EPA Announces #RFS Point of Obligation Decision

Joanna Schroeder

epa-150The Environmental Protection Agency (EPA) today proposed denying a petition to change the point of obligation under the Renewable Fuel Standard (RFS).

Under the current rule, oil refiners and importers are the entities obligated to blend more renewable fuel into the transportation fuel supply under the RFS, but they were seeking to change that obligation to entities that own gasoline before it is blended for retail sale. However, EPA said in response to the petition that because of “the importance, complexity, and broad stakeholder interest in this issue” there will be a 60-day comment period for interested parties to offer their comments.

Tom Buis with Growth Energy says what the refiners are trying to do is shift the obligation to retailers and others. “It makes no sense. We’ve been operating under this system since the first RFS in 2005…Some refiners made the business decision they weren’t going to blend, they were going to just buy the identification numbers.”

That worked well for them when RINs were cheap but Buis says as more ethanol entered the marketplace RIN prices have increased. “Now they want to change the point of obligation all for their bottom line.” Statement from Tom Buis, Growth Energy

Renewable Fuels Association (RFA) President and CEO Bob Dinneen explains that the petition was submitted by Valero who wants the point of obligation to be at the terminal. The EPA has not wanted to do this. “It’s a complicated issue,”says Dinneen. “So the petition forced the EPA into opening a docket.”

“The agency is denying that petition but at the same time they are opening a docket. So they are doing what Valero had wanted them to do but on their own terms,” added Dinneen who says they support what EPA is doing and is calling for all stakeholders to come to the table. Statement from RFA CEO Bob Dinneen

Audio, EPA, Ethanol, Growth Energy, RFA, RFS

ACE Annual Fly-In Set for March 2017

Joanna Schroeder

fly-in-2017The American Coalition for Ethanol (ACE) has set the dates for its annual Washington, DC fly-in: March 23-23 2017. The ethanol industry will gather at Liaison Hotel on Capitol Hill prior to hitting the pavement.

“ACE’s 2017 fly-in occurs during the first 100 days of the Trump presidency, a time when President-elect Trump will begin to prioritize his campaign promises into action,” said ACE Executive Vice President Brian Jennings. “Our fly-in will give ethanol advocates a timely opportunity to remind Trump administration officials about his promise to make sure that EPA restores Renewable Fuel Standard blending levels to match the statute.”

Jennings added, “Given the decisive victory rural America helped deliver on Election Day, it is vitally important for corn farmers and biofuel advocates to sign-up for ACE’s fly-in and educate our newly-elected office-holders about how high-octane ethanol can help jump-start economic growth in the U.S. We encourage people from all walks of life who have an interest in the future of ethanol to join us in DC March 22-23.”

For more information about the fly-in, email Shannon Gustafson, ACE’s senior director of operations and programming. There is no registration fee to participate in the event but ACE requests that all participants register. Click here to do so.

ACE, Ethanol, politics

Gevo Enters On-Road Market

Joanna Schroeder

gevoGevo’s isobutanol is now being sold for use in vehicles in the Houston area. According to the company, this is the first time its fuel has been specifically targeted for on-road automobiles. In the past, the isobutanol has been marketed to marinas and the aviation industry. The fuel is being marketed by Musket Corporation, Gevo’s Houston market distributor. Entering into the transportation fuel market is a way, says Gevo, to offset seasonal industries such as boating.

Buc-ee’s chain of rest stops is the first retailer to sell the blend. Gevo says the retailer is marketing the fuel as a high-performance ethanol free gasoline and that the 12.5 percent blend of isobutanol and gasoline is attractive to drivers who are looking for high-performance fuel alternatives.

In June 2016, Gevo announced a agreement with Musket, part of the Love brand, to supply isobutanol for blending with gas. Initially the two companies set the target markets for the fuel blend as Arizona, Nevada and Utah.

“Isobutanol-blended fuel is a new paradigm for biofuels because it combines high performance and sustainability,” said Dr. Patrick Gruber, Chief Executive Officer of Gevo. “We’ve established this in the aviation and boating markets and are now bringing it to on-road transportation. It’s important for us to be working with established brands like Musket and Buc-ee’s to deliver a new high performance gasoline to end customers, and we look forward to seeing this business grow.”

isobutanol

Sleepy Eye Students Learn about Minnesota #Ethanol

Joanna Schroeder

Students from Sleepy Eye High School recently learned about ethanol when they toured the nearby Highwater Ethanol located in Lamberton, Minn. During the tour, the 23 students learned about ethanol production – specifically how Highwater Ethanol produced nearly 60 million gallons of ethanol in 2015.

sleepy-eye-hs-and-ethanol-visit

Students from Sleepy Eye High School during their tour of HIghwater Ethanol in Lamberton, Minn. The tour was organized by the Minnesota Bio-Fuels Association.

