Iowa Biodiesel Production Up in 2020 Despite COVID

Cindy Zimmerman

Even with two plants out of operation for the year, Iowa biodiesel producers still managed to increase production in 2020, despite market challenges presented by the COVID-19 pandemic and continued small refinery waivers.

With nine of Iowa’s 11 biodiesel plants in operation, biodiesel production hit 351 million gallons in 2020, the second highest year of biodiesel production in Iowa history behind 365 million gallons in 2018. Total production capacity for the state is over 400-million-gallon.

Iowa Renewable Fuels Association Executive Director Monte Shaw credited the bump in production to the reinstatement and long-term extension of the federal biodiesel blenders tax credit in late 2019, which provided a boost for higher biodiesel blends.

“The long-term extension of the biodiesel blenders tax credit gave Iowa biodiesel producers the market certainty to be successful even in a very uncertain year,” Shaw said. “COVID-19 did not hurt the diesel market the same way it gutted gasoline demand and, as result, production went up. Hopefully Iowa can take another step forward and utilize even more of our biodiesel capacity if there is proper implementation of the RFS in 2021.”

Iowa biodiesel production is expected to account for roughly 20 percent of total U.S. biodiesel production in 2020.

Soybean oil continued to be the feedstock of choice for the majority of Iowa biodiesel production, making up over 85 percent. Corn oil was second at just over eight percent. Animal fat, canola oil, and used cooking oil made up the rest of the feedstock used by Iowa biodiesel producers.

Biodiesel

Focus on Biodiesel’s Environmental Benefits

Cindy Zimmerman

The environmental benefits of both biodiesel and renewable diesel are in focus this week at the virtual National Biodiesel Conference and Expo.

Matt Herman is the National Biodiesel Board‘s new Director of Environmental Science. Formally with the Biotechnology Innovation Organization (BIO) and the Renewable Energy Group (REG), Herman has plenty of experience using life cycle assessment to measure the environmental attributes of biodiesel, renewable diesel, and the supply chains which support their production.

Herman helped kick off the traditional pre-conference Biodiesel and Renewable Diesel 101 session on Monday and will be leading the discussion today on Driving Decarbonization: Eliminating Emissions Throughout the Supply Chain. Learn more in this interview.

2021 Biodiesel Conference preview with Matt Herman, NBB (4:59)

Audio, Biodiesel, Environment, National Biodiesel Conference, NBB, renewable diesel

ACE Reacts to EPA Biofuels Proposals

Cindy Zimmerman

American Coalition for Ethanol (ACE) CEO Brian Jennings was glad to see one of the last minute proposals released by the Environmental Protection Agency on Friday, not so pleased with the others.

“ACE strongly supports EPA’s proposal to make E15 more accessible to retailers and motorists, but once again, the Trump EPA has chosen to bundle a promise to do right by ethanol with a poison pill gift to oil refiners,” said Jennings. “Instead of breathing life into unwarranted petitions from refiners and oil-state Governors to waive the 2019 and 2020 RFS alongside its proposal to treat E15 like other fuels, EPA should have denied the waiver requests outright because the petitioners failed to meet the thresholds established by the law and previous precedent. The statute is clear; to secure a general waiver of the RFS, a petitioner must provide evidence to EPA that implementation of the RFS itself is the cause of severe economic harm, not outside factors such as COVID-19.”

EPA announced three proposals at the end of last week to seek comments. One would extend compliance deadlines for 2019 and 2020 renewable volume obligations and one is in response to requests from refiners and oil state governors to provide a general waiver from 2019 and 2020 RFS renewable volume obligations due to COVID-19. The third would remove certain barriers to expand sales of E15, including E15 label revisions and underground storage tank compatibility.

ACE, EPA, Ethanol

Mixed Bag of Last Minute EPA Proposals for Biofuels

Cindy Zimmerman

With just days before a new administration takes office, the Environmental Protection Agency on Friday issued a mixed bag of last minute proposals for biofuels producers.

First, in Friday’s Federal Register, EPA proposed to extend compliance deadlines for 2019 and 2020 renewable volume obligations, stating that the agency would “take no position on the availability of SREs for the 2019 compliance year.”

Renewable Fuels Association President and CEO Geoff Cooper saw that as good news. “We do agree with EPA that the outgoing administration should refrain from any further action on the pending small refinery petitions. To that end, we see EPA’s statement in this proposal that it is not taking a position on 2019 SREs as a good sign.”

