EPA Delay on Waivers Comes as a Surprise

Cindy Zimmerman

Environmental Protection Agency (EPA) Administrator Andrew Wheeler has confirmed that the agency will delay action on dozens of outstanding Small Refinery Exemption petitions until after the Supreme Court rules on an appeal from refining companies over EPA’s waiver policy.

That means it would be December 14 before EPA would decide on whether to approve or reject the pending waiver requests. The high court is considering whether to hear the case brought by three small refiners in September and the EPA says it needs more time to provide a full government response to the petition.

Renewable Fuels Association President and CEO Geoff Cooper says they were surprised to hear of EPA’s decision on the appeal. “EPA decided not to get involved in earlier efforts for a rehearing of that properly decided opinion, so it’s unclear why EPA would want to weigh in now. If EPA decides to take a position on the request for further judicial review, we hope it’s to convey such review is unnecessary and falls far short of the established standards for Supreme Court’s involvement.”

Cooper says EPA can and should adopt the Tenth Circuit decision nationwide and immediately reject the 17 remaining ‘gap year’ waiver petitions and apply the decision to the 35 pending requests for 2019 and 2020 compliance exemptions. “It’s time to quiet the waters of the RFS program. Enough is enough.”

EPA, Ethanol, Ethanol News, RFA

Syngenta’s Thatcher Provides Post-Election Insight

Cindy Zimmerman

Mary Kay Thatcher, Senior Manager of Federal Government and Industry Relations for Syngenta, provided her perspective on the “churn of the election” during the company’s media summit this week. She does expect the presidential outcome to drag on for a while, but during her presentation, Thatcher used the assumption of a Biden presidency for her outlook.

In the biofuels space, Thatcher said the industry may need to look toward more Democrat champions, since a President Biden might not be as receptive to Republicans like Joni Ernst and Chuck Grassley in Iowa.

Here is the full presentation, which refers to slides and includes media questions at the end.
Syngenta Media Summit presentation on election impacts (50:27)

In this interview, Thatcher comments on how the rural vote went, what to expect for House and Senate Agriculture Committee leadership, and how a Biden presidency might impact biofuels, regulation, and trade issues.
Post election interview with Mary Kay Thatcher, Syngenta (10:25)

Audio, biofuels, Ethanol, Ethanol News, Syngenta

MN Governor’s Biofuels Council Recommends LCFS

Cindy Zimmerman

The Minnesota Governor’s Council on Biofuels this week released its consensus report on the steps needed to grow Minnesota’s biofuels industry and get the state back on track to meet renewable energy goals, including a plan for the adoption of a Low Carbon Fuel Standard (LCFS).

In the report to Gov. Tim Walz, the council recommends “a low-carbon fuel standard (LCFS)/clean-fuels policy (CFP) that builds on the vision, principles, and considerations of the white paper A Clean Fuels Policy for the Midwest (2020) from the Midwestern Clean Fuels Policy Initiative.”

The American Coalition for Ethanol (ACE) was a founding member of the Midwestern Clean Fuels Policy Initiative and released CEO Brian Jennings says they are pleased that Minnesota is building on its recommendations. “The white paper we released in January with the Great Plains Institute and other clean fuel stakeholders was designed for this specific purpose; to encourage Midwest governors and legislators to consider new clean fuel policies which will expand economic activity, increase ethanol demand, and cut greenhouse gas emissions.”

Members of the council include biofuels and farmer leaders from around the state, including Renewable Fuels Association chair Jeanne McCaherty with Guardian Energy, and John Christianson of Christianson PLLP who was recognized for his contributions to the report as a member of the Council’s Executive Committee.

The report also includes recommendations for increasing infrastructure for higher blends of ethanol and biodiesel, and for use of biofuels in state fleet vehicles.

Read the full report.

ACE, Biodiesel, biofuels, Ethanol, Ethanol News, Low Carbon Fuel Standard, RFA

RFA Comments on Colorado GHG Reduction Plan

Cindy Zimmerman

In September, Colorado released a public comment draft of its Greenhouse Gas Pollution Reduction Roadmap which details proposed steps the state can take toward meeting the near-term goals of reducing greenhouse gas (GHG) pollution 26% by 2025 and 50% by 2030 from 2005 levels.

Noting that transportation is one of the largest sources of GHG pollution, the Colorado plan suggests:
Transitioning to close to 100% electric cars on the road by 2050 and 100% market share for new vehicle sales of zero emissions trucks and buses by 2050; and
Adopting lower carbon fuels including advanced biofuels, renewable natural gas and hydrogen for hard to electrify sectors such as aviation and some heavy trucks

In comments on the plan submitted Friday, Renewable Fuels Association Vice President of Regulatory Affairs Kelly Davis, told the Colorado Energy Office that the internal combustion engine is “far from dead – the fuel just needs to be changed” with a low-carbon or clean fuel standard that can help Colorado slash greenhouse gas pollution.

