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White House OMB Reviews 2017 RFS Rule

Ethanol Producer Magazine

October 20, 2016

By Erin Voegele

On Oct. 19, the U.S. EPA delivered its proposed rule to set renewable fuel standard (RFS) volume standards for 2017 and biobased diesel standards for 2018 to the White House Office of Management and Budget. OBM review marks a final step before a final rule is issued.

The proposed rule was first issued by EPA on May 18. It aims to set RFS renewable volume obligations (RVOs) for 2017, along with the 2018 RVO for biomass-based diesel. In the proposed rule, the agency set the 2017 RVO for cellulosic biofuel at 312 million gallons, with the advanced biofuel RVO at 4 billion gallons and the RVO for total renewable fuel at 18.8 billion gallons. The 2018 RVO for biomass-based diesel has been proposed at 2.1 billion gallons.

The proposed percentage standards call for renewable fuel to comprise 10.44 percent of the transportation fuel pool next year. The cellulosic standard would be 0.173 percent, with the biomass-based diesel standard at 1.67 percent, and the advanced biofuel standard at 2.22 percent.

A public comment period on the proposal closed in mid-July. During the comment period, more than 42,500 public comments were filed on the proposal.

The EPA’s Regulatory Development and Retrospective Review Tracker currently states a final rule is expected to be published in the Federal Register in December.

Read the original story: White House OMB Reviews 2017 RFS Rule

UAI: EPA Emails Show Oil Industry Helped Design Test Fuels

Ethanol Producer Magazine

October 19, 2016

By the Urban Air Initiative

The Urban Air Initiative has discovered that the U.S. EPA relied heavily on the oil industry to help design test fuels used for the EPAct Study. This is a critical development because the data in the EPAct Study erroneously shows that blending ethanol into gasoline increases pollution. The information was uncovered through a Freedom of Information Act request submitted by Boyden Gray & Associations on behalf of UAI.

The emails released under the FOIA show that the EPA asked oil industry employees what test fuels they would “prefer to see tested” and then revised the test fuels in response to their input. Internal documents also show that the EPA threw out three test fuels after preliminary results showed that ethanol lowered emissions of nitrogen oxides and other pollutants and otherwise altered its slate of test fuels to “emphasiz[e] ethanol effects.”

This new evidence of collusion between Chevron, BP, and EPA is important, because EPA used the results of the EPAct study to update its vehicular emissions model, MOVES2014. As a result of the oil industry's influence, the model reports that ethanol increases emissions of many pollutants, even though other studies have demonstrated the opposite.

UAI and scientists from Ford, GM, and other organizations have demonstrated that the EPAct study and MOVES2014 model are inaccurate and biased against ethanol. UAI's FOIA project goes a step further by seeking out the source of that bias, the petroleum industry's direct influence in EPA's own emails and other records.

The information uncovered directly ties to UAI's regulatory and legal efforts to reform the MOVES2014 model. This emissions model, which States must use when developing implementation plans to comply with EPA's air quality standards, promotes anti-ethanol state and federal policies because it erroneously reports that higher-ethanol fuels emit more pollution than gasoline with lower levels of ethanol.

UAI will use this internal evidence of oil industry involvement with the EPA to seek a corrected emissions model through regulatory and legal channels.

Read the original story: UAI: EPA Emails Show Oil Industry Helped Design Test Fuels

Don’t Let Foreign Interests Prevent US Biofuels Future

October 18, 2016

By Retired Maj. Gen. Paul D. Eaton

Ninety-seven percent America’s motor fuel is blended with homegrown ethanol. From an energy security perspective, this is major progress that should be celebrated and encouraged.

Energy is not a luxury; it’s a necessity that has shaped conflicts across the globe and plunged U.S. warfighters into countless battles to protect U.S. interests, allies, and access to scarce resources. Renewable fuels like ethanol represent the best tools available to reduce our dependence on oil and minimize the risks associated with conflicts over fossil fuels.

Under the Renewable Fuel Standard (RFS), America has been steadily increasing its capacity to grow, blend and utilize homegrown biofuels made from plants. We’ve cut oil imports in half since 2005. In 2015 alone, biofuels displaced more oil than the U.S. imported from Saudi Arabia and Kuwait combined. And making these biofuels now supports more than 852,000 American jobs across manufacturing, engineering, science, research and development.

Yet, some lawmakers are proposing legislation that would roll back our progress, capping consumption of homegrown ethanol at 9.7 percent — essentially mandating U.S. reliance on oil for over 92 percent of our fuel. It could accurately be labeled the Oil Monopoly Protection Act. They claim that any fuel containing less than 90 percent petroleum will break the so-called “blend wall” — a well-financed myth based on the refusal of some oil companies to offer consumers blends of ethanol beyond the standard 10 percent.

There was a time when some cars weren’t designed to run on higher ethanol blends, but that hasn’t been true for most conventional vehicles since 2001, according to the Environmental Protection Agency (EPA).

As a result, many retailers are responding to consumer demand by offering higher ethanol blends like E15 and E85. Consumers appreciate that ethanol saves money at the pump, increases octane for better performance and slashes carbon emissions.

As a result, the so-called “blend wall” was broken years ago in some states where ethanol contributes as much as 12 percent or more of the total fuel consumed. A 9.7 percent cap wouldn’t just stall America’s progress toward energy security, it would reverse it.

The goal of blocking competition is shared by major oil exporters like Saudi Arabia and Iran.

Their current strategy is to temporarily flood oil markets, curtailing the growth of alternatives and forcing massive layoffs in the U.S. oil and gas sector. It’s working. Last month, Saudi Arabia retook its lead as the world’s largest oil producer, according to the International Energy Agency. We’ve seen this cycle before, and it always ends with U.S. drivers sending massive sums of money overseas and greater U.S. vulnerability to supply interruptions by hostile nations.

