Senators Urge EPA to Reject Retroactive Waivers

Cindy Zimmerman

A bipartisan group of 16 senators sent a letter this week urging the Environmental Protection Agency (EPA) to reject any petitions for Small Refinery Exemptions (SREs) under the Renewable Fuel Standard (RFS) for past compliance years.

Senators Amy Klobuchar (D-MN), Joni Ernst (R-IA), Tammy Duckworth (D-IL), Chuck Grassley (R-IA) and a dozen others said in the letter to EPA Administrator Andrew Wheeler that he should deny the petitions immediately and apply the 10th Circuit decision nationwide.

“These petitions should not even be entertained because they are inconsistent with the Tenth Circuit decision, Congressional intent, the EPA’s own guidance, and – most importantly – the interests of farmers and rural communities who rely on the biofuel industry,” the senators wrote. “The approval of SREs for past compliance years at this moment would only worsen the unprecedented economic challenges facing the biofuels industry and the rural communities that it supports.”

Last week, EPA disclosed that 52 retroactive “gap-year” RFS waiver petitions had been received, going back to compliance year 2011. Renewable Fuels Association (RFA) President and CEO Geoff Cooper said they agree with the Senators that granting gap-year small refinery exemptions would not only be illegal, but it would also worsen the demand destruction that renewable fuel producers have already endured at the hands of EPA in recent years. “We proudly join these Senators in calling on EPA to immediately deny the gap-year petitions and apply the Tenth Circuit decision nationally.”

The National Biodiesel Board also supports the senators, according to Kurt Kovarik, VP of Federal Affairs. “Biodiesel producers and soybean farmers across the country are already facing unprecedented economic challenges. A brand-new flood of unlawful small refinery exemptions is guaranteed to compound the damage from the past several years.”

The letter was also signed by Senators Tina Smith (D-MN), Roy Blunt (R-MO), Debbie Stabenow (D-MI), Mike Rounds (R-SD), Gary Peters (D-MI), Ben Sasse (R-NE), Tammy Baldwin (D-WI), John Thune (R-SD), Dick Durbin (D-IL), Josh Hawley (R-MO), Sherrod Brown (D-OH) and Deb Fischer (R-NE).

Biodiesel, EPA, Ethanol, Ethanol News, NBB, RFA

Ethanol Report 6-25-20

Cindy Zimmerman

Ethanol production is slowly coming back now after reaching record lows due to coronavirus restrictions that took a toll on transportation fuel consumption. But recovery is still a long way off and the uncertainty posed by the threat of EPA granting more small refinery exemptions is making it even more difficult.

The Congressional Biofuels Caucus is doing all it can to help the industry, including support direct aid to producers in the HEROES act, which passed the House a month ago, but has yet to go anywhere in the Senate.

In this edition of the Ethanol Report, hear from Reps. Collin Peterson (D-MN), Roger Marshall (R-KS), Dave Loebsack (D-IA), Rodney Davis (R-IL), Cindy Axne (D-IA), as well as National Sorghum Producers CEO Tim Lust, National Corn Growers CEO Jon Doggett, and Renewable Fuels Association CEO Geoff Cooper. They all took part in a recent virtual town hall meeting to discuss the challenges currently facing the ethanol industry and what can be done to help.

Ethanol Report 6-25-20 (13:36)

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, NCGA, Renewable Fuels Association, RFA

Renewable Energy Group Revises Second Quarter Outlook

Cindy Zimmerman

Leading biodiesel producer Renewable Energy Group, Inc. has revised its second quarter 2020 outlook, which is now expected to be between negative $12 million and negative $2 million. Previously, on April 30, REG estimated a range of $20 million to $35 million.

Several factors contribute to the Company’s revised outlook, including inadvertent calculation errors and volatile markets during the second quarter, with industry margins first dropping and then showing signs of recovery.

“We are of course disappointed with our expected Q2 results,” said REG President and CEO, Cynthia (CJ) Warner. “Despite all the challenges presented by the market environment, including an industry margin collapse in the quarter, we believe our underlying fundamentals are strong and margins are beginning to improve, and we remain confident in our strategy and ongoing opportunities to create shareholder value.”

The Company will provide further details regarding its performance and results for the second quarter of 2020 in its upcoming earnings call in August 2020.

Biodiesel, REG

RIP Ethanol Industry Leader Bob Sather

Cindy Zimmerman

Ace Ethanol co-founder Bob Sather with RFA CEO Geoff Cooper at 2019 NEC

The ethanol industry has lost a good friend and industry leader in Bob Sather who passed away on June 16 after a long battle with prostate cancer.

