RFA Asks EPA to Fix Pruitt Damage to RFS

Cindy Zimmerman

The Renewable Fuels Association (RFA) is imploring the Environmental Protection Agency (EPA) to use the 2019 Renewable Volume Obligation (RVO) rulemaking process “to fix the extensive damage done to the Renewable Fuel Standard (RFS) by former Administrator Scott Pruitt.”

“Administrative cuts to the RFS have resulted in significantly lower RIN prices, reduced corn and ethanol demand, avoided legal obligations for highly profitable businesses, and provided windfall profits for certain oil refiners,” said RFA Vice President of Government Affairs Samantha Slater in testimony delivered at a public hearing today in Ypsilanti, Mich. “The final rule should do less to cater to the whims of the oil industry in implementing the nation’s renewable fuel program, and more to create demand for ethanol, lowering prices at the pump for consumers and creating economic opportunities for farmers across the country.”

Listen to Slater’s testimony here: RFA testimony on EPA 2019 RVO proposal

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

Biodiesel Producers Ask EPA to Raise RFS Volumes

Cindy Zimmerman

Representatives of the biodiesel industry testified today at the Environmental Protection Agency’s (EPA) Public Hearing for Proposed Renewable Fuel Standards (RFS) for 2019 and Biomass-Based Diesel Volume for 2020.

Executives from the National Biodiesel Board (NBB) and its member companies are asking EPA to set the 2020 Biomass-based Diesel volume at 2.8 billion gallons, based on the agency’s own analysis in the proposed rule showing that volume is achievable next year. The agency must also reduce the uncertainty it has caused by issuing retroactive small refiner hardship exemptions, the industry told EPA staff.

“There are many positive elements in this proposal for which we applaud EPA. But these are rendered meaningless unless EPA accounts for waived gallons to make sure the RVO’s are real numbers,” said Kent Engelbrecht, Biodiesel Trade Manager at Archer Daniels Midland and NBB Board Chairman.

NBB CEO Donnell Rehagen testified, “To provide the certainty that the biodiesel industry needs, EPA should raise the 2020 volume for biomass-based diesel to at least 2.8 billion gallons. That number better aligns with the goals that Congress set for the RFS program. And it will better fulfill the promise of the RFS program.”

EPA has estimated that the small refinery hardship exemptions it retroactively granted to refiners reduced the 2016 and 2017 RVOs by a combined 2.25 billion RINs. NBB estimates the 2016 and 2017 exemptions reduced demand for biodiesel by more than 300 million gallons. And since every 100 million gallons of increased biodiesel production supports some 3,200 jobs, NBB estimates the small refinery hardship exemptions puts 9,600 jobs in jeopardy.

Listen to testimony from Engelbrecht and Rehagen. National Biodiesel Board testimony on EPA 2019 RVO proposal

advanced biofuels, Audio, Biodiesel, EPA, NBB, RFS

EPA Waivers Make Deep Cuts in RFS

Cindy Zimmerman

The latest data from the Environmental Protection Agency shows just how much the small refiner exemptions have resulted in demand destruction, even more than estimated just a few months ago.

According to an analysis by the Renewable Fuels Association (RFA) updated from April, the waivers have resulted in “effectively lowering the 2017 required volume of renewable fuels by 1.37 billion gallons, or 7%. The data also show that small refiner exemptions also effectively reduced the 2016 RFS requirement by 523 million gallons.”

After effectively reducing the 2013-2015 RFS blending obligations by a combined total of about 165 million gallons, EPA essentially slashed the 2016 RFS volume by 523 million gallons and the 2017 RFS by 1.365 billion gallons. Collectively, the amount of lost blending obligations in 2016-2017 is 11 times the collective lost obligations from 2013-2015.

EPA has ignored repeated requests to provide information regarding the number and magnitude of its small refiner exemptions, but the agency’s monthly compliance data shows the impact of the exemptions. With the resignation of Scott Pruitt as EPA administrator, industry stakeholders are hoping his acting successor Andrew Wheeler will be less generous with his granting of waivers going forward.

EPA, Ethanol, Ethanol News, RFA, RFS

Ethanol Report on EPA Changes

Cindy Zimmerman

Ethanol industry stakeholders were relieved to see Scott Pruitt depart from the Environmental Protection Agency on July 5 and deputy administrator Andrew Wheeler appointed as acting chief. With a Supreme Court justice nominee on the table, it is unlikely President Trump will be moving too quickly to nominate a new EPA administrator, so Wheeler will probably have the job for a while.

In this Ethanol Report, Renewable Fuels Association (RFA) president and CEO Bob Dinneen talks about the changes at EPA and how they might impact the industry and the Renewable Fuel Standard (RFS) going forward.

Ethanol Report on EPA Changes

Subscribe to the podcast via RSS
Subscribe via iTunes

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

RFS Volumes Hearing Next Week

Cindy Zimmerman

The Environmental Protection Agency (EPA) will have a public hearing next week in Ypsilanti, MI on July 18 to receive comments on the proposed rule “Renewable Fuel Standard Program: Standards for 2019 and Biomass-Based Diesel Volume for 2020.”

Parties wishing to testify at the hearing should notify the “FOR FURTHER INFORMATION CONTACT” person listed in the Public Hearing Notice by the end of the day today.

EPA will post more information about the hearing on the webpage, including a list of speakers and a “listen only” call-in number, prior to the hearing.

Written comments must be received on or before August 17, 2018.

