NBB Discusses 2021 Policy Priorities for Biodiesel Industry

Cindy Zimmerman

NBB LogoNational Biodiesel Board (NBB) CEO Donnell Rehagen and Vice President of Federal Affairs Kurt Kovarik hosted a video conference briefing with reporters last week to discuss the industry’s policy priorities for the coming year. Paul Winters, NBB Director of Public Affairs and Federal Communications, moderated the discussion.

Kovarik said they were disappointed with EPA’s recent decision to extend the renewable fuel standard (RFS) program’s compliance deadlines for 2019 and 2020 until 2022. “It’d be nice if these small refiners and others who continue to complain about the program and apply for small refinery exemptions can wrap their head around the fact that the law’s been on the books for 15 years and is not going away,” he said.

The U.S. market for biodiesel, renewable diesel, sustainable aviation fuel, and bioheat® grew to 3 billion gallons in 2020; the industry’s goal is to grow the market to 6 billion gallons by 2030. NBB’s policy priorities for 2021 include stability in the Renewable Fuel Standard; and support in any infrastructure, energy, or climate legislation for biodiesel’s ability to reduce carbon and pollution.

Listen to the briefing here: NBB Press Briefing 31:25

Audio, Biodiesel, Bioheat, NBB

Biofuels Coalition Files Brief in Supreme Court Case

Cindy Zimmerman

The Biofuels Coalition, comprised of Renewable Fuels Association, the American Coalition for Ethanol, the National Corn Growers Association and the National Farmers Union filed a response brief this week in the Supreme Court case HollyFrontier Cheyenne Refining, LLC, et al., v. Renewable Fuels Association, et al.

In the brief, the coalition argues in support of the challenged Tenth Circuit decision, which held that only small refineries that have remained continuously exempt from obligations under the Renewable Fuel Standard program are eligible for future extensions of the compliance exemption.

“We believe the Tenth Circuit got it right the first time, and we will continue to defend the court’s ruling and stand up for the farmers and renewable fuel producers harmed by the granting of these illegal waivers,” the coalition said. “We strongly believe the Tenth Circuit Court’s ruling is consistent with both the Clean Air Act and Congressional intent.”

The coalition underscored that the statute only authorizes extensions of the initial temporary exemption that Congress granted to all small refineries at the start of the RFS program. The brief also maintains that the structure and purpose of the temporary exemption were meant to serve as a “bridge to compliance” for all refineries, rather than a permanent regulatory relief program, as the refineries argued in their opening brief.

EPA announced last month that it had reviewed the Tenth Circuit’s decision and now supports the court’s interpretation. Oral arguments will be held on April 27.

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

Biofuels Included in New USDA COVID Aid Program

Cindy Zimmerman

USDA has unveiled a new initiative for farmers, ranchers and biofuels producers impacted by COVID-19 market disruptions – Pandemic Assistance for Producers (PAP).

USDA is dedicating at least $6 billion toward the new programs. The Department will also develop rules for new programs that will put a greater emphasis on outreach to small and socially disadvantaged producers, specialty crop and organic producers, timber harvesters, as well as provide support for the food supply chain and producers of renewable fuel, among others. Existing programs like the Coronavirus Food Assistance Program (CFAP) will fall within the new initiative and, where statutory authority allows, will be refined to better address the needs of producers.

During a press availability with farm broadcasters, Vilsack said they are in the process of putting together details on relief for biofuels producers.
Secy Vilsack on pandemic aid for biofuels producers (:34)

American Coalition for Ethanol (ACE) CEO Brian Jennings said aid for biofuel producers is sorely needed. “ACE members are enormously grateful Secretary Vilsack is ensuring a portion of the unspent funding USDA received from previous stimulus bills and the CCC will go to biofuel producers who have been fighting to survive since the pandemic became widespread in the U.S,” said Jennings. “We understand no one will be made whole for the historic losses they experienced due to the coronavirus pandemic, but something is better than nothing and we now know biofuel producers will not be left behind.”

Learn more about the program details from USDA.

