RFA Urges EPA to “Just Follow the Law”

Cindy Zimmerman

The comment period on EPA’s supplemental proposal for 2020 renewable volume obligations ended on Friday, and the Renewable Fuels Association’s message in comments submitted was simple when it comes to implementing blending obligations under the Renewable Fuel Standard: Just follow the law

RFA’s comments highlight the fact that the Clean Air Act requires EPA to “ensure” that the RFS volumes specified by Congress are fully enforced. By issuing dozens of small refinery exemptions and refusing to reallocate the lost volume, EPA has failed to comply with this legal obligation in recent years.

“The congressional intent is indisputable and unambiguous, and the law is clear,” according to RFA President and CEO Geoff Cooper. “Unfortunately, the EPA has forsaken the law in recent years by failing to ensure the congressionally directed renewable fuel volume requirements are enforced. EPA issued 85 retroactive small refinery exemptions for the 2016-2018 compliance years, undercutting the statutory renewable fuel volumes by a total of 4.04 billion gallons.”

While EPA’s supplemental proposal takes a step in the right direction, it doesn’t go far enough in ensuring that the congressional RFS volumes are fully enforced. “If past is prologue, EPA’s proposal could result in the 15-billion-gallon requirement sliding backward to a requirement for just 14.4 billion gallons in 2020,” according to the comments.

RFA said the agency can get the RFS back on track and uphold President Trump’s commitment to farmers by fully redistributing renewable fuel blending requirements that are waived due to small refinery exemptions.

Cooper talked about RFA’s opinion of the supplemental rule in this interview from the recent NAFB convention.
NAFB19 Interview Geoff Cooper, Renewable Fuels Association (11:10)

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

Comments Rolling in on RFS Rule

Cindy Zimmerman

Comments are rolling in this week proposed supplemental rulemaking to the 2020 Renewable Volume Obligations (RVOs) under the Renewable Fuel Standard (RFS). The deadline is Friday, November 29, which is a federal work day, but many groups are getting their comments in early this week to take two days for Thanksgiving.

Most comments from biofuel supporters basically center on three main areas, as outlined by American Coalition for Ethanol (ACE) CEO Brian Jennings.
1. The rule fails to reallocate the 85 Small Refinery Exemptions (SREs) from 2016 through 2018
2. It represents a missed opportunity to restore 500 million gallons unlawfully waived from the 2016 compliance year
3. It betrays the deal on how to ensure at least 15 billion gallons in the RFS for 2020 and beyond.

The National Corn Growers Association (NCGA) President Kevin Ross said farmers are once again asking EPA to uphold the law and the integrity of the RFS. “EPA’s proposal does not ensure sufficiently accurate projections for waived gallons and, therefore, will continue to shortchange the RFS when waivers are granted.”

Because the comment deadline is the day before EPA’s statutory Nov. 30 deadline to release final Renewable Volume Obligations (RVO) for next year, the agency will need a little more time to review the comments on the supplemental rule before finalizing. That is expected to come now in mid to late December.

ACE, EPA, Ethanol, Ethanol News, NCGA

RFA Reviews 2020 Vehicle Models for Ethanol Usage

Cindy Zimmerman

The Renewable Fuels Association (RFA) finds good news for E15 but bad news for higher blends of ethanol in its review of 2020 model year vehicles.

The RFA analysis of vehicle owner’s manuals and warranty statements reveals that nearly all new 2020 automobiles are explicitly approved by the manufacturer to use gasoline containing 15 percent ethanol (E15). However, RFA’s annual review also shows automakers are offering far fewer model year 2020 flex fuel vehicles (FFVs) capable of running on blends containing up to 85 percent ethanol (E85).

According to the RFA analysis, manufacturers responsible for 95 percent of U.S. light-duty vehicle sales unequivocally approve the use of E15 in their model year 2020 automobiles. For the first time ever, BMW models will carry the manufacturer’s approval to use E15; in fact, the BMW Group approves the use of up to E25 in its 2020 models, including its line of Mini automobiles.

Among major manufacturers, only Mercedes-Benz, Mazda, Mitsubishi, and Volvo – which collectively represent less than 5 percent of U.S. sales – exclude E15 as an approved fuel in their owner’s manuals.

Meanwhile, automakers continue to dramatically curtail production of FFVs. Only two automakers—Ford and General Motors—are offering FFVs in model year 2020. Just 16 models will be available as FFVs in 2020, with six of those models available only to fleet purchasers. That’s down from more than 80 different models from eight manufacturers being available to consumers as recently as 2015.

