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Peterson on the EPA’s RFS Proposal

Congressman Collin Peterson

July 6, 2017

Press Release

Congressman Collin C. Peterson (D-Minn.) released the following statement after the Environmental Protection Agency (EPA) revealed its proposed renewable volume obligations (RVO) for 2018 and 2019 as required by the Renewable Fuel Standard.

“I am pleased that EPA correctly recognized corn ethanol as a robust industry capable of producing 15 billion gallons as required by statute,” Peterson said. “I will continue to work with EPA on market access issues like the Reid Vapor Pressure fix which is needed to improve consumer choices at the pump."

By law, EPA is required to release its final RVO numbers for 2018 and 2019 by November 30, 2017. Read the original release: Peterson on the EPA’s RFS Proposal

Klobuchar on EPA Release of Proposed Renewable Fuel Standard Requirements

Senator Amy Klobuchar

July 5, 2017

Press Release

WASHINGTON, D.C. – U.S. Senator Amy Klobuchar (D-MN), a member of the Senate Agriculture Committee, issued the following statement following the release of the Environmental Protection Agency’s proposed 2018 and 2019 Renewable Fuel Standard volume requirements.

“Renewable fuels are a homegrown economic generator for Minnesota and for our country. It is good that the Administration has maintained ethanol volume requirements for 2018 and 2019. At the same time, reducing the blend targets of advanced biofuels could short-change the growth of clean energy innovation that creates jobs and strengthens rural communities. It is critical that the final rule is stronger for advanced biofuels and I will work with the Administration to push for improvements that support biofuel production in Minnesota and around the United States."

For years, Klobuchar has led a bipartisan push for the EPA to release a stronger RFS to support American jobs and decrease dependence on foreign oil. Last November, the former Administration released a stronger final rule for 2017, which will require a record amount of biofuel to be mixed into our transportation fuel supply next year. Minnesota’s twenty ethanol plants and three biodiesel plants generate roughly $5 billion in combined economic output and have made our state the fourth-largest ethanol producing state in the country. In April, Klobuchar and Senator Chuck Grassley (R-IA) led a bipartisan group of 23 senators in urging the Administration to reject changes to the RFS that would upend stability and predictability for small businesses and rural communities.

Read the original release: Klobuchar on EPA Release of Proposed Renewable Fuel Standard Requirements

Sen. Franken’s Statement on the Proposed 2018 Renewable Fuel Standard Targets

Senator Al Franken

July 5, 2017

Press Release

Sen. Al Franken issued the following statement after the Environmental Protection Agency (EPA) announced its proposed Renewable Fuel Standard (RFS) targets for 2018.

The new proposal would allow the biofuel industry to blend 4.24 billion gallons of advanced biofuels-like biodiesel-and 15 billion gallons of ethanol into our nation's fuel supply during 2018.

"The Renewable Fuel Standard creates good jobs, promotes homegrown energy, and decreases our nation's reliance on foreign oil," said Sen. Franken. "While I'm pleased that the administration plans to maintain the 15 billion gallon target for conventional ethanol, the targets for biodiesel and other advanced biofuels fall short of what the industry is capable of producing. EPA Administrator Scott Pruitt has said the final rule will be out by the end of November, and I'll be doing everything I can to push the administration to strengthen the RFS for producers in Minnesota and across our nation."

The RFS was created as a way to expand our country's energy portfolio by requiring that gasoline is blended with renewable fuels like ethanol and biodiesel.

Read the original release: Sen. Franken’s Statement on the Proposed 2018 Renewable Fuel Standard Targets

Proposed Volume Standards for 2018, and the Biomass-Based Diesel Volume for 2019

2017 Announcements for the Renewable Fuel Standard

Proposed Volume Standards for 2018, and the Biomass-Based Diesel Volume for 2019

Rule Summary:

On July 5, 2017 EPA issued proposed volume requirements under the Renewable Fuel Standard program for cellulosic biofuel, advanced biofuel, and total renewable fuel for calendar year 2018. EPA also proposed biomass-based diesel volume standards for calendar year 2019. The proposed volume requirements are listed in the table below.

2017 RVOs RFS

Additional Resources:

Proposed rule (PDF)(89 pp, 849 K, pre-publication, signed July 5, 2017, About PDF)

Brazilian Ethanol Concerns Said to Drive Delay in EPA's Quotas

June 30, 2017

By Jennifer A Dlouhy and Mario Parker

Concerns that refiners will import ethanol from Brazil and biodiesel from Argentina to fulfill renewable fuel requirements prompted U.S. environmental chief Scott Pruitt to reconsider quotas for those fuels, according to people familiar with the program.

The issue has delayed the Environmental Protection Agency’s publication of proposed mandates for 2018, as Pruitt seeks revisions, according to four people tracking the deliberations. That may include lowering the targets so refiners can rely mostly on U.S.-made biodiesel and corn ethanol, they said.

EPA had previously sent the White House proposed quotas that would require the use of 15 billion gallons of renewable fuel, but the new concerns are causing the agency to rethink that approach, according to the people, who asked for anonymity to discuss internal deliberations.

