RFS Architects Question EPA Waivers

Cindy Zimmerman

Former Sen. Byron Dorgan at 2018 National Biodiesel Conference

Two former senators who played key roles in developing the Renewable Fuel Standard (RFS) are calling on Congress to investigate the EPA’s recent waivers to major refiners and failure to follow the law.

Byron Dorgan (D-ND) and Jim Talent (R-MO) say EPA Administrator Scott Pruitt’s granting of multiple small refinery hardship waivers skirts the law and threatens to undermine the renewable fuels industry.

“Lawmakers from across the heartland have already demanded the EPA stop abusing these waivers, but Congress can and should do more. The public deserves real answers from Administrator Pruitt about handouts granted under cover of night,” said the two Senators, who are active in energy policy roles. Dorgan is now a senior policy adviser at Arent Fox, whose clients include the National Biodiesel Board, and Talent currently serves as Chair of Americans for Energy Security and Innovation (AESI), which supports renewable energy to reduce our dependence on foreign oil. Both helped write the RFS while serving in the Senate.

“The waiver provisions established by Congress provide flexibility in dealing with the smallest refining companies, producing fewer than 75,000 barrels per day, and only in unique cases presenting disproportionate economic hardship,” the senators say. “But the EPA has warped those provisions to grant tens of millions of dollars in regulatory handouts at the expense of farmers, biofuel workers, and American consumers.”

The National Biodiesel Board submitted a Freedom of Information Act Request to find out more from EPA about small refiner exemptions requested and issued. They also joined the American Soybean Association and the National Renderers Association urging President Trump to keep his promises to rural voters to uphold a strong RFS.

Biodiesel, RFS

Growth Energy Thrilled with Automotive Training Partnership

Cindy Zimmerman

A new partnership between the American Ethanol program and the biggest automotive technical institute in the country is an important step forward in Growth Energy‘s mission to show consumers the many benefits of high octane biofuels.

Growth Energy CEO Emily Skor says the new partnership is with Universal Technical Institute (UTI), the nation’s leading provider of technical training for automotive, diesel, collision repair, motorcycle and marine technicians. “We know that most Americans look to technicians at their local auto shops and dealerships for advice on how to maintain their vehicles, so working with Universal Technical Institute, the nation’s leader in training highly skilled automotive technicians, will ensure the experts advising consumers have all the facts on American ethanol performance,” said Skor.

As part of the agreement, Growth Energy will support the student resource center at UTI’s NASCAR Technical Institute in Mooresville, North Carolina. “What we want to do is bring the information that the auto enthusiasts have and bring it to the lay consumer,” Skor said.

Growth Energy has spent the past six months working with mechanics to build out the curriculum for the training program. “What we’ve learned is that mechanics either don’t know anything (about ethanol), or they have just heard the myths,” but after sitting down with the engineers who have built the engines and know how they run on ethanol, they have a more favorable attitude toward the fuel.

Learn more in this interview where Skor also comments on the latest news about EPA small refinery exemptions and getting Reid Vapor Pressure relief for E15. Interview with Growth Energy CEO Emily Skor on new partnership

Audio, automotive, Education, Ethanol, Growth Energy

Cellerate® Can Help Ethanol Producers Access New Markets

Cindy Zimmerman

Cellerate® process technology provides dry grind ethanol producers the opportunity to move away from low value commodity fuels and dried distillers grains (DDG) and into high value D3 RINs and DDG markets.

As ethanol plants seek new ways to be more competitive, Cellerate® process technology offers an opportunity for ethanol producers to access new markets and increase ROI potential for co-products, which has been demonstrated by the success of Quad County Corn Processors (QCCP).

According to Syngenta, performance results achieved at QCCP to date through combining Cellerate with Enogen® corn include: a six percent yield increase plus a 20 percent throughput increase combined for a 26 percent increase in total ethanol production; higher protein feed co-products; and improved oil yield.

