Senator Wants Study of RFS Environmental Impact

Cindy Zimmerman

The chairman of the Senate Committee on Environment and Public Works (EPW) is asking EPA to complete studies assessing the impact of the Renewable Fuel Standard (RFS) on air, water, and land quality.

Senator John Barrasso (R-WY) sent a letter to EPA Administrator Scott Pruitt last week to request that the agency fulfill its obligation under the Energy Independence and Security Act (EISA) of 2007 to provide regular reports to Congress on how the RFS was impacting the environment. The senator notes that under section 204 of EISA, EPA was required to report to Congress on the impacts of the RFS on the environment and resource conservation every three years. To date, EPA has issued only one report, in December 2011. Under section 211(v) of the Clean Air Act, EPA was also required to complete a report on whether the RFS “will adversely impact air quality” by May 19, 2009 but that has never been completed.

Renewable Fuels Association President and CEO Bob Dinneen says they also would like to see the study completed. “It may come as a surprise, but we agree with Sen. Barrasso that updated studies and analyses of ethanol’s environmental impacts are needed,” said Dinneen in a comment by email. “We believe EPA should complete the agency’s congressionally-mandated studies on the environmental impacts of the RFS, and believe the results will confirm that biofuels like ethanol offer enormous environmental benefits.”

Dinneen says, “Any objective and science-based analysis would undoubtedly show that ethanol offers clear and significant environmental benefits when compared to the fossil-based fuels it replaces.”

Last year, EPA’s Inspector General issued a report calling on EPA to complete the studies. EPA said it would finish the report under section 204 of EISA by the end of this year and the study under section 211(v) of the Clean Air Act by September 30, 2024.

EPA, Ethanol, Ethanol News, RFA, RFS

Western New York Energy Celebrates 10 Years

Cindy Zimmerman

It was ten years ago this month that Western New York Energy (WNYE) began production at its 62-million gallon per year ethanol plant as the first ethanol plant in New York State.

The ethanol plant uses more than 20 million bushels of locally grown corn every year while also producing more than 160,000 tons per year of high-quality distillers grain. “For the past 10 years, we have been proud to partner with New York farmers to produce a clean, renewable and domestically produced fuel,” said WNYE President and CEO Tim Winters. “We look forward to serving our communities and the U.S. ethanol industry for many years to come, helping to provide consumers with a choice at the pump.”

WNYE is a proud member of the Renewable Fuels Association and RFA CEO Bob Dinneen says they are proud of the plant’s success. “The plant was born from the vision of John Sawyer and his son, Mike,” said Dinneen. “Now, ten years later, the company continues to provide significant economic growth for the community and consumers, driven by the steady hand of Tim Winters and a Board of Directors resolved to maintain its tradition of excellence. On behalf of the U.S. ethanol industry, I pass along my heartfelt congratulations and wishes for many more years to come,” Dinneen added.

Ethanol, Ethanol News, RFA

EPA Administrator Shows Support for RFS

Cindy Zimmerman

The administrator of the Environmental Protection Agency met with farmers and biofuels producers in Iowa on Friday to show his support for agriculture and the Renewable Fuel Standard (RFS).

Administrator Scott Pruitt was a guest of livestock producers and ethanol supporters Bill and Nancy Couser on their farm in Nevada, Iowa. Since the visit came just one day after EPA announced the final RFS renewable volume obligations (RVOs) for 2018, that was Pruitt’s first topic to address. “We met the deadline, November 30, to actually get those volume obligations out, something the agency hasn’t done in a number of years,” he said, noting that combined with denial of the petition to change the point of obligation, that provides a lot more certainty for the industry.

Pruitt was also asked about another big issue for the ethanol industry, allowing E15 to be sold year round by treating it the same as E10 when it comes to RVP (Reid Vapor Pressure). “It practically doesn’t make sense, obviously, to be able to sell fuel during certain times of the year and not be able to sell it at other times,” he said. “What we have to do is assess whether the statute allows us to grant a waiver nationally throughout the year. We can do it regionally and we have.”

Pruitt also addressed issues such as WOTUS and what it’s like to work with President Trump – listen to his conversation with Couser here: EPA Admin Scott Pruitt and Bill Couser

Thanks to Iowa Agribusiness Network providing the audio.

Audio, EPA, Ethanol, Ethanol News, RFS

NBB Optimistic Despite Disappointing Biodiesel RVOs

Cindy Zimmerman

Members of the National Biodiesel Board meeting in Washington D.C. this week were disappointed that EPA failed to increase the biomass-based diesel volumes under the Renewable Fuels Standard, but optimistic about the future for the industry.

