Clean Fuels Comments on EPA RFS Proposals

Cindy Zimmerman

Clean Fuels Alliance America submitted comments supporting the Environmental Protection Agency’s proposal to deny pending small refinery exemptions while asking for certainty regarding proposed Renewable Fuel Standard (RFS) Volume Standards for 2020, 2021 and 2022. Clean Fuels expressed particular concern with EPA’s triggering “reset” authority and proposals for regulating biointermediates.

Kurt Kovarik, Clean Fuels’ Vice President of Federal Affairs, writes in the comments on the annual volumes, “We ask EPA to provide certainty to the biodiesel and renewable diesel industry, do not unlawfully use the reset authority to retroactively adjust the 2020 volumes, and be cautious of unintended consequences associated with the biointermediates provisions.”

In addressing the separate proposal on pending small refinery exemptions, Kovarik writes, “Clean Fuels supports EPA’s proposal to deny 65 pending small-refinery exemption petitions and requests that EPA also deny the 36 small-refinery exemptions—31 of which were originally granted – for 2018.” The 36 additional petitions pending before the agency are those remanded by order of the U.S. Court of Appeals for the D.C. Circuit in response to EPA’s motion in Sinclair Wyoming Refinery and consolidated cases.

Clean Fuels’ comments on the annual rule
Clean Fuels’ comments on small refinery exemptions

advanced biofuels, Biodiesel, Clean Fuels Alliance, EPA

USDA to Invest $1 Billion in Climate Smart Commodities

Cindy Zimmerman

Agriculture Secretary Tom Vilsack was in Jefferson City, Missouri yesterday to announce $1 billion in partnerships to support America’s climate-smart farmers, ranchers and forest landowners.

The new Partnerships for Climate-Smart Commodities opportunity will finance pilot projects that create market opportunities for U.S. agricultural and forestry products that use climate-smart practices and include innovative, cost-effective ways to measure and verify greenhouse gas benefits. USDA is now accepting project applications for fiscal year 2022.

Vilsack says the investment includes climate smart feedstocks for biofuels. “A tremendous challenge coming from President Biden to create an aviation biofuel. 36 billion gallons of drop in aviation fuel so allow our planes to fly. I don’t know about you folks. I kind of get the electric car thing. You know, you get in the car and if by chance the battery runs down, you pull off to the side of the road. You get your cell phone, you call for help. If you’re in an airplane, the battery wears out. How exactly is that going to work? So I think it is important for us to have a biofuel as we transition to the next iteration of transportation fuels.”

Listen to Vilsack’s address here.
Secy Vilsack - Climate Smart Commodities (30:30)

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

Ethanol Plant-Turned-World-Class-Distiller Sells

Cindy Zimmerman

An ethanol plant that has become one of the largest producers of grain-based, high quality specialty alcohols in the country now has a new owner.

CC Industries, Inc. (“CCI”) recently announced that it has acquired CIE. Headquartered in Marion, Indiana, CIE operates a world-class, commercial-scale distillery, which serves customers from Fortune 500 spirit, food and fragrance brands to niche artisan craft distilleries. Ocean Park acted as exclusive financial advisor to CIE on the transaction. Financial terms of the transaction were not disclosed.

Originally built as an ethanol plant in 2007, it was retrofitted to produce Grain Neutral Spirits under the leadership of CEO and President Ryan Drook. The Company’s alcohols are highly sought after across various high-value end markets, including spirits, beauty and personal care, food and flavorings, medical-life sciences and other industrial uses.

CCI, a family-owned holding company based in Chicago, will maintain the current leadership and staff at the facility.

Ethanol, Ethanol News

Coalition Urges RFS Update for Sustainable Aviation Fuel

Cindy Zimmerman

Membersof the Business Aviation Coalition for Sustainable Aviation Fuel are urging the U.S. Environmental Protection Agency (EPA) to provide greater opportunities for the development of sustainable aviation fuel (SAF) under the Renewable Fuel Standard (RFS).

In a letter to EPA Administrator Michael Regan in response to a request for comments on a proposed RFS rule, the Business Aviation Coalition for Sustainable Aviation Fuel called on the agency to expand the list of eligible feedstocks, which would make new sources available for biofuels and SAF; approve new process technologies and biointermediate opportunities; and ensure that the volumes for advanced biofuels are set at levels that will allow greater supplies of those fuels.

“We hope EPA and this Administration recognize the opportunity for SAF moving forward as part of the RFS program. The growth in SAF will not happen if EPA does not responsibly improve the regulatory structure of the RFS — by finalizing biointermediates, by updating the opportunities for both feedstocks and technologies, and by increasing the RVO volumes accordingly,” the coalition wrote in its comments.

EPA should ensure that municipal solid waste and woody biomass are included in the definition of biointermediates, according to the coalition. On the volumes, the coalition asked EPA to ensure that cellulosic, non-cellulosic advanced and biomass-based diesel are set at levels that will increase the volumes of each of these fuels to help support the SAF market.

The coalition is collaborating with the administration on the “SAF Grand Challenge” and will continue its efforts to educate key government, industry, and community stakeholders on the value of SAF in achieving shared environmental goals.

advanced biofuels, aviation biofuels, EPA

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