“A properly designed, fuel neutral, LCFS or Clean Fuel Standard encourages GHG reductions via market forces,” Davis wrote. “LCFS/CFS programs are already in effect in California, Oregon and British Columbia, and have been discussed in other parts of the U.S., including Washington, New York and the upper Midwest. A science-based standard can drive technological innovation, stimulate investment in clean energy, reduce climate change emissions from the transportation sector, and decrease fossil fuel consumption.”

Davis also noted these programs “enable an increasingly diverse fuel supply, thus creating competition, encouraging innovation and developing greater market opportunities while improving air quality.”

Ethanol, Ethanol News, Low Carbon Fuel Standard, RFA

Field to Fuel Student Video Contest Open for Entries

Cindy Zimmerman

The Nebraska Ethanol Board is now accepting entries for the 6th annual Field to Fuel video contest, which encourages Nebraska high school students to explore the importance and value of ethanol.

With a focus on educating the public about renewable fuels, students are asked to research, film and edit a two-minute video for a chance to one of three prizes, including a $1,000 grand prize for their school or organization. Eligible videos must be received and/or postmarked no later than Jan. 31, 2021.

The contest is open to all Nebraska high school students in grades 9-12 and can explore any aspect of ethanol, including agriculture, science, sustainability, and renewable fuels’ impact in improving the environment and Nebraska’s economy. Teachers who would like more information about how to introduce ethanol into their curriculum (all ages) can explore the Ethanol in the Classroom resources from the Nebraska Ethanol Board website.

More information and requirements can be found here.

Education, Ethanol, Ethanol News

MOU Aims To Expand Ethanol Use In Vietnam

Cindy Zimmerman

The U.S. Grains Council (USGC) signed an official memorandum of understanding (MOU) this week with the Vietnamese Ministry of Industry and Trade (MOIT) aimed at expanding the use and availability of ethanol in Vietnam. The agreement promises to further a strong partnership between the two nations and encourage expanded ethanol use throughout Southeast Asia.

“The Council stands ready to support the MOU and the Vietnamese ethanol industry,” said Ryan LeGrand, USGC president and chief executive officer, who provided virtual remarks for the MOU signing. “The MOU helps further an already strong partnership between the U.S. and Vietnamese industries and governments. We thank the Vietnamese Ministry of Industry and Trade (MOIT), the U.S. Embassy and Consulate in Vietnam and the U.S. Department of Agriculture’s Foreign Agricultural Service (USDA’s FAS) for their ongoing dialogue and partnership.”

The MOU was signed during the 2020 Indo-Pacific Business Forum, which took place this week virtually and in-person in Hanoi, Vietnam. This year’s forum was aimed at advancing a vision for the Indo-Pacific region as a free and open region comprised of independent, strong and prosperous nations. Hosted by the U.S. Trade and Development Agency, the event is part of overall efforts to establish the United States as an essential and enduring partner to Southeast Asia.

Read more from USGC

Ethanol, Ethanol News, Exports, Trade, USGC

Ethanol Groups File Motion for EPA Transparency

Cindy Zimmerman

The Renewable Fuels Association and Growth Energy filed a motion this week for partial summary judgment in the federal District Court of the District of Columbia calling on the Environmental Protection Agency to make information about small refinery exemptions under the Renewable Fuel Standard available to the public.

The ethanol organizations filed the motion in response to EPA’s “failure to adequately respond to several Freedom of Information Act requests filed by the biofuels industry regarding the small refinery exemption (SRE) program and EPA’s radical escalation in granting SREs in recent years.”

RFA and Growth Energy asked the United States District Court for the District of Columbia to order EPA to make public at least the most basic information pertaining to these exemptions. The organizations have asked the United States District Court for the District of Columbia to order the following:

EPA should not withhold the name of the company submitting an application for an SRE nor the name and location of the refinery for which relief is requested
EPA should immediately produce the information that was unlawfully withheld for RFS compliance years 2015, 2016, and 2017
EPA should not withhold any of the five data elements identified in the proposed Renewables Enhancement and Growth Support (“REGS”) rule

EPA, Ethanol, Ethanol News, Growth Energy, RFA

Study Finds Gas Car Ban Would Hurt Biofuels and Farmers

Cindy Zimmerman

*Updated with audio interview*

The Agricultural Retailers Association (ARA) has just released a study on the impacts of increased electric vehicle penetration on U.S. biofuels, agriculture and the economy. Proposals to ban internal combustion engine vehicles by 2035 and 2050 served as the economic models for the study, along with a base case provided by the U.S. Energy Information Administration’s Annual Energy Outlook.

