Biodiesel Board Disappointed in Last Minute Waivers

Cindy Zimmerman

During the National Biodiesel Conference session on policy this week, panelists agreed that the worst thing the outgoing Environmental Protection Agency could do to hurt the biodiesel industry was to grant more small refinery exemptions. A few hours later, that is exactly what EPA administrator Andrew Wheeler did on his way out the door, granting two 2019 small refinery exemptions (SRE), and apparently reversing a 2018 petition that was initially denied. The three waivers amount to 260 million gallons of renewable fuel demand.

“It’s not so much the volumes, but it once again demonstrates the willingness of the outgoing administration to do whatever they wanted in terms of helping friends in the refinery industry,” said National Biodiesel Board (NBB) Vice President of Federal Affairs Kurt Kovarik in an interview. “What I think he did was certainly unethical and probably illegal.”

Kovarik says they are pleased that the Renewable Fuels Association has already filed an injunction to prevent the waivers from happening and he hopes they are successful.

In this interview, Kovarik comments on last minute refinery waivers and working with the new Biden Administration.

2021 Biodiesel Conference interview with Kurt Kovarik, NBB (6:24)

Audio, Biodiesel, Biodiesel Conference, EPA, National Biodiesel Conference, NBB

RFA Takes Action to Stop Last Minute Refinery Waivers

Cindy Zimmerman

The Renewable Fuels Association wasted no time in taking action to stop the last minute small refinery exemptions granted Tuesday by the outgoing Trump Administration Environmental Protection Agency. RFA filed a petition for review and an emergency motion to stay the effectiveness of the waivers, which the organization says will “inflict substantial, immediate, and irreversible harm” to the U.S. ethanol industry.

According to RFA’s emergency motion, which was filed in the U.S. Court of Appeals for the D.C. Circuit, just hours after EPA publicly disclosed the new waivers, “This would be devastating to America’s ethanol producers, many of which are already on the brink of closure due to the ongoing impact of the COVID-19 pandemic.”

Data released by EPA Tuesday evening show that the two 2019 compliance exemptions reduced that year’s RFS standards by 150 million gallons, while one 2018 exemption erased 110 million gallons of renewable fuel requirements. The total eliminated volume of 260 million gallons is equivalent to shutting down three or four ethanol plants for a full year, or akin to erasing the total statewide annual ethanol consumption from Maryland, Massachusetts or South Carolina.

Troy Bredenkamp just started as RFA’s new Senior Vice President for Government and Public Affairs this week and he explains the organization’s reaction to the last minute waivers here:
Interview with Troy Bredenkamp, RFA (4:16)

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

What President Biden Can Do Now to Cut Carbon Emissions

Cindy Zimmerman

Now that President Biden has been sworn in, the Renewable Fuels Association has a way the new administration can immediately cut carbon emissions by 12 million metric tons.

RFA recently released an analysis that shows President Biden could cut 10.7 million metric tons of greenhouse gas (GHG) reductions simply by rejecting the 66 pending waiver requests from oil refiners who are looking to dodge their Renewable Fuel Standard (RFS) obligations, including the three last minute waivers granted by the exiting administration Tuesday. In addition, another 1.2 million metric tons of GHG reductions can be achieved by finally implementing a 2017 court order to restore renewable fuel blending requirements that were illegally waived by EPA in 2016.

According to the RFA report, the GHG reductions associated with these actions would be equivalent to removing 2.6 million gasoline-powered passenger vehicles from the road, eliminating the annual emissions from three coal-fired power plants, or replacing 3.7 million gasoline-powered passenger vehicles with battery electric vehicles.

RFA Chief Economist Scott Richman talks about the analysis in this interview.
Interview with RFA economist Scott Richman (10:26)

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

Trump EPA Grants Last Minute Refinery Waivers

Cindy Zimmerman

At an agricultural event last week, EPA Administrator Andrew Wheeler said he would not resign from the Trump Administration before the inauguration because he believed it was important for him to stay on “in the best interests of the agency, in order to ensure a smooth transition to my successors.” On his way out the door on Tuesday, Wheeler gave a last minute gift to the oil industry, granting two 2019 small refinery exemptions (SRE), and apparently reversing a 2018 petition that was initially denied. The three waivers amount to 260 million gallons of renewable fuel demand.

Renewable Fuels Association President and CEO Geoff Cooper said they will legally challenge EPA’s “unconscionable and unlawful decision” to grant the waivers. “With just hours remaining in his shameful term as EPA Administrator, Andrew Wheeler couldn’t stop himself from doling out a few more Clean Air Act compliance exemptions to his well-connected friends. But the fact remains that today’s action by EPA is completely without legal merit. It flouts both the statute and recent court decisions that clearly limit EPA’s authority and ability to grant these exemptions. And while this action comes as one last sucker punch from the Trump administration, we are confident it will be a hollow victory for the politically connected oil companies receiving today’s waivers, as the new Biden Administration will most certainly act quickly to restore the volumes erased by these waivers.”

Despite Wheeler’s comments last week in Mississippi about how important agriculture was to this administration, National Corn Growers Association (NCGA) President John Linder says this final action hurts farmers. “It shouldn’t be a surprise to those who have been paying attention for the last four years that this EPA would undermine corn farmers and the ethanol market on its way out the door. There is no reason for the EPA to take this action now, especially with the Supreme Court set to consider the Tenth Circuit ruling in the new term. Corn farmers need an EPA that will follow the law as written and intended by Congress. NCGA looks forward to working with the Biden Administration to rectify the harm caused by this EPA’s abuse of small refinery exemptions and restore the integrity of the Renewable Fuel Standard.”

