High Octane Ethanol Fits Fuel Economy Standards

Cindy Zimmerman

The proposed Fuel Economy Standards for 2021-2026 Vehicles could put high octane ethanol in the fast lane at last.

The Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) are seeking public comment on a wide range of regulatory options proposed in the SAFE Vehicles Rule, including how high octane fuels could facilitate engine efficiency improvements and reduced emissions. Ethanol trade groups say that provides a great opportunity for higher ethanol blends.

Renewable Fuels Association Executive Vice President Geoff Cooper says “RFA has relentlessly advocated throughout the midterm evaluation process that the impact of fuel properties on efficiency and emissions must be considered, and we provided detailed information showing that high octane fuels can provide tremendous benefits. We are pleased to see that EPA’s proposal recognizes that high octane fuels can help enable more efficient engines and reduce GHG emissions.”

“This proposal provides a valuable opportunity to highlight the benefits of high-octane, low-carbon fuels, such as mid-level ethanol blends like E30,” said Growth Energy Vice President of Regulatory Affairs Chris Bliley. “We look forward to participating in this discussion to show how ethanol blends can help automakers meet future GHG standards and provide immediate consumer benefits.”

“EPA now appears to recognize it will need to increase the minimum octane of fuel to help automakers maintain engine efficiency and reduce greenhouse gas (GHG) emissions, going so far as to reference an octane level of 100 and a role for E30 blends,” said American Coalition for Ethanol CEO Brian Jennings. “Ethanol-enriched, high octane fuel in the 99-100 RON range would enable automakers to simultaneously reduce GHG emissions and improve fuel economy.”

The rule will now be open to a 60-day public comment period and EPA will hold public hearings in Washington, D.C., Detroit, Michigan, and Los Angeles, California.

ACE, biofuels, EPA, Ethanol, Ethanol News, Government, Growth Energy, Octane, RFA

Ethanol Report on 10th Year at Sturgis

Cindy Zimmerman

The Renewable Fuels Association (RFA) is celebrating 10 years of partnership with the Buffalo Chip Campground to promote ethanol at the 78th annual Sturgis Motorcycle Rally, Aug. 3-12 in Sturgis, S.D. The event this year will highlight the custom RFA ethanol bike by Paul Jr. Designs and featured on a recent episode of “American Chopper.”

In this edition of The Ethanol Report podcast, RFA Vice President of Industry Relations Robert White previews some of the activities they will be hosting, from sponsoring the annual Legends Ride to giving away free E10 and t-shirts.

Ethanol Report on 10th Year at Sturgis

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Ethanol, Ethanol News, Ethanol Report, Motorcycle, RFA, Sturgis

Acting EPA Chief on RFS Concerns

Cindy Zimmerman

During a Senate Committee on Environment and Public Works hearing Wednesday, Acting EPA Administrator Andrew Wheeler was pressed for answers about the demand destruction created by small refinery exemptions, how EPA intends to reallocate the waived gallons, and when the agency will approve E15 use year-round.

Senators Joni Ernst (R-IA), Mike Rounds (R-SD), Deb Fischer (R-NE), and Tammy Duckworth (D-IL) all spent questioning time on Renewable Fuel Standard issues, but many answers from Wheeler were vague and noncommittal. Wheeler clearly believes the waivers should be granted under the law, but he expressed no clear direction on how, or even whether, the waived gallons should be reallocated.

Wheeler said several times that EPA intends to publicize a “dashboard” to provide more transparency about the circumstances around why refineries receive exemptions from RFS compliance. “We’re developing a dashboard so the whole public can see what we’re doing and when and how we are granting the waivers,” said Wheeler.

The acting administrator served on the Senate EPW committee from 2003-2009 and actually helped to write parts of the RFS dealing with the refinery exemptions and he told Sen. Rounds, “I wish we had spent a little more time on some of the details of it now that I’m helping to implement it.”

Sen. Ernst pointed out that if the traditional ethanol statutory requirement is 15 billion gallons, and EPA has effectively waived 10 percent of that, the agency is not implementing the RFS in a manner consistent with the original intent of Congress. “Part of the original intent of Congress was also to grant the waivers and there was not a provision to reallocating that,” said Wheeler. “I agree we have to figure out a reallocation strategy, but we are confined by the law.”

“And the law does require 15 billion gallons,” Sen. Ernst responded.

Ernst also pressed Wheeler on allowing E15 to be sold all year. “We can certainly start that process,” said Wheeler. “There are certainly people that don’t believe we have that authority.”

Wrapping up his questioning, Sen. Rounds told Wheeler, “You’ve taken care of the small refineries, but you haven’t taken care of the small farmers.”