The study found that U.S. light-duty and freight vehicle consumption of ethanol and biodiesel could decline up to 90 percent to 1.1 billion gallons and up to 61 percent to 0.8 billion gallons, respectively.

Corn and soybean consumption could decrease by up to 2.0 billion bushels and up to 470 million bushels, respectively. Corn prices fall up to 50 percent to $1.74 per bushel, while soybean prices fall up to 44 percent to $4.92 per bushel.

Overall, U.S. net farm income would decrease by up to $27 billion due to a proposed ban.

This study makes clear that an internal combustion engine vehicle ban could devastate the agriculture community. Proposals that seek to rush this ban to 2035 have the most severe impacts, but any ban results in dramatic decreases in ethanol, biodiesel, corn and soybean prices, and demand for fertilizer and other agricultural products. These are burdens carried disproportionately by the agriculture community.

The study found that economic losses throughout the biofuels value chain range from $105 billion to $185 billion, and cumulative federal, state, and local tax revenues losses range from $39 billion to $69 billion through 2050.

Richard Gupton, ARA Senior Vice President Public Policy & Counsel, talks about the study in this interview.
ARA gas car ban study (4:21)

Read the entire study

ARA, Audio, Biodiesel, Electric Vehicles, Ethanol, Ethanol News

Pacific Ethanol Changing Brand and Focus

Cindy Zimmerman

Pacific Ethanol, Inc. (PEI) has announced a strategic realignment to focus on specialty alcohols and essential ingredients, as well as its intent to change its corporate name.

“Our company was founded to supply low carbon renewable fuel for the transportation market. While we will continue to participate in that market, transportation fuels are no longer our primary focus. Beginning with our acquisition of Illinois Corn Processing, LLC in 2017 and continuing with our ongoing expansion of specialty alcohol production begun earlier this year, we have been making investments to transition our business from focusing on fuels to focusing on specialty alcohols and essential ingredients used in consumer products, including alcoholic beverages, personal care products, sanitizers, cleaners and pharmaceuticals. We recently obtained ISO 9001 certification for our largest specialty alcohols production facility, and we are pursuing additional qualifications that will enable us to supply specialty alcohols used in a wider range of consumer products. We believe focusing on products for these markets aligns us with strong secular growth trends that will enable us to deliver greater and more consistent profitability for our shareholders,” stated Mike Kandris, Pacific Ethanol’s Chief Executive Officer.

Going forward, the company will focus on specialty alcohols and essential ingredients for four key markets: Health, Home & Beauty; Food & Beverage; Essential Ingredients; and Renewable Fuels. The company idled three of its western fuel-grade ethanol facilities in California and Idaho earlier this year, while continuing to operate its Columbia, Oregon distillery. As part of the company’s strategic realignment and new business focus, it intends to sell or re-purpose these assets.

Read more from PEI.

Ethanol, Ethanol News

Ethanol Stakeholders Comment on FFV Standards

Cindy Zimmerman

Ethanol stakeholder organizations submitted comments to the Environmental Protection Agency this week regarding the E85 Flexible Fuel Vehicle Weighting Factor (F-factor) for Model Year 2021 and Later Vehicles.

Comments from the Renewable Fuels Association (RFA) support EPA’s new approach to maintaining some level of certainty for automakers, but would like to see the agency “provide a long-term floor and “more robust” E85 usage factors for future model years, given expected growth and the many benefits provided by ethanol flex fuels.”

“Based on our discussion with automakers, it is clear that manufacturers will hesitate to invest in certain technologies, like FFVs, unless there is some assurance that those vehicles technologies will help enable CAFE and GHG standard compliance over multiple model years,” wrote Kelly Davis, RFA Vice President for Regulatory Affairs. “Fuel blenders and retailers also need multi-year certainty regarding the likely mix of light-duty vehicles so that they may appropriately direct their investments in wholesale and retail fuel infrastructure.”

The American Coalition for Ethanol (ACE) supports an F-factor of at least 0.20 for model year 2021 and later vehicles, and encourages EPA to consider “forward-looking data which indicate E85 use will significantly rise in the future. Until such time EPA establishes a 0.20 or greater F-factor, ACE strongly encourages the Agency to maintain the 0.14 F-factor, so the value does not default to zero.”

The National Corn Growers Association (NCGA) and 14 state corn grower groups also urged EPA to provide more certainty and use forward-looking data analysis to update policy that will lead to greater flex-fuel vehicle (FFV) production and increased demand for higher blends of ethanol.

“As the producers of the primary feedstock for ethanol, corn farmers support a forward-looking, consistent, long-term F-factor that provides automakers with greater certainty in compliance crediting for planning vehicle production,” the associations wrote.

ACE, automotive, corn, E85, EPA, Ethanol, Ethanol News, NCGA, RFA