“The opportunity to host Sleepy High School for this tour was a great opportunity for the students as well as Highwater Ethanol employees. By sharing our knowledge of the ethanol and agriculture industry, we hope to have an impact on these students as they plan on furthering their education and identifying a career path,” said Brian Kletscher, CEO of Highwater Ethanol. “We informed the students of the different job opportunities available in the ethanol industry and related agricultural industry as well as the importance of maintaining a positive attitude as you work with individuals throughout your life.”

Some highlighted areas the students learned about included the water treatment process, incoming grain handling, ethanol loadout, ethanol process facility, energy center, and dried distillers grains production and storage. In addition, the students got a view of the administrative offices.

Highwater Ethanol is a member of the Minnesota Bio-Fuels Association, who has been supporting its members in many ways including giving students a taste of science and technology through ethanol production.

“It’s important for students to learn about clean, Minnesota-produced, renewable energy and how it reduces harmful emissions and supports the local economy,” said Tim Rudnicki, executive director of the Minnesota Bio-Fuels Association.

The 10-12 grade students were accompanies by their agriculture education teacher, Mary Hoffman, who said that an element of their syllabus included a Natural Resource Class that delved in to renewable energy including biofuels. She noted, “I think it is important to see what businesses are thriving in our nearby communities as well as see a renewable energy operation in place.“

biofuels, Education, Ethanol

What Will Trump Presidency Mean for Ag?

Jamie Johansen

zp-nh1Our latest ZimmPoll asked the question, “Final decision time – who are you voting for?”

The polls have closed and Donald Trump is officially our President Elect. Many across the country are a bit surprised, yet our most recent ZimmPoll had Trump with a clear lead. The agricultural community predicted this win.

Here are the poll results:

  • Donald Trump – 56%
  • Hillary Clinton – 34%
  • Gary Johnson – 3%
  • Jill Stein – 0%
  • None of the above – 7%

Our new ZimmPoll is live and asks the question, What will Trump presidency mean for ag?

The election is over – what now? NAFB hosted a agriculture “Reaction to Election” panel highlighting insights from key agricultural leader opinions. No one has the exact answers, but the big question now is what will a Trump presidency mean for agriculture. What do you think?

ZimmPoll

#Biodiesel Industry Congrats President-Elect Trump

Joanna Schroeder

Along with their sister biofuel ethanol, the biodiesel diesel industry is congratulating President-Elect Donald Trump who is set to become America’s 45th President.

National Biodiesel Board CEO Donnell Rehagen issued the following statement.

National-Biodiesel-Board-Logo“The National Biodiesel Board congratulates our newly elected and returning leaders and looks forward to working them to promote local jobs, energy security and clean air through a growing biodiesel market. Biodiesel has long been a bi-partisan issue and we are confident our new Congress will continue to support a smart solution that works for America on so many levels. President Elect Trump has expressed strong support for biofuels and support for the RFS, so we are hopeful his administration will further strengthen opportunities for America’s advanced biofuel.  By the time he takes office we hope that the EPA will have announced biodiesel volumes that more closely reflect fuel availability and current production and that the critical biodiesel tax incentive will be extended and reformed to a production credit to ensure that American jobs are not put at risk yet again due to Congress’s inaction.”

iowa-biodiesel-board-logoIowa is the nation’s leading biodiesel producing state and its state association, the Iowa Biodiesel Board (IBB) also issued remarks following the election. IBB Executive Director Grant Kimberley stated,  “We welcome the opportunity to work with a new Administration in the White House, and appreciate the positive statements about biodiesel that President-elect Donald Trump made on the campaign trail. We are optimistic that he will support policies imperative to the growth of biodiesel, including the federal Renewable Fuel Standard, one of the most effective policies in history to diversify America’s fuel supply. The federal tax incentive for biodiesel is also critical to help us compete against petroleum, which had more than a hundred-year start on biodiesel. Nowhere is the impact of these policies more evident than in Iowa. In 2015, Iowa’s 12 operating biodiesel plants produced a record 242 million gallons of biodiesel.”

Also of note in Iowa, Chuck Grassley was re-elected to the U.S. Senate while Reps. Rod Blum, David Young, Dave Loebsack and Steve King were re-elected to the U.S. House. Kimberly said of these results, “We congratulate our entire Congressional delegation from Iowa on their victories last night, and thank them for their continued leadership in fostering the inclusion of American-made biodiesel in our nation’s energy supply. Our state owes these Congressional leaders gratitude for fighting time and again to give biodiesel the place at the table it deserves. Biodiesel is a critical piece of our nation’s ambitions for energy security, Greenhouse Gas reduction and economic development.”

