In the News
May 15, 2019
By the Renewable Fuels Association
The Renewable Fuel Standard (RFS) has lowered gas prices by an average of 22 cents per gallon in recent years and saved the typical American household $250 annually, according to a study published today by economist and energy policy expert Dr. Philip K. Verleger, Jr.
The study used an econometric model to estimate the impacts of the RFS, which requires refiners to blend increasing amounts of renewable fuels with gasoline and diesel, on crude oil and gasoline prices over the last four years (2015-2018). Findings reveal that the RFS has provided substantial economic benefits to consumers in the United States and worldwide.
The Renewable Fuel Standard Program: Measuring the Impact on Crude Oil and Gasoline Prices concludes that by expanding fuel supplies by approximately 1 million barrels per day, the RFS reduced the price of crude oil by an average of $6 per barrel from 2015-2018. In turn, gas prices were reduced by an average of 22 cents per gallon, which amounts to a savings of nearly $5 every time consumers fill up. According to the study, the RFS is responsible for putting roughly $90 billion back into the pockets of U.S. consumers over the past four years, increasing discretionary income and raising the nation’s gross domestic product.
The report also found that if ethanol was entirely eliminated from the fuel supply, as some opponents of renewable fuels have advocated, gasoline prices would surge by more than $1 per gallon. According to the study, “Retail prices would today be above $4 per gallon, not $2.90, were renewable supplies removed from the supply mix.”
“If you’ve never heard of the Renewable Fuel Standard before today, this study tells you all you need to know: blending renewable fuels like ethanol into our gasoline supply saves American consumers money every time they fill up their tank,” said Geoff Cooper, President and CEO of the Renewable Fuels Association (RFA). “As we head into the summer driving season, it’s important for American consumers to recognize that the RFS is keeping prices down at the pump, while at the same time reducing harmful tailpipe pollutants, cutting greenhouse gas emissions, and moving us closer to energy independence.”
Dr. Verleger’s analysis corroborates the findings of earlier studies by economists at Iowa State University, the University of Wisconsin, Louisiana State University, U.S. Department of Energy, Merrill Lynch, and other institutions.
With over forty years’ experience studying and writing about energy markets, Dr. Philip K. Verleger holds a PhD from MIT and has consulted multiple administrations– as Senior Staff Economist on President Ford’s Council of Economic Advisers and, later, as the Director of the Office of Energy Policy at the US Treasury during the Carter administration. Since then, his career in academia and energy consulting has continued to make him a trusted subject expert on the function and structure of energy commodity markets.
You can read more about Dr. Verleger and access the full report here.
Read the original article: New Study: RFS Saves Consumers 22 Cents on Every Gallon of Gas
May 10, 2019
By Erin Voegele
The USDA Foreign Agriculture Service released updated export data on May 9 reporting that the U.S. exported approximately 140 million gallons of ethanol in March, along with 956,828 tons of distillers grains.
The 140 million gallons of ethanol exported in March was up from 113.82 million gallons exported in February, but down when compared to the 215.06 million gallons exported during March 2018.
U.S. ethanol was exported to approximately three dozen countries in March. Brazil was the largest importer of U.S. ethanol in March, with 65.66 million gallons, followed by Canada with 22.66 million gallons and India with 10.34 million gallons.
The 956,828 tons of distillers grains exported in March was up when compared to the 686,005 tons exported in February, and up when compared to the 905,558 tons exported in March 2018.
The U.S. exported distillers grains to approximately 38 countries in March. Turkey was the top importer of U.S. distillers grains for the month, with 162,660 tons, followed by Mexico with 128,712 tons and South Korea with 128,333 tons.
Additional data is available on the USDA FAS website.
Read the original article: USDA: March Ethanol, DDGS Exports Up from Prior Month
By Mallorie Wilken
May 10, 2019
Protein is in high demand worldwide. As the demand increases alongside a growing middle class, meeting it will require greater availability of feed protein products for the meat animals we consume.
Traditionally, one cheap source of protein has been distillers grains used in feeding swine, poultry, and dairy and beef cattle. Research has also shown opportunities in feeding it to fish and other aquatic species. Distillers grains’ versatility has increased its global demand for feeding meat animals.
At the same time protein demand is growing, the ethanol industry is maturing and looking for ways to add multiple revenue streams. Diversification is necessary and crucial for plants to remain profitable in this seasoned market.
Concentrated protein distillers grains will be one of the feed products aiding plants in developing new income streams while continuing to provide feed for animals to fulfill global meat consumption. Because each meat animal species has differing nutritional requirements for optimal performance, formulations incorporate feed commodities in various proportions to meet those requirements. While corn has traditionally been the primary commodity to add energy to a diet for swine, poultry and cattle, soybean meal has often been the supplier of protein because it has a more appropriate amino acid profile to meet dietary needs of swine and poultry than corn does.
More recently, distillers grains have been able to replace most of the protein supplement in cattle diets, but this corn protein isn’t as high in lysine content or as balanced in amino acids as soybean meal, and thus cannot make a similar replacement in swine or poultry diets.
High-protein distillers feed products are capable of supplying a larger amount of protein at a lower inclusion level compared to traditional distillers grains. However, it is still corn protein and the ratio of lysine to leucine remains 3:1, compared to 1:1 in soybean meal, which needs to be taken into account. High-protein distillers grains have the potential to replace portions of soybean meal to make the diet more cost effective to the producer while maintaining performance. Further research is being conducted to help us better understand the optimal levels of inclusion of the feed product in each species.