Also on Friday, EPA announced a final determination that no additional measures are necessary to mitigate “potential adverse air quality impacts” associated with the Renewable Fuel Standard, and Cooper says RFA agrees. “We agree with EPA that no additional ‘fuel control measures’ are necessary to mitigate ‘adverse air quality impacts’ from the RFS, because there are no ‘adverse’ impacts!”

However, Cooper says they do not agree with a proposal to be published in Tuesday’s Federal Register to seek public comments on requests from refiners and oil state governors to provide a general waiver from 2019 and 2020 RFS renewable volume obligations due to COVID-19. “This is nothing more than one last desperate attempt by the refiners to undermine the RFS and protect their chokehold on the nation’s fuel markets. But it cannot succeed because EPA has no authority to waive RFS volumes unless the petitioners show that the RFS itself is the cause of the ‘severe economic harm’ to a state, region, or the nation.”

The final proposal out of EPA to be published on Tuesday would remove certain barriers to expand sales of E15, which Cooper says is strongly supported by the industry. RFA will be providing comments on all of these matters and testifying at the public hearings scheduled on several of these proposed actions.

Cooper summarizes RFA’s reaction to all of these proposals, in addition to the Supreme Court taking up the Tenth Circuit Court decision on small refinery exemptions, and rumors EPA would grant waivers on the way out the door.

RFA president and CEO Geoff Cooper summarizes week of ethanol news (9:36)

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

Ethanol Report 1-15-21

Cindy Zimmerman

2021 is getting off to a whirlwind start for the ethanol industry. The year is barely started and the industry has already seen an unexpected Supreme Court unexpectedly taking up the Tenth Circuit Court decision from last January, heard rumors of last minute granting of small refinery waivers, and then got hit with four proposals from the outgoing EPA related to the Renewable Fuel Standard and E15.

In this edition of the Ethanol Report, Renewable Fuels Association president and CEO Geoff Cooper provides an update on the latest developments and RFA chief economist Scott Richman talks about what President-elect Joe Biden could do on Day One in office to reduce carbon emissions by 12 million metric tons.

Ethanol Report 1-15-21 (21:37)

The Ethanol Report is a podcast about the latest news and information in the ethanol industry that has been sponsored by the Renewable Fuels Association since 2008.

Choose an option to subscribe

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

Biodiesel Conference to Spotlight Policy

Cindy Zimmerman

National Biodiesel Board Director of Regulatory Affairs Kate Shenk will be moderating a panel at the 2021 National Biodiesel Conference and Expo called “What to Expect When You’re Expecting an RFS Rule” and with all of the turmoil going on right now regarding what the Trump EPA may do before leaving office, that landscape is changing daily.

Shenk says a proposal released this week by EPA to extend 2019 and 2020 Renewable Fuel Standard compliance year deadlines due to the “uncertainty” surrounding small refinery exemptions may not preclude the administration from granting last minute waivers. “This notice may have been written prior to the potential decision to grant the 2019 SREs, as we are hearing in the rumor mill,” she said.

In this interview, Shenk talks about policy issues facing the biodiesel industry right now.
2021 Biodiesel Conference preview with Kate Shenk, NBB (9:41)

Audio, Biodiesel, National Biodiesel Conference, NBB, RFS

EPA Proposal May Mean No Last Minute Waivers

Cindy Zimmerman

The Environmental Protection Agency (EPA) proposed a new rule Thursday that would extend 2019 and 2020 Renewable Fuel Standard compliance year deadlines due to the “uncertainty” surrounding small refinery exemptions.

EPA notes that the Tenth Circuit Court case, which is now pending on the Supreme Court’s docket, has the potential to impact the availability of SREs going forward. Because of the uncertainty, “we do not believe it would be appropriate to require small refineries to demonstrate compliance with their 2019 obligations pending ongoing appeals.”

Further, the proposal states, “Due to the ongoing litigation, we take no position on the availability of SREs for the 2019 compliance year,” a sign that biofuels supporters hope means the rumored last-minute approval of pending small refinery waivers will not happen after all.

The new RFS deadline for the 2019 compliance year and the associated deadline for submission of attest engagement reports would be November 30, 2021, and June 1, 2022, respectively. The new deadlines for 2020 would be January 31, 2022, and June 1, 2022, respectively. A virtual public hearing on the proposal will be held on February 9, 2021.