The EPA debate comes as President Donald Trump pushes an America-first approach to trade. The administration is considering slapping tariffs on foreign-made products such as steel and aluminum in a bid to help domestic producers and support national security. After a meeting with South Korean President Moon Jae-in Thursday, Trump said that nation must stop exporting “dumped steel” into the U.S. market.

As part of his American energy focus, Trump told an Iowa audience this month: "By the way, we’re saving your ethanol industries." He also just spent this week touting "American energy dominance," and the ability of U.S. exports to supply the world’s energy needs.

These trade issues have already seeped into the biofuel markets. U.S. biodiesel producers filed a trade complaint against imports from Argentina and Indonesia, asking the government to impose tariffs to counter what they say are unfair subsidies and dumping.

Unlike those trade investigations, the EPA has a limited ability to discourage the use of imported biofuels under the congressionally mandated program. That program aimed to spur production of American-made fuel, but its quotas apply to all renewable fuels -- no matter their origin.

If the EPA does take measures to restrict imports, the net result would be a spike in the price of credits tracking compliance with renewable fuel mandates and that would "drive up consumer cost significantly," said Mike McAdams, president of the Advanced Biofuels Association.

"If you want to stick it to the consumer, Mr. Administrator, just roll back the number for imported fuels with your misguided America-first policy," McAdams, whose members include Brazilian-based producers, said in an interview. "You need imports to satisfy targets."

The delays could also make it harder for the EPA to hit a Nov. 30 deadline in federal law to finalize biofuel quotas for the following year. The Obama administration missed that deadline repeatedly, until last year when they came out on time. Pruitt has promised to keep the program’s timing on track and "honor the intent" of Congress in creating the mandates.

Representatives from the EPA did not respond to requests for comment.

Under the Renewable Fuel Standard, first created by Congress in 2005, refiners can use imports to help satisfy multiple mandates in the program and make up for domestic shortfalls. For example, while refiners use U.S. corn-based ethanol to fulfill the bulk of a 2017 requirement to blend in 15 billion gallons of conventional renewable fuels, they are turning to some foreign supplies to help them hit the target.

The U.S. imported 36 million gallons of ethanol from Brazil last year, down from more than 400 million gallons in 2012, according to the Energy Information Administration. U.S. distillers produced a record 15.3 billion gallons of ethanol in 2016, it said.

The EPA is tasked with dictating specific annual quotas, but the agency has limited authority to waive the statutory goals and set lower targets. And the breadth of the EPA’s leeway is in doubt, as a federal court weighs a biofuel industry lawsuit challenging the agency’s waivers issued under former President Barack Obama.

In addition to the overall biofuel target, the agency sets standards for biodiesel, typically derived from soybean oil; advanced biofuel, which has lower carbon emissions; and cellulosic ethanol, which comes from sources such as crop waste or algae.

Sugarcane-derived ethanol made in Brazil qualifies as an "advanced biofuel," which means it can satisfy quotas for two different types of fuel in the program -- both for advanced biofuel and total renewable fuel. Corn-based ethanol doesn’t qualify as advanced.

Imported biodiesel is particularly useful because it can help satisfy quotas for three different required fuels -- advanced, total and biodiesel. Under the program, refiners receive 1.5 compliance credits for each gallon of biodiesel they blend into petroleum.

Read the original story: Brazilian Ethanol Concerns Said to Drive Delay in EPA's Quotas

American Oversight Sues EPA to Release Communications with Carl Icahn

American Oversight

June 27, 2017

Press Release

American Oversight today filed suit against the Environmental Protection Agency (EPA) to force the release of communications with investor and White House advisor Carl Icahn, along with calendars and phone logs for Administrator Scott Pruitt and other top agency officials.

“President Trump tapping Carl Icahn to give advice on energy regulations is the definition of conflict of interest,” said American Oversight Executive Director Austin Evers. “We need to know what kind of influence Mr. Icahn has at the EPA to see if he has been shaping energy policy to benefit himself at the expense of American families. It seems Mr. Icahn, like so many other Trump administration officials, may be using his position for his own personal financial benefit.”

On December 21st, President-elect Trump announced his intent to appoint Carl Icahn to serve as a “special advisor” to the president on regulatory reform. Subsequent reports have indicated that Mr. Icahn may have used his role in the administration to advocate for regulatory changes that would benefit him financially. In particular, reports indicate that Mr. Icahn has used his influence at the EPA to seek changes to ethanol regulations that would have saved CVR Energy, one of his holdings, over $200 million in 2016.

Scott Pruitt has repeatedly shown himself to be malleable to industry influence both in his former role as the Oklahoma Attorney General and now as EPA Administrator. As attorney general Mr. Pruitt maintained close ties with the oil and gas industry as well as other sectors that he was responsible for scrutinizing. American Oversight seeks to learn the extent to which Mr. Pruitt has continued his pattern of maintaining unduly close relationships with those he was charged with regulating.