Now a vocal group, dominated by the same climate-change deniers who exist to promote the oil industry, are attacking biofuels in an effort to cap the growth of homegrown alternatives. In their own time-honored fashion, they even cite oil-funded studies that seek to cast doubt on the accepted climate science behind biofuels.

Yet the Department of Energy’s own Argonne National Laboratory found that corn-based ethanol cuts carbon emission by an average of 34 percent compared to gasoline, with cellulosic varieties yielding a carbon savings of 100 percent or more.

In short, the whole campaign is fueled by misinformation, and the only real winners are Russia, Iran, Saudi Arabia and other foreign powers that still supply a quarter of all U.S. oil. If we are to achieve true energy security, we cannot allow entrenched fossil fuel interests to set a legal cap on their only real competition. Public policy should protect consumers, not monopolies, especially those that threaten global stability.

Read the original story: Don’t Let Foreign Interests Prevent US Biofuels Future

Auto Club Monitoring Proves Ethanol Blending Safe

Ethanol Producer Magazine

October 17 2016

By Gene Hammond

I woke up Sat., Dec. 1, 2012, to a front page headline in the Sioux Falls, South Dakota, Argus Leader that made this former South Dakota farm boy mad! The headline read “AAA issues warning on E15.”
I was raised on the farm, and after a short career in teaching, I have been in the motor business for the past 42 years. I founded both the Association for Motor Club Marketing and Travelers Motor Club. Based on my experience, I could not understand what AAA was talking about. I knew off the top of my head that ethanol had reduced road service calls for our corporations because ethanol use had reduced wintertime gas line freeze.

As a principle owner of AMCM and Travelers Motor Club, representing over 19 million members, my next move was to contact our claims departments to see how many road service claims we could attribute to ethanol use. An initial road service analysis of past claims could not attribute one single service call to ethanol use. I immediately ordered the monitoring of all road service claims going forward to determine if AAA knew something about E15 that we didn’t. After two years of monitoring claims, we shared our claim history with the American Coalition for Ethanol and Growth Energy. We reported to both groups that after two years of claims monitoring we could not attribute one claim to ethanol use. Today we can report that during a four-year period, we still cannot report one claim attributed to ethanol use, E15 or any blend, for that matter.

Since sharing our real-life claim history with ethanol industry leaders, we have made two trips to Washington, D.C., to convey a very simple message to Congress and the U.S. EPA. Our four-year record of monitoring motor service claims indicates ethanol poses no problem, so when AAA spouts oil industry talking points about E15 damage, we demand that AAA provide its real-life road service claim history. We are confident that AAA’s claims mirror ours.

Besides sharing our findings with decision makers in our nation’s capital, we also have lobbied in favor of the renewable fuel standard (RFS) and sent a letter of support to the mayor and city council of Chicago during their E15 debate. I have also had the opportunity to be interviewed a number of times on the radio to tell our claims history. Long story short, we are doing all we can do to tell the truth about ethanol and encourage AAA to tell its story about E15 claims, rather than repeating the petroleum industry’s self-serving talking points.

We did not engage in this fight for E15 and the RFS to sell motor club memberships. We just wanted to set the record straight and to support rural America. We believe the ethanol industry has done a great job of adding to our nation’s security through oil independence and contributing to a cleaner environment. Add that to the economic benefits of ethanol for farmers and small town America, and it makes it easy for us to stand up and set the record straight. With that being said, we do want to thank the many ethanol industry individuals who have purchased motor club memberships and the ethanol plants that have gifted their shareholders and employees with AMCM memberships.

We are going to continue to stand up for ethanol and rural America. We are going to continue to pressure AAA to talk about its claims and not petroleum industry studies. If you or your ethanol plant would like us to address your board of directors meeting, shareholders meeting or a community event to tell our real life motor club claims story, we are available and more than willing to do so.

Read the original story: Auto Club Monitoring Proves Ethanol Blending Safe

Ethanol Plant Keeping Up at Harvest

Brownfield Ag News

October 13, 2016

By Mark Dorenkamp

The general manager of a southeast Minnesota ethanol plant says the facility is running near capacity with harvest in full swing.

Randall Doyal with Al-Corn Clean Fuel in Claremont tells Brownfield the staff is operating around the clock to keep up.

“We’re grinding and consuming the volume of corn on a daily basis and we’re not seasonal in that regard. Our farmers are, and they tend to try to push forward and deliver as much as they can when they need to.”

Grain storage is a concern for many farmers this fall, but Doyal says producers he works with have been preparing for harvest by increasing on-farm capacity while taking steps to ensure quality.

“Frankly, we get better quality from our farmers than we do from commercials because (farmers) have gotten so good at being able to maintain and take care of that corn. And they deliver rate-ably through the year at a cooperative facility like ours, or they deliver when the market sends signals or they choose to make a sale.”

Doyal expects bin space at Al-Corn to remain close to full through December, with inventories dropping steadily after the holidays.

Read the original story and hear the full interview: Ethanol Plant Keeping Up at Harvest

Gevo Produces First Cellulosic Renewable Jet Fuel Specified for Use on Commercial Airline Flights

October 11, 2016

ENGLEWOOD, Colo., Oct. 11, 2016 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ:GEVO), announced today that it has completed production of the world’s first cellulosic renewable jet fuel that is specified for commercial flights. Gevo successfully adapted its patented technologies to convert cellulosic sugars derived from wood waste into renewable isobutanol, which was then further converted into Gevo’s Alcohol-to-Jet fuel (ATJ) fuel. This ATJ meets the ASTM D7566 specification allowing it to be used for commercial flights. The revisions to the ASTM D7566 specification, which occurred earlier this year, includes ATJ derived from renewable isobutanol, regardless of the carbohydrate feedstock (i.e. cellulosics, corn, sugar cane, molasses, etc.).