Sather entered the ethanol industry after retiring from a career in education in Wisconsin. He became a founding member of Ace Ethanol in Stanley, Wisc., and served as the Director of Government Relations for 17 years. Sather served on committees and boards at the national, state, and local levels, including both the Renewable Fuels Association and the American Coalition for Ethanol. Bob was born in Eau Claire, Wisc. in 1934, and he and his wife, Ruth, recently celebrated their 58th wedding anniversary.

As a tribute to Bob Sather, the Renewable Fuels Foundation (RFF) is renaming its annual National Ethanol Conference (NEC) scholarship, which pays for students to attend the NEC, as the “Robert Sather Memorial NEC Scholarship” in his honor. Bob represented Ace Ethanol on the RFA board for more than a decade, and was the RFF chairman for many years.

“It is only fitting that we rename this scholarship in Bob’s honor, as he was primarily responsible for creating the NEC scholarship when he served as chair of our foundation,” said RFA President and CEO Geoff Cooper. “As a director of financial aid for the University of Wisconsin system, Bob helped many students achieve their goal of going to college. But to Bob, helping young people learn and pursue higher education wasn’t just a job—it was a lifelong passion that began with his first job as a math teacher. Bob brought that passion for learning to the ethanol industry and RFA, where he helped guide our foundation’s educational programs and encouraged greater outreach to students of all ages. We will miss Bob’s sharp wit, his creative ideas, and his leadership. Our thoughts and prayers are with Bob’s wife, Ruth, and the rest of their family, as well as the entire team at Ace Ethanol.”

At the 2019 National Ethanol Conference, I had the opportunity to interview Sather about the future for cellulosic ethanol and how the ethanol industry has grown over the years.

NEC19 Interview with Bob Sather, ACE Ethanol

ACE, Audio, Ethanol, Ethanol News, RFA

Biodiesel Board Urges EPA to Reject Gap Waivers

Cindy Zimmerman

The National Biodiesel Board is urging EPA Administrator Andrew Wheeler to immediately reject the flood of 52 small refinery exemption petitions for previous years going back to 2011.

Kurt Kovarik, NBB’s VP of Federal Affairs, states, “EPA’s consideration of small refinery exemption petitions going back to 2011 flies in the face of the recent 10th Circuit decision. By rolling back the clock, there appears to be no length EPA won’t go to help refiners undermine the RFS. Make no mistake – this handout to the oil industry comes at the expense of biodiesel producers and soybean farmers across the country, and particularly the Midwest. Allowing these gap filings renders the program completely unpredictable for renewable fuel producers. The agency must immediately reject these petitions to restore confidence that it will abide by the law in administering the RFS.”

NBB sent a June 1 letter to Administrator Wheeler saying, “EPA’s first step upon receiving any petition for a small refinery exemption should be to evaluate its timeliness and validity before transmitting it to the Department of Energy.” The letter makes the case that “gap” petitions or re-submissions of previously rejected petitions are inconsistent with the 10th Circuit’s ruling.

Biodiesel, EPA, NBB

EPA Dashboard Confirms 52 “Gap Year” Waiver Requests

Cindy Zimmerman

The newly updated EPA Small Refinery Exemptions dashboard has revealed that 52 new petitions have been received from small refineries seeking retroactive exemptions from their Renewable Fuel Standard requirements in prior years dating back to 2011.

According to the Renewable Fuels Association, refiners are filing these “gap year” waiver petitions as a way around the recent Tenth Circuit Court decision that overturned three exemptions and set a precedent for significantly curtailing the waivers going forward.

Now, in a brazen attempt to get around the court decision, refiners are requesting exemptions for past years so that they may claim they are eligible for future waivers because their exemption was “continuously extended” by EPA. RFA first exposed the “gap year” plot in a letter to Administrator Wheeler on May 22, and called on EPA to reject the secretive waiver requests outright. The Tenth Circuit petitioners—RFA, NCGA, NFU and ACE—and other groups sent another letter to EPA later, requesting specific information about the “gap year” petitions.

RFA President and CEO Geoff Cooper addressed the issue of waivers during a House Biofuels Caucus town hall meeting Wednesday, saying that it is more critical than ever that EPA enforce the Renewable Fuel Standard (RFS).
RFA CEO Geoff Cooper remarks on waivers 2:03

On a press call after the town hall, Cooper said if EPA refuses to follow the court decision, the industry will have to respond.
Cooper on fighting gap year waivers :40

National Corn Growers Association CEO Jon Doggett, also on the town hall meeting, explained how significantly those waivers have impacted corn farmers.
NCGA CEO Jon Doggett remarks on waivers 1:49

Read more from RFA.

Audio, corn, EPA, Ethanol, Ethanol News, NCGA

Bill Would Push Biofuels Innovation

Cindy Zimmerman

Sen. John Thune (R-SD) has introduced legislation, together with Sen. Jeanne Shaheen (D-NH), to approve some advanced biofuel pathways under the Renewable Fuel Standard, which have been delayed by the Environmental Protection Agency (EPA).