It is important to note that, while valuable, protein is not the only component in distillers grains that offers feeding advantages when added to animal diets. Fiber, fat and other intrinsic properties are additional factors. The bran or fiber portion of corn has roughly 20 percent protein content (dry matter basis). This protein is incredibly valuable in cattle diets as the microbial environment in the rumen is able to digest and utilize this fiber for energy and growth, unlike that of swine and poultry. Cattle producers will often note intake and health benefits of diets containing distillers grains compared to those without the product. Cattle will have more consistent consumption rates and, therefore, less digestive issues. The ability to separate the fiber and protein streams has the potential of directing the feed products to more species-specific commodities and increasing revenue for the plant itself.
When high-protein distillers grains and corn fiber, mixed with condensed distillers solubles such as ICM’s new feed, Fiber&Syrup (FS), are compared to traditional wet or dry distillers grains plus solubles (WDGS or DDGS) in beef cattle diets, animals observed statistically similar performance (see Table 1). Cattle consuming diets with ethanol feed products at 40 percent inclusion (dry matter basis) had similar to greater performance than those fed corn-only diets.
Since the ethanol feed products were fed at levels exceeding the required amount of protein, the cattle were able to utilize the feed as an energy source. This also illustrates that as long as protein requirements are met, cattle will “waste” the protein supplied by ethanol feed products as energy, as shown in Table 1 by the equivalent performance of cattle fed high-protein distillers grains (37 percent crude protein) and FS (32 percent crude protein). If cattle are able to perform similarly with enough but less protein in the diet, we should feed FS in the feed yards and utilize the more concentrated, higher protein products in species like swine and poultry where protein is valuable and expensive.
Fish is a protein source with increasing demand globally for human consumption. This demand shift is providing opportunities for farming fish. High-protein distillers grains have provided increased performance in tilapia when added to diets at either 15 percent or 25 percent inclusion (dry matter basis), as shown in Table 2. Tilapia fed ICM’s high-protein distillers grains at 15 percent or 20 percent observed significantly increased weight yield (0.28 percent and 0.29 percent respectively) compared to those fed a traditional control diet of 0.26 percent. These results suggest an opportunity to feed more concentrated protein ethanol feed products.
As feed and animal production grow to meet protein demand, new requirements and U.S. Food and Drug Administration guidelines will require technology and innovation to address the need for consistency, providing new opportunities to boost an ethanol plant’s bottom line. Consistency and verification will drive customer loyalty to purchase the feed and the price at which they choose to buy, especially as distillers grains transition from an ethanol byproduct to a feed commodity in the minds of animal producers.
The optimal balance for ethanol plants today is met by improving the ethanol production system and increasing revenue through diversified feeds that meet the needs of the local and trade markets. Market conditions are forcing ethanol plants to reevaluate their current production methods toward plant flexibility. Plants must be able to create value in all facets of production, including ethanol, corn oil and feed products. This requires plants to adopt process technologies that separate feed streams and allow the plant to recombine, concentrate, or process each feed to meet demands.
Author: Mallorie Wilkens
ICM Ruminant Technical Lead
402.936.1943
This email address is being protected from spambots. You need JavaScript enabled to view it.
Read the original article: Opportunities in High-Protein Feed
May 7, 2019
By Erin Voegele
A bipartisan group of 35 representatives, led by Reps. Cindy Axne, D-Iowa, and Adrian Smith, R-Neb., sent a letter to U.S. EPA Administrator Andrew Wheeler May 7 urging the agency to stop issuing small refinery exemptions (SREs) to large or unqualified refiners under the Renewable Fuels Standard.
Within the letter, the lawmakers note that the Trump Administration has approved 54 SRE requests to date, and has failed to issue a single denial.
“This unprecedented rate of granting waivers is a betrayal of our rural communities, detrimental to our energy security, and threatens our entire agricultural sector at a time of declining incomes and rising debts for our producers,” the representatives wrote. “EPA must halt this process and reallocate waived gallons as the law intends.”
According to the letter, SREs approved to date have caused a loss of 2.6 billion gallons of renewable fuel blending and almost 1 billion bushels of corn demand.
“Granting exemptions to the RFS increases American dependence on foreign oil,” the letter continues. “By continually waiving the requirements of the RFS for small refineries, the EPA fosters uncertainty about the program creating uncertainty for those interested in investing and developing America’s biofuel industry. Further it disincentivizes refineries from taking the steps necessary to begin to meet the standards set by the RFS and make domestic biofuels available to consumers.”
Growth Energy has spoken out to thank the lawmakers for sending the letter. “At a time when grain markets have reached a 42-year low and there was an $11.8 billion decline in farm income the last quarter, our rural communities are continuing to be punished by the rapid escalation in small refinery exemptions by this administration," said Emily Skor, CEO of Growth Energy. "There is no legal or rational explanation for why EPA has quadrupled the number of secret exemptions to the world's largest oil companies in the past 17 months. We applaud U.S. Reps. Cindy Axne, D-Iowa, and Adrian Smith, R-Neb., and their 33 colleagues calling on EPA to halt unjust granting of SREs and to reallocate the gallons lost to ensure the targets set out under the RFS are met, and put an end to the practice of eliminating markets at a time when growers and producers need them most."
