Ethanol Groups Submit Comments on Proposed RVOs

Cindy Zimmerman

Ethanol organizations submitted comments to the Environmental Protection Agency Friday on its Proposed Volume Standards for 2020, 2021, and 2022 under the Renewable Fuel Standard (RFS).

The Renewable Fuels Association expressed strong support for the agency’s proposed 2022 renewable volume obligations (RVO) while opposing the proposed retroactive reduction of the previously finalized 2020 RVO requirements.

RFA President and CEO Geoff Cooper wrote that the organization is “strongly supportive of the proposed volumes for 2022 for all categories of renewable fuel,” but noted that ethanol producers are “very troubled by EPA’s questionable proposed use of its ‘reset’ authority to reopen the 2020 RVO.” According to Cooper, retroactively revising the 2020 RVO “…would set a dangerous precedent and contradict the agency’s long-held position that it does not have the authority to retroactively adjust RFS standards once finalized.”

The American Coalition for Ethanol (ACE) submitted similar comments that also urge EPA to withdraw the proposed cut for 2020 and maintain volumes realized during that year, citing the unprecedented, unnecessary, and legally dubious nature of the proposal to retroactively reduce the volumes.

Both groups express support for EPA’s plan to restore the 500 million gallons unlawfully waived in 2016 by implementing a 250-million-gallon supplemental volume remedy for 2022 and 2023.

ACE, EPA, Ethanol, Ethanol News, RFA

Clean Fuels in the Age of Decarbonization

Carrie Muehling

Biodiesel, renewable diesel and sustainable aviation fuel can work together to provide solutions for decarbonization.

A panel at the 2022 National Biodiesel Conference and Expo discussed ways the industry can begin to meet the needs of growing and expanding markets when it comes to reducing carbon. One key message was shared by Gary Louis of Seaboard Energy.

“We realize, as a food company, food is fuel. You cannot separate the two. The renewable fuels industry has brought more value to the food industry,” said Louis. “If it’s good for food, it’s good for fuel.”

Randall Stuewe of Darling Ingredient agreed.

“It’s not food versus fuel; it’s food and fuel. We can add value both from the food and the fuel side,” said Stuewe.

The panelists shared the opinion that there is plenty of feedstock for this growing and changing industry to remain viable in helping to meet the goal of reducing carbon today and in the future. Listen to the entire discussion to hear more about these opportunities and challenges.

Moderator: Matt Herman, Clean Fuels Alliance America
Speakers: Randall Stuewe, Darling Ingredient; Cynthia Warner, REG; Gary Louis, Seaboard Energy; Gene Gebolys, World Energy
NBB22 - Age of DeCarbonization Panel (51:32)

advanced biofuels, Audio, aviation biofuels, Biodiesel, Biodiesel Conference, Clean Fuels Alliance

#NBB22 Ponders Future of RFS

Carrie Muehling

Moderated by National Biodiesel Board’s Kurt Kovarik, a group of panelists discussed the history and potential future of the Renewable Fuels Standard at the 2022 National Biodiesel Conference and Expo.

Former Senator Byron Dorgan outlined the steps taken over the past nearly 30 years to bring alternative and renewable fuels including biodiesel to where they are today. He said the political environment has changed, but pressure from farm organizations and commodity groups will continue to be important to further grow the industry.

Former Congressman John Shimkus shared similar thoughts, noting that the current support for electric vehicles does not fully extend to rural America and he believes renewable fuels like biodiesel can continue to bridge that gap.

Eric Washburn with Windward Strategies noted that the original legislation that provided the Renewable Fuels Standard should have mandated more infrastructure, as that continues to be a challenge. Moving forward, he pointed to the local and cultural nature of politics and the fact that there is currently not a lot of Midwestern representation in the White House, which impacts energy policy.

Tara Billingsley with Massie Partners stressed the importance of understanding that the Renewable Fuels Standard was a bipartisan issue that helped to get energy legislation across the finish line and is the only place in federal law that requires greenhouse gas emission reductions. 2022 will see changes to the RFS, but many of those are already in place for biodiesel.

Listen to the entire panel discussion for more thoughts on where the RFS is headed and how that will impact the biodiesel industry.

RFS Panel – Kurt Kovarik, NBB; Hon. Byron Dorgan, Arent Fox; Hon. John Shimkus, KBS Group; Eric Washburn, Windward Strategies; Tara Billingsley, Massie Partners
NBB22 RFS Panel (56:35)

advanced biofuels, Audio, aviation biofuels, Biodiesel, Biodiesel Conference, biofuels, Clean Fuels Alliance

Iowa House Passes Biofuel Access Bill

Cindy Zimmerman

Iowa moved one step closer this week to higher blends of ethanol and biodiesel statewide as the Iowa State House passed the 2022 Biofuel Access Bill by an overwhelming bipartisan majority.