ACE, Biodiesel, biofuels, Ethanol, Ethanol News, USDA

New EPA Chief Pledges to Get RFS Back on Track

Cindy Zimmerman

The day after the Environmental Protection Agency finalized a rule to extend the Renewable Fuel Standard (RFS) compliance deadlines for 2019 and 2020 until 2022, Administrator Michael Regan told the Agri-Pulse Ag and Food Policy Summit they are focused on getting the program back on track.

“More transparency, more certainty in the decisions that we’ve made and looking at fuel volumes and things like that,” said Regan when asked about the role of biofuels in climate solutions. “EVs are very important but we’re going to need a suite of options for our transportation agenda and biofuels, especially advanced biofuels, are part of that agenda.”

Regan’s :52 comment on biofuels comes at 13:12 in the interview.

Ag and Food Policy Summit - EPA Admin Michael Regan (23:45)

advanced biofuels, Agri-Pulse, Audio, biofuels, EPA, Ethanol, Ethanol News

EPA Extends RFS Compliance Deadlines

Cindy Zimmerman

The first decision by the new administration that impacts biofuels is a disappointment to the industry. Late Tuesday afternoon, the Environmental Protection Agency extended compliance deadlines for the Renewable Fuel Standard, a move proposed under the Trump Administration that is opposed by biofuels supporters.

EPA finalized a rule to extend the renewable fuel standard (RFS) program’s compliance deadlines for 2019 and 2020. Under the extended deadlines, obligated parties must submit 2020 compliance documentation by January 31, 2022; and the associated attest engagement reports by June 1, 2022. EPA also extended the deadline for obligated parties to submit attest engagement reports for the 2021 compliance year to September 1, 2022. The deadline for obligated parties to submit compliance documentation for 2021 is unchanged.

Finally, EPA extended the deadlines for small refineries to comply with 2019 volume standards. Under the extended deadlines small refineries must submit 2019 compliance documents by November 30, 2021; and the associated attest engagement reports by June 1, 2022.

In comments on the proposal made earlier this month, Renewable Fuels Association President and CEO Geoff Cooper said it was unnecessary and the timelines excessive. “All that the extensions would do is compound problems that the EPA itself created under the last administration: the massive and unjustified increase in small refinery exemptions and the failure to finalize the 2021 renewable volume obligations by the statutory deadline. The rationale that the EPA laid out is either not valid or not sufficient to extend the RFS compliance deadlines.”

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

Nebraska Ethanol Emerging Issues Forum This Week

Cindy Zimmerman

The annual Nebraska Ethanol: Emerging Issues Forum will be held virtually this week, March 25-26.

The forum, organized by the Nebraska Ethanol Board and Renewable Fuels Nebraska, brings together ethanol producers and others integrally involved in production, technology, policymaking and marketing of biofuels and its co-products. The event runs from 12:30 p.m. to 4:30 p.m. Thursday and 9 a.m. to noon Friday.

Topics include an overview and discussion of the most pressing federal policies, regulatory actions, and markets affecting ethanol demand. The federal policy panel includes industry leaders from the Renewable Fuels Association, Growth Energy, National Corn Growers Association, and the American Coalition for Ethanol.

Speakers will also address the future of FFVs, carbon capture and sequestration in Nebraska, biocampuses, and University of Nebraska-Lincoln engineering researchers will share detailed results of their E30 Demonstration, which showed that the higher blend was as safe to use as E15 in non-flex fuel vehicles.

Check the schedule and register here.

Ethanol, Ethanol News

RFA Urges New EPA Admin to Support RFS

Cindy Zimmerman

The Renewable Fuels Association is urging new EPA Administrator Michael Regan to “stay the course” on the Renewable Fuel Standard, as the policy faces renewed attacks from oil refiners.

In a letter to Regan, RFA responds to several assertions about the RFS and RIN credits made by the American Fuel & Petrochemical Manufacturers (AFPM).

“Contrary to the refiners’ claim that higher RIN values are a sign the RFS program is ‘broken,’ elevated RIN values are, in fact, a sign that the RFS is finally being allowed to work as intended to transform the transportation fuels marketplace,” wrote RFA President and CEO Geoff Cooper. “Even with the variety of compliance options available to obligated refiners, AFPM is asking EPA to ‘adjust’ (i.e., waive) the renewable fuel volumes required in 2021 based on the false premise that the fuel market cannot absorb the required amounts of conventional renewable fuel. However, even if AFPM’s arguments were legitimate, the Courts have rejected past attempts by EPA to reduce annual renewable fuel obligations based on supposed market barriers to increased biofuel consumption. They would most assuredly do so again.”

