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.

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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

RFA Announces DC Staff Changes

Cindy Zimmerman

The Renewable Fuels Association has announced two new staff members for the organization’s Washington DC office.

Troy Bredenkamp is joining the association’s staff as its new Senior Vice President for Government and Public Affairs. Bredenkamp, who currently serves as the Executive Director of Renewable Fuels Nebraska, starts in RFA’s Washington office on January 19. He replaces Jessica Bennett, who is departing RFA after three years of service.

In addition, RFA announced the addition of Gidel Dawson in the Washington office as Manager of Government Affairs and Communications. Dawson’s professional experience includes working on Capitol Hill for a Virginia congressman and roles in fundraising, event planning, and marketing/communications. She is a native of Rockwell City, Iowa, and a graduate of Creighton University.

Finally, RFA is announcing a new title for Ed Hubbard, RFA’s long-serving General Counsel. To better reflect his expertise and the breadth of his duties, Hubbard’s title is changing to General Counsel and Vice President for Government Affairs. Hubbard will continue to lead tax and trade policy issues for RFA, while also supporting RFA’s work on energy, climate, and agricultural policy and regulation.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

EPA Chief Wheeler Will Not Resign

Cindy Zimmerman

Photo provided by MS Farm Bureau

During an agricultural event in Mississippi on Monday, Environmental Protection Agency (EPA) Administrator Andrew Wheeler said he will not resign from the Trump Administration.

“I was disgusted by the events of last Wednesday,” he said in answer to a reporter’s question. “I believe in the best interests of the agency, in order to ensure a smooth transition to my successors, it’s important for me to stay on.”

Wheeler was in Mississippi to announce a $2 million dollar initiative that encourages smart and sustainable pest control in agriculture. The initiative, which is an extension of EPA’s Pesticide Environmental Stewardship Program (PESP), expects to award grantees up to $200,000 to implement sustainable pest management practices that align with the agency’s goal of providing a healthier environment for all Americans.

“EPA wants farmers to choose what they can use in their fields and not have it chosen for them,” said Wheeler.

Listen to Wheeler’s remarks and press questions here:
EPA chief Andrew Wheeler in Mississippi (15:28)

Audio, EPA

Supreme Court Will Hear RFS Waiver Case

Cindy Zimmerman

Late Friday, the U.S. Supreme Court agreed to review the 10th Circuit Court decision made a year ago this month that invalidated several small refinery exemptions issued by EPA under the Renewable Fuel Standard. The decision is in response to a petition submitted in September by HollyFrontier Corporation and CVR Energy, two of the refineries named in the case.

The 10th Circuit Court decided unanimously in favor of the petitioners – the Renewable Fuels Association, National Corn Growers Association, National Farmers Union, and American Coalition for Ethanol – determining that EPA abused its authority by granting small refinery exemptions that were not extensions of previously existing exemptions. In April, the Tenth Circuit denied the refiners’ request to re-hear the case.

When the refiners petitioned the Supreme Court in September, the biofuels coalition said there was no reason for further review or consideration of the ruling. “It is well-reasoned and based on a plain reading of the Clean Air Act, which clearly intended small refinery exemptions to be temporary and used only as a ‘bridge to compliance’ for certain eligible small refineries. Additionally, there are no conflicting decisions in other federal courts of appeal.”

No date was set for oral arguments.

ACE, Biodiesel, biofuels, EPA, Ethanol, Ethanol News, NFU, Renewable Fuels Association, RFA

Gov. Reynolds to Address Virtual 2021 Iowa RFA Summit

Cindy Zimmerman

Iowa Governor Kim Reynolds will once again join other biofuel supporters from around the country at the Virtual Iowa Renewable Fuel Summit to look back on past obstacles overcome and future growth opportunities within the state for biofuels.

“Governor Kim Reynolds has been a true champion for biofuels and has taken every opportunity to seek growth opportunities for ethanol and biodiesel,” Iowa Renewable Fuels Association Executive Director Monte Shaw said. “We look forward to hearing her thoughts on a path forward for biofuels in 2021.”

The Iowa Renewable Fuels Summit is taking place on January 26th and is free and open to the public, but registration is required. To register to attend and learn more, visit IowaRenewableFuelsSummit.org.

Ethanol, Ethanol News, Iowa RFA, IRFA Renewable Fuels Summit