The Renewable Fuels Association has also spoken out to thanks the representatives. “We thank the members of the House who sent this letter, and we join them in calling on EPA to immediately stop excusing highly profitable oil refiners from their legal obligations to blend cleaner, lower-cost renewable fuels like ethanol,” said the RFA in statement. “Further, we strongly agree with this bi-partisan group that EPA must restore the renewable fuel blending requirements that were erased through these clandestine waivers. The refinery exemptions have had devastating impacts on our nation’s farm sector and renewable fuels industry, and the bailouts have resulted in American consumers paying more money at the pump for dirtier fuels. It’s time to stop doing special favors for refiners like Chevron and ExxonMobil at the expense of rural America, which is experiencing the toughest economic times in a generation.”
In addition to Axne and Smith, the letter was signed by Reps. David Scott, D-Ga.; Darin LaHood, R-Ill.; Roger Marshall M.D., R-Kan.; Kelly Armstrong, R-N.D.; Cheri Bustos, D-Ill.; Nanette Diaz Barragán, D-Calif.; Jeff Fortenberry, R-Neb.; Steve King, R-Iowa; David Loebsack, D-Iowa; Jan Schakowsky, D-Ill.; Abby Finkenauer, D-Iowa; Don Bacon, R-Neb.; Lauren Underwood. D-Ill.; Angie Craig, D-Minn.; Rodney Davis. R-Ill.; Dusty Johnson, R-S.D.; Raja Krishnamoorthi, D-Ill,; Emanuel Cleaver, II, D-Mo.; Mark Pocan, D-Wisc.; Jim Hagedorn, R-Minn.; Ron Estes, R-Kan.; Collin C. Peterson, D-Minn.; Michael R. Turner, R-Ohio; Steve Watkins, R-Kan.; Tom O'Halleran, D-Ariz.; Tim Ryan, D-Ohio; Bob Gibbs, R-Ohio; Blaine Luetkemeyer, R-Mo.; Mike Bost, R-Ill.; Ron Kind, D-Wisc.; Robin Kelly, D-Ill.; Bill Foster, D-Ill.; and James R. Baird, R-Ind.
A full copy of the letter is available on the Growth Energy website.
Read the original article: Representatives Urge EPA to Stop Issuing SREs
Senator Says Trump Administration Plan to Abandon Promised Transparency Rewards Oil Companies at Expense of Nation’s Renewable Fuel Producers
May 2, 2019
Press Release
U.S. Senator Tina Smith (D-Minn.) said today the Trump Administration’s plan to go back on its promise to name which U.S. oil refineries are allowed to avoid requirements to blend renewable fuels into the nation’s fuel supply could ultimately contribute to job losses across rural America and strike another blow to the nation’s struggling farm economy.
Sen. Smith, who has been an outspoken advocate to expand the use of renewable fuels, said hiding the identity of refineries that receive special Environmental Protection Agency (EPA) waivers to the nation’s biofuels laws will help big oil companies at the expense of the nation’s renewable industry.
The waivers cut the amount of corn-based ethanol and other renewables that is blended into the nation’s gasoline and diesel supply, reducing demand for agriculture products at a time when farmers have already been hit hard by low farm prices and trade disruptions.
“The EPA promised to increase transparency and publish the names of refineries that get exemptions from our nation’s renewable fuels laws. Now it’s abandoning that promise,” said Sen. Smith.
“The transparency is necessary because last year EPA granted a ‘financial hardship’ waiver to an oil refinery owned by billionaire Carl Icahn, saving him tens of millions of dollars. Such waivers have also gone to refineries owned by profitable oil companies like Exxon-Mobil and Chevron. In 2018, the waivers cut demand for ethanol by more than a billion gallons, according to the Minnesota Biofuels Association. That’s just wrong and it’s hurting Minnesota’s economy.” Sen. Smith said the EPA’s plan to be more transparent was eliminated after the White House and the oil industry pushed to end it.
She said she also remains skeptical of a reported White House-brokered “compromise plan” between the oil industry and corn industry. “I’ll be watching to ensure that any compromise coming out of the Administration does not further hurt Minnesota’s ethanol and renewable fuels industry,” she said.
Read the original article: U.S. Sen. Tina Smith Says EPA Plan to Hide Which Refineries Are Allowed to Stop Blending Renewable Fuels Would Hurt Farmers, Rural Communities
May 1, 2019
Press Release
Hydrite Chemical Co., an integrated manufacturer and supplier of chemicals and related services, is pleased to announce its partnership with Archangel and expand its product offering to include a full-line of antibiotics for the biofuels industry.
Hydrite is proud to add antibiotics to its existing product line which includes antibiotic-free and antimicrobial solutions. Hydrite offers both antibiotic and non-antibiotic antimicrobial technology for fermentation, propagation, and upstream and downstream ethanol processes.
Hydrite’s products and unique formulations serve the ethanol industry in a variety of applications. Hydrite provides fully integrated lab services designed to help solve the toughest formulation issues and provides professional reports detailing the results and solution recommendations.
Scott Cumming, Biofuels Market Manager for Hydrite, commented, “Our partnership with Archangel is a testament to our commitment to offer quality materials and services to our customers. Hydrite and Archangel have built a successful business partnership to now include antibiotics products to better serve the growing needs of new and existing customers in the biofuels industry.”
