: www.aceethanol.com.
November 8, 2019
By Matt Thompson
Following the first summer driving season during which the sale of E15 was allowed, there are still areas of the country where it’s not an option for consumers. But, Chris Bliley, vice president of regulatory affairs for Growth Energy, believes it’s only a matter of time before drivers can fuel up with E15 in states like California and New York.
New York, he said, is currently evaluating comments it received after announcing a rulemaking to allow E15 earlier this year. “They took comments through the end of September, and right now they’re evaluating those comments and we’re hopeful that they can complete the rulemaking by the end of the year,” Bliley said, adding that the state is the fourth-largest gasoline market in the country. “It can offer real opportunity once the regulation’s finalized,” he said.
California, he said, is in the beginning stages of exploring how to allow E15. “They just held a workshop a couple weeks ago where they indicated that they’re going to be looking at E15,” Bliley said. He said early indications are that the state will aim for approving the sale of E15 in 2021.
Bliley said that while California and New York are the biggest markets that currently exclude E15, Montana, Nevada, Delaware and portions of Arizona also don’t allow the sale of the fuel. There are also no retailers in Oregon selling the blend, and there is debate about whether the states regulations allow the fuel or not.
Change will likely come from retailers who express interest in the fuel, Bliley said. “Where there’s been retail interest, I think everybody’s been in more direct engagement with the regulators,” he said. “As we see more and more retail interest in some of these states, you can certainly see action.”
While the details have yet to be released, there may be some assistance available for some retailers looking to expand E15. U.S. Deputy Agriculture Secretary Stephen Censky recently announced the USDA is working to on an infrastructure development program. Bliley said that program has the potential to entice more areas to offer E15. “USDA’s going to have to go through their process and whatever the funding may or may not be, that would certainly pique some interest of retailers and states alike, I would think,” he said.
Growth Energy has been working on expanding E15 sales to areas like California and New York, but the big push is on E15 in general. “I think the big push is on E15 broadly. How can we accelerate the market for E15? How can we get more gallons out?” Bliley said. He said the retailers Growth Energy works with sell about 19 billion gallons of gasoline, and there are nearly 2,000 locations in 30 states that offer E15.
Read the original article: Some States Looking to End Prohibition of E15
American Ethanol Racing
November 8, 2019
News Release
On top of the exhilarating and exciting racing taking place this weekend at Phoenix to solidify the Championship 4 in the Monster Energy NASCAR Cup Series Playoffs, American Ethanol has something to celebrate, too. NASCAR is surpassing 15 million miles on Sunoco Green E15 fuel.
“Sunoco is proud to celebrate 15 million miles on Sunoco Green E15 in NASCAR,” said Fred McConnell, director of marketing and motorsports, Sunoco. “To have raced 15 million miles with zero defects is a testament to the quality and performance of Sunoco Green E15 fuel and the incredible team who has refined and distributed it since 2011.”
Since 2011, consumer adoption of higher blended ethanol fuels has continued to grow, with NASCAR competition a key leader in the endeavor.
“Reaching 15 million miles racing with Sunoco Green E15 across our three national series is a significant milestone,” said Elton Sawyer, Vice President, Officiating and Technical Inspection, NASCAR. “Tremendous partnerships with Sunoco and American Ethanol have paved the way toward an industry-wide commitment to deliver high-performance racing while reducing emissions. Under the most rigorous demands, each weekend NASCAR validates the benefits and viability of a fuel blended with 15 percent ethanol.”
With a goal of reducing emissions, making the sport greener and displaying the performance needed on and off the race track, drivers are very thankful to American Ethanol for the 15 million miles of high-performance fuel.
Be sure to check out Austin Dillon’s Richard Childress Racing No. 3 Chevrolet on track this weekend, sporting an American Ethanol paint scheme in honor of the milestone.
Additionally, a special green flag emblazoned with American Ethanol and honoring the achievement will drop at the start of the all-important Round of 8 finale. Cars will also run a special “15 million miles” decal that will be affixed, fittingly, near the fuel port.
“American Ethanol’s partnership with NASCAR has been a fantastic platform to promote the benefits of cleaner-burning ethanol ever since the sport adopted Sunoco Green E15 — a high octane fuel blended with 15 percent ethanol in 2011,” Growth Energy CEO Emily Skor said. “NASCAR fans have now seen the fuel perform flawlessly for 15 million miles under the most demanding circumstances imaginable. Meanwhile, consumers have put E15 to the test for more than 11 billion miles of commutes, road trips, and picking their kids up from school. Whether on or off the track, day after day, mile after mile, E15 continues to be the smart choice for drivers who care about their engines, reducing emissions, and saving money at the fuel pump.”
