Ethanol Report on EPA Hearing

Cindy Zimmerman June 10, 2016

Ethanol supporters turned out in force this week for a field hearing on EPA’s proposed volume obligations under the Renewable Fuel Standard (RFS). Over 120 witnesses testified in favor of EPA following the rule as passed by Congress by increasing the proposed 2017 requirement for conventional biofuel volumes to the statutory level of 15 billion gallons.

In this report, we hear comments from Renewable Fuels Association (RFA) president and CEO Bob Dinneen and others who testified at the hearing, including RFA chairman Randy Doyal, Nebraska Governor Pete Ricketts, and celebrity farmer Chris Soules.

Check out the EPA Hearing Photo Album here.

Listen to the Ethanol Report: Ethanol Report on EPA Hearing

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IBB’s Kimberly Calls @EPA to Embrace #Biodiesel

Joanna Schroeder June 10, 2016

Executive Director of the Iowa Biodiesel Board (IBB), Grant Kimberley, called on the U.S. Environmental Protection Agency (EPA) to embrace biodiesel’s full potential yesterday when testifying during the EPA hearing on the Renewable Fuel Standard (RFS) 2018 proposed rules for Biomass-Based diesel in Kansas City. Renewable fuel volumes for 2017 are 2 billion gallons and the EPA only proposed an increase in fuel to 2.1 billion gallons in 2018. IBB is calling for final volumes in 2018 to be 2.5 billion gallons.

Several other speakers testified representing Iowa biodiesel plants, in addition to Kimberley who also serves as the director for market development for the Iowa Soybean Association. Iowa is the largest biofuels producer in the country including the largest biodiesel producer. The industry represents more than 3,000 jobs and nearly $345 million in GDP in 2015, while also producing 242 million gallons that year.

“Embracing biodiesel at its full potential is a perfect example of where different goals for the greater good can intersect,” said Kimberley during his testimony. “Not only does biodiesel improve Greenhouse Gas reductions, it also makes us more diversified in our energy supply, and it makes our nation’s critical farm economy stronger. Making farmers stronger makes our country’s food supply stronger…something we would never want to jeopardize.”

Kimberley also noted that Iowa’s biodiesel usage shows that B5 (five percent biodiesel) is a starting point, not a limit.

“Iowa is an example of a state where higher blends of biodiesel are becoming the norm, thanks in part to state policies that encourage petroleum distributors to carry biodiesel blends above B5. Kimberley added, “According to the Iowa Department of Revenue, the average blend last year was about 9 percent biodiesel, and we expect the common blend to be B10 and higher in the next few years in Iowa and other Midwestern states. There is really no such thing as a B5 blend wall.”

Listen to Grant Kimberley’s testimony here: Grant Kimberley, IBB #RFS Testimony

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ACCF Criticizes #RFS @EPA Hearing

Joanna Schroeder June 10, 2016

Hundreds of biofuel supports were in Kansas City yesterday participating in the EPA’s hearing on the proposed rules for 2017 and 2018 under the Renewable Fuel Standard (RFS). [View photos from the EPA hearing here.] Yet not all comments were positive as two representatives from the American Council for Capital Formation (ACCF) called for the RFS to be overhauled. In tandem with the negative testimony, Americans United for Change (AUFC) released a new report, “ACCF: Big Oil’s Useful Tool,” as a means to expose ACCF’s financial ties to Big Oil as the group becomes more vocal about its criticism of the RFS.

According to AUFC, the two presenters, Christopher Tucker, senior managing director, FTI Consulting, and Matt Dempsey, managing director for FTI Consulting, work for a consulting firm that recently led an aggressive misinformation campaign to discredit environmental groups that outed Exxon Mobil’s decades of climate denial.

Brad Woodhouse, President, Americans United for Change said of the critical testimony from two semi-secret Big Oil flacks, “We do hope ACCF’s chosen surrogates will reveal their close financial ties to Big Oil and not present themselves as objective critics of the RFS while testifying before the EPA. It’s important that the EPA be fully aware of the context of ACCF’s testimony as they have taken over $2 million in Big Oil money and push policies intended to protect the oil industry’s profits at the expense of the environment and consumers.”

Yet AUFC was not the only organization to release a study this week tied to the EPA’s RFS hearing. ACCF also released a report from University of Tennessee professor Dr. Daniel De La Torre Ugarte, entitled, “10 Year Review of Renewable Fuel Standard Impacts to the Environment, The Economy, and Advanced Biofuels Development: An update,” in which he outlines fundamental flaws of the RFS.