Allen Ziegler, CEO of Archangel Inc. stated, “The partnership between Hydrite and Archangel forms one of the most comprehensive product portfolios in the biofuel industry, and further extends Hydrite’s technical and onsite service capabilities.”
Hydrite has developed a reputation within the industry for providing the distinct combination of excellence in chemical manufacturing and distribution with the most comprehensive level of technical expertise available. To learn more, visit www.hydrite.com or call 262-792-1450.
About Hydrite Chemical Co.
Hydrite, a family-owned company established in 1929, is one of the largest independent providers of chemicals and related services in the United States. Headquartered in Brookfield, Wisconsin, Hydrite has a network of manufacturing facilities, warehouses, and laboratories located in Illinois, Wisconsin, Iowa, Indiana, California, and Texas with nearly 1,000 employees in 25 states. Hydrite owns and operates a private fleet of over 255 units including tractors, van trailers, tankers, and railcars.
Hydrite offers expertise in chemical distribution and manufacturing, food and dairy sanitation, organic processing, liquid sulfites, foam control, water treatment, and compliance management services.
With over 5,000 items in its product portfolio, Hydrite’s dedicated chemists, engineers, and technical service staff have extensive knowledge and experience to solve the most challenging formulation problems. Hydrite has a strong commitment to quality and customer responsiveness, and offers superior products and innovative solutions.
About Archangel
Archangel Inc. specializes in antimicrobial technology including proprietary antibiotic free, inorganic and antibiotic formulations. With over 25 years’ experience developing and applying antimicrobials, Archangel provides options to customize unique antimicrobial programs tailored to plant needs.
Headquartered in Highlands Ranch, Colorado, Archangel holds numerous antimicrobial and process patents, and through an innovative and comprehensive approach, is rapidly being recognized as the company to turn to for the best bacterial control.
Archangel’s exclusive, patent-pending packaging reduces chemical exposure to plant personnel while preserving the integrity of the product.
Archangel’s complete product line caters to the biofuel, beverage alcohol, aquaculture, and agriculture industries, in addition to its technical and laboratory services to meet the unique and specific needs of its customers.
Read the original press release: Hydrite to Offer Antibiotics Product Line through Partnership with Archangel
April 23, 2019
By Lisa Gibson
The 2019 Ethanol Producer Award winners have been selected. Following a nomination period and voting process that included Ethanol Producer Magazine editorial staff and editorial board members, EPM is proud to announce this year’s winners. They are as follows:
Project of the Year: Flint Hills Resources Fairmont in Fairmont, Nebraska. Flint Hills installed Fluid Quip Process Technologies’ Maximized Stillage Coproduct system.
Collaboration of the Year: Homeland Energy Solutions in Lawler, Iowa, and Lallemand Biofuels & Distilled Spirits. The companies implemented a fermentation project together.
Board of the Year: Heartland Corn Products, Winthrop, Minnesota
Workplace of the Year: Arkalon Ethanol, Liberal, Kansas.
Good Neighbor Award: Marquis Energy-Wisconsin, Necedah, Wisconsin.
Read the original article: 2019 Ethanol Producer Award Winners Announced
April 23, 2019
By James Talent
Over the last few years, biofuel policy has become a major flashpoint of conflict between rural supporters of President Trump and oil lobbyists working in Washington. The last administrator of the Environmental Protection Agency handed out dozens of secret exemptions to big oil companies, allowing them to sidestep long standing renewable energy laws. It is an approach that cut billions of gallons of homegrown ethanol out of the market, destroying a key segment of the rural economy.
As a result, ethanol consumption in the United States fell for the first time in 20 years. Farmers were hit the worst and now carry the highest debt income ratio since the farm bust of the 1980s. Calls to the Farm Aid crisis hotline have doubled. President Trump, who vowed that his administration is protecting ethanol, fired the former EPA chief and appointed Andrew Wheeler to take over, but the damage has yet to be repaired. In fact, it may be getting worse. Wheeler announced more oil industry handouts last month, bringing the total to 2.6 billion gallons over two years, which is enough to eliminate the market for nearly one billion bushels of grain.
Rural Republicans who gave the new EPA administrator the benefit of the doubt are understandably livid. Dozens of ethanol plants across the country have cut production or closed their doors, even as farm communities look to rebuild from recent devastating floods and a demoralizing trade war. Meanwhile, oil refiners like Exxon and Chevron that won the “hardship” exemptions have had multibillion dollar profits.
Democrats are already pouncing on this blunder. Senator Amy Klobuchar, who is running for president, told Iowa caucus goers that “biofuels in the Midwest get screwed” by the EPA exemptions. It is a message winning her new followers among rural voters who overwhelmingly voted for President Trump in 2016. The headlines do not help either. In a Reuters story titled “EPA disregarded biofuel rules to help refineries,” it was revealed that the agency quietly ignored recommendations from the Energy Department, which could find no financial justification for the oil industry handouts.
The truth is that petroleum companies simply worry about losing the battle for market share if consumers get more options at the fuel pump. Biofuel blends reduce emissions and deliver more octane. Moreover, they also cost less, as pure ethanol now trades for about 70 cents less per gallon than unblended gasoline. That is why competition is good for drivers and American energy security. It is also precisely why Congress enacted the renewable fuel standard under President Bush back in 2005.
