Court Strikes Down EPA Small Refinery Exemptions

Cindy Zimmerman

On Friday, the U.S. Court of Appeals for the Tenth Circuit struck down three small refinery exemptions (SREs) that were improperly issued by Environmental Protection Agency under a May 2018 case brought against EPA by the Renewable Fuels Association (RFA), the National Corn Growers Association, the American Coalition for Ethanol and National Farmers Union. The three refineries are owned by CVR Energy and HollyFrontier.

Among other findings, the Court held that EPA cannot “extend” exemptions to any small refineries whose earlier, temporary exemptions had lapsed. According to the Court opinion, “the statute limits exemptions to situations involving ‘extensions,’ with the goal of forcing the market to accept escalating amounts of renewable fuels over time. None of the three small refineries here consistently received an exemption in the years preceding its petition. The EPA exceeded its statutory authority in granting those petitions because there was nothing for the agency to ‘extend.’” EPA’s own data show that a maximum of only seven small refineries could have received continuous extensions of their previously existing exemptions. Yet, recently EPA has granted as many as 35 exemptions in a single year.

RFA President and CEO Geoff Cooper said, “The Court has affirmed our long-held position that EPA’s recent practices and policies regarding small refinery exemption extensions were completely unlawful. And while the decision addresses three specific exemptions, the statutory interpretation issues resolved by the court apply much more broadly.”

NCGA President Kevin Ross says the decision is welcome news for corn growers. “Ethanol is an incredibly important value-added market for corn farmers, and EPA’s waivers have reduced RFS volume requirements by more than 4 billion gallons over the past three years, impacting corn demand.”

The Court also found that EPA abused its discretion in failing to explain how the Agency could conclude that a small refinery might suffer a disproportionate economic hardship when the Agency has simultaneously consistently maintained that costs for RFS compliance credits, or RINs, are passed through and recovered by those same refineries.

ACE, biofuels, corn, Ethanol, Ethanol News, NCGA, NFU

Industry Celebrates Biodiesel Tax Credit Extension

Cindy Zimmerman

Without question, the multi year biodiesel tax credit extension achieved at the end of 2019 was a tremendous victory for the industry.

“No one is more relieved, excited and enthused to say we got it done – five years certainty through 2022!” said National Biodiesel Board Vice President of Federal Affairs Kurt Kovarik. “No other tax extender as large as us received anywhere near the duration.”

The reinstatement of the biodiesel tax credit provides much-needed retroactivity for 2018 and 2019 and a forward-looking credit through 2022. Three years forward is the longest time period the industry has been able to count on the credit since it was first introduced in 2005.

Kovarik, a longtime aide to Sen. Chuck Grassley of Iowa prior to joining NBB in 2017, gave his former boss a lot of the credit for finally getting the extension to the finish line. “Our industry owes a huge debt of gratitude to Chuck Grassley,” said Kovarik. “If you see him, say thank you, give him a bear hug if you like, say it’s from me.”

NBB2020 Opening session - NBB VP of Federal Affairs Kurt Kovarik (11:50)

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

Ethanol Industry Mourns Loss of Ray Defenbaugh

Cindy Zimmerman

The ethanol industry is mourning the loss this week of pioneer and advocate Ray Defenbaugh, who was a founding member, president, CEO, and chairman of Big River Resources, with facilities in Iowa, Illinois, and Wisconsin.

Defenbaugh served on the Renewable Fuels Association (RFA) board since 2005 and was a member of the Executive Committee.

“Ray’s contributions to rural America, the ethanol industry, and RFA are truly immeasurable, and he tirelessly endeavored to improve the lives of farmers and the livelihood of communities across the Midwest,” said RFA President and CEO Geoff Cooper. “Ray also had a special talent for uniting people and stimulating cooperation, and his leadership always helped the industry get through trying times.”

In addition to his service at RFA and Big River Resources, Defenbaugh also held leadership roles at Absolute Energy, LLC; the U.S. Grains Council; the National Grain and Feed Association; the Illinois Renewable Fuels Association; the Urban Air Initiative; the American Coalition for Ethanol (ACE); and Growth Energy, among others.

