Renewable Energy Group Closes Houston Biodiesel Plant

Cindy Zimmerman

Renewable Energy Group (REG) has announced the closing of its 35 million gallon per year biodiesel production facility located near Houston, Texas. The company acquired and commissioned the plant in 2008 and has been operating it since.

“We have made the decision not to renew the lease for our REG Houston biorefinery, which would have imposed an uncompetitive fixed cost on the plant,” said REG President & CEO Cynthia ‘CJ’ Warner. “The plant has run very well but has always been relatively challenged due to its leasing agreement coupled with a lack of REG’s hallmark multi-feedstock processing capability.”

The company is currently working with plant employees on relocation opportunities within the production network. The company will completely shut down the Houston plant in November 2021.

“It is never an easy decision to shut down a plant. We greatly appreciate the team at REG Houston for their dedication to safety and operational excellence,” said Warner. “Within our larger system, we remain focused on executing our growth strategy and we will continue to work with our existing customers and vendors to provide clean fuel solutions that are delivering meaningful carbon reduction today.”

Biodiesel, REG

RFA Celebrates 40 Years of Industry Leadership

Cindy Zimmerman

RFA CEO Geoff Cooper and Chairperson Jeanne McCaherty

The Renewable Fuels Association celebrated 40 years of industry leadership this week during its annual membership meeting in Des Moines. Jeanne McCaherty, CEO of Guardian Energy Management, was re-elected as chairperson. She became the first female chairperson elected in the history of RFA last year, and first among any national ethanol trade association.

“Without question, 2021 has been a year of change for the ethanol industry, and through it all the Renewable Fuels Association has continued to lead the industry forward, just as the organization has done for 40 years,” McCaherty said. “Our recent carbon neutrality commitment is a poignant example of RFA’s reputation as a thought leader and an agent of change, and I look forward to working with RFA’s members and staff this next year as we embrace change and zero in on new opportunities for ethanol.”

RFA’s board also re-elected Badger State Ethanol CEO Erik Huschitt as Vice Chairman, and Absolute Energy’s Rick Schwarck as Secretary. Mike Jerke, CEO of Southwest Iowa Renewable Energy, was elected Treasurer, replacing the retiring Charlie Wilson of Trenton Agri Products.

RFA also welcomed new members this week. EcoEngineers and Cozairo Consultants became the organization’s newest associate members, while ICM, Inc. was welcomed as the group’s newest producer member. “RFA has had a long and fruitful relationship with ICM as an associate member, and we are thrilled to now welcome the company and its ICM Biofuels biorefinery to our producer member ranks,” said RFA President and CEO Geoff Cooper. “ICM CEO Dave VanderGriend is one of the true pioneers in the ethanol industry, and he’s been a longtime friend of the RFA. We’re pleased to have Dave joining our board of directors and look forward to working more closely with the entire ICM team.” VanderGriend received RFA’s annual industry award in 2012.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

USDA Announces Climate Smart Efforts

Cindy Zimmerman

Agriculture Secretary Tom Vilsack announced a new initiative Wednesday to “finance the deployment of climate-smart farming and forestry practices to aid in the marketing of climate-smart agricultural commodities.”

USDA will support a set of pilot projects that provide incentives to implement climate smart conservation practices on working lands and to quantify and monitor the carbon and greenhouse gas benefits associated with those practices. The pilots could rely on the Commodity Credit Corporation’s specific power to aid in expansion or development of new and additional markets. The Department published a Request for Information (RFI) seeking public comment and input on design of new initiative.

“This initiative we are launching will place a premium on accurate greenhouse gas accounting,” said Vilsack. “The pilots will invest in the science, monitoring and verification to measure the benefits of these climate smart practices.”

Vilsack added that biofuels will play a role in USDA’s climate smart efforts. “We believe biofuels today reduce greenhouse gas emissions by between 30 to 40 percent relative to gasoline,” said Vilsack. “Our efforts at USDA are going to focus on feedstock development and supply chain efficiencies.”

Vilsack announcements Colorado State University 34:00

Audio, biofuels, Carbon, Climate Change, Ethanol, USDA

Democrats Urge Administration to Support RFS

Cindy Zimmerman

A bicameral group of Democrat Congressional members spanning seven states sent a letter yesterday urging the Administration to increase biofuels usage and reject any reduction in biofuel blending requirements.

Congresswomen Cindy Axne (D-IA), Cheri Bustos (D-IL), Angie Craig (D-MN) and Senator Amy Klobuchar (D-MN) spearheaded the letter to President Joe Biden and National Climate Advisor Gina McCarthy after recent reports that the administration may be considering lowering the Renewable Volume Obligations (RVOs).

“We have strong reservations about the potential for the Administration to destroy over 5 billion gallons of biofuel volume from the 2020, 2021, and 2022 RVOs. This action would directly undermine your commitment to address climate change and restore integrity to the Renewable Fuel Standard (RFS),” the letter states. “Every gallon of biofuels that is blended into our nation’s fuel supply displaces a gallon of oil and cuts carbon emissions…Reducing biofuel blending requirements will increase greenhouse gas emissions.”