With all eyes on the Organization of the Petroleum Exporting Countries and gasoline headed toward $4 per gallon in some markets, it is hard to see why any agency would shut out lower cost fuel made in the United States. In response, rural advocates like Senator Joni Ernst have called on the EPA “to reallocate waived gallons and establish a clear procedure” to evaluate future exemptions. However, Wheeler has argued the agency simply has no mechanism that would allow it to restore lost gallons, as exemptions are filed retroactively after regulators determine how much biofuel each refinery is responsible for adding to the national fuel mix.
But there is some hope. Representative Dave Loebsack got to the key point during a recent hearing in the House Energy and Commerce Committee. He questioned Wheeler whether the EPA could decide on exemptions first before setting annual biofuel targets. By shifting from a retroactive approach to forward looking approach, the EPA could ensure the full volume of biofuel required by law actually reaches consumers.
Indeed, Wheeler admitted the EPA “would have the ability to do that.” All it would take is for the agency to account for anticipated exceptions in the annual biofuel targets. It is worth noting that the EPA already does the calculation. It simply just has not been willing to act on it. President Trump has shown he is willing to crack down on insiders at the EPA when they threaten to undermine rural prosperity. This is one of those times. We cannot accept bureaucratic excuses for inaction. Farmers were promised a chance to compete at the fuel pump, and it is time to keep that promise.
James Talent served in Congress as a Republican senator from Missouri and championed the creation of the renewable fuel standard in 2005. He is a chairman of Americans for Energy Security and Innovation and a senior fellow at the American Enterprise Institute and the Bipartisan Policy Center.
Read the original article: Time to Keep the Promises for Farmers to Compete in Energy
More...
April 12, 2019
By
In order to battle the tough Friday afternoon winds, presidential candidate and Minnesota senator Amy Klobuchar donned a lime-green hard hat and thick pea coat as she toured the Lincolnway Energy Plant in Nevada.
But for the presidential hopeful, battling the wind isn’t the issue, it’s battling major oil companies and Environmental Protection Agency (EPA) small-refinery waivers on behalf of ethanol companies.
The waivers grant a small refinery temporary exemption from its annual Renewable Volume Obligations, which determine how many gallons of biofuel refineries will add to the motor fuel mix.
Following her tour of the ethanol plant, Klobuchar held a roundtable discussion with local ethanol plant producers and ethanol experts to hear the concerns and challenges the ethanol industry is facing.
Ethanol producers stated that small-refinery waivers issued by the EPA are “taking three billion gallons of demand or 20 percent of demand from the ethanol industry.”
“I think part of (this discussion) is taking on the oil companies and blatantly talking about it,” Klobuchar said. “Yeah, they have their market, but (ethanol) has their market, too, and they are trying to stomp on us and we need to speak out or we don’t have a chance.”
In terms of policy, Klobuchar said, “replacing the gallons lost” in the industry is important, as well as promoting cellulosic ethanol, ethanol produced from the fiber of a plant as a means to help recoup losses suffered in the past years.
Klobuchar also vouched for protecting and addressing how the waivers affect the Renewable Identification Numbers (RIN) market and the year-round sale of gasoline with up to 15 percent ethanol, also known as E15.
RIN is a serial number assigned to a batch of biofuel that act as credits of compliance or a type of currency of the Renewable Fuel Standard Program.
One of the concerns expressed Friday was that that small refinery exemptions issued by former EPA Administrator Scott Pruitt eroded demand for ethanol in 2018 and created the RIN market for ethanol.
?(One of the things we can do) is the RIN market, and making sure it’s functioning and addressing whatever the problems are,” Klobuchar said. “We know that people are going to mess around with it, and those waivers mess around with it, too.”
In 2018, President Trump directed the Environmental Protection Agency (EPA) to consider reforming the RIN market, and to allow the year-round sale of E15.
However, many at the roundtable said that the EPA small refinery waivers and exemptions have been overused, threatening demand for corn-based ethanol at a time when farmers are already struggling.
“We don’t make a fraction of a cent on RINs,” said Blair Picard, Commercial Manager of Lincolnway Energy. “Our RINs go out the door free with our ethanol,so you could say on one hand, we’re not as concerned with the price of RINs as we are with the price of ethanol and our margin, which both have deteriorated as a direct example of these small refinery exemptions.”
Klobuchar blended the concerns of ethanol producers with the “immediate need” to address climate change and environmental issues.
The senator said she would address climate change on day one by entering the United States back into the international climate change agreement, bringing back the clean power standards adopted under the Obama Administration, and re-implementing gas mileage standards.
“I’m a strong believer that we have to do something about climate change on day one,” Klobuchar said following the roundtable discussion. “Those are rules so they are easier to put (out for a vote), and you may have comment periods, but you can get those done in the first year.”
Klobuchar also shared her visions to get to universal health care through a public health insurance option.
Read the original article: Klobuchar Talks Ethanol Challenges at Nevada Plant
April 12, 2019
By Humeyra Pamuk
The U.S. Environmental Protection Agency on Friday took the first step to revive part of a rule that could, if finalized, reveal the names of oil refineries which applied for exemptions from the nation’s biofuel laws.
The move is seen as a win for the corn industry, which has criticized the waiver program due to its lack of transparency. The EPA only in 2017 first began releasing the number of waiver petitions it has received and granted but the names have been kept confidential so far.
