.@EPA 2017 #RFS Rules Sparks Inferno

Joanna Schroeder May 18, 2016

The U.S. Environmental Protection Agency (EPA) has released its draft of the proposed Renewable Fuel Standard (RFS) renewable volume obligations (RVOs) for 2017 and have sparked an inferno of unrest among the biofuels industry. EPA has proposed an RVO of 18.8 billion gallons (BG) of which 4 BG is advanced biofuels and 312 million gallons is cellulosic biofuels. The RVO for first generation biofuels, such as corn ethanol, is 14.8 BG, an RVO under mandated legislation. The ethanol industry has consistently and often called on the EPA to adhere to congressional intent by increasing blending targets, but has not done so. Today, the Renewable Fuels Association (RFA), among several other biofuel associations and companies, are involved in litigation on the final 2014-2016 targets.

“For months, EPA has been saying it plans to put the program ‘back on track.’ Today’s proposal fails to do that,” responded RFA President and CEO Bob Dinneen to the draft rules. “The agency continues to cater to the oil industry by relying upon an illegal interpretation of its waiver authority and concern over a blend wall that the oil industry itself is creating. As a consequence, consumers are being denied higher octane, lower cost renewable fuels. Investments in new technology and advanced biofuels will continue to languish and greenhouse gas emissions from automobiles will be unnecessarily higher.”

“The real frustration is that EPA seems to be artificially constraining this market,” continued Dinneen. “The RFA has demonstrated just how easy it would be for obligated parties to reach the 15 billion gallon statutory volume for conventional biofuels next year. The fact is with rising gasoline demand, increased E15 and E85 use made possible by USDA’s infrastructure grant program, continued use of renewable diesel and conventional biodiesel that also generate D6 RINs (renewable identification numbers), well more than 15 billion gallons will be used next year. All of that is in addition to the 2 billion surplus RINs available to refiners due to EPA’s tepid enforcement of the RFS in the past.” (Click here to read Bob Dinneen’s full statement.)

Brian Jennings, executive vice president of the American Coalition for Ethanol (ACE) highlights an excuse from EPA used to rein-in the RFS is data from the U.S. Energy Information Administration (EIA) that shows gasoline consumption is falling. According to EIA, gasoline use rose to 9.2 million barrels per day (bpd) in 2015 – just shy of the 2007 record of 9.29 million bpd. In 2016, EIA predicts a new gasoline use record of 9.3 million bpd will be set and that trend will continue into 2017.

“EPA has claimed they can’t require oil companies to add more ethanol to a shrinking gasoline pool because of the so-called E10 blend wall. Under that logic, EPA’s ethanol blending volumes for 2017 should increase to statutory levels because gasoline use is on a steady rise and will set a new record this year. While we are pleased that EPA’s 2017 proposal increases ethanol blending levels from 2016, we remain disappointed that EPA falls back on the questionable E10 blend wall methodology which has disrupted implementation of the RFS for more than a year,” said Jennings. (Read Brian Jennings full statement here.)

Maryland farmer Chip Bowling, president of the National Corn Growers Association also acknowledged that the EPA has moved forward, but not enough and the result is to move America backward. “In the past, the EPA has cited a lack of fuel infrastructure as one reason for failing to follow statute. Our corn farmers and the ethanol industry have responded. Over the past year, we’ve invested millions of dollars along with the U.S. Department of Agriculture’s Biofuel Infrastructure Partnership to accelerate public and private investment in new ethanol pumps and fuel infrastructure. The fact is,” added Bowling, “today’s driver has more access than ever to renewable fuel choices.” (Read Chip Bowling’s full statement here.)

Ethanol supporters are in agreement that the EPA must be taken to task and reinstate mandated blending levels. The groups said they will continue to work to make this happen and encourage ethanol supporters to let their voices be heard in their local communities, and with state and federal legislators.

