Growth Energy Sues Over Small Refinery Exemptions

Cindy Zimmerman

Growth Energy has filed a federal lawsuit challenging the Environmental Protection Agency’s (EPA) failure to address small refinery exemptions in its 2019 renewable volume obligation (RVO) rulemaking issued late last year.

“EPA’s inaction on addressing lost gallons due to small refinery exemptions in this rulemaking is a clear violation of law,” said Growth Energy CEO Emily Skor. “In doing nothing to remedy these and other deficiencies, EPA has again failed to meet its statutory obligation to ensure that annual RVOs are met each year. Today’s filing calls for greater accountability from EPA to ensure that every renewable fuel obligation is fulfilled as the law intended.”

Despite repeated challenges by Growth and others in 2018, both in petitions and comments to the agency and before federal courts, EPA has steadfastly failed to make good its statutory obligation to ensure that RVOs established by the Agency are met each year. EPA explicitly refused to take up the issue of small refinery exemptions in its 2019 RVO rulemaking, stating that such exemptions were “beyond the scope” of the rulemaking.

Growth Energy filed extensive comments challenging EPA’s refusal to address the issue, in particular challenging EPA’s failure to reallocate renewable volume obligations of exempt refiners.

EPA, Ethanol, Growth Energy

Novozymes’ Bioenergy Business Grew in 2018

Cindy Zimmerman


2018 was a very good year for Novozymes’ Bioenergy business with 12% organic sales growth, on top of a strong 11% growth in 2017, according to the company’s latest annual report.

Tina Sejersgård Fanø, Executive Vice President, Agriculture & Bioenergy says growth in the sector was driven by the launch of new yeast products – Innova Drive and Lift – for conventional biofuels. Novozymes also saw good performance in Latin America with producers expanding into corn-based ethanol production.

“We´re happy to see continued discussions supporting expanded use of biofuels. In the U.S. we are awaiting clarity on E15, which is expected sometime before summer,” said Fanø. “In Brazil, the RenovaBio framework should support the continued expansion of corn-based ethanol production. China is investing in new capacity, and the REDII directive has been adopted in the EU, with Member States now working on the implementation process”

The company estimates that U.S. and global ethanol production was up around one percent in 2018, ethanol producer margins were under pressure and inventory levels were elevated.

enzymes, Ethanol, Ethanol News, Novozymes

Deere Showcases Biodiesel Gator and Mower

Cindy Zimmerman

John Deere took part in the 2019 Biodiesel Vehicle Technology Showcase to highlight biodiesel-friendly vehicles in its consumer lineup.

For one, there is the diesel powered 865M XUV Gator, which is approved for up to B20. New this year is the diesel Z994R Commercial ZTrak™ zero-turn mower.

Learn more in the video below from Steve Geick with John Deere who presented at the National Biodiesel Conference.


advanced biofuels, Biodiesel, Biodiesel Conference, John Deere, National Biodiesel Conference

Ethanol Production Lower, Stocks Higher

Cindy Zimmerman

For the week ending January 25, ethanol production was lower while stocks were higher.

According to the latest Energy Information Agency (EIA) data analyzed by the Renewable Fuels Association, ethanol production decreased 1.8% (down 19,000 barrels per day, or b/d) to an average of 1.012 million b/d—or 42.50 million gallons daily. The four-week average for ethanol production remained at 1.023 million b/d for an annualized rate of 15.68 billion gallons. Weekly production was 2.7% lower than the level a year ago, while the four-week average was 1.6% lower.

Stocks of ethanol increased 2.1% to a 15-week high of 24.0 million barrels. The stocks build occurred primarily on the Gulf Coast.

Ethanol, Ethanol News, RFA

Iowa Biofuels Industry “Hurting but Hopeful”

Cindy Zimmerman

Iowa Renewable Fuels Association Executive Director Monte Shaw told the 2019 Iowa Renewable Fuels Summit last week that 2018 was his toughest year yet working for the biofuels industry.

“With forces inside of EPA and the West Wing trying to convince President Trump to gut the RFS, there were months when I went to sleep wondering if a tweet the next day would undo the last 19 years of our work,” he said. “The other side never stopped trying to push President Trump into a so-called deal on the RFS. But our champions never wavered. Yes, we wanted year-round E15, but not at the cost of gutting the RFS.”

Shaw emphasized that despite the policy challenges, the biofuels industry fought hard and victory was won when President Donald Trump announced on October 9th in Council Bluffs, Iowa that he had ordered the EPA to begin a rulemaking process for year-round E15.

“While the White House announced year-round E15 would be coupled with some RIN transparency reforms, those reforms will not impact RFS volumes,” Shaw said. “No point of obligation. No 10-cent RIN price cap. No RIN export scheme. Just year-round E15. In the midst of a very tough year, we really should take a moment to savor that victory.”

As 2019 ramps up, Shaw said the state of the biofuels industry is “hurting but hopeful.”

Listen to Shaw’s full speech on Iowa Agribusiness Radio Network.

Ethanol, Ethanol News, Iowa RFA

RFA Asks EPA to Use Reset Rule to Restore Lost RFS Gallons

Cindy Zimmerman

With the Senate Environment and Public Works Committee scheduled vote next week on the nomination of Andrew Wheeler to be administrator of EPA, Renewable Fuels Association (RFA) CEO Geoff Cooper sent a letter to Wheeler this week to provide input on the agency’s upcoming RFS reset proposal.