RFA encourages drivers to make their voices heard with the auto industry itself by signing an online grassroots petition asking automakers to offer more models designed to run on “high-octane, low-carbon ethanol blends such as E20, E30 and E85.”

automotive, E15, E85, Ethanol, Ethanol News, Flex Fuel Vehicles, RFA

Governors’ Biofuels Coalition Takes Aim at Gasoline Aromatics

Cindy Zimmerman

The Governors’ Biofuels Coalition is asking President Trump to take action on removing toxic aromatics from gasoline.

In a letter to President Trump, coalition chair and vice chair Minnesota Governor Tim Walz and South Dakota Governor Kristi Noem asked him to enforce a provision of the Clean Air Act that requires the reduction and elimination of toxic carcinogenic aromatics from gasoline.

In 1990, Congress passed the landmark Clean Air Act amendments and directed the U.S. Environmental Protection Agency to reduce the dangerous chemical additives in gasoline. Today, almost 30 years later, this vital element of the law has yet to be enforced in any meaningful way. Aromatics, the poisonous chemicals that oil refiners add to all gasoline, remain a significant component of the fuels we use every day.

The governors note that octane options in the 1990s were limited, and cost-effective aromatic substitutes did not exist, but today many options exist, including high-octane biofuels.

“President Trump should order EPA to obey Congress’s long-neglected directive to reduce the toxic compounds in gasoline. By replacing aromatics with cleaner alternatives, the nation will be on the right path to cleaner-burning, less costly fuel. Any other approach is the wrong policy for America,” the governors said.

Ethanol, Ethanol News

E85 Flex Fuel Wrangler is Off-Road Ready

Cindy Zimmerman

The Renewable Fuels Association/Hauk Designs Flex Fuel E85 Jeep Wranger is complete and designer Kenny Hauk is pretty proud of the monster machine that can run on up to 85 percent ethanol.

“What I’ve learned is that E85 has incredible performance potential,” said Hauk. “You can have incredible horsepower gains, an engine that runs much cooler than normal and has the benefits of using a renewable, domestic fuel.”

Watch the mini-episode finale of the Hauk Jeep below and learn more about the project in this interview with RFA Vice President of Industry Relations Robert White:
NAFB19 Robert White, Renewable Fuels Association (8:50)


Audio, E85, Education, Ethanol, Ethanol News, RFA, Video

ACE Elects Executive Committee

Cindy Zimmerman

During its fourth quarter meeting, the American Coalition for Ethanol (ACE) Board of Directors elected its Officers and Executive Committee for 2020.

Re-elected to serve as officers on the 2020 Executive Committee are:

Duane Kristensen, serving as ACE’s Board President. Kristensen is the General Manager and Vice President of Operations of Chief Ethanol Fuels, which owns a 70 million-gallon-per-year (MGY) ethanol plant in Hastings and a 40 MGY plant in Lexington, Nebraska.

Dave Sovereign, serving as Vice President of the ACE Board. Sovereign is Chairman of Golden Grain Energy’s Board, which owns a 120 MGY ethanol plant in Mason City, Iowa. Sovereign also serves on the board of Absolute Energy, a 125 MGY ethanol producer in St. Ansgar, Iowa.

Ron Alverson, serving as Treasurer of the ACE Board of Directors, represents Dakota Ethanol, which owns a 50 MGY plant in Wentworth, South Dakota.

Greg Krissek, CEO of the Kansas Corn Growers Association, serving as Secretary of the ACE Board of Directors.

Chris Wilson, General Manager of Mid-Missouri Energy, a 50 MGY plant in Malta Bend, Missouri, serving as an Executive Committee member on ACE’s Board.

Also elected to serve on the 2020 Executive Committee is Troy Knecht, South Dakota farmer, representing Redfield Energy, a 50 MGY ethanol producer in Redfield, South Dakota.

ACE, Ethanol, Ethanol News

Presidential Hopeful Says Waivers are “Killing” Ethanol

Cindy Zimmerman

Ethanol and small refinery waivers came up in the middle of a trade question during the Democratic presidential candidate debate Wednesday on MSNBC.

South Bend, Indiana Mayor Pete Buttigieg was asked whether he would continue the “farm subsidies” that President Trump has authorized to help farmers struggling from the impact of the trade war with China. “We shouldn’t have to pay farmers to take the edge off of a trade war that shouldn’t have been started in the first place,” said Buttigieg.

However, Buttigieg said there are other problems facing farmers. “The worst thing is these so-called small refinery waivers which are killing those who are involved in ethanol,” he said.