Listen to the senators’ questions and Wheeler’s answers below:

Wheeler hearing - Sen. Ernst

Wheeler hearing - Sen. Rounds

Wheeler hearing - Sen. Fischer

Wheeler hearing - Sen. Duckworth

Audio, Biodiesel, biofuels, E15, Ethanol, Ethanol News, RFS

Ethanol Export Mission to Indonesia and Vietnam

Cindy Zimmerman

The U.S. Grains Council (USGC) and ethanol industry partners joined the recent USDA Agricultural Trade Mission to Indonesia in July, led by USDA Undersecretary for Trade and Foreign Agricultural Affairs Ted McKinney.

Indonesia currently imports half of its gasoline demand, and the government has set a goal for renewables to represent 23 percent of the country’s energy mix by 2025 and to reduce greenhouse gas (GHG) emissions by 29 percent by 2030. Importing high octane ethanol could help Indonesia achieve that by reducing the use of aromatics. Instead, the Indonesian government has instituted import restrictions and high tariff rates for ethanol and ethanol products inconsistent with those for gasoline or aromatics, so the Council delegation met with Indonesian ministry officials to highlight the benefits of increased ethanol use in terms of air quality and GHG emission reductions.

The delegation also visited Vietnam, which started offering E5 this year with a goal to move to E10 by 2020, as total gasoline consumption rates are expected to grow by nearly 10 percent annually. The Council delegation met with Vietnamese energy ministry officials, ethanol producers and oil industry members to learn more and offer their support for the country’s trade-friendly policies.

The Vietnamese ethanol industry expects to source some of the ethanol needed to fulfill these mandates domestically from local cassava producers. But, the government and industry are open to importing ethanol should domestic production fall short of feedstock needed to fulfill the mandate, as ethanol plants come back online or feedstock prices fluctuate.

Ethanol, Ethanol News, Exports, USGC

NBB Files Brief Challenging 2018 RFS Rule

Cindy Zimmerman

The National Biodiesel Board has filed the opening brief in a lawsuit objecting to the methodology EPA used for establishing the 2018 Renewable Fuel Standards (RFS).

NBB has three specific disputes with EPA’s final RFS rule for 2018, arguing:
– EPA must account for all small refinery exemptions in the annual percentage standard;
– The agency acted arbitrarily when it set the 2018 advanced biofuel volume below what it found to be “reasonably attainable;” and
– The agency set the 2019 biomass-based diesel volume based on impermissible considerations.

NBB’s brief is the first the courts will consider in arguing that EPA must account for all small refinery “hardship” exemptions – including retroactively granted exemptions – when it sets the annual RFS volumes and Renewable Volume Obligations (RVOs).

NBB’s brief states, “EPA unlawfully has failed to account for all small-refinery exemptions it awards, violating its duty to promulgate percentage standards that ‘ensure’ all aggregate volumes are met. Unaccounted for small-refinery exemptions reduce aggregate volumes, and EPA’s approach creates a new, de facto waiver authority contrary to Congress’s design. Despite knowing those consequences, EPA declines to adjust percentage standards to account for that shortfall, either before it is likely to happen or after it actually does.”

EPA has disclosed that it recently retroactively granted 48 small refinery hardship exemptions, reducing the 2016 and 2017 RVOs by a combined 2.25 billion RINs. In the brief, NBB notes that the exemptions reduced the 2016 RVOs by 4.3 percent and the 2017 RVOs by 7.5 percent. Separately, NBB estimates the 2016 and 2017 exemptions reduced demand for biodiesel by more than 300 million gallons. Every 100 million gallons of increased biodiesel production supports some 3,200 jobs. The small refinery hardship exemptions could put hundreds of new jobs at risk.
Read more from NBB

Biodiesel, biofuels, EPA, Ethanol, NBB

ACE Plans Retailer Panel Encore

Cindy Zimmerman

A flex fuel retailer panel will be part of the general session lineup again this year at the American Coalition for Ethanol (ACE) 31st annual conference, August 15-17 in Minneapolis, Minnesota.

ACE Senior Vice President Ron Lamberty will moderate a discussion between returning panelist Bob O’Connor, owner of Wisconsin-based JETZ Convenience Centers, and first-time panelist Glenn Badenhop, owner of Ohio-based American Freedom Energy, both who have made the switch to higher ethanol blends. Last year, it was Charlie Bosselman, owner of Nebraska-based Bosselman Enterprises and Pump & Pantry c-stores, who was on the panel with O’Connor.

With the prospect for year-round access to E15 as ripe as ever, the ACE conference provides these retailers with a timely platform — in the middle of the summertime ban on E15 — to share successes and challenges in E15 and flex fuel retailing, what they’ve seen so far, and how they view the future of biofuels. The panel is entitled “E15 and Flex Fuel: How’s that working out for you?” and will take place at 8:30 a.m. Central on Friday, August 17.
Click here to learn more about the ACE conference.