EPA, Ethanol, Ethanol News, RFS

Plymouth Energy Fueling Monarchs

Cindy Zimmerman

Lakeview Plymouth Energy in Merrill, Iowa is the latest ethanol plant to become a monarch fueling station.

The plant has dedicated two acres of green space on plant grounds to monarch habitat which was seeded last June 2017 and this summer is seeing its first strong growth of milkweed plants, which monarch butterflies need for egg laying.

“At Lakeview Plymouth Energy we work every day to create a product that supports Iowa farmers and the environment,” said Joe Williams, plant manager. “We were excited to take on a project that allows us to do that in a whole new way. When we learned how easy it is to establish monarch habitat we jumped at the opportunity. We will continue to look for new opportunities to grow Iowa’s rural economy and protect our environment.”

The Monarch Fueling Station Project was established by Iowa Renewable Fuels Association in partnership with the Iowa Monarch Conservation Consortium in 2017 to help Iowa’s ethanol and biodiesel plants establish patches of monarch habitat on plant grounds.

Ethanol, Ethanol News, Iowa RFA

“Grit Wins” is Theme for 2018 ACE Conference

Cindy Zimmerman

The American Coalition for Ethanol (ACE) has opened registration and released the agenda for its 31st annual conference August 15-17 at the Renaissance Depot Hotel in Minneapolis, Minnesota.

This year’s “Grit Wins” conference theme and programming are reflective of the attacks oil refiners have launched on ethanol this year. The general session panels will include updates from ACE leadership, a discussion of attacks on the ethanol industry, an overview of future demand for liquid fuels, testimonials from flex fuel marketers, a technical update on fuel quality, and a presentation on whether exports can overcome escalating trade tensions and tariffs.

Breakout session topics include workforce management, coproduct diversification, low carbon fuel markets, tax reform, new technology, production efficiency, and more, as well as a brainstorming session on how to strengthen ethanol’s image in your community.

Click here for agenda and registration details.

ACE, ACE Ethanol Conference, Ethanol, Ethanol News

Ethanol Exports Down in May

Cindy Zimmerman

The latest analysis from the Renewable Fuels Association (RFA) finds exports of U.S. ethanol dropped in May while DDGS exports stayed about steady.

U.S. ethanol exports in May were down 43% from April to a four-month low of 91.9 million gallons. That’s less than half of the record volumes in February (218.7 mg) and March (215.1 mg). Canada broke Brazil’s five-month streak as the largest export market with 31.9 mg (35% of total exports), a 15.3% increase over April.

With Brazil and China markets restricted by trade barriers, U.S. exporters ramped up shipments to other existing customers. Ethanol exports to Peru increased 145% to a record 12.7 mg (14% of total exports), shipments to the Philippines nearly doubled from April to 9.5 mg (10% of total), and South Korea saw a 10% boost to 8.4 mg (9% of total). Meanwhile, exports to Brazil withered to 9.5 mg (10% of exports), an 84% drop from April. These five countries accounted for more than three-fourths of all U.S. ethanol exports in May. Year-to-date exports stand at 776.2 mg, implying a record annualized total of 1.86 billion gallons.

May exports of dried distillers grains with solubles (DDGS) held steady at 994,006 metric tons (mt), easing just 0.4% from April volumes. However, market dynamics changed as U.S. shippers sent 148,682 mt of DDGS to Turkey (15% of the total market). Turkey’s 80% increase over April represented the country’s largest imports in 10 months—sufficient to overtake Mexico as the top export customer after a 13-month stretch. U.S. shippers reduced DDGS sales to Mexico by 20% (146,375 mt, 15% of the market) in May. Other large markets were South Korea (124,657 mt, up 29%), Vietnam (89,329 mt, down 24%), Thailand (75,490 mt, down 15%), and Ireland (39,826, up 180%). Year-to-date exports stand at 4.6 million mt, implying an annualized total of 11.1 million mt—on par with last year.

Read more from RFA analyst Ann Lewis

Distillers Grains, Ethanol, Ethanol News, Exports, RFA

Saipem and California Ethanol & Power Sign MOU

Cindy Zimmerman

Saipem has signed a Memorandum of Understanding with California Ethanol & Power to develop a low carbon emission plant for the production of ethanol, renewable electricity, bio-methane, and other secondary products derived from sugarcane cultivated on site.

The plant will be located in California’s Imperial County and Saipem will design and construct the non-electrical part of the project and related services, while the electrical part will be assigned to General Electric.

Saipem is a world leader in drilling services, as well as in the engineering, procurement, construction and installation of pipelines and complex projects, onshore and offshore, in the oil & gas market.

Electricity, Ethanol, Ethanol News, sugarcane

Growth Energy Hires New Communications VP

Cindy Zimmerman

Jennifer Morris has joined Growth Energy as new Vice President of Communications and Public Affairs. Morris previously served as Senior Vice President of Corporate and Public Affairs at Edelman.

“One of our main directives at Growth Energy is to effectively communicate that success story – whether it be to policymakers, consumers, members, or other industry stakeholders – in a way that truly moves the needle for biofuels. Jennifer’s diverse mix of experience and expertise is just what we need to be the tip of the spear in communicating ethanol’s value to a wide range of key audiences,” said Growth Energy CEO Emily Skor.

Prior to Edelman, Morris was the Head of Global Public Affairs and Financial Literacy for Visa, Inc., and has previous communications experience on Capitol Hill. She holds an undergraduate degree from Tulane University and a Masters of Public Administration from the American University School of Public Affairs.

biofuels, communications, Ethanol, Growth Energy