“We will always remember Ray’s relentless spirit — his honesty, optimism, humor, and especially his fierce, fierce loyalty,” said Growth Energy CEO Emily Skor.

In 2015, Defenbaugh participated in a producer panel at the annual ACE conference where he talked a lot about the future of the industry, both for agriculture and ethanol.

His remarks give an idea of Ray’s uncommon wit and wisdom, as well as his great passion for the industry. Listen here: Ray Defenbaugh, Big River Resources

2015 ACE Annual Meeting Photos

ACE, Audio, Ethanol, Ethanol News, Growth Energy, RFA

New NBB Chair Optimistic for 2020

Cindy Zimmerman

Renewable Energy Group (REG) CFO Chad Stone was elected as the new chairman for the National Biodiesel Board in November and he addressed the membership at the National Biodiesel Conference this week in Tampa.

While 2019 was a disastrous year for the industry, which saw REG having to shut down a plant, Stone is very optimistic about biodiesel going forward.

“For biodiesel, this is our time to get back up,” said Stone. “We won’t be held down, we adapt, we grow and we fight. We are the future of energy and we won’t let anyone stand in our way.”

Listen to his remarks and interview:
NBB2020 Remarks from new NBB Chairman Chad Stone, Renewable Energy Group (13:11)

NBB2020 Interview with NBB Chairman Chad Stone, Renewable Energy Group (8:18)

Photos

2020 National Biodiesel Conference photo album

Audio, Biodiesel, Biodiesel Conference, REG

Plasma Blue Debuts at Biodiesel Conference

Cindy Zimmerman

A novel process using electricity and liquid plasma to induce the transesterification process needed to produce biodiesel is generating a lot of interest at the National Biodiesel Conference this week in Tampa.

The Minnesota Soybean Research and Promotion Council saw the potential for the technology, developed by scientists at the University of Minnesota, which could produce six gallons of biodiesel per hour. MSR&PC has since established a company, “Plasma Blue,” around the technology with CEO Tom Slunecka taking the lead on the project.

In this interview, Slunecka explains why Minnesota soybean growers have invested in this technology and the potential it has for the entire biodiesel industry.
NBB2020 Interview with Tom Slunecka, Plasma Blue (5:58)

2020 National Biodiesel Conference photo album

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

NBB CEO Meets with the Media

Cindy Zimmerman

National Biodiesel Board (NBB) CEO Donnell Rehagen met with members of the media at the National Biodiesel Conference after his state of the industry address on Tuesday. Many of the questions dealt with the biodiesel tax credit extension and when it will provide some relief for the industry.

“Producers should be working on it as we speak to get those forms into the IRS,” said Rehagen. “Our understanding is 60 to 90 days they should be seeing refund checks. So hopefully that will start putting them back in a good position to make forward looking decisions.”

Rehagen also talked about the new biodiesel industry vision and working on increasing biodiesel’s space in the Renewable Fuel Standard (RFS).

NBB2020 NBB CEO Donnell Rehagen press gaggle (14:23)

2020 National Biodiesel Conference photo album

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

National Biodiesel Board Shares “Vision 2020”

Cindy Zimmerman

The 2020 National Biodiesel Conference & Expo kicked off Tuesday in Tampa with a new industry vision for a new decade.

National Biodiesel Board CEO Donnell Rehagen unveiled the new industry vision statement in his state of the industry remarks to attendees.

Biodiesel, renewable diesel, and renewable jet fuel will be recognized as mainstream low-carbon fuel options with superior performance and emission characteristics. In on road, off road, air transportation, electricity generation, and home heating applications, use will exceed six billion gallons by 2030, eliminating over 35 million metric tons of CO2 equivalent greenhouse gas emissions annually. With advancements in feedstock, use will reach 15 billion gallons by 2050.

“Without a clear vision of the future – what we want to be, where we want to go, and how we’ll get there – we’ll never be more than we are today,” said Rehagen. “As carbon policies around the country really begin to take hold, we see low-carbon fuels like biodiesel, renewable diesel, and renewable jet fuel with a tremendous opportunity for growth. While the volumes in our new industry vision may seem ambitious, there is a very clear path to meeting this vision as long as we stay committed to working together and continuing to collaborate.”