Gevo produced over 1,000 gallons of the cellulosic ATJ. Alaska Airlines is expected to fly the first commercial flight using this cellulosic jet fuel in the next few months. Gevo believes that this would be the first ever commercial flight flown with a cellulosic renewable jet fuel. This follows on the back of the two commercial flights that were flown by Alaska Airlines on Gevo’s ATJ in June of this year. The ATJ for the June flights was derived from isobutanol produced at Gevo’s Luverne, MN, production facility using sustainable corn as the sugar feedstock.

The cellulosic ATJ was produced in conjunction with the Northwest Advanced Renewables Alliance (NARA). NARA supplied the sugars that were derived from forest residuals in the Pacific Northwest. Gevo produced the cellulosic renewable isobutanol at its demonstration facility in St. Joseph, MO, that it jointly operates with ICM Inc. The cellulosic renewable isobutanol was then transported to Gevo’s biorefinery facility in Silsbee, TX, that Gevo operates with South Hampton Resources where the cellulosic renewable isobutanol was converted into ATJ.

“I have long championed the development of commercial jet fuel made from renewable sources. It was what we first envisioned when the Virgin Green Fund invested in Gevo with the aim of developing fuel from cellulosic materials such as wood waste. I am very pleased the first commercial flight using Gevo's cellulosic jet fuel is to be flown soon by Alaska Airlines, as we look to move the aviation industry towards a renewable future," said Sir Richard Branson.

“Gevo’s production of this cellulosic ATJ removes all doubt that cellulosic sugars can be successfully converted into isobutanol using Gevo’s technology. Gevo’s ATJ technology then reliably converts isobutanol into renewable jet fuel, regardless of the sugar source. I’m looking forward to seeing this fuel power an Alaska Airlines flight in the near future. I wish to congratulate our team at Gevo, all the other NARA members, and thank the U.S. Department of Agriculture, National Institute of Food and Agriculture, who funded the work,” said Dr. Patrick Gruber, Gevo’s Chief Executive Officer.

Gevo is a member of the Northwest Advanced Renewables Alliance (NARA) and is providing the organization with technology to enable the commercial scale processing of cellulosic sugars from wood waste into valuable products. NARA is a five-year project supported by the U.S. Department of Agriculture, National Institute of Food and Agriculture, and is comprised of 33 member organizations from industry, academia and government laboratories. Its mission is to facilitate development of biojet and bioproduct industries in the Pacific Northwest using forest residuals that would otherwise become waste products.

About Gevo

Gevo is a leading renewable technology, chemical products, and next generation biofuels company. Gevo has developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. Gevo’s strategy is to commercialize biobased alternatives to petroleum-based products to allow for the optimization of fermentation facilities’ assets, with the ultimate goal of maximizing cash flows from the operation of those assets. Gevo produces isobutanol, ethanol and high-value animal feed at its fermentation plant in Luverne, Minnesota. Gevo has also developed technology to produce hydrocarbon products from renewable alcohols. Gevo currently operates a biorefinery in Silsbee, Texas, in collaboration with South Hampton Resources Inc., to produce renewable jet fuel, octane, and ingredients for plastics like polyester. Gevo has a marquee list of partners including The Coca-Cola Company, Toray Industries Inc. and Total SA, among others. Gevo is committed to a sustainable bio-based economy that meets society’s needs for plentiful food and clean air and water.

Read the original press relase: Gevo Produces First Cellulosic Renewable Jet Fuel Specified for Use on Commercial Airline Flights

Data Dispel the Myth of the Blend Wall

October 11, 2016

By Brent Erickson

Washington policymakers tend to accept without question that U.S. refiners are incapable of blending ethanol into gasoline above concentrations of 10 percent, due to the so-called blend wall. Oil refiners are pressuring their allies in Congress to change the Renewable Fuel Standard (RFS) in order to address the blend wall, predicting catastrophic market consequences if they don’t get their way.

But conventional wisdom about the blend wall is demonstrably wrong. Data recently released by EPA disprove the widely held assumption that reaching and exceeding the blend wall triggered volatility in the market for RFS compliance credits, known as RINs. This newly available data should give lawmakers plenty of reason to rethink changing the RFS.

Back in 2012, researchers at the University of Missouri and other Midwest universities predicted that RIN prices would rise sharply when U.S. fuel refiners hit the blend wall. According to their relatively straightforward economic theory, the blend wall would cause a shortage in available RINs because refiners could not put more than 10 percent ethanol into gasoline; the shortage would in turn cause RIN prices to rise.

The researchers sought to understand why RIN prices failed to rise in 2012, given estimated constraints on biofuel supplies in comparison to RFS requirements that year. When RIN prices rose in 2013, everyone assumed the blend wall was the cause — but that’s simply circular logic. Washington policymakers ended up disrupting and delaying implementation of the RFS, which ended up delaying the collection of data showing that there was no shortage of RINs as had been predicted.

Now, the EPA has finally released the data on obligated parties’ reported fuel use and use of RINs to satisfy annual obligations from 2010 through 2013 (the latest year for which refiners have fully demonstrated annual compliance). The numbers indicate that obligated parties reached the blend wall as early as 2010 and definitely breached it by 2012.

The explanation is simple and often overlooked in economic analyses of the RFS program: small refiners and small refineries (even those owned by large refiners) were exempt from the RFS through 2012. The remaining obligated refineries were nevertheless able to blend ethanol into the obligated volumes of gasoline at a rate exceeding 10 percent or to obtain needed RINs at low cost. Moreover, the data reveal that despite having reached the blend wall by 2010, obligated parties continued to accumulate excess RINs to carry over for future compliance years.