Read the proposed rule.

Biodiesel, EPA, Ethanol, Ethanol News, RFS

Virtual Biodiesel Conference Starts Next Week

Cindy Zimmerman

The virtual 2021 National Biodiesel Conference & Expo officially launches next Tuesday, January 19th, with a full agenda on-line to allow participation from anywhere.

The theme of this year’s conference is “Rise” and National Biodiesel Board (NBB) Chief Operating Officer Doug Whitehead says it reflects the resilience of the industry. “We’re rising up to meet the challenges of yesterday, today, and tomorrow.”

The conference grand opening on Tuesday will focus on the Dawn of a New Era for Low-Carbon Fuels, with NBB CEO Donnell Rehagen offering his State of the Industry remarks, followed by a panel of experts to discuss the opportunities that exist for biodiesel and renewable diesel in this low carbon transformation.

Whitehead says timely topics for the conference will address the future of the Renewable Fuel Standard (RFS), bioheat, and working with a new presidential administration and Congress.
2021 Biodiesel Conference preview with Doug Whitehead, NBB (11:47)

Audio, Biodiesel, Biodiesel Conference, NBB

Democrat Senators Urge Biden to Restore RFS

Cindy Zimmerman

A group of Democratic Senators sent a letter to President-elect Joe Biden urging him to “restore the integrity of the Renewable Fuel Standard and quickly reverse the damages done to the RFS by the outgoing Trump administration.”

The letter was sent rom Sens. Tammy Duckworth (D-IL), Amy Klobuchar (D-MN), Tina Smith (D-MN), Tammy Baldwin (D-WI), Debbie Stabenow (D-MI), and Richard Durbin (D-IL) and laid out four steps the new Biden administration could take to strengthen the RFS:

Direct EPA to adopt the Tenth Circuit decision nationwide and reject any small refinery exemptions (SREs) that do not meet the standards set forth by the court.
Publish 2021 Renewable Volume Obligations (RVOs) swiftly.
Approve pending pathway applications for corn kernel fiber ethanol and update EPA’s biofuels emissions modeling.
When reaffirming our commitment to the Paris Climate Accord, include biofuels.

Renewable Fuels Association (RFA) President and CEO Geoff Cooper thanked the Senators for their support. “These lawmakers understand that when the RFS is properly implemented and enforced, it is an incredibly powerful tool for curbing greenhouse gas emissions from the transportation sector,” said Cooper. “They also recognize that the outgoing Trump administration continues to pose a threat to the integrity of the RFS, and we stand with them to defend the program from midnight-hour manipulation.”

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Ethanol Supporters React to Reports of More Waivers

Cindy Zimmerman

Reports that the Trump Administration is possibly planning to grant a number of 2019 small refinery exemptions this week have led to strong outcry from ethanol organizations and farm state lawmakers.

Rep. Cindy Axne (D-IA), co-chair of the House Biofuels Caucus, led a bipartisan letter urging President Trump to direct the Environmental Protection Agency (EPA) to immediately reject the issuance of any illegal Renewable Fuel Standard (RFS) waivers. The letter was co-led with House Biofuels Caucus co-chairs Reps. Angie Craig (MN-02), Rodney Davis (IL-13), Dusty Johnson (SD-AL), and Adrian Smith (NE-03).

“This news arrives at the worst time possible as the biofuels industry continues to reel from the economic impacts caused by the COVID-19 pandemic,” the members wrote. “These exemptions, coming on top of 85 waivers already granted by EPA over the past four years, would also cause immense and unnecessary strain to businesses that are desperately trying to keep workers on the payroll.”

American Coalition for Ethanol (ACE) CEO Brian Jennings sent a letter to the EPA Inspector General seeking assurance that any potential last-minute action to grant a significant number of petitions for small refinery exemptions (SREs) under the Renewable Fuel Standard complies with federal law, given previous remarks by EPA Administrator Andrew Wheeler that it would be “inappropriate” for him to make any decisions on waivers until litigation has “completely run its course.”

The letter encourages the EPA IG to “ensure that all communications from Administrator Wheeler and any other correspondence of President Trump’s political appointees about the pending SRE waiver petitions be preserved. This should include communications among Trump appointees and EPA career staff with trade groups and law firms who represent oil refineries with waiver petitions pending, as well as with officials or lobbyists of these companies directly.”

ACE, biofuels, EPA, Ethanol, Ethanol News