Moving forward, Kimberly said the main goal of the organization is to ensure the Biodiesel Tax Credit is extended for a number of years. “Our immediate priority is to extend the current $1 per gallon tax credit for biodiesel, but also restructure the incentive from a blender’s credit to a producer’s credit,” said Kimberly. This is vital because the current structure allows foreign biodiesel producers to take advantage of the credit if their fuel is blended in the U.S. – not the original intent of Congress. We look forward to the time ahead as we work to secure biodiesel’s future.“

advanced biofuels, Biodiesel, NBB, politics

#Ethanol Groups Support Trump’s Election

Joanna Schroeder

**Updated

Donald Trump has been elected as 45th President of the United States. In response to the  news, several ethanol groups, on behalf of the industry, are sending out their congratulations.

rfalogo1“The president-elect repeatedly expressed strong support for ethanol, generally, and the Renewable Fuel Standard (RFS), specifically, on the campaign trail,” said Renewable Fuels Association President and CEO Bob Dinneen. “He understands the importance of clean, domestic energy resources and the economic power of value-added agriculture. We are confident Mr. Trump will continue to support the expanded production and use of fuel ethanol. Moreover, the president-elect is committed to removing regulatory barriers that impede growth. We look forward to working with a Trump administration to remove unnecessary volatility restrictions that have discouraged market acceptance of higher level ethanol blends like E15 and created unreasonable administrative burdens on gasoline marketers willing to offer these fuels to consumers. Finally, a core principle of the Trump campaign has been putting America first and more aggressively pursuing fair trade agreements that recognize the value of American products. We are eager to work with the new Administration on myriad trade challenges currently facing the U.S. ethanol industry.”

ACE logoBrian Jennings, Executive Vice President of the American Coalition for Ethanol (ACE), stated “Rural America delivered an impressive and historic victory for Donald Trump and I expect a Trump presidency will make good on its promises to support the hard-working Americans who are involved in the biofuels industry.  I anticipate that President-elect Trump appoints an EPA administrator who will restore the statutory intent of the Renewable Fuel Standard and remove unnecessary regulatory limits to ethanol use such as the Reid vapor pressure limit on  blends above E10. The people of our industry will need to actively engage Congress to keep the RFS on track because oil companies will work harder than ever in 2017 to repeal it.”

growth-energy-logo1Growth Energy CEO Emily Skor made the following statement. “Growth Energy sends its congratulations to President-elect Trump for his successful election bid. Additionally, Growth Energy congratulates returning and newly elected members of the 115th Congress. President-Elect Trump has publicly supported the Renewable Fuel Standard (RFS) throughout his campaign, and consistently opposed any efforts to roll back this policy. In fact, the RFS was one issue where both candidates found common ground, and we applaud their recognition of the importance that biofuels, like ethanol, play in fueling our country.

“Growth Energy looks forward to working with the new administration to ensure the RFS, our nation’s most successful energy policy, continues to progress. Furthermore, we will work to continue expanding market access for biofuels, like E15, which are better for our energy security, environment, consumers’ wallets and rural America’s economic prosperity.

“Finally, we welcome back our returning champions who have tirelessly fought for a strong biofuels industry and look forward to building relationships and working to educate new members of Congress on the many ways Americans benefit from biofuels every day.”Read More

ACE, Ethanol, Growth Energy, politics, RFA

Fueling our Future Theme of 2017 #Biodiesel Conference

Joanna Schroeder

fueling-our-future-2017-nbb-logoThe biodiesel industry will be heading to San Diego, California next January for the 14th annual National Biodiesel Conference and Expo. This year’s theme is Fueling our Future and takes place January 16-19, 2017. Some of the key topics will be the future of biodiesel with Donald Trump, the 45th President of the United States, as well as highlight new data supporting the carbon reduction and emissions benefits of biodiesel. There will also be discussions around some of the country’s groundbreaking environmental policies like California’s Low Carbon Fuel Standard. Attendees will also hear from new National Biodiesel Board (NBB) CEO Donnell Rehagen and his vision for the future of biodiesel about his plans for the organization.

“Our conference theme is ‘Fueling our Future,’ reflecting that biodiesel is here to stay as we move forward into a new era,” Rehagen said. “Biodiesel continues to serve as an essential element of our nation’s fuel supply, and we plan to keep growing. This conference represents that launching point, and anyone whose business or organization involves biodiesel should be engaged at this event.”