On April 5, 2017, American Oversight filed Freedom of Information Act (FOIA) requests with the EPA seeking communications between senior agency officials, including Administrator Pruitt, and Carl Icahn, as well as representatives of CVR Energy. Separately, American Oversight also requested calendars and phone logs for Mr. Pruitt and his top aides and officials at the EPA. After failing to receive an adequate response from the EPA, American Oversight filed suit today in the U.S. District Court for the District of Columbia to force the administration to release the records.

Mr. Evers continued, “In just 6 months in office, it seems President Trump and Scott Pruitt are letting the foxes take charge of the henhouse and abdicating regulatory authority to companies that stand to profit by undermining regulations.”

Click HERE to read the complaint that was filed today.

Read the original release: American Oversight Sues EPA to Release Communications with Carl Icahn

More Energy, More Choice

Morning Consult

June 27, 2017

By Robert Walther

The arrival of summer in Washington is typically marked by growing legions of tourists zipping along on Segways and a seemingly constant need to take shelter from sudden rainstorms better suited to the tropics. In the fuel business, because of one antiquated rule, the transition to summer is much more abrupt — and much less welcome. If not resolved, it could mean one thing evading the rest of the country is a cleaner, less expensive fuel option.

Every June 1, gas station owners must re-engineer their product offerings to accommodate a decades-old Environmental Protection Agency regulation that limits sales of E15, a fuel blend containing 15 percent homegrown, low-emission ethanol. The prohibition lasts until Sept. 15, and represents one of the greatest barriers to growth in America’s renewable energy industry. It also costs retailers millions of dollars to navigate the switch, and it forces E15 customers to buy less-appealing fuels for 5 to 10 cents more per gallon. Those costs can add up quickly during the summer driving season when prices are already above the norm.

In practice, the rule — a limit on Reid vapor pressure — was designed to hold down the evaporation of toxic petroleum-based chemicals during the warm summer months. But, because RVP limits were set years before higher ethanol blends were part of the calculation, the obsolete rule now forces retailers to offer less earth-friendly options at the pump for more than three months each year.

Fixing this technical glitch would be fairly simple, and even EPA Administrator Scott Pruitt has expressed his hope for a solution, but only an act of Congress can keep E15 beyond the reach of oil industry lawyers looking hold back any competition at the gas pump.

To overcome the opposition, Sens. Deb Fischer (R-Neb.), Joe Donnelly (D-Ind.), and Chuck Grassley (R-Iowa) brought together a broad, bipartisan coalition of lawmakers to introduce the Consumer and Fuel Retailer Choice Act, S. 517.

During a recent hearing of the Senate Committee on Environment and Public Works, Brooke Colman with the Advanced Biofuels Business Council testified that new markets for homegrown fuel are vital to attracting investment dollars and “critical to first-movers in commercial cellulosic ethanol production.” His point was reinforced in a letter from POET and dozens of other leaders in second-generation biofuels who noted that, “during the summer months alone E15 can reduce GHGs equivalent to taking 2.1 million vehicles off the road.”

A top executive from the nation’s largest E15 retailer, Sheetz, also explained to committee members that the fix would simply allow “greater consumer access for a fuel that is lower cost, higher performing, and better for the environment.”

And Janet Yanowitz at Ecoengineering Inc. summed up the science for committee members, reporting that “the available emissions test data indicates that replacing E10 with an E15 of the same vapor pressure will cause a slight decrease in emissions of ozone forming organic compounds and carbon monoxide, and no change in NOx.” Meanwhile, the U.S. Department of Agriculture, reported this year that homegrown ethanol reduces carbon emissions by 43 percent compared to gasoline, a number that continues to grow as petroleum production relies on increasingly destructive extraction methods. And if those carbon savings aren’t enough, the cellulosic ethanol produced at plants like POET’s Project Liberty can slash emissions by 85 to 95 percent or more. To be clear, cellulosic biofuels are the future of our industry and our company, but we need market headroom to scale up advanced energy sources.

The only real opposition comes from a few oil company executives who think that holding consumer choice hostage is a good way to force pro-biofuel lawmakers to negotiate with refinery owners such as Carl Icahn. They are even dusting off an old oil-funded study by the Coordinating Research Council, which claimed that E15 damaged engines, but was immediately rejected by the Department of Energy, which pointed out that the report was “significantly flawed” and relied on “unreliable and incomplete data.” No surprise then that legitimate testing by the DOE of 86 vehicles operated up to 120,000 miles each found “no statistically significant loss of vehicle performance.” In fact, the EPA approves E15 for all passenger vehicles built since 2001. And because E15 offers higher-octane, a lower cost, and cleaner air, it’s quickly gaining popularity among consumers in 29 states and counting.

That progress could be accelerated, and all it will take is a simple, bipartisan fix to one outdated summer fuel regulation. It’s time to act. Cleaner, less costly fuel is a goal that everyone can agree on, and we urge the Senate Committee on Environment and Public Works to act quickly to fulfill the promise of America’s growing biofuel industry and open a market that will continue to drive investment in the next generation of low-carbon fuels.

