Court Vacates Last Minute Refinery Exemptions

Cindy Zimmerman

The U.S. Court of Appeals for the Tenth Circuit has issued an order vacating three small refinery exemptions granted by EPA in the waning moments of the Trump Administration. The court’s decision came promptly after EPA petitioned for the vacatur and remand of the exemptions on April 30 and Sinclair responded on May 18 that it did not oppose EPA’s request.

The court order states that any further administrative proceedings on these exemptions must be “consistent with this court’s decision in Renewable Fuels Association v. EPA,” where the Tenth Circuit ruled that EPA may only extend pre-existing refinery exemptions, that EPA’s exemption decisions must reconcile the agency’s consistent findings that all refineries recover the costs of compliance with the Renewable Fuel Standard, and that EPA may only use hardship caused by the RFS to justify granting exemptions.

“We’re pleased that the court has vacated these improperly granted waivers and is sending them back to EPA for reconsideration,” RFA President and CEO Geoff Cooper said. “If these exemptions had been allowed to stand, they would have erased RFS blending requirements for 260 million gallons of low-carbon renewable fuels, destabilizing rural communities and taking a step backward in the fight against climate change. EPA did the right thing in April by requesting that these spurious exemptions be vacated, and we applaud the agency for honoring President Biden’s commitment to putting an end to the surge of illegitimate refinery waivers.”

EPA, Ethanol, Ethanol News, RFA

FEW Looking for Industry Award Nominations

Cindy Zimmerman

The 3th annual International Fuel Ethanol Workshop will be held in Des Moines July 13-15 and one of the event’s longtime traditions is the presentation of the industry’s High Octane Award and Award of Excellence. Nominations for both awards are now being sought, with a deadline of June 4.

The Award of Excellence, established by BBI International in 2000, recognizes individuals who have made significant contributions to the fuel ethanol industry through their research, technical advisory and/or development activities. Last year’s winner was Douglas Tiffany, University of Minnesota.

The High Octane Award acknowledges a person who has helped the ethanol industry mature and progress over the years. This award, established in 2000 by BBI International, recognizes a person whose passion and unstoppable pursuits have significantly benefited the ethanol industry. Previous winners include such well-known industry pioneers as Ray Defenbaugh, Steve Vander Griend, and last year’s winner Doug Durante.

Click here to learn more and nominate.

Ethanol, Ethanol News, FEW

Ethanol Exports Up in March

Cindy Zimmerman

Exports of U.S. ethanol increased to 133 million gallons (mg) in March, the second-largest volume in a year and up 31% from February’s dip, according to the latest summary from the Renewable Fuels Association (RFA).

Exports to China spiked from 4.7 mg to 48.3 mg for the country’s second-largest monthly imports of American ethanol on record (and narrowly missing the April 2016 high). Similarly, shipments to Canada accelerated by 85% to a four-month high of 34.2 mg, and India’s imports were up 13% over February to 16.8 mg. These three countries received three-fourths of all ethanol shipped in March. Other substantial markets include South Korea (7.1 mg, -67%), Brazil (5.3 mg, -32%), the Philippines (4.6 mg, -5%), and Peru (4.5 mg, +3%). Total U.S. ethanol exports for the first three months of the year totaled 399.3 mg, or 18% less than last year at this time.

U.S. exports of dried distillers grains (DDGS) were up 13% in March to 882,553 metric tons (mt). Shipments to Mexico rebuilt following a sizeable slump in February to 174,928 mt, 20% of total U.S. exports in March and a 42% increase over the prior month. Shipments to Vietnam nearly doubled to a seven-month high of 130,985 mt.

Ethanol, Ethanol News, Exports, Renewable Fuels Association, RFA, Trade

Ethanol Report: 10 Years of California’s LCFS

Cindy Zimmerman

2021 marks the 10th anniversary of the California Low Carbon Fuel Standard being implemented with the goal of reducing greenhouse gas emissions from the state’s transportation sector, while also lessening dependence on petroleum by using alternative fuels, like ethanol.

A new Renewable Fuels Association white paper looks at how, for the past decade, ethanol has been the go-to fuel to decarbonize transportation in the Golden State. The use of ethanol under California’s low-carbon fuel standard has generated over a third of the state’s greenhouse gas savings since implementation of the program began in 2011—more than any other low-carbon fuel used in the state.

In this edition of the “Ethanol Report” podcast, we hear from Renewable Fuels Association president and CEO Geoff Cooper about how the relationship between ethanol and the California LCFS has resulted in a program that provides an example for other states and the nation of how to combat climate change.