RFA is asking Wheeler to use the reset rule as an opportunity to restore the RFS volumes that were “inappropriately erased” by granting numerous small refinery exemptions and other actions, including:

The 500 million gallons of renewable fuel improperly waived from the 2016 standards, as required by the D.C. Circuit Court of Appeals’ remand in Americans for Clean Energy v. EPA;
The approximately 232 million Renewable Identification Number (“RIN”) “write-off” as part of the Philadelphia Energy Solutions Refining and Marketing, LLC bankruptcy settlement; and
The 2.25 billion RINs attributable to 48 small refinery exemptions granted for compliance years 2016 and 2017, of which approximately 1.8 billion RINs were for conventional biofuel.

“As a result of these waivers or exemptions from required volumes, many ethanol plants have recently idled, shut down, or announced layoffs. These compliance exemptions also have hurt demand and prices for American farmers. At a time when trade disputes are dampening export market opportunities, the EPA-induced disruption in domestic ethanol and corn demand is devastating,” Cooper wrote.

Cooper explains that the “reset” provision of the RFS is triggered when EPA waives certain volumes of the RFS by 20% or more in two consecutive years or 50% in one year. “So we’ve hit that point and EPA is working on a proposal to reset the 2020-2022 volumes,” said Cooper.

Listen to his explanation here: RFA CEO Geoff Cooper explains reset provision of RFS

Audio, EPA, Ethanol, Ethanol News, RFA, RFS

Advanced Biofuels USA’s Ivancic Appointed to MD Clean Energy Group

Cindy Zimmerman

The Maryland Clean Energy Center (MCEC) appointed Advanced Biofuels USA executive director Joanne Ivancic to serve on its 2019 Advisory Council. The council consists of 50 energy industry representatives and exists to develop a work plan for the Maryland Clean Energy Center (MCEC) and set the framework for activity of the organization,

“I look forward to doing just that here in Maryland as part of the Maryland Clean Energy Center’s Advisory Council,” said Ivancic. “People think of solar and wind when they think of clean energy. My goal will be to help them understand that we also need clean energy for transportation and that biofuels can fill that need in the near term by fueling cars, trucks, planes and trains that we use today.”

The Maryland Clean Energy Center was created in 2008 to encourage the transformation of the energy economy. MCEC works to implement financing solutions that catalyze the growth of business, create jobs, and make clean energy technologies, products and services affordable and accessible for Maryland consumers.

advanced biofuels, biofuels, Clean Energy, Energy, Ethanol

Independent Study Finds Vehicle Emission Testing Unreliable

Cindy Zimmerman

The Urban Air Initiative (UAI) has released the results of an independent study that finds “many of the test fuels used in emissions research studies do not reflect the makeup of consumer fuels, limiting the ability of ethanol to be used to reduce emissions and improve vehicle efficiency.”

The study, titled Effects of Ethanol Blends on Light-Duty Vehicle Emissions: A Critical Review reviewed and assessed nearly 100 different vehicle emission studies and discovered that a significant number of them do not represent real world fuel properties.

“This validates the concerns UAI has raised for years, that ethanol is penalized because the studies EPA uses do not accurately model the emission reducing benefits of ethanol,” said UAI Technical Director Steve Vander Griend. “The information uncovered by this study aids UAI in our ongoing efforts to fully understand the dangers of aromatics used in today’s gasoline.”

The study was conducted by Future Fuel Strategies and relied on the experience of highly regarded experts with emissions, vehicle modeling, and fuel and refinery expertise. Many of the studies they focused on were organized by the Coordinated Research Council (CRC), which has the support of the petroleum industry and is relied upon by the EPA for fuels and emissions data. In addition to the study, the consultants have written two different technical papers, one of which is already in peer review. The results of the analysis will also be presented at the CRC Real World Emission Workshop in March.

Test fuels are critical to the ethanol industry because they are the supporting evidence the EPA uses to establish fuel regulations that dictate the amount of ethanol allowed in gasoline. UAI believes this third party analysis can be used as a tool to establish a consensus on how to model test fuels moving forward. The goal would be for the EPA to create a fuel blending standard.

EPA, Ethanol, Ethanol News, Urban Air Initiative

Biodiesel Market in EU Opens for U.S. Soybeans

Cindy Zimmerman

The European Commission has formally announced that conservation practices required for U.S. soybean production meet EU sustainability standards, and biodiesel produced from documented soybeans can now be used in the EU.

The EU requires biofuels to meet a set of sustainability criteria outlined in its Renewable Energy Directive (RED). The U.S. soy industry has its own sustainability guideline, the Soybean Sustainability Assurance Protocol (SSAP) that, with this announcement, the EU acknowledges meets its rigorous RED requirements.

“U.S. farmers have long prided themselves on adopting newer and better methods for producing high-quality soybeans that are grown responsibly and sustainably,” said American Soybean Association president Davie Stephens of Kentucky. “The SSAP sets a high standard that demonstrates that commitment, and we are pleased that the EU Commission has recognized our efforts by opening the door for SSAP-certified soybeans to be used in EU biodiesel.”

The United States is the lead supplier of soybeans to the EU, and while this announcement applies only to soybeans exported for biodiesel, ASA sees it as a positive step for enhancing its EU market and validating the quality of the SSAP sustainability initiative. The EU’s decision will remain in place through at least July 1, 2021.

ASA, Biodiesel, Exports, Soybeans

Groups Submit Comments on E15 by 2025 in Ontario

Cindy Zimmerman

Growth Energy and the U.S. Grains Council (USGC) jointly submitted comments to the Canadian Province of Ontario supporting the expansion of biofuels blending to implement a 15 percent renewable content in gasoline by 2025.

“For decades now, North American farmers and ethanol producers have continued to benefit from tariff-free borders,” the comments noted. “With an existing North American supply chain, Ontario can rest assured that the increase in demand from a move to 15 percent ethanol will be met by this vibrant marketplace. Collectively, the North American industry is poised to assist Ontario attain its ambitious climate goals and to support this ambitious provincial move.”

Read the comments here.

E15, Ethanol, Growth Energy, USGC