Iowa Renewable Fuels Association Executive Director Monte Shaw says they are urging the state Senate to take the bill up quickly. “We also want to thank Gov. Reynolds for prioritizing biofuels choice for Iowans and leading the way. Promoting biofuels has never been a partisan issue and today we saw what can be accomplished when we focus on what’s best for Iowa’s future.”

The legislation would offer E15 statewide by 2026 and update the E15 promotion tax credit to $0.09 per gallon year-round through 2025. The bill also includes several reforms to biodiesel tax credits to boost access to B20 and to put more money in the Road Use Tax Fund.

Biodiesel, biofuels, E15, Ethanol, Ethanol News

MN Ethanol Industry Bounces Back in 2021

Cindy Zimmerman

Minnesota’s ethanol production and demand recovered last year from the slowdown in 2020, producing 1.27 billion gallons of ethanol in 2021, 33 percent higher than 2020’s volume, according to a new study by the University of Minnesota Extension.

The study found the ethanol industry contributed $1.3 billion in income for Minnesota residents while paying $123 million in state and local taxes. “This new study once again illustrates the importance of Minnesota’s ethanol industry to the state’s economy,” said Tim Rudnicki, executive director of the Minnesota Bio-Fuels Association.

The study said Minnesota’s ethanol industry used 454.1 million bushels of corn in 2021. This represented 31 percent of the 1.5 billion bushels harvested in Minnesota in 2021. The industry also produced 3.7 million tons of dried distillers grains with solubles (DDGS) and 332.3 million pounds of corn oil in 2021.

Ethanol, Ethanol News

RFA Partners with Hauk Designs on Flex-Fuel Can-Am UTV

Cindy Zimmerman

The Renewable Fuels Association is once again working with Hauk Designs on a new project that takes higher blends of ethanol to new places.

Following the successful flex-fuel Jeep Wrangler project in 2019, RFA and the Missouri Corn Merchandising Council are working together on a new Can-Am X3 project running on low-carbon E85 fuel, to be featured on Season 4 of the popular Hauk Machines television program.

“Kenny Hauk and his team once again helped us with an exciting project that will show the power of ethanol for those who like to take their fun off-road,” said RFA Vice President for Industry Relations Robert White. “As with all our projects, we want to demonstrate the many benefits of renewable fuels like ethanol and show how they can be used in recreational vehicles, whether those are Can-Am UTVs, motorcycles, snowmobiles, or fishing boats.”

A teaser for Season 4, showing the Can-Am playing in the snow before this project started and also showing off the 1200-hp RFA flex-fuel Jeep Wrangler, is now available online. Mini-episodes of the show will air on RFA social media when available.

E85, Ethanol, Ethanol News, Flex Fuel Vehicles, Renewable Fuels Association, RFA

Nuseed and bp Contract for Carinata as Biofuel Feedstock

Cindy Zimmerman

Nuseed and BP Products North America (bp) have entered into a 10-year strategic agreement for the use of Carinata oil in the production of sustainable biofuels.

Nuseed Carinata is a non-food cover crop that can be used to produce low-carbon biofuel feedstock that is independently certified, sustainable and scalable.

Increased global demand for biofuels is being driven by the need to access sustainable sources of energy to help achieve global greenhouse gas (GHG) reduction targets.

“Sustainable biofuels have a vital role to play in decarbonizing transport, said Carol Howle, executive vice president, trading & shipping at bp. “By working with Nuseed, we can use their sustainable feedstock to help decarbonize challenging transportation sectors such as aviation, supporting the production of sustainable aviation fuel (SAF) and other biofuels.”

Nuseed Group Executive Brent Zacharias said, “Nuseed Carinata is a proven, drop-in solution for biofuel processors that’s ready to scale globally on existing farmland between main food crops. Nuseed Carinata demonstrates how agriculture and energy companies can work together to meet demand for biofuels that lower lifecycle carbon emissions. This agreement enables us to accelerate the expansion of Carinata production to increase biofuel feedstock sustainably, while supporting higher economic returns on Nuseed’s investment in the Carinata platform.”

Nuseed is currently increasing commercial production in Argentina and planning expansion programs in South America and the United States. bp produces renewable diesel from biomass-based feedstocks and expects to initially target low-carbon biofuel markets in Europe and North America, including in the United States where it recently announced a project to expand renewable diesel production capability to an estimated 2.6 million barrels a year in 2022.

advanced biofuels, aviation biofuels, Carbon, feedstocks

Senators Urge Support for RFS

Cindy Zimmerman

A bipartisan group of U.S. senators led by Chuck Grassley (R-IA) and Amy Klobuchar (D-MN) sent a letter this week urging the Environmental Protection Agency (EPA) to prioritize the Renewable Fuel Standard (RFS) and to support biofuels.