The association’s plan includes a new tagline to go with the long-used biodiesel logo that emphasizes the benefits of the fuel in a succinct way – Better. Cleaner. Now! This tag line will be a center point of NBB’s education and promotion activities moving forward, aiming to drive the narrative about the myriad of ways that biodiesel and renewable diesel are a better choice for consumers, policy makers, and the environment.

Listen to Rehagen’s remarks:
NBB2020 Opening session - NBB CEO Donnell Rehagen (18:52)

2020 National Biodiesel Conference photo album

advanced biofuels, Audio, Biodiesel, Biodiesel Conference, NBB

ACE Explains Mexico Ethanol Ruling

Cindy Zimmerman

Last week, the Mexico Supreme Court ruled against the regulation allowing for higher ethanol content in gasoline, but American Coalition for Ethanol (ACE) Senior Vice President and Market Development Director Ron Lamberty explains that the decision was based on the way in which the Energy Regulatory Commission (CRE) implemented the change in 2017, not on the fuel.

In July of that year, the CRE decided to increase the maximum content of ethanol in gasoline as an oxygenate to 10 percent, up from 5.8 percent, outside of the major metropolitan areas of Mexico City, Guadalajara and Monterrey in the regulatory standard NOM-016-CRE-2016.

“The Mexico Supreme Court ruled against the process, not the product, and the oil/MTBE industry can’t really be happy the court said the CRE needs to weigh economic benefit (which clearly favors ethanol) against risks to the environment (which also favor ethanol). The ruling won’t go into effect for 180 days, and proving ethanol is cheaper and better than MTBE for the environment shouldn’t even take 180 minutes,” said Lamberty. “Oil and MTBE’s strategy translates in any language. They can’t win based on science, so they try to throw a stick in ethanol’s spokes by going to the courts and filing a multitude of lawsuits to prevent ethanol from competing in the marketplace. In the rare instance they win a case, Big Oil distorts the decision as some sort of scientific indictment of ethanol, but lawyers and judges aren’t scientists, and I doubt any of them even believe gas, oil or MTBE is better for the environment than ethanol.”

Lamberty has traveled to Mexico on behalf of the U.S. Grains Council multiple times over the past two years, participating in technical ethanol workshops to educate fuel retailers and equipment suppliers about offering E10.

ACE, Ethanol, Ethanol News, Exports, International

Ethanol Report on New Trade Deals

Cindy Zimmerman

Two major trade deals in one week last week are giving the agriculture and ethanol industries reason to be optimistic as we move into the “Roaring ’20s.”

In this episode of The Ethanol Report, we hear from Renewable Fuels Association president and CEO Geoff Cooper, President Donald Trump, USDA Deputy Secretary Steve Censky, Senate Majority Leader Mitch McConnell, and USDA Under Secretary for Trade and Foreign Affairs Ted McKinney talking about the China Phase One Trade Agreement and the US-Mexico-Canada Agreement (USMCA). Censky and Cooper both spoke at the 2020 Iowa Renewable Fuels Summit Thursday in Altoona, Iowa.

Ethanol Report 1-20-20 (18:39)

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. Click here to subscribe.

Audio, Ethanol, Ethanol News, Ethanol Report, Exports, RFA

Trump Addresses Farm Bureau For Third Year

Cindy Zimmerman

President Donald Trump addressed farmer and rancher members of the American Farm Bureau Federation for the third year in a row Sunday, and promised to be back next year while continuing to fight for what is important to them.

“My administration understands that if we want to stand up for America, we must stand up for American farmers,” said President Trump. He touted last week’s historic trade deal with China and Senate passage of the USMCA, as well as repeal of WOTUS and other regulatory burdens.

“As long as I’m president, government will never micromanage America’s farmers,” said Trump. “You’re going to micromanage your own farm and that’s the way it should be.”

The president touched on other popular topics including elimination of the estate tax, need for immigration reform, and ethanol.

2020 AFBF President Trump address (51:55)

AFBF, Audio, Ethanol, Ethanol News, Exports, Trade