Under the legislation, EPA would also be required to render a decision within 90 days on any registration application that has been pending for at least 180 days, as well as take action within 180 days for completed pathways petitions pending for at least 180 days.

“Finally advancing proven fuels like ethanol derived from corn fiber technology will permit ethanol producers to produce a higher-value fuel with even lower lifecycle greenhouse gas emissions, as well as enable them to utilize at scale the technology and facility investments they have already made,” said Thune. “The RFS intends for fuel technology to progress, not for prolonged EPA inaction to stifle it. At a time when the farm economy continues to face headwinds and uncertainty, my bill would improve the bottom line of numerous biofuel operators without direct federal assistance, adding value to the corn crop and increasing margins until fuel demand is restored.”

American Coalition for Ethanol (ACE) CEO Brian Jennings thanked Senators Thune and Shaheen for their leadership. “This legislation will help biofuel producers who continue to innovate and add technology to reduce the carbon intensity of their fuel production processes. The delay in application approvals causes headaches for ethanol producers and the companies poised to work with them on innovations such as corn kernel fiber technology.”

In addition to approving certain biofuel registrations and requiring EPA action on pending registration applications and pathway petitions, the bill would provide $2 million for EPA to carry out the functions of the bill. EPA has also been slow to act on numerous pathway petitions, which seek to advance innovative and clean fuels made from renewable feedstock. Under the Thune bill, EPA will have to render a final decision within a total of one year after a pathway petition is deemed completed.

Sen. Jeanne Shaheen (D-N.H.) is an original sponsor of this bill.

ACE, biofuels, corn, EPA, Ethanol, Ethanol News

Biofuels Caucus Town Hall Talks Ethanol Issues

Cindy Zimmerman

Members of the Congressional Biofuels Caucus held a virtual town hall Wednesday to discuss the challenges currently facing the ethanol industry and what can be done to help.

Participating in the meeting were caucus members including Reps. Collin Peterson (D-MN), Roger Marshall (R-KS), Dave Loebsack (D-IA), and Rodney Davis (R-IL) as well as ethanol and agricultural group leaders.

House Agriculture Committee Chair Peterson says while the Senate has yet to vote on the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, he will not vote for any bill that provides no aid for biofuels producers – and he is still hopeful USDA could yet find dollars for producers in the previous legislation.

Rep. Collin Peterson (D-MN) on help for biofuels producers 4:45

Audio, Ethanol, Ethanol News

RFA Webinar to Train Safety Trainers

Cindy Zimmerman

The Renewable Fuels Association, in partnership with TRANSCAER, is hosting a free Ethanol Emergency Response “Train the Trainer” webinar on Tuesday, June 23.

The webinar will take place from noon to 2 p.m. ET and is funded through a Federal Railroad Administration/TRANSCAER grant. It is designed to train a group of individuals who can then turn around and pass that information forward, equipping entire communities with the knowledge necessary to respond to any potential ethanol-related emergency.

Led by national hazardous materials trainer Joel Hendelman, the webinar is designed and intended to enhance the course delivery for experienced instructors with extensive knowledge of flammable and combustible liquid incident operations. Instructors should be engaged in hazardous materials incident management and mitigation that include significant operational and tactical experience involving ethanol-blended fuels. The instructor will be focusing on instructor methodology and highlighting critical information to share with the student audience. Failure to have the necessary knowledge, skills, abilities, teaching experience and credentials could lead to the dissemination of incorrect information, placing students at risk should they engage in ethanol-blended fuel incidents in the future.

Registration is limited. Certificates will be emailed to all completing the webinar. Click here for more information or to register.

Ethanol, Ethanol News, Renewable Fuels Association, RFA, safety

Biofuels Caucus to Hold Town Hall on Ethanol

Cindy Zimmerman

Members of the Congressional Biofuels Caucus will hold a virtual town hall “An Open Discussion with Congressional and Industry Leaders on the Challenges, Opportunities and Next Steps for the Ethanol Industry” today at 5 PM Eastern time.

Participating in the meeting will be Biofuels Caucus members Reps. Collin Peterson (D-MN), Roger Marshall (R-KS), Dave Loebsack (D-IA), and Rodney Davis (R-IL).

Ethanol and agricultural group leaders include:
Geoff Cooper, President and CEO of the Renewable Fuels Association (RFA)
Emily Skor, CEO of Growth Energy
Jon Doggett, CEO of the National Corn Growers Association
Tim Lust, CEO of the National Sorghum Producers

The event will be live on YouTube at this link https://www.youtube.com/watch?v=dZiI1Rju7L0&feature=youtu.be.

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