The letter was also signed by Reps. Mark Pocan, Raja Krishnamoorthi, Bobby Rush, David Scott, Tim Ryan and Ron Kind, and Senators Dick Durbin, Tammy Duckworth, Tina Smith, Tammy Baldwin and Debbie Stabenow.

“We thank these congressional champions for their strong support and reaching out to the administration at this crucial time,” said Renewable Fuels Association (RFA) President and CEO Geoff Cooper, who added that, if true, the rumored lower RVOs “would increase GHG emissions by up to 15.3 million metric tons of carbon dioxide equivalent.”

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

Groups Encourage Focus on Fuel in Emissions Standards

Cindy Zimmerman

Biofuel stakeholder groups submitting comments on proposed rule for 2023-2026 light-duty GHG emissions standards are urging the Environmental Protection Agency to recognize the benefits of low-carbon fuels like ethanol as it seeks to lower greenhouse gas emissions.

The Renewable Fuels Association says EPA should lay out the roadmap for an orderly transition to high-octane, low-carbon liquid fuels.

“Unfortunately, EPA’s proposal fails to recognize that the fuels we put into our engines can have as much—or more—impact on fuel economy and GHG emissions as the engine technologies themselves,” RFA President and CEO Geoff Cooper wrote. “We believe the proposal missed a critical opportunity to expressly solicit public comment on potential regulatory pathways for adopting high-octane, low-carbon liquid fuels as a means of improving fuel economy and reducing emissions from the light-duty vehicle fleet.”

American Coalition for Ethanol (ACE) CEO Brian Jennings says “ethanol can and should be an even bigger part of the solution to climate change, but this depends upon the Administration’s willingness to engage us on ethanol’s role as a low carbon fuel through policies such as the Renewable Fuel Standard and the topic of this request for comments; how to reduce GHG emissions from future vehicles.”

Both organizations recommend a higher minimum-octane gasoline (98-100 RON) for all new internal combustion vehicles and updating EPA’s Lifecycle Analysis of Corn Ethanol GHG Emissions, as well as allowing GHG emissions credit generation for all alternative fuel vehicles, including flexible fuel vehicles (FFVs).

EPA is expected to finalize revised vehicle standards later this year or early next year.

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

No RVO Proposal Yet

Cindy Zimmerman

The biofuels industry was left hanging Friday when the rumored release of proposed blending obligations under the Renewable Fuel Standard (RFS) failed to happen.

American Coalition for Ethanol (ACE) CEO Brian Jennings said late Friday they remain hopeful the numbers that were reported would also prove incorrect. “We hope they’re wrong,” said Jennings. “If they are right, it just seems like such a gratuitous shot to reduce volumes for 2020 because we all know the pandemic resulted in lower fuel demand which in turn reduced ethanol blending anyway.”

Multiple reports last week said EPA was planning to retroactively reduce the Renewable Volume Obligations (RVO) for 2020 to 17.1 billion gallons, and set 2021 at 18.6 billion gallons and 2022 at 20.8 billion gallons. That would include lowering conventional ethanol volumes from the statutory cap of 15 billion gallons to 12.5 billion gallons for 2020, 13.5 billion gallons in 2021 and 14.1 billion gallons in 2022.

Jennings said those numbers would be devastating for the industry, and any proposal to retroactively reduce volumes would be met with fierce opposition. “We don’t believe it is legal for EPA to turn back the clock,” said Jennings.

ACE CEO Brian Jennings comments on proposed RVO rumors 3:57

Numerous stakeholder organizations, including the Renewable Fuels Association, Advanced Biofuels Business Council, American Farm Bureau Federation, American Soybean Association, Growth Energy, National Biodiesel Board, National Corn Growers Association, and National Farmers Union expressed concerns about the reported numbers and fears the administration is “favoring the oil industry over the environment, rural communities, and hardworking farmers by providing handouts that eclipse those obtained by fossil fuel advocates under the previous administration.”

Senator Chuck Grassley (R-IA) also compared the rumored RVO numbers to the Trump EPA small refinery waivers. “The rumors we’re hearing it could be worse that what we had under Trump,” said Grassley on Tuesday last week. “If we get a bad RVO out of EPA, the farmers aren’t going to forget it and they’re going to blame Biden.”

Sen. Chuck Grassley, proposed RVO release comments (1:19)

ACE, Audio, Biodiesel, biofuels, EPA, Ethanol, Ethanol News

USDA Invests in Climate Smart Ag for Low Carbon Fuel

Cindy Zimmerman

The U.S. Department of Agriculture (USDA) will invest nearly $75 million for 15 partner-led projects to address natural resource concerns on private lands.

The projects include a $7.5 million investment in the American Coalition for Ethanol (ACE)-led Regional Conservation Partnership Program (RCPP) project to secure farmers premier access to low carbon fuel standard (LCFS) markets based on their adoption of USDA climate-smart agricultural practices.