Read the original story: More Energy, More Choice

Representatives Press Pruitt On Icahn’s role In Shaping the RFS

Ethanol Producer Magazine

June 23, 2017

By Erin Voegele

On June 21, democratic leaders in the House Energy and Commerce Committee sent a letter to U.S. EPA Administrator Scott Pruitt asking him to detail policies and procedures the agency has put in place to prevent Carl Icahn from influencing the EPA’s position on the Renewable Fuel Standard for personal financial gain.

Icahn is the majority owner of CVR Energy, which is a petroleum refining company involved in the renewable identification number (RIN) market. In late December, he was also named as a special advisor to President Donald Trump on issues related to regulatory reform.

The letter details several statements made by Icahn criticizing the RFS and questions financial gains made by Icahn and his companies following reports of policy recommendations he has made regarding the RFS. According to the letter, CVR saw shares rise 10 percent the day after Icahn was named as a special advisor to the president.

“Recent reports about Mr. Icahn’s actions with respect to the Renewable Fuel Standard (RFS) program have raised significant ethical and legal concerns given his oil refinery business interests,” the members wrote. “The Committee has a longstanding interest in ensuring that the Administration operates transparently and in compliance with all applicable conflict of interest regulations and policies.”

The members continued, “These reports raise significant concerns regarding Mr. Icahn’s ability to advise President Trump impartially on regulatory matters that impact Mr. Icahn’s financial interests. This is especially troubling because, as an unpaid adviser, Mr. Icahn presumably has not undergone a review by the Office of Government Ethics and is not subject to conflicts of interest regulations applicable to government employees.”

The letter asks Pruitt to explain Icahn’s role in the discussion and development of agency actions regarding the RFS and asks the EPA to provide a copy of all communications or memos exchanged between Icahn and EPA personnel related to the RFS program. The letter also asks Pruitt to explain what disclosure is required by the EPA when it receives communication from unpaid advisors of the president; provide information pertaining to meetings and calls between EPA personnel and Icahn; explain EPA policies and procedures that govern disclosure of non-public, confidential or otherwise privileged information to individuals serving as unpaid advisors to the president; describe policies or procedures that ensure unpaid advisors do not have undue access to EPA officials; and discuss other actions the EPA has taken to safeguard against undue influence by the president’s unpaid advisors.

The letter is signed by Energy and Commerce Committee Ranking Member Frank Pallone, Jr., D-N.J.; Energy Subcommittee Ranking Member Rep. Bobby L. Rush, D-Ill.; Oversight and Investigations Subcommittee Ranking Member Rep. Diana DeGette , D-Colo.; Subcommittee on Environment Ranking Member Rep. Paul D. Tonko, D-N.Y.; and Democracy Reform Task Force Chair Rep. John Sarbanes, D-M.D.

The letter is the latest in a series of actions by federal lawmakers seeking answers to Icahn’s role in setting RFS policy. In May, a group of senators issued a letter to the heads of the U.S. Commodities Futures Trading Commission, the Securities and Exchange Commission and the U.S. EPA calling for an investigation of Icahn for potential insider trading, market manipulation and other securities and commodities law violations related to the market for RINs. In June, a separate group of senators sent a letter to Pruitt requesting any information the agency has on Icahn’s role in crafting policy and regulations at the EPA, particularly with regard to the RFS.

Read the original story: Representatives Press Pruitt On Icahn’s role In Shaping the RFS

More...

Nissan Brazil Ends Initial Tests of Ethanol Fuel Cell

June 16, 2017

By Fernando Calmon

Nissan was the auto industry's first company to develop a vehicle prototype powered by a solid oxide fuel cell (SOFC) that works with bio-ethanol. By combining this and two other technologies (electric motor and a 24 kW/h battery) range is in excess of 600km (375 miles).

Brazil was chosen by the Japanese automaker for the global reveal of the technology and initial testing due to its huge, nationwide ethanol supply network and being the world's second largest ethanol producer.

Testing was done with two SOFC-equipped e-NV200 electric vans made in Spain and fitted with an ethanol fuel tank of just 30 litres (6.6 imperial gallons).

The first testing cycle in daily use was accomplished in the last few months by the Nissan Brazil research and development team. The technology fitted perfectly with day to day use and with Brazil's 5% water, hydrous ethanol fuel.

The Fuel Cell e-bio's research and development programme was announced by Nissan in Yokohama, Japan, in June 2016. It was first unveiled on the eve of the Rio 2016 Olympic Games opening in Rio de Janeiro City in August last year at an event for smart mobility organised by Nissan.

The motor is clean, highly efficient and it works 100% on straight ethanol or on a mix of ethanol with up to 50% water, which would make it easier to use in countries with no ethanol production dependent on imports. Its emission are classified as carbon-neutral well to wheel.

The Fuel Cell e-Bio provides the usual strong acceleration and silent drive of any electric vehicle, together with low maintenance costs, but with the range of a fossil fuel-powered vehicle.

Bio-ethanol comes mainly from sugar cane and corn available in North and South American countries.