“We think it’s a missed opportunity, we’re disappointed,” said NBB chief operating officer Doug Whitehead, adding that they will continue to work with the administration to “right this wrong for future volumes.” In the meantime, the industry is concentrating its efforts on getting the biodiesel tax credit reinstated.

“We had over 55 meetings scheduled on the Hill this week and we were met with a lot of positivity,” said Whitehouse. “A credit of some type is most important.”

Listen to interview with Whitehead here:

NBB also selected board leadership while in D.C. this week, reflecting the wide range of member companies in the biodiesel industry from feedstock operations to producers. NBB members voted to fill eight board member spots for two-year terms:
• Kent Engelbrecht, ADM
• Ron Heck, Iowa Soybean Association
• Steve Nogel, Ag Environmental Products
• Ryan Pederson, North Dakota Soybean Council
• Harry Simpson, Crimson Renewable Energy LP
• Paul Soanes, RBP Port Neches LLC
• Robert Stobaugh, Arkansas Soybean Promotion Board
• Chad Stone, REG Inc.
Greg Anderson, Jennifer Case, Mike Cunningham, Tim Keaveney, Bob Morton, and Mike Rath continue to serve on the board.
The board also re-elected the current slate of officers with Kent Engelbrecht serving as chairman, Mike Cunningham as Vice Chairman, Greg Anderson as Treasurer and Chad Stone as Secretary.

Audio, Biodiesel, NBB

Secretary Perdue Comments on RVO Numbers

Cindy Zimmerman

During a visit to the Agricultural Retailers Association conference and expo in Phoenix on Thursday, Secretary of Agriculture Sonny Perdue was asked to comment on the final Renewable Fuel Standard (RFS) renewable volume obligations (RVOs) for 2018.

The Secretary noted that the requirement for conventional renewable fuels like corn ethanol is capped at 15 billion gallons, so that’s as high as it can go. “Obviously, cellulosic has not matured like we thought it would,” said Perdue of the lower levels for cellulosic biofuel at 288 million gallons.

Perdue says he thinks that EPA Administrator Scott Pruitt made a good final decision with lots of input from biofuel champions such as Senators Chuck Grassley and Joni Ernst from Iowa. “One of the reasons I’m having trouble now with Secretary Northey is because of that,” he said, referring to the hold that Sen. Ted Cruz has put on Northey’s nomination to USDA Under Secretary.

Alluding to issues refiners have put forth this year regarding prices for Renewable Identification Numbers (RINS) and compliance under the RFS, Secretary Perdue said, “We gotta help the refiners and the blenders figure out the RIN market and maybe make it more like an open outcry like grain markets are.”

Listen to comments here: Secy Perdue comments on final RVO numbers

Audio, biofuels, Ethanol, Ethanol News, RFS, USDA

Ethanol Report on Final 2018 RVOs

Cindy Zimmerman

The Environmental Protection Agency (EPA) released its final Renewable Fuel Standard (RFS) renewable volume obligations (RVOs) for 2018 as scheduled on November 30, with relatively little change from the July proposal, keeping the statutory 15 billion gallon requirement for conventional renewable fuels like corn ethanol.

While that is good news, there is disappointment with volumes decreased or flatlined for cellulosic biofuels and biomass-based biodiesel. In this edition of The Ethanol Report podcast, Renewable Fuels Association president and CEO Bob Dinneen discusses the final numbers and what they mean for the industry going forward.

Listen to it here: Ethanol Report 11-30-17

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Ethanol, Ethanol News, Ethanol Report, RFA, RFS

Biofuels Industry Reacts to Final RVO Numbers

Cindy Zimmerman

The Environmental Protection Agency (EPA) released today its final Renewable Fuel Standard (RFS) renewable volume obligations (RVOs) for 2018.

The agency finalized a total renewable fuel volume of 19.29 billion gallons, including 4.29 billion advanced biofuel – a slight increase from the proposal – and 288 million gallons of cellulosic biofuel. The agency maintained the requirement for conventional renewable fuels like corn ethanol at 15 billion gallons. EPA also kept the requirement for biomass-based diesel at 2.1 billion gallons again for 2019.

Renewable Fuels Association President and CEO Bob Dinneen says they are pleased that the final rule maintains the statutory requirement for ethanol. “The final rule is a marked improvement, increasing both total renewable fuel and cellulosic biofuel volumes by 50 million gallons over the proposed levels. Still, we would encourage EPA to closely monitor the commercialization of new cellulosic technologies, particularly regarding corn kernel fiber conversion, because we believe greater cellulosic production is likely. The RFS needs to remain a forward-looking program, driving investment in these new technologies.”