One faction of the oil industry is currently working Capitol Hill, trying to win last-minute passage of a bill that would cap the RFS below 10 percent of gasoline volumes. This cap is demonstrably unnecessary — obligated parties were able to exceed the blend wall as early as 2010.

At the same time, another faction of oil refiners is working Capitol Hill, trying to get a brand-new exemption from the RFS for themselves. Notably, the first faction of oil producers opposes this new exemption. Congress should reject both groups’ requests for special favors, primarily because they are aimed at solving a blend wall problem that doesn’t (and never did) exist.

Similarly, EPA should reconsider its proposed rule for the 2017 RFS volumes, which is due to be finalized by the end of November. The agency’s program changes along with its two-year delay in issuing previous rules were based on the myth that the blend wall was the cause of high RIN prices. Rather than further changes and delays, EPA should work instead to get this vital program back on track and continue tearing down this fictional wall.

Read the original story: Data Dispel the Myth of the Blend Wall

Green Biologics Selects Caldic as its EU Distribution Partner

Ethanol Producer Magazine

October 4, 2016

By Green Biologics Inc

Green Biologics Inc., the U.S. subsidiary of Green Biologics Ltd., a U.K. industrial biotechnology and renewable chemicals company, recently announced a distribution agreement with Caldic B.V., a global distributor headquartered in Rotterdam, the Netherlands. Caldic will distribute Green Biologics’ biobased, high-purity chemicals, including n-butanol, acetone and other associated product to customers in Europe, Africa and the Middle East for a variety of key markets, including CASE (coatings, adhesives, sealants and elastomers), HI&I (household, industrial & institutional cleaners), PCI (personal care intermediates), food ingredients and energy chemicals.

“Caldic is an outstanding partner for Green Biologics,” said Timothy G. Staub, global vice president of business development for Green Biologics. “Its customer focus and value-added services, such as logistics capabilities, bulk storage facilities, and deep knowledge of high-value markets and customers, along with a critical presence both in key markets and geographies, makes Caldic critical to our EU launch.”

Green Biologics is in the process of starting up its first commercial production facility for renewable n-butanol and acetone in Little Falls, Minnesota, and aims to begin commercial shipments to customers by late 2016. The company is a member of the American Chemistry Council and is building its new green solvents facility to meet Responsible Care standards. In addition, Green Biologics is pursuing REACH certification on its products, and has received USDA BioPreferred status, 100 percent biobased, for its n-butanol and acetone.

“Our goal is to selectively move our renewable n-butanol and acetone into high value markets, and Caldic is well qualified and positioned to help us reach key European customers who are interested in sustainability, performance and value,” added Staub.

”Sustainability is an important metric for the industrial, health and personal care markets,” said Floris van Eijndhoven, director of industrial and health and personal care at Caldic BV. “We believe that renewable ingredients are essential for the future success of our customers in these evolving sectors and are pleased to welcome Green Biologics into the Caldic network of suppliers.”

Read the original story: Green Biologics Selects Caldic as its EU Distribution Partner

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EPA Proposes Biofuels Market Growth Rule

Energy.AgWired.com

October 3, 2016

By Cindy Zimmerman

The Environmental Protection Agency on Monday released a proposed update to Renewable Fuels Standard (RFS) regulations “to better align our standards with the current state of the renewable fuels market and to promote the use of ethanol and non-ethanol biofuels.”

According to the agency, the proposed changes are the result of “recent developments in the marketplace resulting in increased production of cellulosic, advanced and other biofuels” and will help increase production and use of renewable fuels “by allowing the market to operate in the most efficient and economical way to introduce greater volumes of renewable fuels under the program.”

The proposed rule includes:

An updated regulatory structure that would allow biofuel producers to partially process renewable feedstocks at one facility and further process them into renewable fuels at another facility under existing pathways.

Updating fuel regulations to allow expanded availability of high ethanol fuel blends for use in flex fuel vehicles (FFVs).

New feedstock approvals for cellulosic biofuels produced from short rotation poplar and willow trees, cellulosic diesel produced from co-processing cellulosic feedstocks with petroleum, and renewable diesel and biodiesel produced from noncellulosic portions of separated food waste.

Ethanol producer groups are in the process of reviewing the proposal but Renewable Fuels Association (RFA) president and CEO Bob Dinneen says they have been working with the EPA for some time on these draft regulations. “Our goal is to ensure the final regulations do not unreasonably impair the ability of blenders and retailers to offer ethanol flex fuels like E85 to consumers,” said Dinneen. “Ethanol flex fuels are the lowest-cost, lowest-carbon, and highest octane liquid fuels on the market, and it is imperative that these EPA regulations help, not hinder, broader commercial introduction of these fuels.”

Growth Energy CEO Emily Skor expressed concerns about the impact of the proposal on E15 retailers. “If this proposed rule is finalized, this regulation would leave E15 as the only ethanol-blended fuel that does not have Reid Vapor Pressure (RVP) relief,” said Skor. “It is imperative that E15 be given the same volatility treatment as regular E10 gasoline.”

EPA is also seeking comment on a variety of other issues that impact renewable fuels, including Renewable Identification Number generation for renewable electricity used as transportation fuel and requirements for facilities that could use carbon capture and storage as a way to reduce carbon in the production of renewable fuels in the future. Once the proposal is published in the Federal Register, parties will have 60 days to comment.

Read the original story: EPA Proposes Biofuels Market Growth Rule

Americans Pumping Record Amounts of Ethanol in Their Gasoline

September 28, 2016

By Mario Parker

Ethanol is taking a bigger slice of American gas tanks.