Listen:
Presidential candidate Mayor Pete Buttigieg - farmers, trade, China, ethanol (1:41)

Audio, Ethanol, Ethanol News, politics

National Biodiesel Board Elects New Leaders

Cindy Zimmerman

The National Biodiesel Board held its annual fall meeting this week in Washington D.C. to focus on policy initiatives and moving the industry forward. During the meeting, the membership elected representatives to serve on the Governing Board to help the development and success of biodiesel.

NBB members voted to fill seven board member spots for two-year terms:

Kent Engelbrecht, Archer Daniels Midland (ADM)
Chad Stone, Renewable Energy Group (REG)
Ryan Pederson, North Dakota Soybean Council
Harry Simpson, Crimson Renewable Energy
Paul Soanes, RBF Port Neches, LLC
Dave Walton, Iowa Soybean Association
Tim Ostrem, South Dakota Soybean Research and Promotion Council

Troy Alberts, Rob Shaffer, Jeff Lynn, Tim Keaveney, Greg Anderson, Mike Rath, Robert Morton, and Tom Brooks continue to serve on the board. The board also elected Chad Stone as Chairman, Mike Rath as Vice Chairman, Rob Shaffer as 2nd Vice Chairman, Ryan Pederson as Treasurer and Troy Alberts as Secretary.

Nebraska soybean farmer Greg Anderson has served on the board for many years and has been an active biodiesel supporter for decades. At the National Association of Farm Broadcasting (NAFB) Trade Talk last week, Anderson talked about the importance of the biodiesel industry to soybean farmers.

NAFB19 Greg Anderson, NBB soybean farmer leader
Audio, Biodiesel, NBB, Soybeans

New York Approves Sales of 15 Percent Ethanol Fuel

Cindy Zimmerman

Drivers in the state of New York will soon have the liberty to choose 15 percent ethanol blended fuel (E15) under a rule finalized Wednesday by the New York Department of Agriculture and Markets.

“Consumers in the Empire State can now enjoy the economic and environmental benefits of E15, and the opening of the state’s fuel market represents a growth opportunity for our industry at a time when new demand opportunities are sorely needed,” said Renewable Fuels Association (RFA) President and CEO Geoff Cooper.

The ethanol industry has been working with state officials to support the expansion of E15 into New York. “This was a culmination of a long process over several years, and we’re thrilled to see it finally move forward,” said Tim Winters, President and CEO of Western New York Energy in Medina, one of the leaders of the effort.

New York ranks fourth in gasoline consumption, and with the country coming off the highest monthly sales ever for gasoline, there is a lot of room for volume growth for E15 and other ethanol blends.

American Coalition for Ethanol (ACE) CEO Brian Jennings supports the E15 part of the rule, but is disappointed that it also aims to prohibit market access to mid-level ethanol blends. “We appreciate that the Department intends ‘to closely monitor the marketplace and will consider, at some future point, allowing additional blends if the marketplace adapts well to the introduction of E15’ and we look forward to assisting in the development of this market opportunity in the future.”

According to Growth Energy, sales of E15 this past summer were up 46 percent “compared to 2018 on a per-store basis” based on analysis of sales reported by Prime the Pump partnered retailers. The 2019 summer driving season was the first summer E15 was sold without restriction.

ACE, E15, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Proposal Would Extend Biodiesel Tax Incentive

Cindy Zimmerman

The Growing Renewable Energy and Efficiency Now (GREEN) Act was introduced this week by Democrats on the House Ways and Means Subcommittee on Select Revenue Measures led by Chairman Mike Thompson (CA-05).

The draft legislation is called “a comprehensive approach to tackling climate change by using the tax code to extend and expand renewable energy use and reduce greenhouse gas emissions” and it would extend current renewable energy tax incentives, including for biodiesel.

Kurt Kovarik, Vice President of Federal Affairs with the National Biodiesel Board (NBB), says the proposal calls for a multi-year extension of the biodiesel tax incentive, keeping the credit at its current rate of $1.00 per gallon for 2018 through 2021 but gradually reduce it to $0.33 per gallon by 2024.

“We appreciate the recognition, through this proposed long-term extension, that the biodiesel industry is integral to our domestic energy needs,” said Kovarik. “We look forward to working with our supporters on Capitol Hill to ensure that consumers, producers and marketers benefit from a long-term, forward-looking pro-growth tax policy.”

Biodiesel board members are in the nation’s capital this week meeting with 88 Congressional offices to discuss the status of the biodiesel tax incentive as part of NBB’s fall member meeting.

Biodiesel, NBB