Read the original article: NASCAR, American Ethanol Celebrate Significant Milestone Together
November 8, 2019
Press Release
Biomass Magazine announced this week the agenda for the 13th Annual International Biomass Conference & Expo taking place February 3-5, 2020 at the Gaylord Opryland Resort & Convention Center in Nashville, Tennessee. The three-day agenda will be divided into four tracks covering pellets & densified biomass, biomass power & thermal, biogas & waste-to-energy, and advanced biofuels & biobased chemicals, as well as a pre-conference event titled, the Biomass Preparation, Handling and Storage Workshop. The pre-conference event is a full-day session taking place Monday, February 3rd, prior to the evening opening reception in the expo hall and will detail the latest advancements in material handling. More information can be found here.
“We were overwhelmed and excited with the number of abstracts submitted this year,” said John Nelson, vice president of marketing and sales for BBI International. “This is the largest biomass event in North America covering biomass power & heat, biogas, pellets and advanced biofuels and the agenda will truly provide in-depth content for all parts of the biomass industry.” The agenda, which was gathered from biomass industry experts from around the world and rated by the conference selection committee will give attendees the ability to hear and learn from nearly 90 industry experts and professionals on a variety of pressing topics including, but not limited to:The speakers will discuss on a variety of topics in the biomass industry under the following categories:
-Pellets & Densified Biomass
-Biomass Power & Thermal
-Biogas & Waste-to-Energy
-Advanced Biofuels & Biobased Chemicals
There will also be a special presentation by biomass industry association leaders to discuss new and upcoming policy, regulations, and technology. Association leaders include:
-Tim Portz, Executive Director, Pellet Fuels Institute
-Jeff Serfass, Executive Director, Biomass Thermal Energy Council
-Patrick Serfass, Executive Director, American Biogas Council
-Bob Cleaves, President & CEO, Biomass Power Association
“We are bringing technical sessions paired with the expertise of our technology vendors, consultants and service providers exhibiting in our expo hall,” said program developer and executive director of the Pellet Fuels Institute, Tim Portz. “The International Biomass Conference & Expo is arguable the world’s largest annual All Things Biomass event.”
Registration for the International Biomass Conference & Expo is now open and attendees have the opportunity to save $200 if registered by January 8th, 2020.
To view the online agenda click here.
About Biomass Magazine
Biomass Magazine is a bi-monthly trade publication tailored to serve companies and organizations engaged in producing or utilizing biomass power and heat, advanced biofuels, biogas, wood pellets and biobased chemicals. In addition to policy, regulation, project finance, technology, and plant management, the publication maintains a core editorial focus on biomass logistics. Its international readership includes owners and managers of biomass power, CHP, and district heating facilities; pellet manufacturing plant owners and managers; professionals working in captive feedstock industries-from food processing and waste management to agriculture and forest products manufacturing-and a growing number of industrial manufacturers, municipal decision makers, researchers, and technology providers engaged in biomass utilization in 40 countries. Biomass Magazine is committed to editorial excellence and high-quality print production and distribution.
Contact
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(866) 746-838
October 30, 2019
News Release
Last month, President Trump directed the U.S. Environmental Protection Agency to restore the biofuels lost when EPA granted excessive small refinery waivers. In the past three years, the EPA has issued 85 small refinery exemptions, representing a loss of over 4.3 billion gallons of biofuels.
The President ordered EPA to follow the Renewable Fuel Standard that requires 15 billion gallons of corn-based ethanol blended into the nation’s fuel supply, beginning in 2020. The President also directed EPA and USDA to take steps to address barriers to the use of E15 and to expand ethanol’s infrastructure.
Biofuel and agriculture representatives praised the President’s agreement but pointed out that EPA must follow through with a proposed rule that accurately implements the agreement. President Trump also praised the agreement, saying, “We’ve come to an agreement and it’s going to be … getting close to 16 billion [gallons].”
Today, Minnesota Governor Tim Walz and South Dakota Governor Kristi Noem in comments to EPA Administrator Wheeler said the proposed rule “… demonstrates that EPA is oblivious to the harm it has caused” and is ignoring the agreement President Trump reached with the nation’s biofuels community
“EPA chose to approve these waivers at a time when farmers and biofuel producers were already hurt by adverse weather conditions, flagging export market opportunities, and chronically low commodity prices. Approving these waivers when the agriculture economy was struggling represented a callous disregard for the economic interest our nation’s farmers.” The governors pointed out that at least 30 plants remain closed and that the rule will not allow those facilities to open and “put people back to work.”
The governors urged Administrator Wheeler to use a three-year rolling average of actual exempted gallons as the basis to estimate 2020 exempted volumes. “This approach would ensure the 15 billion gallon requirement is actually enforced and truly results in actual blending of at least 15 billion gallons of conventional renewable fuel,” the governors said.
Read the original news release: Governors Say EPA’s Proposed Rule Fails to Honor President Trump’s Biofuel Agreement