Ethanol’s share of the U.S. gasoline market reached a record 10.2 percent last week, a government report showed Wednesday. Biofuel and oil interests have battled for years over whether to breach the double-digit threshold or so-called blend wall.

“This tells us that people are willing to push past 10 percent,” Jason Ward, an analyst at Northstar Commodity Investments LLC in Minneapolis, said by phone.

Petroleum supporters argue that blends of ethanol in excess of 10 percent pose engine risks. The ethanol industry, which opposes that claim, is lobbying for higher concentrations of the fuel to be mixed into gasoline and sold at filling stations.

Five years ago, the Environmental Protection Agency approved the sale of E-15, a formula that’s 15 percent ethanol and the rest gasoline, for cars built after 2001. Widespread adoption has been slow and the blend wall is a source of contention about the viability of the U.S. law that sets annual ethanol consumption targets.

Last week’s bump in market share is probably from a seasonal federal restriction on the higher blends that expired Sept. 15, Geoff Cooper, vice president and economist at the Renewable Fuels Association, a Washington-based trade group, said by e-mail.

Thorntons Inc. said earlier this year that it would distribute E-15 at its 43 Chicago-area gas station-convenience stores.

Read the original story: Americans Pumping Record Amounts of Ethanol in Their Gasoline

High Octane, Low Carbon Fuels Can Play Role in Compliance with Fuel Economy and GHG Standards, RFA Says

Renewable Fuels Association

September 27, 2016

WASHINGTON — High octane, low carbon (HOLC) fuels can play an important role in helping automakers comply with increasingly stringent fuel economy (CAFE) and greenhouse gas emission standards in the 2022–2025 timeframe, according to comments submitted Monday to the Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) by the Renewable Fuels Association (RFA). In order to realize the benefits of HOLC fuels, however, EPA and NHTSA must ensure CAFE and GHG regulations treat fuels and engines as integrated systems, the RFA said.

“This is an important process because it will determine the path forward for future energy efficiency and environmental goals,” said RFA President and CEO Bob Dinneen. “EPA has correctly identified technologies that will effectively improve energy efficiency and reduce greenhouse gases. But the agency has failed to appropriately consider the fuels that will enable those technologies. That is an omission that must be addressed moving forward if future vehicles can in fact help us address climate change without backsliding on other critical air quality and public health priorities. We look forward to working with EPA and NHTSA as this process continues,” he added.

In 2012, EPA and NHTSA promulgated final regulations establishing the CAFE and GHG standards for 2017–2025. Included in the final rule was a requirement that the agencies conduct a “midterm evaluation” for the 2022–2025 standards and determine whether the standards established in 2012 are still appropriate in light of the latest available data. The first step in the process was the release this past July of the draft Technical Assessment Report (TAR) for public comment. RFA reviewed the TAR and commissioned a technical analysis by engineering and technical consultancy Ricardo, Inc.

According to RFA and Ricardo, many of the advanced internal combustion technologies examined by the two agencies would experience increased fuel efficiency and generate fewer emissions if operating on fuels with higher octane ratings than today’s regular grade gasoline, which has an octane rating of 87 (anti-knock index). According to the Ricardo analysis, “It is clear that implementing a high octane fuel standard would provide opportunity for increased engine efficiency and hence reduced greenhouse gases, and doing so by blending with ethanol provides an even greater benefit due to ethanol’s high heat of vaporization combined with the inherently low carbon footprint of ethanol. Many of the technologies discussed in the Draft TAR, including ones with the highest expected penetration rates, could produce greater GHG and fuel economy benefits if paired with fuels offering higher octane ratings and an inherently higher charge cooling characteristic.”

Meanwhile, automotive engineers and executives, Department of Energy researchers, the National Research Council and academia have also called for the introduction of high octane low-carbon fuels in an effort to increase fuel economy and decrease greenhouse gas emissions.

Additionally, growth in turbocharging has already resulted in an increased demand for higher-octane fuels. According to recent analysis from the Energy Information Administration, more stringent fuel economy and greenhouse gas standards caused automakers to increase the market penetration of turbocharging from 3.3 percent in 2009 to 17.6 percent in 2014. The surge in turbocharging was accompanied by an increase in the demand for high octane premium gasoline, according to EIA. In fact, premium gasoline sales rose from 7.8 percent of total gasoline sales in June 2008 to 11.3 percent of total gasoline sales by September 2015.

RFA outlined a handful of recommendations to the agencies:

-EPA and NHTSA should treat engines and fuels as integrated systems during the midterm evaluation process and beyond;

-As a sensitivity case to the central compliance demonstrations, the agencies should assess the fuel economy and emissions impacts associated with using HOLC fuels in advanced IC engines with high compression ratios;

-A comprehensive cost-benefit analysis of various CAFE/GHG compliance pathways including both engine and fuel technologies should be conducted. Such analysis should include a pathway for HOLC fuels in advanced IC engines;

-EPA and NHTSA should ensure the Proposed Determination fully accounts for the Co-Optima initiative’s recommendations for “candidate fuels” that best enable advanced IC engine technologies and maximize their efficiency; and

-The agencies should “heed the call” for HOLC fuels. EPA and NHTSA should use the MTE process to establish the roadmap to broad commercial introduction of HOLC fuels in advanced IC engines beginning in 2025.

View RFA’s formal comments here and the Ricardo, Inc., analysis here.