Specifically, the lawmakers call on the Biden administration to maintain the blending requirements for 2022; deny all pending Small Refinery Exemptions (SREs); eliminate proposed retroactive cuts to the renewable volume obligations (RVOs); and set 2021 RFS volumes at the statutory levels.

The senators write that by the Biden administration taking those actions, “the EPA can quickly restore integrity, stability, and growth to the RFS and the U.S. biofuel sector while ensuring that the program continues to reduce greenhouse gas emissions, diversify our fuels, drive down gas prices, strengthen our national security, and drive rural economic opportunity.”

“These senators understand that the RFS is the most powerful and effective tool we have to immediately reduce greenhouse gas emissions from the transportation sector, keep consumer gas prices in check, and support a vibrant rural economy,” said Renewable Fuels Association (RFA) President and CEO Geoff Cooper. “RFA proudly stands with them in calling on the Biden administration to follow through on its commitments to put the RFS back on track.”

“As EPA prepares to make several important announcements regarding the RFS this year, the bipartisan backing and leadership of these senators is greatly appreciated,” American Coalition for Ethanol (ACE) CEO Brian Jennings said. “By taking the senators’ recommendations … EPA can fully utilize the RFS for its enacted purpose, to replace petroleum with low carbon alternatives, which will help grow demand for biofuels that benefit rural America as well as the Administration’s decarbonization goals.”

EPA’s public comment period on its proposals to cut the 2020 RVO and establish RVOs for 2021 and 2022 ends on Friday, February 4.

ACE, EPA, Ethanol, Ethanol News, Renewable Fuels Association, RFA

EPA to Host Biofuel Greenhouse Gas Modeling Workshop

Cindy Zimmerman

The Environmental Protection Agency (EPA) is hosting a virtual public workshop on biofuel greenhouse gas (GHG) modeling February 28 – March 1.

This workshop seeks to solicit information on the current scientific understanding of greenhouse gas modeling of land-based biofuels and how this information can be applied to a range of current and future actions. EPA is explicitly seeking comment on the following questions: 1) what sources of data exist and how can they be used to inform the assumptions that drive GHG estimates; 2) how best to characterize the sources of uncertainty associated with quantifying the GHG emissions associated with biofuels; and 3) what model(s) are available to evaluate the lifecycle GHG emissions of land-based biofuels, and do the model(s) meet the Clean Air Act requirements for quantifying the direct and significant indirect emissions from biofuels.

The information gathered through the workshop will be used by EPA for quantifying the greenhouse gas emissions under the Renewable Fuels Standard, including how to incorporate the best available science into updating the lifecycle analysis (LCA) used for biofuels, and “what steps EPA should take next in this work area.”

Due to the COVID-19 pandemic, this workshop will be held virtually only using Zoom.
Registration link: https://usepa.zoomgov.com/webinar/register/WN_GQe27rZQR2aRaqZ3GdSvcw

Biodiesel, biofuels, Carbon, EPA, Ethanol, Ethanol News

Seven Receive National Ethanol Conference Scholarships

Cindy Zimmerman

The Renewable Fuels Foundation has awarded seven recipients with the Robert Sather Memorial Scholarships to attend the annual National Ethanol Conference (NEC).

Those receiving scholarships include Jean Claude Mbarushimana, a Virginia Tech graduate student studying agricultural and applied economics. In addition, six members of the Renewable Fuels Association Young Professionals Network will be attending on scholarship: Daehwan Kim, an Assistant Professor of Biology at Hood College; Justin Diehm, Commodity Manager at East Kansas Agri-Energy; Kyle Sonderman, Lab Manager at Show Me Ethanol; Traci Menke, Executive Assistant at Renewable Fuels Nebraska; Jessica Sodeke, Ethanol Program Manager at Nebraska Ethanol Board; and Joe Shanle, Plant Manager, Trenton Agri Products.

Now in its 13th year, the NEC scholarship program was named in honor of Robert “Bob” Sather, an educator who helped found RFA member company Ace Ethanol in Wisconsin. Sather was a longtime Chair of the Renewable Fuels Foundation and the aim of the Bob Sather Memorial Scholarship is to encourage young adults aspiring to a career related to renewable fuels.

The 27th annual National Ethanol Conference takes place February 21-23 in New Orleans and is the nation’s most widely attended executive-level conference for the ethanol industry.

Ethanol, Ethanol News, National Ethanol Conference, Renewable Fuels Association, RFA