Read the original article: Nissan Brazil Ends Initial Tests of Ethanol Fuel Cell

U.S. Ethanol Organizations Applaud Mexico’s Adoption Of E10

By U.S. Grains Council

June 19, 2017

The Mexican Energy Regulatory Commission (CRE) announced recently a change that will increase the maximum amount of ethanol that can be blended in Mexican gas supplies from 5.8 percent to 10 percent, except in the cities of Monterrey, Guadalajara and Mexico City.

The announcement modifies the Mexican Official Standard NOM 016-CRE-2016 regarding the quality specifications for fuels by increasing the maximum volume content of anhydrous ethanol as an oxygenate in regular and premium gasolines in Mexico.

This change comes as part of ongoing energy reforms in Mexico and follows input from stakeholders in the government, private sector, research scientists and social interest groups.

Mexico’s regulators moved in August 2016 to allow ethanol in local fuel supplies, except in its three largest metropolitan areas. In its decision, the CRE recognized the benefits of E10, which will help demonstrate that a 10 percent ethanol blend can positively contribute to air quality improvement and reduced cancer risk throughout the country. The Mexican Institute of Petroleum is also studying the merits of E10 blends.

The decision moves Mexico toward global standards in the use of renewable and sustainable energy resources like ethanol that offer environmental, economic, social and public health advantages over other additives and oxygenates for gasoline.

“We are pleased to see this decision, which is the culmination of significant work by Mexican authorities and industry as they continue to diversify and improve their fuel supplies,” said Tom Sleight, U.S. Grains Council (USGC) President and CEO. “We appreciate the opportunity to work with Mexican leaders as they seek to build their own biofuels industry and offer cleaner fuels for the Mexican people.”

“We’re strongly encouraged by this announcement, which clears the way for further adoption of ethanol into the Mexican fuel supply,” said Growth Energy CEO Emily Skor. “By doing so, Mexican consumers will see how embracing ethanol will reduce harmful emissions, help contribute to a cleaner environment, and will create a stronger rural sector.”

“We are greatly encouraged by Mexico’s recent decision to allow the sale and use of 10 percent ethanol (E10) as part of its fuel market reform efforts,” said Renewable Fuels Association President and CEO Bob Dinneen. “By permitting the use of E10 in its fuel market, Mexico will have blend levels consistent with fuel sold and used throughout the United States and Canada. Not only will Mexico be able to achieve greater octane and oxygenate benefits from using E10, it will help to drive trade and investment in its ethanol fuel sector. We hope the Mexican Institute of Petroleum will soon conclude its study, and are confident the study will affirm the air quality benefits of the use of E10 in the country’s most populous cities, thereby allowing it to be used in all regions of the country.”

Read the original story: U.S. Ethanol Organizations Applaud Mexico’s Adoption Of E10

Senate Hearing Reviews E15 Bill; Path Forward Unclear

June 14, 2017

By Spencer Chase

A hearing of the Senate Environment and Public Works Committee left backers of a bill that would expand sale of higher ethanol blends encouraged, but the legislation has an uncertain future.

The hearing examined the Consumer and Fuel Retailer Choice Act (S.517), which would alter the Clean Air Act to allow for the sale of blends of ethanol like E15 to be sold in the summer. Currently, Reid vapor pressure restrictions are only waived for E10, a 10 percent blend that accounts for most of the fuel sold in the U.S.

While the hearing did examine the legislation, it wasn’t a formal markup of the bill. Sen. Chuck Grassley, an Iowa Republican who is one of the bill’s 17 co-sponsors, told reporters yesterday that he hoped to see a markup next week, but Committee Chairman John Barrasso told Agri-Pulse that isn’t going to happen.

“It’s not going to be next week,” the Wyoming Republican said. Asked whether the committee would pursue a markup, he said that a markup of the bill “has been promised” to Sen. Deb Fischer, R-Neb, the bill’s sponsor, but did not mention a timeline.

Speaking to reporters after the hearing, Delaware Democrat Tom Carper, the committee’s ranking member, said he sensed a “willingness to hold a hearing, not an eagerness to move toward a markup.”

Biofuel industry sources tell Agri-Pulse the current estimate is for a markup sometime before the August recess. But when the bill eventually does move, it may have to overcome opposition from committee leadership.

Barrasso said at the beginning of today’s hearing that he doesn’t support the bill, but said it deserved “a full and fair hearing before this committee.” Additionally, Carper told reporters after the hearing that if his concerns about how the legislation would impact the volatility of the Renewable Identification Number (RIN) market aren’t addressed, then he “could not support the bill as it is.”

A bipartisan contingent of senators, however, threw their weight behind the bill. Besides Fisher, Republicans Mike Rounds of South Dakota, Joni Ernst of Iowa and Democrat Tammy Duckworth of Illinois all spoke favorably of the legislation.

Mike Lorenz is an executive vice president with Sheetz, a retailer that sells E15. He said that after millions of transactions from thousands of customers, “we have not had a single customer complaint or any cases of misfueling.” Todd Teske, the chairman, president, and CEO of Briggs & Stratton, reiterated his concern over misfueling, however, by pointing to damaging impacts that could come about if small engines used fuel blended with more than 10 percent ethanol.