Under the federal Renewable Fuel Standard (RFS) program, refiners are required to blend biofuels into the nation’s gasoline pool, but small operations can apply for exemptions. The Trump administration made extensive use of such waivers in the last two years, saving refiners money but angering the corn lobby, particularly after major companies like Exxon Mobil Corp received exemptions for certain facilities.
The issue is a battlefield between the rival oil and corn industries. The ethanol industry claims the exemptions have been overused, threatening demand for corn-based ethanol at a time when farmers are already struggling.
The oil companies have long complained that speculation in the biofuels credit market has inflated prices and complying with cost them hundreds of millions of dollars - one of a long list of complaints by the industry about U.S. biofuel policy.
On Friday, the EPA signed a Federal Register notice saying it is reopening the comment period for a provision in a rule related to the small refinery exemption program that was first introduced in 2016.
That provision from 2016 proposed to establish a determination that basic information related to EPA actions on petitions for RFS small refinery and small refiner exemptions may not be claimed as confidential business information, according to a document on the provision on EPA’s website.
“With respect to each decision on a small refinery/refiner exemption request, we would release to the public the petitioner’s name, the name and location of the facility for which relief was requested, the general nature of the relief requested, the time period for which relief was requested, and the extent to which EPA granted or denied the requested relief,” the document said.
While ethanol groups mostly hailed the move, oil industry representatives were largely critical. Fuelling American Jobs Coalition said the proposal, if finalized, would do more harm than good.
“The data underlying Small Refinery Exemption requests reflects the underlying financial health of facilities in the highly competitive refining sector. Such information can affect access to capital for marginal refineries and can make them attractive targets of acquisition, literally moving markets,” it said in a statement.
To obtain a waiver, refineries with a capacity of less than 75,000 barrels per day (bpd) have to prove that compliance with RFS would cause them significant financial strain. They submit information about the company’s financial health while doing that, although the EPA’s provision does not include revealing that.
EPA Administrator Andrew Wheeler, in an interview with Reuters on Thursday, hinted there could be fewer exemptions under his leadership due to the lower price of biofuel credits that have reduced economic hardship, which is one of the conditions for the exemption.
Read the original article: U.S. EPA Revives Provision That May Name Refiners Applying for Biofuel Waivers
April 11, 2019
Press Release
U.S. Sen. Chuck Grassley of Iowa sent a letter to Department of Energy (DOE) Secretary Rick Perry asking for clarity about the department’s review process concerning Renewable Fuel Standard (RFS) hardship exemptions, submitted by small refineries. The DOE provides recommendations on exemption requests to the Environmental Protection Agency (EPA).
“EPA has granted an unprecedented number of small refinery hardship exemptions for 2016 and 2017 and even more small refineries are seeking exemptions from the RFS for 2018,” Grassley wrote. “With Renewable Identification Numbers (RINs) at multi-year lows, it’s hard to comprehend the alleged disproportionate economic hardship that any refinery could face.”
Grassley is a leader in the fight to maintain a strong Renewable Fuel Standard (RFS). He led efforts to put pressure on the EPA to stop issuing “hardship waivers” to obligated refiners as well as make the waiver process more transparent and highlight the importance of the RFS to President Trump and his administration.
Full letter is available here and below.
The Honorable Rick Perry
Secretary
United States Department of Energy
1000 Independence Ave., SW
Washington, DC 20585
Dear Secretary Perry:
U.S. Environmental Protection Agency (EPA) Administrator Wheeler has informed me and my colleagues in Congress recently that EPA is waiting on recommendations from the Department of Energy (DOE) regarding a record number of 39 applications submitted by small refineries seeking disproportionate economic hardship exemptions from the Renewable Fuel Standard (RFS) for the year 2018. EPA has granted an unprecedented number of small refinery hardship exemptions for 2016 and 2017 and even more small refineries are seeking exemptions from the RFS for 2018. With Renewable Identification Numbers (RINs) at multi-year lows, it’s hard to comprehend the alleged disproportionate economic hardship that any refinery could face. I am writing to seek clarity regarding the DOE’s review of requests to exempt certain small refineries from their obligations to comply with the RFS provisions of the Clean Air Act.
As you know, Section 211(o)(9)(B)(ii) of the Clean Air Act requires the EPA to consult with DOE in evaluating the small refinery hardship exemptions. EPA makes the final decision on granting such exemptions but Administrator Wheeler also suggested that EPA simply follows the recommendations of DOE. If this is the case, I would like to understand what has changed in DOE’s approach to evaluating such requests that would explain the sudden surge in the number of exemption extensions granted to small refineries over the last two years.
The criteria by which DOE is supposed to evaluate small refinery exemption extensions have not changed since 2011, when DOE created a scoring methodology for such requests as part of a congressionally-mandated study. DOE’s methodology requires an evaluation of the structural impacts that compliance with the RFS might cause, such as limited access to capital and credit, as well as an evaluation of how RFS compliance would significantly impair refinery operations viability. Although DOE maintains it hasn’t changed these criteria, the number of small refinery exemption applications and approvals inexplicably has soared in the last two years.
Recent litigation in the D.C. Circuit has revealed that out of 48 applications for small refinery exemptions to EPA for compliance years 2016 and 2017, DOE had given the applicant a viability score of zero in at least half of those cases. This seems to indicate that compliance costs with the RFS had little to no impact on the small refinery’s ability to stay competitive and profitable. Given EPA’s assertion that it’s granting of small refinery exemptions remains based on DOE’s analysis and recommendations, I respectfully seek the following information from DOE:
1. Has DOE changed the criteria, the interpretation of the criteria, the methodology, or any other significant aspect of how it makes its recommendations to EPA for small refinery exemptions?