Ethanol Report 5-13-21 (16:35)

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, Climate Change, Ethanol, Ethanol News, Ethanol Report, Low Carbon Fuel Standard, Renewable Fuels Association, RFA

Corn Use for Ethanol Forecast Increased

Cindy Zimmerman

USDA’s May World Agricultural Supply and Demand Estimates report is forecasting corn use for ethanol to increase this year with greater production and domestic use.

The corn crop is projected at 15 billion bushels, up from last year on higher area and a yield projection of 179.5 bushels per acre assuming normal planting progress and summer growing season weather.

Total U.S. corn use in 2021/22 is forecast to decline relative to a year ago as greater domestic use is more than offset by lower exports. Food, seed, and industrial (FSI) use is projected to rise 220 million bushels to 6.6 billion. Corn used for ethanol is projected to increase based on expectations of higher U.S. motor gasoline consumption. Corn feed and residual use is unchanged, as a larger crop is offset by increased corn used for ethanol and higher expected season-average farm prices received by producers.

The season-average corn price received by producers in 2021/22 is projected at $5.70 per bushel, up $1.35 from a year ago.

corn, Ethanol, Ethanol News, USDA

Iowa Fleets Make ‘100 Best’ List with Biodiesel

Cindy Zimmerman

This year’s National Fleet Management Association 100 Best Fleets in the Americas list includes two fleets in Iowa that rely on biodiesel – Ames Fleet Services Department and Iowa State University.

Ames has achieved greenhouse gas emissions reductions by deploying snowplows with 100% biodiesel as its primary fuel – a first for any midwestern city. With support from biodiesel producer REG, Ames equipped several trucks to run on the pure biodiesel in a pilot project. At ISU, students collect used fryer oil from dining centers on campus and convert it into biodiesel using their own reactor. The biodiesel helps fuel the university’s bus system on campus and in the Ames community.

Iowa Biodiesel Board executive director Grant Kimberley said, “Not only are these fleets using homegrown products that support Iowa’s economy, but they are also empowering our state to tap into a larger energy shift. As major corporations make net-zero commitments, and states coast-to-coast introduce legislation to drastically cut carbon, Iowa should not only participate in this transportation revolution, but help lead it. Increasing our own state’s use of biofuels positions Iowa to continue to lead in promoting high-performance liquid renewable fuels with low carbon intensity.”

Biodiesel, Fleet

Ethanol Could Help Ease Pipeline Pain

Cindy Zimmerman

The fuel supply challenges being faced by some states due to the Colonial Pipeline shutdown could be helped by increasing use of 15 percent ethanol (E15), according to the Renewable Fuels Association (RFA).

In a letter to EPA Administrator Michael Regan, RFA President and CEO Geoff Cooper specifically asked EPA to suspend certain regulatory requirements that otherwise would impede and delay retailers from expanding the use of E15 to help offset fuel supply shortages. Cooper noted that some 180,000 barrels per day of ethanol production capacity is currently idle and could be “quickly activated or reoriented to help alleviate impending fuel shortages on the East Coast.”

EPA has issued a waiver of the requirements for low volatility conventional gasoline and Reformulated Gasoline for the affected areas until May 31.

Cooper noted that the pipeline shutdown highlights the risks of heavy dependence on a single fuel source. “As the Biden administration pursues initiatives to expand and fortify our nation’s energy infrastructure, the Colonial pipeline shutdown serves as a poignant reminder that ethanol biorefineries are strategic assets that can and should play a larger role in powering America forward.”

While Colonial has announced a goal of “substantially restoring operational service by the end of the week,” experts are expecting the supply disruption could impact the East Coast market for weeks and lead to the highest retail gas prices in at least seven years.

Listen to comments from Cooper in this interview:

RFA CEO Geoff Cooper - Colonial Pipeline (7:01)

Audio, Ethanol, Ethanol News, Oil, RFA

RFA Comments on Oregon Clean Fuels Program

Cindy Zimmerman

The Renewable Fuels Association (RFA) is expressing some concerns related to a planned expansion of the Oregon Clean Fuels Program.

The Oregon CFP currently requires a 10% reduction in the carbon intensity (CI) of transportation fuels by 2025, and the state intends to expand the reductions to 20% by 2030 and 25% by 2035. In anticipation of the expansion, Oregon’s Department of Environmental Quality recently released a set of illustrative scenarios showing different ways that compliance in 2030 and 2035 could beT achieved.

The RFA is supportive of the program and its expansion, but identified some areas of concern related to specific aspects of the scenarios.

