SCOTUS Disappoints Biofuels Coalition with Ruling

Cindy Zimmerman

The U.S. Supreme Court today overturned a 2020 appellate court ruling that struck down three improper small refinery exemptions granted by previous EPA administrators, disappointing the coalition of renewable fuel and farm groups that brought the case. However, the industry remains hopeful that other elements of the original ruling that were unchallenged will discourage future abuses of the exemption program.

The decision stems from a May 2018 challenge brought against EPA in the U.S. Court of Appeals for the Tenth Circuit by the Renewable Fuels Association, the National Corn Growers Association, National Farmers Union, and the American Coalition for Ethanol. Working together as the Biofuels Coalition, the petitioners argued that the small refinery exemptions were granted in direct contradiction to the statutory text and purpose of the RFS.

In January 2020, the Tenth Circuit decided that EPA cannot “extend” exemptions to any small refineries whose earlier, temporary exemptions had lapsed. Regarding the intended definition of “extension,” the Supreme Court agreed with the refineries that it does not require “continuity.”

Still, the coalition is “optimistic that other elements of the Tenth Circuit decision, which were not reviewed by the Supreme Court, will compel the Biden administration and EPA’s new leadership to take a far more judicious and responsible approach to the refinery exemption program than their predecessors did.”

Irrespective of today’s decision, the Biofuels Coalition thanked President Biden and EPA Administrator Regan for taking swift action to rein in the previous administration’s mismanagement of the small refinery exemption program. After carefully reviewing the issue, new EPA leadership in February reversed the agency’s previous position and announced support for the Tenth Circuit decision. In April, EPA decided to revoke three last-minute refinery exemptions granted the day before President Biden’s inauguration; and in May, EPA announced it would cooperate with a Government Accountability Office investigation into the past administration’s adjudication of small refinery exemptions.

As of today, 70 small refinery exemption petitions remain pending with EPA, for the compliance years 2011-2020.

Post Update:

The four members of the coalition involved in the court case—the Renewable Fuels Association, National Corn Growers Association, American Coalition for Ethanol, and National Farmers Union—held a conference call for news media to discuss the justices’ opinion and the ramifications for the Renewable Fuel Standard, the U.S. ethanol industry and American agriculture. You can listen to the call below which starts with prepared remarks and then Q&A with media.

PRESENTERS

You can listen to the call and download it here: Biofuels Coalition Conference Call (42:46)

ACE, Biodiesel, biofuels, corn, Ethanol, Ethanol News, NCGA, NFU, Renewable Fuels Association, RFA

NBB Members Highlight Policy Priorities

Cindy Zimmerman

The National Biodiesel Board delivered a letter to Congressional leaders this week signed by more than 50 companies outlining the industry’s policy priorities as industry representatives met virtually with lawmakers in the annual NBB Advocacy Day Fly-in.

Industry priorities include maintaining tax incentives for low carbon biofuels, supporting infrastructure to deliver more clean fuels to consumers, and optimizing the Renewable Fuel Standard to maximize environmental benefits. “As Congress develops legislation to address the nation’s infrastructure, climate and economic priorities, we ask that you support continued growth of the biodiesel and renewable diesel industry. U.S. biodiesel and renewable diesel producers are meeting America’s need for better, cleaner transportation fuels right now. We are also generating economic, environmental and health benefits for many states and communities,” the letter states.

The letter highlights the $17 billion annual economic impact of the biodiesel and renewable diesel industry, which employs more than 65,000 Americans. It also highlights the carbon benefits the industry delivers. In 2020, the United States used 3 billion gallons of renewable diesel and biodiesel, which achieves an average 74% reduction in carbon emissions compared to petroleum diesel. The industry also touted a recent study demonstrating the substantial reductions in health care costs and outcomes that communities can achieve by switching to biodiesel. The Health Health Benefits Study from Trinity Consultants Study from Trinity Consultants is available on the NBB.org website.

Biodiesel, NBB

Rep. Randy Feenstra is Passionate About Biofuels

Cindy Zimmerman

Rep. Randy Feenstra (R-IA) is new to Congress this year, winning the seat from Rep. Steve King in Iowa’s 4th congressional district. That district includes includes Sioux City, Ames, Mason City, Fort Dodge, Boone and Carroll so agriculture and biofuels are a big deal for Feenstra.

“I am truly passionate about biofuels and I will be the advocate to further the agenda,” said Feenstra in an interview last week from Washington, D.C. with reporter Tony St. James of Texas.

Feenstra recently joined Sens. Chuck Grassley (R-IA) and Joni Ernst (R-IA), and Reps. Ashley Hinson (IA-01) and Mariannette Miller-Meeks (IA-02), in sending a letter to President Biden urging him to uphold his promise to support biofuels.

“It is our hope that your Administration will come to the table to support the proven solution that biofuels provide to reduce carbon emissions in the transportation sector as quickly as possible,” the members wrote. “The Administration should support flex-fuel vehicles and cost-effective infrastructure improvements that will pave the way to higher biofuel blends.”