Sessions planned include:

  • Strategic Distribution for Domestic Biodiesel Production: Challenges & Opportunities
  • California’s Thriving Low-Carbon Markets
  • Understanding Carbon Markets in the Northeast
  • Clearing the Error: Tips for Avoiding Costly RFS Compliance Mistakes
  • Spotlight on Washington: What to Expect with a New Administration and Congress
  • The Road Ahead: OEMs and Fleets Cutting Carbon with Biodiesel
  • Make it So: ASTM Spec Changes Helping Biodiesel Boldly Go into the Future
  • Show You the Money: Tapping into Federal Programs
  • Data Dive: What do Americans Really Think About Biodiesel?

Attendees will also have the opportunity to participate in the Ride-and-Drive and check out all things biodiesel in the exhibit hall.

Registration is open. And applications are still being accepted for a scholarship to attend the event under the Next Generation Scientists for Biodiesel Program. Application deadline is November 18, 2016.

advanced biofuels, Biodiesel, National Biodiesel Conference, NBB

With Trump Taking America’s Helm, How Will #Biofuels Fare?

Joanna Schroeder

Donald Trump speaking at the Iowa Renewable Fuels Summit in January 2015. Next year's Summit will focus on the post election forecast. Photo credit: Joanna Schroeder

Donald Trump speaking at the Iowa Renewable Fuels Summit in January 2016. Next year’s Summit will focus on the post election forecast. Photo credit: Joanna Schroeder

In what many are calling an unexpected win for Donald Trump for the next presidency, the renewable energy industry is already asking what will this mean for them. As Democrats tend to be known for greater environmental action and with a Republican in office for the first time in eight years, a concern could bloom as to the the safety, in essence, of the renewable energy industry. So where exactly does Trump stand on some key energy policies? S&P Global Platts is reporting that while Trump has addressed biofuels, the Clean Air Act and the EPA among other issues, he has never outlined any specific plans, unlike his opponent, Hillary Clinton.

Following is a compilation on three key renewable energy areas from S&P Global.

BIOFUELS
Trump has offered broad public support to the Renewable Fuel Standard (RFS), but in September he unveiled an economic policy package that included a statement that the market underpinning the RFS, the EPA’s Renewable Identification Number program, “penalizes” refiners for not meeting “impossible” requirements. After these statements were criticized, they were removed from Trump’s campaign website and staffers claimed they were posted in error.

REGULATIONS
Trump has promised to either dismantle or overhaul the Environmental Protection Agency and roll back Obama administration regulations to curb coal industry pollution. Cramer said Trump believes EPA needs to return to its core mission of protecting clean water and clean air, and that Congress has granted it too much leeway in interpreting legislation.

Trump is expected to try to scrap the Clean Power Plan. He questions the widely held scientific consensus that human activity is causing climate change.

Trump is expected to abandon, or at least weaken, efforts by EPA and the Department of the Interior to regulate methane emissions from oil and gas operations and also could weaken future car and truck fuel-economy standards.

RENEWABLE ENERGY
Trump’s possible efforts to end incentives for alternative energy development would boost near-term demand for fossil fuels. For example, a potential cut in the Investment Tax Credit to 10% from the current 30% would slash solar installation demand by 60%, according to S&P Global Market Intelligence.

Only time will tell, of course, but in the near term AgWired will be posting reacts from the industry and continue to tell the story of renewable energy.

Alternative energy, Biodiesel, Ethanol, Opinion, politics

Fulcrum BioEnergy & BP Enter Biojet Fuel Partnership

Joanna Schroeder

Photo credit: Fulcrum BioEnergy

Photo credit: Fulcrum BioEnergy

Fulcrum BioEnergy and BP have entered into a partnership that includes an investment of $30 million by BP. One goal of the partnership is to accelerate the timeline for completion of Fulcrum’s biorefinery that will produce bioject fuel. Fulcrum BioEnergy and Air BP, the aviation division of BP, have also entered into a partnership with an offtake fuel agreement that will provide Air BP with 50 million gallons per year of bioject fuel with a total agreement of 500 million total gallons of aviation fuel. In addition, Air BP will provide fuel supply chain services for the blending, certification and delivery of the biojet fuel.

“Entering into this strategic relationship with a global oil and gas company enhances the value of Fulcrum’s waste to fuel platform,” said E. James Macias, Fulcrum’s president and CEO. “This allows us to accelerate development of our second and third plants. With BP’s expertise in refining and fuel services, their partnership provides value beyond the investment, fuel offtake and logistic services.”

Jon Platt Chief Executive Officer at Air BP added, “We are delighted to be a strategic partner with Fulcrum – a pioneer in the development and production of lower-carbon jet fuel from municipal solid waste. The aviation industry has set ambitious lower carbon goals. This agreement gives Air BP guaranteed access to low-carbon jet fuel to help our customers meet these goals. We are excited by the opportunities that this partnership offers.”

Fulcrum is also reporting that this agreement, along with several others, will accelerate the development of more larger-scale project across the U.S.

aviation biofuels, biojet fuel