Cooper asks Regan to ensure the upcoming 2021 and 2022 RVO proposed rules include conventional renewable fuel volumes of at least 15 billion gallons per year, as required by the statute, along with the court-ordered 500 million gallons illegally waived from the 2016 standards.

“As you begin your tenure as Administrator, we respectfully encourage you to stay the course on the Renewable Fuel Standard,” the letter concluded. “Even in the face of continued attempts by the oil refining industry to undermine the program, the RFS has been an incredibly effective tool for reducing greenhouse gas emissions, cutting criteria tailpipe pollutants, reducing petroleum imports, and boosting rural economies.”

Read the letter here.

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

U.S. Biodiesel Celebrates 3 Billion Gallons

Cindy Zimmerman

The National Biodiesel Board is pleased to celebrate National Biodiesel Day by announcing that the industry has reached a milestone of 3 billion gallons in operating capacity.

National Biodiesel Day is celebrated on March 18 in honor of Rudolf Diesel who invented the diesel engine, which was originally designed to run on renewable peanut oil.

Three billion gallons is significant because it is halfway to the National Biodiesel Board goal set last year to grow to over 6 billion gallons by the year 2030, and by 15 billion gallons by 2050 with advancements in feedstocks. Announced expansions and new projects could potentially add over 3 billion gallons of capacity as early as 2023.

“To see a concept like Rudolf Diesel’s get us to a 3-billion-gallon industry is remarkable,” National Biodiesel Board CEO Donnell Rehagen said. “Our industry has seen its challenges, but for nearly 30 years into commercial biodiesel production, our association never took no for answer. With a mindset like Diesel’s and a better, cleaner product like biodiesel, we are well on our way to meeting our 6-billion-gallon goal.”

advanced biofuels, Biodiesel, NBB

Kansas City Gets Approval for Year Round E15

Cindy Zimmerman

The Environmental Protection Agency (EPA) has announced the approval of the removal of the low Reid Vapor Pressure (RVP) gasoline requirements in the Kansas City metro area, which allows for E15 fuel to be sold in the area year-round.

The Kansas Corn Growers Association (KCGA) and Missouri Corn Growers Association (MCGA) welcomed the news after working with government agencies in both states on modeling studies that showed no ozone exceedances are expected to occur in the area due to E15 use.

American Coalition for Ethanol (ACE) Senior Vice President and Market Development Director Ron Lamberty says this is good news for consumers and retailers in the KC metro area. “Right now, low ethanol prices and high RIN credit values make E15 the lowest cost gasoline at the rack, and whether they sell it as UnleadedE15, Unleaded88, or something else, retailers can offer the lowest price on the street and still earn some extra margin.”

Lamberty says it’s very likely most retailer’s current equipment is compatible with E15 and if EPA’s recent proposed E15 labeling and underground storage tank compatibility rule is finalized, it will be even easier for station owners to prove this to be true.

EPA’s proposed rule references ACE’s Flex Check E15 compatibility tool as a place station owners can get an idea how compatible their station might be.

ACE, E15, EPA, Ethanol, Ethanol News

RFA Opposes Proposal to Extend RFS Deadlines

Cindy Zimmerman

The Renewable Fuels Association submitted comments this week to oppose an EPA proposal to extend the deadlines for demonstrating compliance with the Renewable Fuel Standard for 2019 and 2020.

“This proposal is unnecessary, and the timelines are excessive,” wrote RFA President and CEO Geoff Cooper. “All that the extensions would do is to compound problems that the EPA itself created under the last administration: the massive and unjustified increase in small refinery exemptions and the failure to finalize the 2021 renewable volume obligations by the statutory deadline.”

Cooper pointed out that it is reasonable to assume refiners and other obligated parties were already preparing to meet the March 31 regulatory compliance deadline when the EPA’s proposal was issued in January. Those refiners that did not prepare for compliance should not be rewarded for their bad behavior, Cooper said.

The RFA called on the EPA to reject the proposed extensions and re-establish integrity in its implementation of the RFS.

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