ACE, ACE Ethanol Conference, Ethanol, Retailers

RFA Hires Chief Economist

Cindy Zimmerman

The Renewable Fuels Association (RFA) has announced that Scott Richman will join the organization next month as chief economist to lead the development and execution of a wide range of research and analysis initiatives.

Most recently, Richman served as senior vice president and co-head of North America Consulting for Informa Agribusiness Consulting, a global firm specializing in research and intelligence on agricultural commodities, biofuels, food production, seed and crop protection, fertilizers, animal health and policy and regulation. Richman developed two successful practice areas at Informa—ethanol and agricultural biotechnology—and co-managed a 15-person North American team.

While at Informa, Richman conducted multiple studies and analyses for RFA, as well as individual clients involved in ethanol production and marketing, private equity firms and other bioenergy investors, the U.S. Department of Agriculture, and organizations like the National Corn Growers Association, U.S. Grains Council, and Growth Energy.

Ethanol, Ethanol News, RFA

RFA Hosting Ethanol Safety Seminars in VA

Cindy Zimmerman

The Renewable Fuels Association (RFA) and several organizations are hosting ethanol safety seminars in Virginia this week.

The ethanol safety seminars, in partnership with TRANSCAER, International Association of Fire Chiefs, and Pipeline and Hazardous Materials Safety Administration, will be held all day today, tomorrow and Wednesday in Chesapeake at the Chesapeake Public Safety Operations Building.

The ethanol safety seminar focuses on numerous important areas of ethanol safety including an introduction to ethanol and ethanol-blended fuels, chemical and physical characteristics of ethanol and hydrocarbon fuels, transportation and transfer, storage and dispensing locations, firefighting foam principles, general health and safety considerations and storage and pre-planning considerations.

The seminar is funded through an Assistance for Local Emergency Response Training (ALERT) grant, awarded by the Pipeline and Hazardous Materials Safety Administration and in partnership with the International Association of Fire Chiefs.

Click here for more information.

Ethanol, Ethanol News, RFA, safety

ACE Addresses Ethanol Questions in 4th Mexican City

Cindy Zimmerman

American Coalition for Ethanol (ACE) Senior Vice President Ron Lamberty traveled to Chihuahua this week for the fourth of six technical ethanol workshops the U.S. Grains Council is holding for Mexican petroleum equipment installers and retailers.

“My presentations to these groups are primarily math and history,” Lamberty added. “We “do the math” of splash-blending less expensive ethanol with gasoline, and I explain the history of getting ethanol from the middle of the U.S. to the rest of the country, via rail and splash blenders. We expect a few of the people at these events will get the idea they could be one of the wholesalers who takes ethanol all over Mexico.”

Lamberty says Chihuahua is about 250 miles from El Paso, Texas, which is closer than the Mexican refineries and prices favor U.S. ethanol.

Last month, Lamberty spoke at a workshop in León and earlier this year, he spoke at two other workshops in Monterrey and Tijuana. Last year, he traveled to Guadalajara, Mexico, to meet with members of Association Mexicana De Empresarios Gasolineros (AMEGAS), Mexico’s largest group of gasoline station owners. Lamberty will participate in two more USGC technical workshops in Mexico yet this year, with a trip to Xalapa planned to take place next month and a meeting in Mexico City in September.

ACE, Ethanol, Exports

Trump in Iowa Reaffirms Support for Ethanol

Cindy Zimmerman

As President Trump was starting a roundtable on workforce development in Iowa Thursday, his very first words were about ethanol.

“I’m very close, I have to tell you, to pulling off something that you’ve been looking forward to for many years and that’s the 12 month E15 waiver,”said Trump. “It’s a very complex process.”

E15 comments from Trump in Iowa

Growth Energy CEO Emily Skor said they were happy to hear those words. “Increased access to US markets will provide America’s farmers with some financial confidence, and we hope that President Trump will direct the EPA to act quickly to provide year-round RVP relief.”

Renewable Fuels Association president and CEO Bob Dinneen said he was encouraged because, unlike his comments about E15 in April, President Trump did not mention also helping out refiners. “Refiners are doing quite fine today, seeing record profits and unprecedented exports. Farmers are not,” said Dinneen. “Farmers need relief now in the form of increased market opportunities. E15 year-round would do that.”

American Coalition for Ethanol CEO Brian Jennings added that “actions speak louder than words. There’s a clear recognition of refinery wins in the form of so-called hardship waivers and collapsing RIN prices have caused real damage in rural America — it is time to carry out the repeated pledge to allow E15 to be sold year-round outside of a deal that would serve as another win for refiners.”

ACE, Audio, E15, Ethanol, Ethanol News, Growth Energy, RFA