In addition, the technology has been producing D3 RIN-qualifying cellulosic ethanol on a commercial scale at QCCP since 2014. QCCP has generated nearly 40 percent of all D3 ethanol RINs produced over the past three and one-half years.

Producers can find out more in a webinar hosted by Ethanol Producer Magazine at 2 p.m. Central on Thursday, April 26. Syngenta and QCCP will discuss how dry grind ethanol plants can leverage corn kernel fiber to be more competitive.

Register for the webinar on-line.

corn, Distillers Grains, Enogen, Ethanol, Ethanol News, Syngenta, technology

EPA Data Shows Waivers Have Lowered RFS Obligations

Cindy Zimmerman

An analysis of EPA data by the Renewable Fuels Association (RFA) shows that small refinery exemptions for 2016 and 2017 have cost at least 1.6 billion gallons of biofuels in lost blending obligations under the Renewable Fuel Standard (RFS). The volume of lost blending obligations for these two years is 10 times the collective volume of lost volume from 2013-2015.

RFA analyzed data from EPA’s public RFS database and found that “small refiner exemptions have resulted in effectively lowering the 2017 required volume of renewable fuels by 1.11 billion gallons, or 6%. The data also show that small refiner exemptions also effectively reduced the 2016 RFS requirement by 523 million gallons,” according to the analysis.

Based on EPA’s EMTS database, the actual annual consumption of gasoline and diesel fuel in 2013-2015 was very close to the volume of gasoline and diesel fuel obligated for RFS compliance, as reported by obligated parties. “This means RFS blending obligations applied to virtually every gallon of gasoline and diesel fuel produced and consumed in the United States,” the analysis explained. “However, something clearly changed in 2016 and 2017. The EPA data show large discrepancies between actual gasoline and diesel consumption and the volumes obligated for renewable fuel blending as reported by obligated parties. The difference was 5.2 billion gallons in 2016, virtually doubling to 10.3 billion gallons in 2017. The only reasonable explanation for these large discrepancies between actual gasoline/diesel consumption and the volume of gasoline/diesel obligated for renewable fuel blending is the surge in small refiner exemption approvals,” the analysis found.

Read the analysis.

Agriculture Secretary Sonny Perdue acknowledged the loss during a hearing before the Senate Agriculture Committee Tuesday when asked about the EPA waivers. “It’s our understanding that probably, at last count, a billion one-two (1.12 billion) gallons were waived…our concern is that’s direct demand destruction,” said Perdue. “The RVO is there statutorily for a reason at 15 billion gallons.”

In answer to another question about the waivers, Perdue said, “We had to dig pretty deeply to get the number of gallons that had been waived this year.”

Listen to Secretary Perdue answer questions about the refinery waivers from Sens. Amy Klobuchar (D-MN) and Joni Ernst (R-IA).

Perdue answers Sen. Klobuchar about EPA waivers

Perdue answers Sen. Ernst about EPA waivers
Audio, EPA, Ethanol, Ethanol News, RFA, RFS

Ag Reporters Grill EPA Chief on RFS Issues

Cindy Zimmerman

EPA Administrator Scott Pruitt faced a grilling from agricultural reporters Tuesday about the agency granting waivers exempting refineries from Renewable Fuel Standard (RFS) obligations and why it is taking so long to decide on allowing year round use of 15% ethanol in all markets.

The embattled administrator, who faces Congressional hearings this week where he will likely be questioned on ethics issues, started off his conversation with members of the National Association of Farm Broadcasting by touting his agency’s accomplishments on behalf of farmers, including rescinding the Waters of the United States rule, and keeping the RFS on track by maintaining the statutory obligation of 15 billion gallons for ethanol.
Pruitt opening comments on RFS

Immediately questioned about the small refinery exemptions being granted that have been eroding the 15 billion gallon requirement, Pruitt responded that granting the exemptions is “not subjective in nature, it’s objective….We are constrained, we have a statutory criteria to make those decision.”
Pruitt comments on small refiner exemptions