Bob Dinneen, president and CEO of the Renewable Fuels Association (RFA), testified during the EPA hearing and also participated in a press conference hosted by Fuels America. He said in response to the ACCF study, “This study is nothing more than the same old recycled talking points from ACCF and its Big Oil buddies. Corn ethanol lowers greenhouse gas emissions by 34%, according to DOE’s GREET model. Meantime, the use of ethanol in gasoline in 2015 reduced carbon dioxide-equivalent greenhouse gas emissions from transportation by 41.2 million metric tons. The renewable fuel standard (RFS) has been an unmitigated success, helping to drive down gasoline prices, decrease U.S. reliance on oil imports and increase domestic biofuel production, while providing the lowest cost, cleanest-burning, highest octane additive available to refiners.”

Dinneen added, “But the truth hurts Big Oil, which continues to desperately try to cling to its incumbent marketshare and more than 100-year-old subsidies. They can’t hit back at the truth, so they resort to obfuscation in the hopes that people won’t notice.”

The comment period for the 2017 & 2018 proposed RFS rules ends July 11, 2016. Those interested in submitting comments can get more information here.

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#Ethanol Goes Beyond Blend Wall Says @ACEEthanol

Joanna Schroeder June 10, 2016

The so-called blend wall, or the barrier to blending ethanol into more than 10 percent of the fuel supply, is not in fact a barrier, explained Ron Lamberty, senior vice president of the American Coalition for Ethanol (ACE). He spoke these words to EPA representatives in Kansas City yesterday as they heard testimony from more than 100 hundred ethanol advocates about the proposed 2017 rules of the Renewable Fuel Standard (RFS).

“Today, said Lamberty, “I want to use my time to help the Agency gain confidence that it is not only possible to go beyond 10 percent ethanol, it is already being done.” He noted several representatives of fuel retailers that are selling choice to consumers at the pump through ethanol blends such as E15 and E85.

For example, Lamberty pointed to Petroserve USA who offers E15 and flex fuels in six of their North Dakota convenience stores and their overall ethanol volume was 13.4 percent. He spoke about Bosselman Enterprises who offers higher ethanol blends in eight of their Nebraska location and ethanol makes up 15 percent of their total care and light truck fuel sales in these locations.

Protec is another E85 wholesaler currently supplying 289 stations from Maryland to Texas, with plans to add 300 more utilizing funds from USDA’s Biofuels Infrastructure Partnership. Lamberty explained that about half of Protec’s current stations sell E85 on one island, and it makes up 9-13 percent of total fuel sales at those stations. Newer locations offering flex fuels on multiple islands sell 18-28 percent flex fuels. “That’s up to 32 percent renewable fuel, Lamberty stressed, “and while 9 percent E85 sales may not sound like much, that small amount of E85 boosts the stations’ overall ethanol sales to 17 percent – well beyond any so called E10 ‘blend wall’.”

Lamberty also told the story of ethanol retail success story Bruce Vollan. “At a previous hearing, South Dakota retailer Bruce Vollan told EPA there is no blend wall “Unless petroleum marketers don’t give their customers any choices above 10 percent.” And while oil companies continue to contractually limit sales of blends above 10 percent, half of Bruce’s customers buy the higher ethanol blends he offers, and ethanol makes up more than 25 percent of his total gas volume. Two and a half years ago, Bruce Vollan also told EPA, “The secret to getting over the blend wall . . . is to TRY to get over the blend wall.”

“That has been proven true by a number of retailers, and I encourage EPA to also TRY to get over the blend wall. Stand firm as you have in the past, and enforce the RFS as it was written,” Lamberty concluded.

Click here to read Ron Lamberty’s full testimony.

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RFA Chair Tells @EPA to ‘Go all the way’

Joanna Schroeder June 10, 2016

Thirty-five year ethanol veteran, advocate, CEO of Al-Corn Clean Fuel and Chairman of the Renewable Fuels Association (RFA) Randy Doyal wants the Environmental Protection Agency (EPA) to know that while the renewable fuel volumes for ethanol are set to improve in 2017, the proposed volumes under the Renewable Fuel Standard (RFS) suffer from the same problem as before – the statute does not allow EPA to issue a waiver based on proposed constraints on distribution such as the so-called blend wall.

“If the supply of renewable fuel and RINS is adequate to meet the statutory volume, then the obligated parties are obligated to distribute those volumes to consumers,” said Doyal during his testimony at the EPA hearing this week on the proposed 2017 volume obligations under the RFS. He added that the proposed volumes once again leave obligated parties off the hook in their legal obligation.