2. Are you aware of any instances where DOE recommended no small refinery exemption (or only a partial exemption) but EPA granted a small refinery exemption anyway? If so, how many times has this occurred?
3. DOE’s 2011 Small Refinery Study states that DOE would make a recommendation of disproportionate impact if scoring of both indices—Disproportionate Structural Impacts Metrics and Viability Index—were greater than one. How does DOE’s recommendation for a partial exemption to a small refinery with a Viability Index of 0.0 square with the statute’s requirement that the exemption can be extended only if the refinery is subject to a “disproportionate economic hardship” from compliance with the RFS?
I look forward to your response.
Read the original press release: Grassley Questions Hardship RFS Exemption Review Process at DOE
April 10, 2019
By Erin Voegele
The U.S. Energy Information Administration has released the April edition of its Short-Term Energy Outlook, maintaining its March forecast for 2019 and 2020 ethanol production and predicting increased ethanol blending during the upcoming summer driving season.
In the new STEO, the EIA maintains its previous prediction that ethanol production will average 1.04 million barrels per day this year, increasing to 1.05 million barrels per day next year.
On a quarterly basis, the EIA shows ethanol production averaged approximately 1.01 million barrels per day during the first three months of this year. Production is expected to increase to 1.05 million barrels per day during the second quarter, and then fall to 1.04 million barrels per day during the final half of 2019. In 2020, ethanol production is expected to average 1.04 million barrels per day during the first quarter, before increasing to 1.05 million barrels per day for the remainder of the year.
The EIA currently expects ethanol consumption to average 950,000 barrels per day in both 2019 and 2020, up from 940,000 barrels per day in 2018.
The EIA’s April STEO also addresses ethanol blending in its outlook for summer gasoline. According to the report, the EIA currently forecasts fuel ethanol blending will reach 974,000 million barrels per day during the second quarter of this year, up 3.2 percent when compared to the same quarter of last year. Ethanol blending during the third quarter is expected to reach 966,000 barrels per day, up 0.8 percent when compared to the same period of 2018. For the full six-month period, the EIA expects ethanol blending to average 970,000 barrels per day, up 2 percent when compared to the same period of last year.
The EIA’s most recent weekly data shows ethanol production averaged 1.0.2 million barrels per day the week ending April 5, up from 999,000 barrels per day the previous week. Weekly ending stocks of ethanol fell to 23.193 million barrels the week ending April 5, down from 23.992 million barrels the previous week.
The agency’s most recent monthly data shows the U.S. imported 255,000 barrels of ethanol in December, all from Brazil. The EIA’s most recent export data shows the U.S. exported 3.048 million barrels of ethanol in January, primarily to Brazil, Canada, and India.
Read the original article: EIA Predicts Increased Ethanol Blending This Summer
April 8, 2019
By the Renewable Fuels Association
A new study published in the academic journal Biomass and Bioenergy exposes the fatal methodological flaws and erroneous conclusions regarding biofuels and land use change (LUC) found in recent studies paid for by the National Wildlife Federation (NWF). In addition, the new analysis found that U.S. biofuels expansion has not caused a detectable increase in the U.S. food prices.
“The real-world data showed no evidence of food price increases or other lands converting to agriculture because of biofuel,” according to the study, which was conducted by scientists at the University of Idaho and U.S. Department of Agriculture (USDA). The research was funded by the National Institute of Food and Agriculture and USDA Office of the Chief Economist.
The new analysis found that the type of satellite data relied upon by NWF is error-prone, unreliable, and “misleading.” According to the report, “The automated [satellite] land use classification errors were biased towards classifying ambiguous land as agriculture.”
Specifically, the authors manually inspected actual land uses to see if the satellite imagery used by NWF correctly classified the land use. The researchers found that 10.9% of actual non-agricultural land was misclassified as agricultural land by the satellite data. Further, while automated classification using the satellite data showed an 8.53% increase in agricultural land from 2011-2015, the manual classification indicated no significant land use change at all.
“The use of satellite data is prone to error in classifying certain land uses, such as distinguishing between cropland used to grow hay, and pasture land for grazing…Although an automated satellite image classification provides a convenient way to quantify land use change, the results could be misleading if not carefully verified,” the authors explained.
As an example of the problems associated with relying on satellite data for land use change analysis, the paper includes a captivating image showing how satellite tools mistakenly characterized large tracts of urban housing in Lemoore, Calif., as “cropland.”
“This latest analysis joins a growing body of real-world evidence showing that cropland area has continued to shrink and food prices have continued to trend lower since the Renewable Fuel Standard was adopted,” said RFA President and CEO Geoff Cooper. “Recent studies from University of Illinois, USDA, Iowa State University, Purdue University, the Department of Energy, and others have all found that initial predictions of biofuel-related land use change were grossly overstated. Actual empirical evidence shows that farmers have responded to increased demand by using existing cropland more efficiently.”
A copy of the analysis is available here.
Read the original article: RFA: New Study Exposes Absurdity of NWF Land Use Change Claims
April 1, 2019
By Erin Voegele
Data released by the UDSA’s Foreign Agricultural Service on March 27 shows the U.S. exported 127.91 million gallons of ethanol and 806,615 tons of distillers grains during the first month of 2019.