First, the scenarios do not assume any reduction in ethanol’s carbon intensity between 2024 and 2035, which is contrary to past experience as well as research on the carbon intensity of ethanol. Going forward, market signals from the Oregon program and the California Low Carbon Fuel Standard can be expected to provide incentive for ethanol producers to reinvest in technologies and processes that further reduce carbon intensity, thereby allowing ethanol to contribute even more substantial greenhouse gas reductions under the program.

Second, while the scenarios take into account extensive use of E15 in Oregon, that blend is not approved for sale in the state at this time. Thus, RFA is encouraging legislative or regulatory solutions to this problem that would allow the sale of lower-carbon E15 and help ensure the volumes reflected in these scenarios can be met. The ability of E15 consumption to ramp up and help meet CFP compliance targets is supported by recent market and regulatory developments, with the examples of Iowa and Minnesota showing growth in E15 demand. At the same time, some state and federal governments are not only providing matching grants for higher-blend infrastructure but seeking ways to remove regulatory burdens on potential retailers.

“RFA supports the expansion of Oregon’s Clean Fuels Program, provided that it is technology- and feedstock-neutral and is based on performance toward reducing carbon emissions,” said RFA Chief Economist Scott Richman. “We hope that the Oregon Department of Environmental Quality will take our concerns into consideration as it moves forward in the rulemaking process.”

Read RFA’s full comments here.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Biodiesel Group Requests Meeting with EPA Admin

Cindy Zimmerman

The National Biodiesel Board is asking EPA Administrator Michael Regan for an opportunity to present the findings of a new study, “Assessment of Health Benefits from Using Biodiesel as a Transportation Fuel and Residential Heating Oil.”

The study from Trinity Consultants quantifies the public health benefits and resulting economic savings of using 100% biodiesel in U.S. communities near heavy transportation corridors, which is an emerging area of concern for EPA.

“We believe that including biodiesel and renewable diesel in the administration’s plans to address carbon is fully consistent with your agency’s focus on environmental justice,” Kurt Kovarik, NBB Vice President of Federal Affairs wrote in a letter to Regan.

“We appreciate Administrator Regan’s commitment to ensuring that biofuels play a role in achieving the nation’s carbon reduction goals,” Kovarik adds. “While the Biden administration has not yet explicitly included biofuels in the American Jobs Plan or the Nationally Determined Contribution to the Paris Accord, we believe it should. We would like the opportunity to show Administrator Regan how biodiesel and renewable diesel can support EPA’s goals to address climate change and environmental justice issues.”

NBB’s newly published study shows that switching to 100% biodiesel for home heating oil and transportation could annually bring the 13 communities studied:

340 fewer premature deaths.
46,000 fewer lost workdays.
$3 billion in avoided health care costs.
203,000 fewer or lessened asthma attacks for communities near heavy-duty transportation corridors.
17,000 fewer lung problems for communities that rely primarily on oil for home heating.

Additionally, the switch would bring a 45% reduction in cancer risk for communities near heavy-duty transportation corridors and an 86% reduction in cancer risk for communities that rely primarily on oil for home heating.

Biodiesel, EPA, NBB

EPA to Provide GAO With SRE Info

Cindy Zimmerman

The Environmental Protection Agency announced this week it will provide requested information to the Government Accountability Office related to small refinery exemptions under the Renewable Fuel Standard. \

The EPA announcement published in the Federal Register says it will provide the GAO with “…all documents, information, and data related to all small refinery exemption petitions received by EPA from the start of the RFS program through the present.”

In 2019, then-Rep. Abby Finkenauer (D-IA) and 11 other members of the House Biofuels Caucus formally requested that GAO investigate the previous administration’s secretive process for reviewing and deciding small refinery exemption petitions. GAO announced in January 2020 that it would conduct the requested investigation, and in May 2020 the organization asked EPA to provide information related to small refinery exemptions. However, EPA under the previous administration refused to turn over the requested information to GAO, despite three separate requests.

Renewable Fuels Association (RFA) President and CEO Geoff Cooper calls the announcement a win for transparency and accountability. “Ethanol producers look forward to the results of GAO’s investigation and believe it will shine much-needed light on the previous EPA’s dark and secretive management of the exemption program,” said Cooper.

Cooper also noted that RFA sued the previous administration’s EPA for its failure to properly respond to Freedom of Information Act requests filed by RFA and others. RFA’s FOIA requests sought agency records regarding small refinery exemptions—similar to those now being provided to GAO.

On the legislative front this year, the RFS Integrity Act, H.R. 1113, sponsored by Rep. Angie Craig (D-MN) and the CLEAN Future Act, H.R. 1512, sponsored by Rep. Frank Pallone (D-NJ), each includes provisions that set a deadline for annual submission of petitions to extend small refinery exemptions and increase transparency by making certain information from those petitions subject to public disclosure.

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