ACE, together with RCPP partners South Dakota Corn Growers Association, Dakota Ethanol, South Dakota State University, Cultivating Conservation, and collaborator Sandia National Labs, will use the USDA financial assistance to compensate farmers for adopting climate-smart practices that sequester carbon, reduce greenhouse gas (GHG) emissions, and improve soil health. The partnership will pair USDA technical assistance with significant partner financial and in-kind contributions to quantify the resulting soil health and GHG benefits, correlate them with existing models, and develop a non-proprietary verification system. This data will then be used to secure farmer access to clean fuel or LCFS markets for the first time based on the GHG benefits of USDA climate-smart practices.

Press release from ACE

Interview with ACE CEO Brian Jennings
ACE CEO Brian Jennings on USDA grant project 8:10

Jennings comments on rumors of proposed Renewable Volume Obligations.
ACE CEO Brian Jennings comments on proposed RVOs 3:57

ACE, Audio, corn, Environment, Ethanol, Ethanol News, Low Carbon Fuel Standard, USDA

Groups Sound Alarm Over Proposed RFS Cuts

Cindy Zimmerman

Farm and biofuel groups are sounding the alarm over detailed reports that the Environmental Protection Agency (EPA) is planning to announce major cuts to biofuel blending requirements under the Renewable Fuel Standard (RFS).

“While a formal proposal has not been released, the expected standards would destroy a decade of progress on low-carbon biofuels and brazenly violate the promises that President Biden made to farmers, green voters, and his own allies in Congress,” said eight organizations in a statement Thursday.

The Renewable Fuels Association, Advanced Biofuels Business Council, American Farm Bureau Federation, American Soybean Association, Growth Energy, National Biodiesel Board, National Corn Growers Association, and National Farmers Union expressed concerns that the administration is “favoring the oil industry over the environment, rural communities, and hardworking farmers by providing handouts that eclipse those obtained by fossil fuel advocates under the previous administration.”

Multiple reports say EPA is poised to retroactively reduce the Renewable Volume Obligations (RVO) for 2020 to 17.1 billion gallons, and set 2021 at 18.6 billion gallons and 2022 at 20.8 billion gallons. The document quoted by news sources indicates ethanol volumes would be reduced from the statutory cap of 15 billion gallons to 12.5 billion gallons for 2020, 13.5 billion gallons in 2021 and 14.1 billion gallons in 2022.

The organizations “urge the president to ensure the EPA avoids a mistake that would undermine the Biden-Harris administration’s relationship with farmers, biofuel producers, and climate advocates across rural America.”

ACE, Ag group, Audio, Biodiesel, corn, Ethanol, Ethanol News, Fuels America, Renewable Fuels Association, RFA

House Republicans Urge Biden to Uphold RFS

Cindy Zimmerman

U.S. Representative Rodney Davis (R-IL) and a group of House Republicans, including House Biofuels Caucus co-chairs Adrian Smith (R-NE) and Dusty Johnson (R-SD), are urging President Biden to keep his promise on upholding the Renewable Fuel Standard (RFS).

Recent reports indicate the Biden Administration is taking steps to weaken Renewable Volume Obligations (RVOs) which would reduce the demand for biofuels, an action President Biden strongly condemned under the Trump Administration.

“If your Administration makes the unprecedented move to reopen the finalized 2020 RVO, and strip the demand for billions of gallons, the industry will certainly be devastated,” said the members. “As you stated, “Lip service won’t make up for nearly four years of retroactive damage that’s decimated our trade economy and forced ethanol plants to shutter.” If these rumors are correct, demand for over 5 billion gallons of renewable, clean fuels will be lost.”

Reports this week indicate EPA will release the proposed RVOs on Friday and that they will include retroactive reductions in biofuels blending obligations

Biodiesel, biofuels, Ethanol, Ethanol News, RFS

Iowa Senator Concerned About RVO Proposal

Cindy Zimmerman

Senator Chuck Grassley (R-IA) is concerned about rumors the Renewable Volume Obligations the Biden administration is reportedly set to release on Friday.

“You know what happens if something is unpopular it always happens at five o’clock on Friday,” said Grassley during his weekly press call with farm reporters Tuesday. “If we get a bad RVO out of EPA, the farmers aren’t going to forget it and they’re going to blame Biden.”

Sen. Chuck Grassley, proposed RVO release comments (1:19)

Concerns within the industry about media reports suggesting the Biden administration was planning to retroactively reduce 2020 volumes have been expressed during meetings with the Office of Management and Budget (OMB) over the past two weeks. “It is our sincere hope that these news reports are mistaken,” said the Renewable Fuels Association in written comments to OMB. “Retrospective revisions to the 2020 RVO would further destabilize the renewable fuels industry and farm sector, both of which are still struggling to recover from COVID-related market disruptions.”

RFA notified reporters Wednesday that an email with false 2020-2022 RVO numbers that “were supposedly shared by RFA with its members” was being circulated. “We want you to know that this is a complete fabrication and a shameful ‘spoofing’ attempt,” said RFA Communications Director Ken Colombini in a statement. “RFA never sent any such email or circulated any potential RVO numbers to our member companies. RFA does not have any information regarding the 2021-2022 RVO numbers or possible revisions to the 2020 RVO. Like everyone else, we are anxiously awaiting the public release of the RVO proposals and will have more information and comment at that time.”

Audio, Ethanol, Ethanol News, Renewable Fuels Association, RFA, RFS