Read the original story: High Octane, Low Carbon Fuels Can Play Role in Compliance with Fuel Economy and GHG Standards, RFA Says

New DOE Study: Gas Becomes “Stale” Long Before Water Uptake Becomes a Concern

Renewable Fuels Association

September 21, 2016

WASHINGTON — As millions of Americans say goodbye to summer and prepare to store their boats, motorcycles, lawn mowers, leaf blowers, and other equipment for the winter, a new study by the Department of Energy (DOE) is providing fresh insight into a decades-old debate about the impacts of ethanol-blended gasoline on water uptake and “phase separation” in small and off-road engines.

The study, conducted by DOE’s National Renewable Energy Laboratory (NREL), found that the petroleum components of ethanol-blended gasoline become degraded and unfit for use in an engine long before the ethanol portion takes up enough water to cause phase separation in the fuel tank. “Phase separation” occurs when an excessive amount of water is introduced into the fuel tank leading the ethanol and water to mix and sink to the bottom of the tank. In other words, gasoline becomes “stale” and unusable before water uptake by the ethanol component becomes a concern.

“Significant gasoline weathering (evaporation of the most volatile components) can occur over one month of storage in a high-temperature, high-humidity environment, with total mass losses as high as 30-70% for certain tanks,” according to the study, which was commissioned by the Renewable Fuels Association (RFA). “This means gasoline weathering, which can have a negative effect on fuel quality, generally occurs well in advance of any issues related to phase separation. The fuel vapor pressure may drop to levels where the fuel is not fit for purpose (engine will be difficult or impossible to start) and there may also be gum formation.”

As part of the study, NREL scientists stored gasoline-ethanol blends ranging from E0 (0% ethanol) to E85 (83% ethanol) in actual lawn mower fuel tanks over several months in a climate-controlled chamber meant to replicate hot, humid environments like Houston and Orlando. The samples were tested at regular intervals for evidence of gasoline weathering and water uptake.

In every case, the hydrocarbon components of the fuel became unfit for use in an engine before water uptake became a concern. Over time, the fuel samples experienced significant loss of volatility, loss of mass, reduced octane rating, increased concentration of sulfur and gum, and other degradations. The study found that ethanol-free gasoline (E0) degraded “to the same degree [as ethanol-blended fuels] during this timeframe…An ethanol-free gasoline stored in the same conditions for the same period of time would likely be problematic despite a lack of phase separation.”

For gasoline-ethanol blends, it often took more than three months for phase separation to occur, meaning the fuel had already weathered to a point it was unusable. “In a small engine fuel tank in a constantly high-temperature, high-humidity environment, it takes three months or longer for E10 and other ethanol blends to take up enough water for phase separation,” the study found. “This confirms the statement by Mercury Marine that water uptake in E10 blends ‘…does not happen at a level or rate that is relevant.’”

The research also found that an advantage of ethanol blends is that they do in fact hold more water in suspension without phase separation than the hydrocarbon components of gasoline. The scientists found that “…more ethanol improves the fuel’s resistance to phase separation. This is an advantage that can help keep fuel systems ‘dry’ by moving low levels of water out of the system.”

RFA President and CEO Bob Dinneen offered the following comments on the new study:

“Simply put, critics who continue to suggest E10 is a problem for small engines and boat motors are all wet. This research from NREL clearly demonstrates once and for all that ethanol actually helps these engines run more efficiently. It also shows that gasoline goes bad long before the ethanol in the tank could cause any problems due to moisture uptake. This research effectively disproves the half-baked anecdotes and horror stories about E10 and small engines that have been pushed for decades by ill-informed biofuel opponents and snake-oil additive salesmen.

“Every manufacturer of small and off-road engines has approved the use of E10 in their equipment for many years. If owners of this equipment simply follow the manufacturers’ recommendations for fuel, maintenance, and winterization, they won’t have any issues at all. But, as this study shows, letting gasoline sit in your tank for extended periods of time is likely to cause some issues—irrespective of whether the gasoline contains ethanol or not.”

A summary of the NREL study is available here and the full study can be found here.

Read the original story: New DOE Study: Gas Becomes “Stale” Long Before Water Uptake Becomes a Concern

Do We Still Need a Renewable Fuel Standard?

September 19, 2016

By Anne Steckel

Headlines tell us the world is awash with oil. Gas costs less than bottled water in many places, and petroleum markets are in a prolonged slumpthat’s wreaking havoc on the industry’s bottom line.

But my instinct tells me this won’t last long. I’ve lived long enough to have seen this movie before. Gas prices fall, and gas prices rise. The only constant is that consumers, and Congress, can’t do much about it in a world dependent on oil.

To hear the oil industry tell it, the status quo is just fine. We have more than enough petroleum to continue our dependence on oil for the foreseeable future, they argue. The current “era of abundance,” they say, has eliminated the need for alternative fuels and the policies supporting them such as the Renewable Fuel Standard (RFS).

Nothing could be further from the truth, and we shouldn’t let the fleeting benefits of today’s low oil prices cloud our judgment. Instead of knee-jerk energy policy reacting to the oil markets, we need stable, long-term policies like the RFS that help develop new technologies, diversify American energy supplies and protect consumers.

Anyone doubting this should look to the International Energy Agency’s most recent monthly oil market report, which found that the Middle East’s share of the world market has climbed recently to 35 percent – the highest it’s been since the late 1970s. This comes after OPEC nations, Russia and others have openly manipulated supplies to maintain their dominance on the global market.

Imagine if other industries did this – if nations openly colluded to shape the cost of medicine or food. The world would be outraged, and conspirators would go to jail. Yet with oil – the commodity that most shapes the health of the global economy – we’ve resigned ourselves to state-supported price-fixing. It’s because we are dependent on it. We have no choice.

This is the same oil market that US oil lobbyists argue is a free market. Big Oil routinely maintains that we should simply let the market work – that we don’t need policies supporting alternative fuels. Never mind that there is no true free market in oil, and that even when we drill more at home, prices are set on the heavily manipulated global market.