Ethanol skeptics on the committee like Oklahoma Republican Jim Inhofe also spoke against the bill, saying it would be another victory for corn ethanol and the Renewable Fuel Standard. But Brooke Coleman, the executive director of the Advanced Biofuels Business Council, said advanced biofuels like cellulosic ethanol could also benefit from the legislation. He pointed to difficulties some cellulosic projects face in securing funding because of an uncertain demand picture, and he said the bill could shore up confidence among investors.

“This will fundamentally change that conversation,” Coleman said at the hearing. “Basically, you’ll have an ethanol industry that gets to the next level from an innovation standpoint.”

After the hearing, Coleman pointed out that opponents of the legislation will seek to pit cellulosic and other advanced biofuels against conventional corn ethanol, but he said the industry can’t let that happen. He said the same groups of lawmakers that helped pass the RFS in the first place can also play a role in backing S.517 and companion legislation in the House.

“The coalition that built the RFS was a broad, bipartisan, middle of the country, coastal America coalition, and there’s no reason to break that down.”

Read the original story: Senate Hearing Reviews E15 Bill; Path Forward Unclear

Poll: Small Engine Owners Power Up on Ethanol Blends

Global News Wire

June 13, 2017

By Growth Energy

Growth Energy released a new survey showing that U.S. small engine owners are pleased with the performance of their fuel and find it easy to pick the best option, including regular unleaded blends of 10 percent ethanol (E10). Conducted by Quadrant Strategies, the random poll of 500 owners of lawnmowers, snow blowers, leaf blowers, weed whackers, and other small engines also found that nine in 10 respondents considered it important to have options at the pump that include ethanol blends.

“Consumers appreciate having clean, affordable options at the pump, and small engine owners are no exception,” said Emily Skor, CEO of Growth Energy. “Biofuel critics like to claim that competition at the pump leads to confusion, but they obviously haven’t checked with American consumers who report that choice at the pump and small engine performance go hand-in-hand. Not only is picking the right fuel easy and worry-free, nearly every single respondent was satisfied with the performance of their fuel, including those using a standard 10 percent blend.”

According to the survey, 95 percent of owners found it easy to pick the right fuel, 98 percent reported satisfaction with their fuel’s performance, and 90 percent considered it important to have options at the pump, including ethanol blends. The numbers were the same or even higher among only those respondents who reported using standard unleaded gasoline, which contains 10 percent ethanol.

“Ninety-seven percent of all fuel sold in the U.S. contains 10 percent ethanol, which is a high-performance option for all common outdoor equipment,” said Donn Larson, President and CEO of Larson Sales, Inc., one of America’s premier outdoor power equipment distributors, with a network of hundreds of dealers, covering a large part of the north central United States. “Ethanol provides a non-toxic octane boost to fuel, and owners report that picking the right blend is as simple as reading the label on every pump. It also reduces the need for freeze-preventing additives, which is great for snow blowers.

The survey also questioned small engine owners about how ethanol’s benefits impact their views of the homegrown fuel. 78 percent appreciated that ethanol replaces dangerous chemicals in gasoline like MTBE, 85 percent were pleased to learn that all major small engine manufacturers warranty their engines for 10 percent blends, and 88 percent valued that ethanol reduces America’s dependence on foreign oil. The same share, 88 percent, reacted positively to ethanol’s air quality benefits and the fact that it cuts carbon emissions by 43 percent.

Read the original release: Poll: Small Engine Owners Power Up on Ethanol Blends

RFS Has Been ‘Tremendous Success’ Since Adoption, According to RFA Analysis

Renewable Fuels Association

June 7, 2017

By Emily Druckman

More than a decade after the original renewable fuel standard (RFS) was signed into law, tremendous progress has been made toward its goals of energy security, clean air and boosting local economies, according to a new analysis by the Renewable Fuels Association, “RFS Impacts: By the Numbers.” The analysis comes as EPA is expected to soon issue its proposed 2018 renewable volume obligations (RVOs) under the RFS.

Congress adopted the RFS in 2005 and expanded it in 2007. The program requires oil companies to blend increasing volumes of renewable fuels with gasoline and diesel, culminating with 36 billion gallons in 2022.

“The data show that by any objective measure, the RFS has been a tremendous success,” according to the analysis, which looks at data on how the world has changed since adoption of the RFS. Specifically, the analysis compares key data points and indicators from 2005 and 2007 to data from 2016.