Doyal says there is a more than adequate supply of ethanol to meet the demand and what may be the most frustrating thing about the 2017 proposed rules is that at 14.8 billion gallons it is just short of the statutory mandate of 15 billion gallons. “Why not go all the way? Doing so would be faithful to Congressional intent and avoids further litigation,” he said.

Listen to Doyal’s testimony here: RFA Chair Randy Doyal, EPA testimony

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Biocognito Assists #Biobased Companies Enter Market

Joanna Schroeder June 10, 2016

Biobased was a hot topic at this year’s Corn Utilization Technology Conference (#CUTC16) and one person on hand who knows a lot about the emerging technologies in this space is Nathan Danielson, who works for Biocognito. The company is a small consulting firm that counsels businesses working to bring new technologies to the biomaterials space. He said that many of his clients are located in California because there is great interest in new materials and discovering new ways to use corn. He added that there are a lot of private investors that are excited about this area as well.

Danielson was very involved in the planning of this year’s CUTC conference and served as chair for two sessions. His panel focused on near-term and long-term technologies that have a significant potential to increase corn utilization from lab to commercialization. “One of the things I challenged the speakers to think about was how do you find a home for the next one billion bushels of corn,” said Danielson.

He is also chair of the poster committee with more than 40 posters on display. Danielson focuses on the student side of the presentations although there are also posters from companies. He said each year he walks away saying he can’t believe they just keep getting better and better. He has been chairing this committee for four years and has found that, “What I love about this session is that it show’s how bright the future is for this industry. When you get this many people with this talent and this dedication getting into the industry it makes me really happy to be a part of it.”

To learn more listen to Chuck Zimmerman’s interview with Nathan Danielson here: Interview with Danielson, Biocognito

Check out pictures from the conference: 2016 CUTC Photo Album.

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Iowa RFA Out in Force at @EPA #RFS Hearing

Cindy Zimmerman June 10, 2016

Representatives of the Iowa Renewable Fuels Association (IRFA) nearly had a whole panel to themselves at the EPA hearing in Kansas City yesterday on proposed volume obligations for the Renewable Fuels Standard (RFS).

Testifying at the hearing were IRFA Executive Director Monte Shaw, Managing Director Lucy Norton, Policy Director Grant Menke, and Communications Director T.J. Page. Many other members of the organization also testified at the event showing the strength of Iowa as the nation’s leader in renewable fuels production, with 43 ethanol refineries capable of producing more than 4 billion gallons annually, including 55 million gallons of annual cellulosic ethanol production capacity, and 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually.

Shaw stressed that those unable to make the hearing can still comment on the proposal. “All Iowans have a chance to ensure their voices are heard by visiting the IRFA website (www.IowaRFA.org) and signing a letter that urges the EPA to establish higher volumes of ethanol and biodiesel in the final RFS rule,” says Shaw, adding that the letter will be sent to EPA prior to the July 11, 2016 public comment deadline.

Listen to testimony from the IRFA staff here: Iowa RFA RFS Testimony

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NBB’s Anne Steckel Calls for More #Biodiesel

Joanna Schroeder June 9, 2016

Biofuel supporters from around the U.S. were in Kansas City, Missouri today to share their personal stories of how the Renewable Fuel Standard (RFS) has benefited them, their communities and the country. The EPA held a hearing to collect comments about its 2018 proposed rule for biomass-based diesel volumes, the fuel category in which biodiesel supplies the majority of gallons.

Led by National Biodiesel Board (NBB) Chairman Ron Marr along with NBB Vice President Anne Steckel, the biodiesel industry had representatives from Louisiana, Iowa, Massachusetts, Missouri, North Dakota and Rhode Island to give testimony. The group delivered the message that the biodiesel industry creates jobs while the renewable fuel reduces pollution and diversifies the country’s fuel mix, a move that strengthens U.S. energy security.

“Biodiesel is the most successful Advanced Biofuel in the nation, and plants like mine can do so much more with the right policy signals,” Marr, biodiesel manager at Minnesota Soybean Processors, said during his testimony. “Our industry is ready to expand production with new jobs and economic impact. By the EPA’s own analysis, biodiesel reduces greenhouse gas emissions by at least 57 percent and as much as 86 percent. So if our nation is serious about cutting emissions in the transportation sector, this proposal needs to be strengthened to truly capture biodiesel’s potential while putting more Americans to work in the clean energy sector.”

According to NBB, biodiesel is the first and only EPA-designated Advanced Biofuel to reach commercial-scale production nationwide. It has made up the vast majority of Advanced Biofuel production under the RFS to date, and according to the EPA, reduces greenhouse gas emissions by 57 percent to 86 percent compared with petroleum diesel. The EPA proposal would establish a 2.1-billion-gallon Biomass-based Diesel requirement in 2018, up from the 2-billion-gallon requirement for 2017. NBB has called for at least 2.5 billion gallons in 2018, as the industry is already on pace to exceed 2.1 billion gallons in 2016. There remains substantial unused production and distribution capacity in the United States.