Learn more about Rep. Feenstra in this interview.
All Ag News interview with Rep. Randy Feestra (R-IA) (8:45)

Audio, Biodiesel, biofuels, Ethanol, Ethanol News

Oregon to Allow E15 Sales

Cindy Zimmerman

Oregon Gov. Kate Brown has signed into law legislation enabling the sales of 15 percent ethanol blended fuel (E15) in Oregon.

Under current law, Oregon requires that gasoline sold for use in motor vehicles be blended with up to 10 percent ethanol (E10). The new legislation sets 10 percent as a minimum, allowing for sale of fuel with higher concentrations of ethanol. This makes Oregon the 48th state to approve E15.

“Now, we have only two more states that need to take the same action—California and Montana—as well as some key counties in Arizona,” said Renewable Fuels Association president and CEO Geoff Cooper “We will continue to provide technical, regulatory, and legislative assistance as needed so their drivers, too, can drive on E15. We also continue our work in more than a dozen other states to ensure their rules and regulations are clearer and more explicit regarding the approved use of E15.”

E15 is currently offered at over 2,440 retail sites in 30 states and 230 terminals.

E15, Ethanol, Ethanol News, Renewable Fuels Association, RFA

IRFA Celebrates Monarch Habitat for Pollinator Week

Cindy Zimmerman

Members of the Iowa Renewable Fuels Association (IRFA) are celebrating Pollinator Week this year by highlighting the progress of their Monarch Fueling Stations.

Pollinator Week is recognized internationally as a time to celebrate and educate about the important role pollinators play around the world. Since 2017 IRFA members have been planting Monarch Fueling Stations, and to date over 48 acres of pollinator habitat tailored toward monarch butterflies have been planted.

“The fact that so many of our members have stepped up to help in the fight to protect Iowa’s pollinators is truly a testament to what biofuels is all about – supporting our communities and protecting our environment,” said IRFA Communications Director Cassidy Walter. “We are especially excited this summer because many of our members’ projects are mature enough now to really show some growth and start providing monarchs and other pollinators the food sources they need.”

In the early years of a monarch habitat plot, the plants do most of their growing under the ground, developing a strong root system. Throughout the week IRFA will be sharing photos and updates from IRFA member projects on Twitter, Instagram and Facebook.

The monarch butterfly population has declined in recent years. IRFA members’ habitat projects are a part of a statewide effort led by the Iowa Monarch Conservation Consortium to prevent the monarch butterfly from being listed as an endangered species.

Ethanol, Ethanol News, Iowa RFA, pollinators

RFA Welcomes New Government Affairs Team Member

Cindy Zimmerman

The Renewable Fuels Association welcomes Jared Mullendore to the organization’s staff as new Director, Government Affairs. Mullendore’s experience includes serving as district director for former Rep. Abby Finkenauer (D-IA), and on the staff of former Rep. David Loebsack (D-IA).

Jared Mullendore, RFA Government Affairs Director

“We are pleased to welcome Jared to our Government Affairs team in Washington, D.C.,” said RFA Senior Vice President for Government and Public Affairs Troy Bredenkamp. “He brings a wealth of experience, as well as deep knowledge on a range of policy issues. Jared’s experience as a ‘boots-on-the-ground’ district director means he has an intimate understanding of how policy and regulatory decisions made inside the beltway affect American workers and families in communities across the Heartland. There is no doubt that Jared will be able to hit the ground running and we know he will have an immediate impact on RFA’s advocacy efforts on Capitol Hill.”

Mullendore earned both an undergraduate degree and a Juris Doctor from the University of Iowa, clerking at an Iowa City law firm before joining Rep. Loebsack’s team in 2013, serving as a deputy finance director for his campaign and then as a district representative in Iowa. In 2019, Mullendore joined Rep. Finkenauer’s staff as district director, where he opened and oversaw three district offices and a staff of six.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

RFA CEO Analyzes RINs Analysis

Cindy Zimmerman

Wells Fargo Crashes and Burns with New RINs Analysis
Commentary by Geoff Cooper, Renewable Fuels Association

(Last week), equity analysts at Wells Fargo released a note to investors on the subject of the Renewable Fuel Standard and its compliance credit (RIN) market mechanism.

We wouldn’t typically respond to an investment bank research note, but we felt compelled to reply to the Wells Fargo update for two reasons. First, the note is so replete with factual errors, uninformed opinions, and outright falsehoods that we felt the responsibility to correct the record. Secondly, we understand the Wells Fargo note is being shared liberally around Capitol Hill by oil refinery lobbyists hoping to boost their unjustified case for “regulatory relief” (i.e., compliance bailouts). We want to ensure lawmakers and regulators are hearing both sides of the story.

To Pass Through or Not to Pass Through?