January ethanol exports of 127.91 million gallons were up significantly when compared to exports of 88.31 million gallons reported for the same month of 2018. Top destinations for U.S. ethanol during the first month of the year include Brazil at 38.49 million gallons, India at nearly 20 million gallons, and Canada at 19.97 million gallons.
January distillers grains exports of 806,615 tons were down when compared to the 898,940 tons expected during the same period of last year. Top destinations included Mexico at 199,312 tons, Indonesia at 90.29 tons, South Korea at 89,364 tons, and Vietnam at 89,356 tons.
Additional data is available on the USDA FAS website.
Read the original story here: USDA : Ethanol Exports Reach 127.9 Million Gallons In January
March 28, 2019
By Cindy Zimmerman
Ypsilanti, Michigan will be the place Friday morning for advocates and opponents of EPA’s proposed regulatory changes related to retail sales of 15% ethanol blended fuel (E15) and the renewable identification number (RIN) compliance system Renewable Fuel Standard (RFS) program.
The Environmental Protection Agency is holding a hearing on the proposal released just 16 days ago that would allow E15 to take advantage of the 1-psi Reid Vapor Pressure (RVP) waiver that currently applies to E10 during the summer months, and to change the RIN program to bring greater transparency to the market and deter price manipulation.
The hearing will start at 9:00 am Eastern on Friday, March 29 and will end when all parties present who wish to speak have had a chance to do so. Location is the Ann Arbor Marriott Ypsilanti at Eagle Crest.
EPA has set up a listen-in line for those unable to be at the hearing. The number is 866-667-1852, Conference Code 7695837.
Read the original article: EPA Hearing on E15 in Michigan Tomorrow
March 22, 2019
Press Release
Convinced of the urgency to act on climate, a group of Dutch multinationals - FrieslandCampina, Heineken, Philips, DSM, Shell and Unilever - all members of the Dutch Sustainable Growth Coalition (DSGC), will join forces with A.P. Moller - Maersk to take a tangible step towards the decarbonization of ocean shipping.
A pilot, using up to 20% sustainable second-generation biofuels on a large triple-E ocean vessel will sail 25.000 nautical miles from Rotterdam to Shanghai and back on biofuel blends alone, a world’s first at this scale, saving 1,5 million kilograms CO2 and 20.000 kilograms of sulphur.
DSGC members and Maersk all agree that tackling harmful emissions related to shipping is urgently needed, and that cross-industry collaboration is required to develop, test and implement new solutions. The DSGC members, many of which are customers to Maersk, played a critical role. They initiated and sponsor the pilot. Shell, acted as the fuel supplier for the pilot, and Maersk played the role as operating partner.
Sustainably sourced second-generation biofuels are just one possible solution for the decarbonization of ocean shipping. Longer term, breakthroughs in fuel and technical development (i.e. e-fuels) and the investment into commercial supply chains are needed to achieve significant emissions reductions.
“DSGC companies join in action to contribute to the UN SDGs. With this initiative we focus on Climate Action (SDG 13). We have taken the initiative to partner with A.P. Moller-Maersk on this important effort,” says Jan Peter Balkenende, Chair of the DSGC. “This pilot testing biofuel on a cross ocean shipping lane, marks an important step. However, many more innovations are urgently needed. These can only be successfully developed, tested and implemented in industry collaborations like this.”
Søren Toft, Chief Operating Officer A.P. Moller – Maersk commented: “To reach our net zero CO2 target by 2050, in the next 10 years we need big breakthroughs. Maersk cannot do this alone. That is why this collaboration with DSGC and its members is such an important step in identifying and bringing low carbon solutions to life. It laid the foundation for how cross-industry partners can work together to take steps towards a more sustainable future. We welcome others to join in our efforts, as this journey is just beginning.”
Søren Toft added “Biofuels are one of the viable solutions that can be implemented in the short and medium term. Through this pilot, we aim to learn more about using biofuels in general, and to understand the possibilities around increasing its usage in a sustainable and economical way.”
Shipping accounts for 90% of transported goods and 3% of total global CO2-emissions, and is set to rise to 15% by 2050 if left unchecked. The CO2 savings of this journey alone equates to the annual CO2 emitted by over 200 households in a year or 12 mill km travelled in an average car which is 300 times around the world. The voyage will take place between March and June 2019.
About the biofuel used:
The biofuel used in this pilot is a so called ‘second generation’ biofuel, produced from waste sources, in this case used cooking oil (UCOME oil). Second generation biofuel means the biofuel comes from waste products. This can be used cooking oil, forest residues, wood chip waste etc. This biofuel is ISCC Certified, meaning that the whole chain is 3rd party certified. The power of biofuel is that it can to a certain extent replace / blended with conventional (fossil) fuels, without having to make big technical adaptations to the engines or require a complete new engine etc.
About Maersk
A.P. Moller - Maersk is an integrated container logistics company working to connect and simplify its customers’ supply chains. As the global leader in shipping services, we operate in 130 countries and employ roughly 76,000 people. Our mission is to enable and facilitate global supply chains and provide opportunities for our customers to trade globally.
Read the original article: Dutch Sustainable Growth Coalition Partners with Maersk in World's Largest Maritime Biofuel Pilot