Hear Dinneen’s comments: RFA CEO Bob Dinneen comments on Final RVO

Growth Energy CEO Emily Skor – “The EPA’s on-time announcement upholds the statutory targets for conventional biofuels, which will provide much-needed certainty for hard-pressed rural communities. We would like to have seen a boost to the target blending levels for cellulosic biofuels, and we will continue to work with the administration to advance the RFS goal of further stimulating growth and showing U.S. leadership in 21st century fuels.”

Skor’s comments: Growth Energy CEO Emily Skor comments on Final RVO

American Coalition for Ethanol CEO Brian Jennings says the advanced biofuel volume of 4.29 billion gallons “represents a modest step in the right direction for the RFS” to “reassure retailers that it makes sense to offer E15 and flex fuels.”

Jennings’s comments – ACE CEO Brian Jennings comments on Final RVO

National Biodiesel Board chief operating officer Doug Whitehead says the industry is disappointed in the final numbers but optimistic moving forward “to right this wrong for future volumes.”

Whitehead’s comments – NBB's Doug Whitehead comments on Final RVO

Audio, Biodiesel, Ethanol, Ethanol News, RFA, RFS

Waiting for the Numbers

Cindy Zimmerman

The biofuels industry is eagerly awaiting the highly anticipated release of 2018 Renewable Fuel Standard (RFS) renewable volume obligations (RVOs) expected today.

In July, the agency proposed a total renewable fuel volume of 19.24 billion gallons (BG), maintaining the conventional biofuel (corn ethanol) requirement at the 15 billion gallon level but reducing advanced biofuels (mostly biodiesel) to 4.24 billion gallons, including 238 million gallons of cellulosic. The EPA proposal also maintained just the minimum required biomass-based diesel volumes at 2.1 billion gallons for 2019, far below the industry request of 2.75 billion gallons.

It’s been a roller coaster ride for the industry over the past two months, starting with EPA taking the unprecedented action in September of issuing a Notice of Data Availability (NODA), seeking comment on the potential for further reductions in the volumes, after the comment period on the proposal had already closed. Then came the October show of unity by biofuels supporters like Iowa Governor Kim Reynolds, ultimately causing EPA to back down from any proposed changes. Backlash from oil state lawmakers, including Sen. Ted Cruz (R-TX), have since held up the nomination of Iowa agriculture secretary Bill Northey to a USDA Under Secretary position.

The administration has promised to release the final rule by today’s deadline and no matter what the numbers are, they will be news.

Ethanol, Ethanol News, RFS

Biodiesel Advocates Storming the Hill

Cindy Zimmerman

With EPA set to release final volume obligations under the Renewable Fuel Standard (RFS), and Congress back at work on tax legislation, this week is a perfect time for members of the National Biodiesel Board (NBB) to put biodiesel on the front burner in Washington D.C.

Nearly 100 NBB members are storming the Hill to talk with lawmakers about the importance of renewing the biodiesel tax credit, which expired in December 2016, and increasing the RVOs to at least 4.75 billion gallons for advanced biofuels next year and at least 2.5 billion gallons for biomass-based diesel in 2019. The proposed rule earlier this year called for a reduction in advanced biofuels (which is 90 percent biodiesel) and no growth in biomass-based diesel volumes.

“Biodiesel has played a major role in our energy portfolio for the United States,” said Tom Verry, NBB Director of Outreach and Development, during an interview earlier this month. “We used almost three billion gallons last year and we are anticipating in 2017 to exceed that by quite a bit.”

Biodiesel advocates have a great story to tell being nation’s first domestically produced, commercially available advanced biofuel that now supports roughly 64,000 jobs across the country and has helped add value to soybeans and soybean oil. Verry talks more about the benefits of biodisel in this interview. Interview with Tom Verry, NBB

Audio, Biodiesel, NBB

Corn Harvest Wrapping Up

Cindy Zimmerman

The corn harvest is not quite finished, but weekly USDA crop progress reports are done for the year.

According to the last report issued on Monday, 95 percent of the corn crop nationwide is in the bin, less than the 98 percent average for the end of November. Michigan, Ohio and Wisconsin are dragging behind with less than 90 percent harvested, while Missouri is the only corn belt state reporting 100 percent.

Iowa, at 96 percent harvested, is down about three percent from normal. “Overall, many farmers have reported better than expected yields, despite the challenges of the growing season. Dry weather, particularly in southern Iowa, stressed crops and did negatively impact yields in some areas,” said Mike Naig, Iowa Deputy Secretary of Agriculture.

During the first two weeks of December, NASS will survey approximately 90,000 United States producers in one of USDA’s largest survey efforts to provide the final information about the 2017 U.S. row crops focusing on harvested acreage, production, and storage. The survey will also be used to help establish county level estimates used by the Farm Service Agency for the Agriculture Risk Coverage (ARC) program and the Risk Management Agency to administer insurance programs.

corn, USDA