Among the highlights:

-The number of operational U.S. ethanol plants has grown from 81 in 2005 to 213 in 2016, while ethanol production has grown from 3.9 billion gallons to 15.3 billion gallons, a nearly 300% increase;

-U.S. ethanol industry jobs grew 121 percent from 153,725 in 2005 to 339,176 in 2016, and the value of the industry’s output quadrupled from $8.1 billion to $32.8 billion;

-U.S. corn production has grown from 11.1 billion bushels in 2005 to 15.2 billion gallons in 2016, a 36 percent increase, while average yields grew from 147.9 bushels per acre to 174.6 bushels per acre;

-U.S. petroleum net import dependence has dropped from 60% in 2005 to 25% in 2016, and would have been 33% last year without ethanol;

-The number of retail gasoline stations offering flex fuels like E85 to flexible fuel vehicles (FFVs) grew 728 percent from 2005 to 2016, while the number of FFVs on the road grew 239 percent; and

-Ethanol’s role in cleaning the air has increased, with notable reductions in emissions of both greenhouse gases and criteria pollutants.

Meanwhile, the negative outcomes that opponents of the RFS suggested would occur simply have not materialized:

-Corn acres in 2016 were only 0.5 percent larger than in 2007, while total cropland was down more than 20 million acres (5 percent);

-Corn prices in 2016 were actually 19% lower than in 2007, while the corn surplus was 42% larger;

-Water use for irrigating corn trended lower, while the size of the Gulf hypoxia zone shrunk 14 percent between 2007 and 2016;

-Deforestation in the Amazon fell 58 percent between 2005 and 2016;

-Retail food price inflation was just 0.3 percent in 2016, compared to 2.4 percent in 2005 and 4 percent in 2007;

-Prices for red meat, poultry, fish, cereals and bakery items, and dairy actually experienced price deflation in 2016, compared to modest inflation in 2005 and 2007;

-U.S. milk production in 2016 was 20 percent higher than 2005, while red meat and poultry production was up 12 percent; and

-The U.N. global food price index was just 0.1 percent higher in 2016 than it was in 2007, while the number of people undernourished worldwide was down 16 percent.

“As this analysis clearly shows, the RFS has made a huge impact on consumers, providing them with greater choice at the pump, while cleaning the air and boosting local economies,” said RFA President and CEO Bob Dinneen. “With EPA expected to propose its 2018 RFS obligations in the near future, the agency needs to look no further than this document for what impact this vital program has had on our nation. We look forward to EPA continuing to implement a strong RFS to ensure future growth for our industry and the positive impact it has throughout all sectors of our economy.”

The full analysis is available here.

Read the original press release: RFS Has Been ‘Tremendous Success’ Since Adoption, According to RFA Analysis

E15 Biofuel in NASCAR and Spreading Across the Country

Independent Tribune

June 5, 2017

By Erin Kidd

When Austin Dillon crossed the finish line and made his way to Victory Lane at the Coca-Cola 600, there were smiles from all of his supporters and probably from Dr. Andy Randolph, technical director of ECR Engines.

ECR Engines is a high-performance engine production, research and development company located on the Richard Childress Racing campus in Welcome, North Carolina. The company makes engines for Richard Childress Racing, for which Dillon is a driver.

“If you think of building an engine like making dinner, my role is to define an engine recipe; one that will make good power and have good durability,” Randolph said. “Then, a whole group of people make engines to that recipe. They are all hand-built. It’s like a mini-automotive company.”

Randolph has been part of five NASCAR Cup teams in his career, and recently visited the University of North Carolina at Charlotte to give a presentation on engine performance and ethanol-based biofuel E15, which has been used by NASCAR exclusively since 2011.

During his presentation, he gave some insight into why E15 biofuel is a valuable alternative for high-performance vehicles and everyday cars.

“I really just talked to them about ethanol as a fuel for automotive engines as a whole, going over advantages and disadvantages,” Randolph said. “I enjoy talking to students. They tend to come in unbiased and generate opinions based on facts. They also learn a few things and like to watch things explode.”

Randolph’s research focuses on the combustion properties of alcohol/diesel and alcohol/oil blends and has contributed to five NASCAR championships with three different teams.

He said the key to high-performance road cars is having high-octane fuel, which can be accomplished in many ways. Until about 2006, Randolph said NASCAR teams used leaded fuel.

“Lead has high octane characteristic with very bad blood toxins,” Randolph said. “In the sport, you are handling the fuel and practically drinking it every day. People didn’t want to die from lead poisoning or grow an arm out of their head.”

Eventually teams went to unleaded, but Randolph believes that ethanol is the way to go and the safest.

He told UNCC students that with ethanol, hydrogen burns very clean while gasoline produces more carbon emissions when burned.

“Ethanol burns with a very transparent, blue flame. The ethanol molecule has oxygen in it. To have combustion you need fuel and oxygen. Gasoline doesn’t have any oxygen itself. When you don’t have the perfect ratio of gasoline to air, the flame will get yellow or black,” Randolph said. "With ethanol, there is oxygen in the fuel; therefore the carbon doesn’t have to only get its oxygen out of the air. That allows it to burn much cleaner.”

Randolph also said that ethanol is the least expensive octane booster. And people that choose to fuel their personal vehicles with it, will end up spending less at the pump.

"The first thing skeptics point to is that you tend to have a very small decrease in fuel mileage. The reason is because it takes more volume of fuel to make a given amount of energy,” Randolph said. “The counter argument to that is it’s considerably cheaper. I tend to worry about how much it costs me to drive. I worry more about miles per dollar than miles per gallon.”