This also ignores the fact that because our economy is so dependent on energy, Congress has wisely adopted policies for more than a century to develop diversified domestic production. This includes tax incentives, low-cost loans, federal research, and grants for all manner of energy industries, including oil and gas, nuclear power, wind and solar, coal, and fracking.

Without those polices, we wouldn’t be the global leader in energy production that we are today.

The RFS, signed into law by President George W. Bush in 2005 with bipartisan congressional support, is a continuation of that strategy that is doing the job. We now get nearly 10 percent of our transportation fuel from clean, renewable sources, and that percentage will only rise if we stay the course.

And it’s not just about corn ethanol. The industry I work for, biodiesel, has grown from a small, niche business into a commercial-scale industry with production plants in almost every state in the country. Last year, Americans consumed a record of more than 2 billion gallons of biodiesel, made from a variety of resources such as soybean oil and recycled cooking oil.

Along with diversifying the market, biodiesel is creating American jobs and economic activity. It significantly reduces greenhouse gas emissions – by 57 percent to 86 percent compared with petroleum diesel, according to the EPA, qualifying it as an Advanced Biofuel under the RFS.

This is a tremendous success for the country that we should all support – regardless of the latest price of a barrel of oil. We all know that price will rise again, and when it does the public will demand that Congress do something about it. Nothing changes over night, but the RFS is smart policy that already is shaking up the oil monopoly and giving consumers a more competitive market.

Steckel is Vice President of Federal Affairs for the National Biodiesel Board. With nearly 200 member companies, NBB is the leading U.S. trade association representing biodiesel and renewable diesel.

Read the original story: Do We Still Need a Renewable Fuel Standard?

At The Heart Of The Ethanol Process

Ethanol Producer Magazine

Sept 20, 2016

By Ann Bailey

Jennifer Roepke recognizes her work is just part of the process. The lab manager at Heartland Corn Products in Winthrop, Minnesota, takes great pride in doing her job in a way that will benefit not only her laboratory, but the company as a whole. “A lab manager in ethanol needs to understand the process—from the grinding of the corn to the shipping of the ethanol,” Roepke says.

Heartland Corn Products Vice President Tim Miller appreciates Roepke’s attitude. “She’s our Rock of Gibraltar,” Miller says. Roepke was the first person he hired when the plant started up in 1995, he notes. With her background in science, she seemed like she would be a good fit for the position at the new ethanol plant, he says.

Roepke, who earned a degree in biomedical science from St. Cloud State University in 1990, worked in the genetics laboratory at Mayo Clinic in Rochester, Minnesota, for four years before moving to the Winthrop area in 1994 with her husband, Scott, who works as a biologist at the Minnesota Department of Natural Resources. “I thought: ‘What am I going to do there?’’’ Roepke recalls. When Heartland Corn Products brought the ethanol plant on line in 1995, Roepke decided to apply for the job, even though she knew what she would be doing in the lab there would be very different from what she had done at Mayo Clinic. “There aren’t a lot of genetics labs out in small towns,” Roepke says. “If I was going to take a job close to where my husband was going to work, I was going to have move out of that type of medical field.”

While there was a learning curve involved in working in an entirely different type of laboratory, a bigger challenge was moving from a large company to a small one, Roepke says. “You have to wear a lot more hats in a small company. You have to learn how to cross-train and a do lot of different tasks, whereas at Mayo Clinic, you kind of learn one thing and become very, very efficient at it.”

She immersed herself in learning about ethanol in her first few weeks on the job, traveling to an ethanol plant in South Dakota to be mentored by a lab manager. When she finished that, she went to a yeast school in Kentucky. “I had a lot to learn—still do,” Roepke says. She continues her education on the ethanol industry and innovations in lab techniques and technology by attending workshops and using the resources available through the Renewable Fuels Association, she says. “They give us a lot of guidance.”

Two Decades of Change
During the past couple of decades, technology has significantly changed the way work is done in the laboratory at Heartland Corn Products. “It’s a lot different than it used to be,” Roepke says. “The specification list on ethanol has been added to through the years and each time they make an addition, it’s an additional test. That’s constantly changing, and I am sure there will be more testing in years to come. We’ve added a lot of equipment for different things. We’ve added density meters, a Karl Fischer titrator, ion chromatography. Another big one is gas chromatography.”

The additional tests are required because they help ensure the product quality is more consistent, Roepke says. Besides all of the tests that her lab conducts, she and the lab technician also issue fill certificates when unit trains arrive to pick up ethanol at Heartland Grain Products. “We take a sample, run all of the tests on it to be sure that the numbers meet specifications and then we issue a certificate of analysis to our customers for those trainloads of ethanol,” Roepke says.

She enjoys the challenge of keeping on top of the changes in the ethanol industry. “I like there’s always something new to be learning. A lot of the learning comes from the changes in the enzymes and the yeasts and how we’re trying to optimize fermentation,” she says.

Just as Roepke’s knowledge about ethanol industry laboratory testing and procedures has grown during the past 21 years, so has the capacity of Heartland Corn Products. “It used to be a tiny 10 million gallons a year (MMgy) plant,” Roepke says. “Now the plant is 100 MMgy, 10 times what it originally started at.”

Roepke takes pride in doing her work in a way that has a ripple effect down the line. She strives to catch details in lab results that help Heartland save water and be more energy efficient. “You look at a sample that’s coming out of a certain step in the process and ask questions, if you see changes have occurred along the way, and try to figure out what is causing lab numbers to drift away from the baseline,” Roepke says. “It’s establishing normal so when things do change, you know they’re changing.”