Pruitt says the agency has “been actively reviewing the ability to grant an RVP waiver” to allow sales of E15 during the summer months, but was questioned about why it is taking so long. “This is not a matter of being dilatory, it’s a matter of being smart and thoughtful…what you don’t want is to make a decision and then have an avalanche of litigation,” said Pruitt, insisting that he has been pushing for months to get the waiver and he is optimistic about it.
Pruitt comments on RVP waiver consideration

Pruitt optimistic about RVP waiver

Asked if the idea of capping the price of Renewable Identification Numbers was off the table, Pruitt evaded a direct answer. “To the degree RIN market is volatile….that volatility is not good for anyone…we need stability across the spectrum on RFS and that includes the RIN market as well.” He added that there are some things they could do administratively regarding transparency, since the trading platform was actually created by EPA under the broad interpretation of the law.
Pruitt comments on RIN price cap

The EPA administrator was also asked about the possibility of using high-octane ethanol to help meet CAFE standards and reduce greenhouse gas emissions and he called it a “tremendous idea” that he has already talked about with automobile manufacturers.
Pruitt comments on high octane ethanol

Audio, EPA, Ethanol, Ethanol News, NAFB

American Ethanol Teams With Universal Technical Institute

Cindy Zimmerman

Growth Energy has announced a new partnership between its American Ethanol program and Universal Technical Institute (UTI), the nation’s leading provider of technical training for automotive, diesel, collision repair, motorcycle and marine technicians.

As part of the agreement, Growth Energy will support the student resource center at UTI’s NASCAR Technical Institute in Mooresville, North Carolina.

“Growth Energy will be a great addition to the list of partners who support us in educating students on the industry’s most current information and technologies,” said John Dodson, UTI Vice President of Business Alliances & NASCAR. “Today’s cars are sophisticated, high-tech machines and, as vehicle technology continues to evolve, renewable biofuels like ethanol will play an even more important role.”

“We know that most Americans look to technicians at their local auto shops and dealerships for advice on how to maintain their vehicles, so working with Universal Technical Institute, the nation’s leader in training highly skilled automotive technicians, will ensure the experts advising consumers have all the facts on American ethanol performance,” said Growth Energy CEO Emily Skor.

A critical mission at Growth Energy is to show consumers the myriad benefits of high-octane biofuels like ethanol. As part of that effort, Growth Energy strives to work with automotive thought leaders in the technical space to validate the engine performance capabilities of ethanol so that information is passed on to consumers.

American Ethanol, Ethanol, Growth Energy

HERO BX Partners With Iowa Renewable Energy for Biodiesel

Cindy Zimmerman

Lake Erie Biofuels, doing business as HERO BX, has announced a partnership to manufacture and market biodiesel from the Iowa Renewable Energy plant in Washington, Iowa.

HERO BX Founder & CEO Samuel P. “Pat” Black, III, said, “It has been my ambition to expand the biodiesel expertise harvested from our flagship plant in Erie, PA, nationwide much like has already happened in Alabama and in New Hampshire. Now we will call Iowa our newest home.”

Black continued, “Accomplishing this milestone alongside IRE, a company that shares our commitment to quality, corporate culture, and core values, is key to achieving our joint vision. To be operating in Iowa — America’s epicenter for renewable energy — allows HERO BX to operate together with some of the pioneers who helped build this great industry.”

With over a decade of successful biodiesel production and marketing expertise behind them, HERO BX will apply its established business model to help capitalize on the new venture.

Biodiesel

Program Can Help Biodiesel Industry Meet FSMA Requirements

Cindy Zimmerman

Glycerin is a byproduct of biodiesel production that is often sold to be used as an animal food ingredient. As such, it must comply with the new Food Safety Modernization Act (FSMA) guidelines that go into effect this September, so the Iowa Biodiesel Board has developed a biodiesel Food Safety Program to help producers get into compliance with the new requirements for food-grade ingredients.