E15 is available in 29 states, including North Carolina.

Read the original story: E15 Biofuel in NASCAR and Spreading Across the Country

Waste Not, Want Not: Byproduct of Ethanol Industry Makes Suitable Cattle Feed Supplement

June 7, 2017

Making a living raising cattle isn't as simple as just buying a herd and turning it out to pasture. Cattle require specific diets to maintain proper nutrition and weight gain. And how to do this in the most effective and efficient way possible has interested both ranchers and researchers for generations.

Scientists in Texas are interested in how seasons affect how well cattle can digest a type of Bermuda grass, Tifton 85. In a recent study, they found that as seasons progress, the grass becomes harder to digest. However, by supplementing with the dried distillers' grains, this effect can be minimized.

Dried distillers' grains are left over after ethanol production. They are what remains of the ground corn used for fermentation.

"Due to the ramp-up in ethanol production over the past few decades, there has been an abundance of this byproduct in the beef industry," explains Monte Rouquette, a professor with Texas A&M AgriLife Research. "Originally viewed as a waste product of the industry, research began looking into other uses of the byproduct."

He adds that using it as food for livestock is an efficient use of this product. The value-added aspect has moved the grains from wasted to wanted.

The dried grains are now commonly used as a relatively cheap source of feed. In some instances, it can replace primary feed ingredients like corn or soybeans. Some supplements provide additional energy, some more protein, and others minerals. The distillers' grain is used for both protein and energy.

How does this fit with the forage season? Tifton 85 Bermuda grass is a common forage grass across the south and southeast United States. However, as the plants mature, they become harder for livestock to digest. The cattle have a harder time extracting nutrients from the grass. The grains can help add back those nutrients.

The results of this study, conducted by W. Brandon Smith as part of his PhD research, point to a potential two-season grazing strategy, based on animal size, weight, and age. For example, lightweight animals could graze in the early summer without the grain supplement because the grass is able to give them the needed nutrients to thrive.

In the later part of the summer, the matured animals could graze with the distillers' grain supplement. The grain would add back some of the nutrients the cattle lose out on when the grass is further into season.

This research allows the scientists to determine the most effective and efficient way to use distillers' grains as a supplement. They can learn how much is best to give, when is best to give it, and how much return it can provide a rancher.

"These data can then be used in an economic assessment to provide a baseline of potential responses from the use of a supplement," says Rouquette. "This work is of interest to us me because it sheds light on changes that occur chemically within the plant across the year that affect its digestibility."

Read the original story: Waste Not, Want Not: Byproduct of Ethanol Industry Makes Suitable Cattle Feed Supplement

U.S. Senators Press EPA for Documents on Icahn's Biofuel Dealings

June 6, 2017

By Valerie Volcovici

Five Democratic senators asked the Environmental Protection Agency in a letter on Tuesday to hand over documents relating to the role of Carl Icahn, a refining company owner, in shaping biofuels policy at the agency.

Lawmakers have for months raised concerns that Icahn's dual role as a high-powered investor and an adviser to President Donald Trump on regulation could lead to conflicts of interest. Icahn, a billionaire, owns the oil refining company CVR Energy , which is heavily impacted by U.S. policies requiring refiners to blend biofuels into their gasoline and diesel.

The senators - Sheldon Whitehouse, Elizabeth Warren, Debbie Stabenow, Jeff Merkley and Tammy Duckworth - addressed the letter to EPA Administrator Scott Pruitt, requesting that he hand over communications between the EPA and Icahn or representatives of CVR Energy.

They also requested reports, data and briefings exchanged between the agency and Icahn.

"Statements made by him or actions taken by his companies may now be seen as signaling changes in EPA or administration policy which may, in turn, affect the price of CVR stock and the RIN market," the senators wrote in a letter sent to Pruitt on Tuesday.

A RIN, or Renewable Identification Number, is the name given to biofuels blending credits that many refiners are required to purchase under the U.S. biofuels regulation.

In February, Icahn, who is an unpaid adviser to Trump, submitted a proposal to the White House to change the U.S. biofuels program, the Renewable Fuel Standard, in a way that would ease the burden on oil refining companies, including his own.

A Reuters review of corporate filings in April showed that Icahn's company had also taken a large short position on biofuels credits - a bet that prices for biofuels credits would fall - that would have yielded big profits if the White House adopted the proposal.

White House officials have said the EPA is now considering Icahn's proposed overhaul to the biofuels program.

The senators gave Pruitt until June 16 to provide the information. The letter comes after the senators twice asked the White House and Icahn for information about his biofuels dealings but received no response.

Those senators last month sent a letter to the U.S. Commodity Futures Trading Commission, urging that it probe Icahn's activity in the market. The CFTC on Monday informed them and four other senators that it will not investigate the credits because RINS are not traded on futures markets.

Read the original story: U.S. Senators Press EPA for Documents on Icahn's Biofuel Dealings

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