Finding ways to improve efficiency is what Heartland Corn Products strives to instill in all of its employees, Miller says. “That’s always been the goal for all of us. We’ve all worked together on that,” he says.

It’s evident Roepke has a broad knowledge of Heartland Corn Products and understands the importance of seeing the big picture. During a plant tour, she shares information with visitors about plant equipment—both inside and outside. She talks about the new buildings and tanks that have been constructed over the years, and why they were added to the ethanol plant.

“She’s got a wealth of knowledge about how everything works both in the lab and in the plant,” Miller says. “She’s our go-to person. She’s our E.F. Hutton. When she talks, we all listen. She knows the process from the bottom up and she has been a great employee for us, a wonderful resource.”
Roepke not only has a lot of knowledge about how the ethanol process works, she’s willing to share it with other Heartland employees, he says. “She works with the operators and with the supervisors and explains to them how the process is working both biologically and physically. (She) teaches.”

“When we have new operators. I spend quite a bit of time with them, trying to get them to understand what every step in the process is for and why it’s important for them to watch their parameters,” Roepke says.

Miller appreciates the pride that Roepke takes, not only in her work in the Heartland Corn Products laboratory, but in the company as a whole. “She acts like she owns the place, which is good.”

Read the original story here : At The Heart Of The Ethanol Process

Bureaucratic Barrier To Cleaner, Cheaper E15 Will Be Lifted Thursday

Renewable Fuels Association

Sept 14, 2016

Consumer choice at the pump will get a shot in the arm on Thursday as the Environmental Protection Agency’s (EPA) arcane restriction on summertime E15 sales finally expires for the year. The end of EPA’s “volatility control season” means many gasoline retailers can again sell E15 to conventional automobiles built in 2001 and later years without needing to secure more expensive, specially-tailored gasoline blendstock.

In 2011, EPA approved the use of E15 in 2001 and newer vehicles, but the agency did not allow E15 to benefit from the 1-pound per square inch (psi) Reid Vapor Pressure (RVP) waiver that is available to E10 blends. As a result of this disparity, retailers in conventional gasoline areas (most of the country) would have to secure specialty gasoline blendstocks in order to continue selling E15 in the summer. Such gasoline blendstock is generally unavailable in conventional gasoline areas and would be uneconomical to ship. EPA has jurisdiction over gasoline volatility from June 1–Sept. 15 every year.

“In 1989, EPA provided an RVP waiver to 10 percent ethanol blends, concluding there would be no air quality consequence and retailers would otherwise be unable to secure blendstocks for ethanol blending year-round,” said RFA President and CEO Bob Dinneen. “Those same circumstances exist for E15. Indeed, as data submitted by RFA to EPA has shown, emissions from E15 are even lower than E10 and consumers would benefit all year long from a fuel that is higher octane, lower cost and cleaner.”

In a letter to EPA in December 2015, RFA urged the agency to take immediate administrative action to eliminate this regulatory barrier that is impeding growth in the use of E15 and other higher-level ethanol blends. EPA has stated it does not believe it has the statutory authority to extend the 1 psi RVP waiver to E15. While RFA disagrees with EPA’s conclusion on that issue, another option available to the agency would be to simply require lower-RVP summertime conventional gasoline blendstocks for mixing with all ethanol blends.

“We just want RVP parity for E15 and E10, so the marketplace and consumers have the freedom to choose the fuel that works best for them,” Dinneen said. “EPA’s continued inaction on the summertime volatility restrictions is stifling the growth of higher ethanol blends and incorrectly using that as justification to propose lower 2017 renewable fuel standard targets. We reiterate the need for EPA to address this issue.”

Joining the growing chorus of calls to secure RVP parity for E15 and E10, on Tuesday a bipartisan group of seven Midwest governors sent a letter to EPA Administrator Gina McCarthy, asking the agency to eliminate the unfair E15 RVP treatment.

“There are over 300 stations in 24 states that offer E15 for sale, including retailers such as Sheetz, Kum & Go, Murphy USA and Protec Fuel,” said RFA Vice President of Industry Relations Robert White. “However, most of those stations are not in reformulated gasoline markets and have to put their E15 sales on hold during the summer months to comply with these needless restrictions. EPA’s summer volatility restriction remains the top hurdle for further growth of E15 and something that needs to be addressed.”

To help with further market penetration, HWRT Oil Company will begin offering pre-blended E15 on Friday at the terminal level in three states, giving retailers further access to the fuel blend. At the same time, Diesel Dogs, a fuel distributor in Minnesota, will also begin offering E15 to retailers. Meanwhile, thanks to the U.S. Department of Agriculture’s Biofuel Infrastructure Partnership program, approximately 1,500 new stations will be offering E15 in the coming months.

Read the original story here : Bureaucratic Barrier To Cleaner, Cheaper E15 Will Be Lifted Thursday

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Gevo To Supply Lufthansa With Renewable Jet Fuel

Lufthansa

Ethanol Producer Magazine

Sept 7, 2016

Gevo Inc. recently announced that it has entered into a heads of agreement with Deutsche Lufthansa to supply Gevo’s alcohol-to-jet fuel (ATJ) from its first commercial hydrocarbons facility, intended to be built in Luverne, Minnesota. The terms of the agreement contemplate Lufthansa purchasing up to 8 million gallons per year of ATJ from Gevo, or up to 40 million gallons over the 5 year life of the off-take agreement.

The heads of agreement establishes a selling price that is expected to allow for an appropriate level of return on the capital required to build-out Gevo’s first commercial scale hydrocarbons facility. The heads of agreement is non-binding and is subject to completion of a binding off-take agreement and other definitive documentation between Gevo and Lufthansa, expected to be completed in the next few months.

Read the original story here

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