Steckel stressed during her testimony, “Ending our dependence on fossil fuels is among the great challenges of our time. Changing the way we power our vehicles requires bold, aggressive action, and the RFS is the most effective policy we have for accomplishing that. The RFS is not a status quo policy. It was designed to drive investment and innovation by providing stability and incentives for the development of clean alternative fuels. But this proposal falls short of that goal.”

Listen to Chuck Zimmerman’s interview with Anne Steckel here: Interview with Anne Steckel, NBB

Listen to Anne Steckel’s testimony here: Anne Steckel, NBB #RFS Testimony

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Court Dumps EU #Ethanol Duty

Cindy Zimmerman June 9, 2016

Breaking news came from Europe today as ethanol supporters were gathered in Kansas City that a European court has ruled against the European Union’s (EU) countrywide 9.5 percent antidumping duty on all ethanol imported from the United States. The duty had been in place since February 2013.

Both the Renewable Fuels Association (RFA) and Growth Energy are pleased with the ruling that the five-year antidumping duty of $83.03 per metric ton was invalid. The trade organizations filed a joint complaint in May 2013, outlining violations by the European Commission in its antidumping investigation. The antidumping duty had effectively shut out U.S. ethanol producers from accessing the European market, which before the penalty was imposed had represented a 300-million-gallon market for our industry.

“The antidumping duty should have never been assessed,” said RFA President and CEO Bob Dinneen. “We feel vindicated and thank the EU General Court for its commonsense ruling.”

“From the beginning, we believed the implementation of an EU duty on imported ethanol violated EU law,” said Emily Skor, Growth Energy CEO. “We would like to thank the EU General Court for its fair and logical ruling, and are pleased with their decision.”

However, the antidumping duty remains in place, pending a possible appeal by the EU. The EU has approximately two months to file an appeal.

Listen to Bob Dinneen’s comments on the ruling: RFA CEO Bob Dinneen on EU ruling

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Supporters Rally for #Biofuels at @EPA #RFS Hearing

Joanna Schroeder June 9, 2016

Ethanol advocates called on the U.S. Environmental Protection Agency (EPA) to increase ethanol and other biofuel volumes in next year’s Renewable Fuel Standard (RFS) today. Fuels America held a press conference with several leading biofuel advocates that was kicked off with comments from Nebraska Governor Pete Ricketts, a long-time and vocal ethanol opponent.

“A strong RFS means more jobs here at home, greater energy security, and a cleaner environment,” said Gov. Ricketts. “The biofuels industry supports more than 852,000 American jobs and creates fuel we need to help our country become energy independent. It also stimulates investments in states like Nebraska, where we are on the forefront of research, development, and infrastructure for first- and second-generation biofuels.”

Renewable Fuels Association (RFA) President and CEO Bob Dinneen continued the ethanol success story by discussing how the RFS is the country’s most successful energy policy of all time. “The EPA’s proposed targets would needlessly undermine America’s most successful clean energy program,” said Dinneen. “At a minimum, we must hit the statutory levels set by Congress to slash U.S. dependence on foreign oil, reduce greenhouse gas emissions and save consumers money at the pump. From any objective standpoint, the choice should be simple – more clean, American energy and less foreign oil.”

New Growth Energy CEO Emily Skor has hit the ground running and focused her remarks on the environmental benefits of biofuels. “Our call to action has never been more important,” said Skor. “Ethanol is an earth-friendly biofuel that reduces greenhouse gas emissions and displaces chemicals in gasoline that form potent carcinogens when burned. Most importantly, ethanol offers consumers affordable options and a choice at the gas pump. It’s vital that the EPA meet the statutory biofuel targets for America’s 2017 fuel mix.”

While Chip Bowling, a long-time Agvocate and president of the National Corn Growers Association (NCGA) stressed the effect the RFS has had on farmers and their commitment to increasing ethanol fuel choices at the pump. “Farmers, along with the ethanol industry and U.S. Department of Agriculture, have invested millions in new ethanol pumps and fuel infrastructure so that drivers can access affordable, renewable fuel choices,” said Chip Bowling, president of the National Corn Growers Association. “Now it’s up to the EPA to deliver on its promises. We have the resources to meet all our needs, spur investment in rural communities, and create more high-tech jobs.”

Listen to the full press conference here: Fuels America RFS Hearing Press Conference

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