“If you’re a biodiesel producer and there is a reasonable chance that even some of your glycerin is going into the feed or food supply, then you will have to comply with the Food Safety Modernization Act,” said Tom Brooks, chair of the Iowa Biodiesel Board and general manager of Western Dubuque Biodiesel, a plant in Farley, Iowa. “As the largest biodiesel-producing state, the Iowa Biodiesel Board decided we were in a good position to deliver a compliance program to its members, and that it could expand the offering to all biodiesel producers. This is an industry need.”

The IBB Food Safety Program helps simplify compliance and reduces cost for biodiesel plants. Covered facilities must develop and implement a written plan that covers hazard analysis, preventative controls, monitoring procedures, corrective action procedures, verification procedures, a supply chain program and a recall plan.

The cost of the program ranges from $3,000 – $6,000 as a one-time cost. At an additional cost, a one-day off-site desk review of the plant’s documents or two-day on-site implementation assistance is available.

“Compared to hiring another third party to build a compliance program for you or trying to do it yourself, IBB’s program is a simple, affordable way to get into compliance,” said Grant Kimberley, IBB executive director. “We hope others outside of Iowa will take advantage of it.”

A webinar on the new IBB Food Safety Program will take place on May 10, 10:00 – 10:45 a.m. Central
Click here to register for the webinar.

Learn more about the program from the Iowa Biodiesel Board

Biodiesel, livestock feed

ACE Addresses Ethanol Retailers in Mexico

Cindy Zimmerman

American Coalition for Ethanol (ACE) Senior Vice President Ron Lamberty was in Mexico this week to help Mexican petroleum equipment installers and retailers with the technical details of switching stations to E10 for the first time. It’s the second time this month that Lamberty headed south of the border to conduct seminars as part of a U.S. Grains Council series of technical workshops to address questions from local station owners as Mexico’s transportation fuel sector continues to evolve.

“Some of the station owners in Mexico have the same entrepreneurial spirit the splash blenders had back when ethanol was first being introduced in the U.S.,” Lamberty said. “For the first time in their lives, these marketers are free to buy fuel from someone other than the state-owned oil company. Now, on top of that, we’re introducing them to opportunities ethanol can provide to them. Everything from offering lower cost, higher quality fuels, to becoming a splash blender and actually competing with the oil company that ran their lives for so long. It’s pretty exciting to play a role in the transition to E10 in Mexico.”

The USGC is conducting the workshops throughout Mexico in conjunction with AMPES, the Mexican association of service station equipment providers, to focus on questions that have emerged about using ethanol following changes in Mexican law that took effect in June 2017 that allow up to an E10 blend outside of three major cities of Monterrey, Mexico City and Guadalajara.

ACE will continue to work with USGC to provide information to retailers and others who want to sell more ethanol.

ACE, Ethanol, Ethanol News, USGC

House Ag Committee Advances Agriculture and Nutrition Act

The House Agriculture Committee voted along party lines Wednesday to pass the Agriculture and Nutrition Act of 2018 (H.R.2) out of committee, a new farm bill designed by Republicans to “address the economic challenges facing the nation’s farmers and ranchers, while making historic investments in opportunities for SNAP recipients.” All 20 Democrats on the historically-bipartisan committee voted against the legislation over their objection to requiring work-capable adults to either find employment or receive free training for 20 hours per week.

“I’m disappointed that my Democrat colleagues have turned their backs on America’s heartland – that they’ve chosen partisan politics over the three years of bipartisan work in this committee,” said Chairman Mike Conaway. “I am hopeful Democrats will not hold the nation’s farmers and ranchers hostage in this process over the SNAP work and training requirements, which will provide SNAP beneficiaries not just a benefit, but a better future that only a job can provide.”

Conaway held a press call this morning to discuss the legislation with Committee Vice Chair Glenn Thompson (R-PA).

Listen to this morning’s conference call here: House Ag Committee Conference Call

AgWired Animal, AgWired Energy, AgWired Precision, Audio, farm bill, Government