National Biodiesel Board (NBB) Vice President of Federal Affairs Kurt Kovarik said, “EPA’s last-minute gifts to oil refiners come at the direct expense of biodiesel and renewable diesel producers. This disappointing action further undermines the integrity of the Renewable Fuel Standard program by destroying demand for additional gallons of biofuel.”

The topic of what to do in the event EPA did grant last minute small refinery waivers was brought up in a panel discussion today at the virtual National Biodiesel Conference. Doug Hastings with Morgan Lewis, the firm representing NBB in federal district court and administrative rulemakings related to the RFS, said challenging the exemptions might be tricky if the refiners argue that once a waiver is granted it can’t be taken back.

Listen to Hastings comments here:
2021 Biodiesel Conference - Doug Hastings, Morgan Lewis (:50)

Audio, Biodiesel, biofuels, EPA, Ethanol, Ethanol News, National Biodiesel Conference

Biodiesel Award Renamed for Johannes, Presented to Jobe

Cindy Zimmerman

One of the most influential pioneers of the biodiesel industry now has an award named after him.

The newly named “Kenlon Johannes Pioneer Award” will forever recognize and honor the Terry Bradshaw lookalike who was instrumental in the initial development of the biodiesel industry in the United States, serving as the first Executive Director of the National SoyDiesel Development Board, later named the National Biodiesel Board (NBB). He currently serves as the Chief Executive Officer of the Kansas Soybean Association and Administrator of the Kansas Soybean Commission, but after more than 30 years serving both the agriculture and biodiesel industries, Johannes will retire this spring.

The first recipient of the newly renamed award is Joe Jobe, who served NBB from 1997 until 2016, first as Chief Financial Officer and then as CEO. Jobe grew the association from 14 soybean grower members to a highly diverse membership representing over 200 companies across the industry’s value chain. His foresight and hard work drove the industry from a small farmer organization with an ambitious idea to commercialize an experimental fuel to the $11 billion low carbon industry that it is today, supporting over 64,000 green jobs.

Currently, Jobe is the President and Founder of Rock House Advisors, a business consulting firm specializing in energy, agriculture, transportation, automated technology, and sustainability.

Listen to the renaming and presentation of the award during the 2021 virtual National Biodiesel Conference:
2021 Biodiesel Conference Pioneer Award - Joe Jobe, Rock House Advisors (6:41)

Audio, Biodiesel, Biodiesel Conference, National Biodiesel Conference, NBB

Haer Honored with Eye on Biodiesel Inspiration Award

Cindy Zimmerman

Former National Biodiesel Board chair Gary Haer was honored Tuesday with the industry’s Eye on Biodiesel Inspiration Award during the 2021 virtual National Biodiesel Conference and Expo.

Gary Haer is the Vice President, Special Projects for NBB member company, Renewable Energy Group (REG), one of the nation’s largest producers of both biodiesel and renewable diesel in the United States. As the biodiesel industry began to take shape in early 2000, Haer served as the National Sales and Marketing Manager for biodiesel at West Central, a farm cooperative in Iowa. In 2006, Renewable Energy Group, Inc. emerged from the West Central business and Haer took the helm of the Sales and Marketing department, including market and distribution infrastructure development for national and international biomass-based diesel sales.

Haer was elected to NBB’s Governing Board in 2004 as the Secretary and worked his way to Vice Chairman and eventually Chairman of the Board in 2011. He was the first non-farmer Chair of the NBB and led the organization during a time of the industry’s greatest growth in production and membership.

Listen to NBB CEO Donnell Rehagen present the award to Haer and his acceptance remarks:
2021 Biodiesel Conference Inspiration Award - Gary Haer, REG (3:17)

Audio, Biodiesel, Biodiesel Conference, National Biodiesel Conference, NBB

Biodiesel and Renewable Diesel Rise to Meet New Opportunities

Cindy Zimmerman

The biodiesel and renewable diesel industry kicked off the 2021 Virtual National Biodiesel Conference and Expo Tuesday with an optimistic outlook for the future of America’s sustainable petroleum diesel replacement.

The theme of this year’s conference is “Rise 2021” and in his annual state of the industry address, National Biodiesel Board CEO Donnell Rehagen pointed to several factors contributing to increased demand for biodiesel and renewable diesel.

“Last year we unveiled Vision 2020, our plan to grow to over six billion gallons by the year 2030, and, with advancements in feedstocks, 15 billion gallons by 2050,” he said. “The biodiesel and renewable diesel industry believes, with strong data I might add, we will have the production and market demand to reach this previously unimaginable goal by 2030.”

Specifically, Rehagen said states across the country have embraced sustainable fuels as part of their own efforts to mitigate greenhouse gas emissions within their borders. Those efforts took on greater significance during the pandemic as Americans witnessed natural reduction of smog and pollution from drivers staying home and using less petroleum.

Beyond the growth in demand for traditional biodiesel and renewable diesel in on-road and off-road transportation applications, the increasing use of Bioheat® as an oilheat replacement, as well as interest in renewable jet fuels, are expanding new markets for the industry.

Rehagen also reminded virtual attendees that at last year’s conference in Tampa, the industry was celebrating the recently reinstated biodiesel tax incentive, which continues to encourage growth.

“By renewing the biodiesel tax incentive through 2022, Congress sent a strong signal that it supports growth in the biodiesel market and provided a much-needed economic lifeline to biodiesel producers and farmers across this country,” he said.

Listen to Rehagen’s state of the industry address and follow up press conference below:
2021 Biodiesel Conference state of the industry address - NBB CEO Donnell Rehagen (18:43)

2021 Biodiesel Conference NBB CEO Donnell Rehagen press conference (28:44)

Audio, Biodiesel, Biodiesel Conference, NBB

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