Within the span of just the first three sentences of the note, Wells Fargo says “RIN prices pass through to retail consumers,” then claims “merchant refiners struggle to recover elevated RIN costs.” The contradictions continue throughout the report’s introduction, with Wells Fargo stating that waiving renewable fuel blending obligations would cause an “immediate decline” in retail gas prices and somehow financially “benefit” refiners at the same time. Then a few lines later, the analysts admit that “refining profitability would not materially change” with an RFS waiver because “even merchant refiners are capturing” RIN values. Confused yet? So are we. So, which is it? Refiners either pass along (and fully recover) their RIN costs or they don’t. It’s one or the other. It can’t be both.

Continue reading on the RFA Blog

Commentary, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Congressional Democrats Urge Support for RFS

Cindy Zimmerman

Democratic leaders in both the House and Senate are urging the Biden administration “reject any actions under discussion to exempt oil refiners of their obligations under the RFS and uphold your commitment to combating climate change and supporting our nation’s farmers.”

Representatives Cindy Axne (D-IA), Cheri Bustos (D-IL), Angie Craig (D-MN), and Senator Amy Klobuchar (D-MN) led a letter with 12 bicameral colleagues to the Environmental Protection Agency (EPA) and National Economic Council (NEC) expressing concern about reports that the Biden administration is considering several options to exempt oil refiners of their obligations under the Clean Air Act’s Renewable Fuel Standard (RFS).

“Rather than exempting refiners of their obligations under the Clean Air Act, the Administration should provide additional certainty and stability to the renewable fuels marketplace that will create jobs, drive investment, and cut carbon emissions from the existing vehicle fleet. We encourage your Administration to swiftly issue a proposed rule for the 2021 and 2022 Renewable Volume Obligations (RVOs) with strong blending targets and respond to the 2017 Court remand in Americans for Clean Energy, et al., v. Environmental Protection Agency to reinstate 500 million gallons of blending requirements inappropriately waived from the 2016 blending targets,” the legislators wrote.

The letter was signed by Senators Tammy Baldwin (D-WI), Tammy Duckworth (D-IL), Richard Durbin (D-IL), Tina Smith (D-MN), Debbie Stabenow (D-MI), and Ron Wyden (D-OR), and Representatives Mark Pocan (D-WI), Ron Kind (D-WI), David Scott (D-GA), Lauren Underwood (D-IL), Raja Krishnamoorthi (D-IL), and Ruben Gallego (D-AZ).

biofuels, EPA, Ethanol, Ethanol News, RFS

Farm Futures Summit Highlights Ethanol

Cindy Zimmerman

The Farm Futures Business Summit being held this week in Iowa featured corn farmers and ethanol industry leaders on the first day of the program to shed light on the future of ethanol.

The National Corn Growers Association (NCGA) sponsored the panel with Iowa corn farmer and NCGA Ethanol Action Team (ETHAT) member Kelly Nieuwenhuis, Renewable Fuels Association President and CEO Geoff Cooper, and Growth Energy Senior Vice President Mike Lorenz.

Nieuwenhuis discussed the importance of the ethanol industry to corn farmers and why he’s optimistic about the future of biofuels. “We’re working on a lot of great initiatives with our partners in the ethanol industry that people should be excited about,” Nieuwenhuis said. “Our work on pump infrastructure with Wayne Fueling Systems, engine testing at the University of California at Riverside with the California Air Resources Board (CARB) to show the environmental benefits and compatibility of E15, and work on the Next Generation Fuels Act are just a few of the things we’re working on to grow the ethanol market.”

The event was a hybrid event with more than 200 farmers in attendance.

corn, Ethanol, Ethanol News, NCGA

Grassley Challenges Biden Administration on Biofuels

Cindy Zimmerman

Sen. Chuck Grassley (R-IA) gave a speech on the Senate floor yesterday challenging the Biden Administration’s support of biofuels in general and ethanol in particular.

“Reuters reported the Biden Administration is considering ways to allow U.S. oil refiners to not meet their biofuels blending requirements,” said Grassley. “The same administration has proposed hundreds of billions of dollars in subsidies for electric vehicles but failed to include any support for biofuels infrastructure.”

Sen. Grassley noted that President Biden promised in his campaign to promote and advance renewable energy, ethanol and other biofuels to help rural America and our nation’s farmers. “President Biden is not keeping that promise.”

Grassley joined fellow Senator Joni Ernst (R-IA) in a letter to USDA Secretary Tom Vilsack expressing concern over the Administration’s decisions to roll back the previous administration’s Navigable Waters Protection rule as well as rumored plans to undercut the Renewable Fuel Standard (RFS).

“We respectfully ask that you make known to the President and your colleagues at the EPA and the Corps the serious concerns Iowa’s farmers and ranchers have with the Biden Administration’s recent actions on WOTUS and biofuels. We are fortunate to have a fellow Iowan at the helm of the U.S. Department of Agriculture, and are counting on you to advocate for Iowa and the interests of the state’s agriculture industry,” the senators wrote.

Listen to Sen. Grassley’s floor speech here:
Sen. Grassley 6-15-21 (6:23)

Audio, biofuels, Ethanol, Ethanol News