ACE, advanced biofuels, Biodiesel, EPA, Ethanol, NCGA, RFA, RFS

American Ethanol Kicks Off NASCAR Sweepstakes

Joanna Schroeder May 18, 2016

American Ethanol has kicked off a NASCAR “We’ve Got the Power” sweepstakes to promote the benefits of ethanol and the use of E15 in vehicles 2001 or newer. The series will surpass 10 million miles of racing fueled by E15 this season. Fans who sign up for No. 3 American Ethanol Chevrolet driver Austin Dillon’s Green Army by sharing their American Ethanol-related experiences with Dillon on Facebook will qualify for a chance to win an ultimate NASCAR fan experience during a Sprint Cup race in October 2016.

“NCGA’s [National Corn Growers Association] relationship with American Ethanol and NASCAR has given corn farmers an incredible platform in which to communicate the economic and environmental benefits of higher ethanol-blended fuels,” said NASCAR Advisory Committee Chair Jon Holzfaster. “With E15’s expanding availability at the pump, we have an even greater opportunity to assist consumers in living a greener lifestyle and dispel myths related to ethanol’s safety and performance.”

For engine technicians, auto dealers and fuel retailer professionals, American Ethanol has created the “Engine Insiders Talk Shop” sweepstakes to learn how E15 fuel works for cars on the road today. To participate, qualified individuals must register and participate in an American Ethanol event or audio conference. In addition to being entered into the sweepstakes to win an honorary NASCAR crew chief experience, two $1,000 scholarships will be awarded at each event and audio conference to participants.

For more information on the “We’ve Got the Power” and “Engine Insiders Talk Shop” sweepstakes, visit American Ethanol’s website.

American Ethanol, E15, NASCAR, NCGA, Racing

Pacific Ag Opens Fargo Office

Joanna Schroeder May 18, 2016

Pacific Ag is expanding with a new office opening in Fargo, North Dakota. The company has the longest and most expansive crop residue supply chain in the U.S. and has opened the new office to serve the growing demand in for wheat straw residue among the dairy, beef, mushroom and erosion control industries. Pacific Ag also harvests and delivers biomass to biorefineries. Tom and Stephanie Borgen, local farmers and wheat straw providers, will be serving in the role of regional managers.

“In Pacific Ag, Stephanie and I saw a company that shares our vision for how sustainable residue harvesting can help farmers add to their bottom line,” said Tom Borgen. “It’s a great chance for us to grow personally and professionally by working with a world class management team. Together we can more quickly and more widely expand the market for wheat straw by providing customers a professionally-managed supply chain that offers large-scale, consolidated supply, precise quality control and stable, competitive pricing.”

Pacific Ag has 20 years of experience harvesting residue and says they have developed harvest methods and expertise the enables soil health preservation while reducing ash and other foreign matter in the resulting biomass bale or stover. The company, which maintains its own dedicated baling fleet, proprietary supply chain management system, and logistics and trucking division, harvests more than half a billion tons of biomass each year with key markets in California, Kansas, Texas, Oklahoma, North Dakota, Iowa and North Carolina.

“Tom and Stephanie are a great addition to the expanding Pacific Ag team,” said Bill Levy, founder and CEO of Pacific Ag. “They have a strong reputation for integrity, quality and service among both growers and customers, and they will play a key role in establishing and managing our presence in the region. We look forward to leveraging our national supply chain system to increase opportunities for both growers and customers in the Upper Midwest.”

advanced biofuels, biomass, Ethanol

Scientists Confirm #Biodiesel Provides CO2 Reduction

Joanna Schroeder May 18, 2016

A report from the Coordinating Research Council, (CRC) adds to the growing body of research that demonstrates biodiesel’s role as a low carbon fuel. Two of the report’s key conclusions find that carbon emissions from biofuels are declining relative to petroleum, and confidence in these results continue to grow as more research is released. According to the National Biodiesel Board (NBB), in 2015 U.S. biodiesel use lowered greenhouse gas emissions by 18 million tons or the equivalent CO2 emissions of removing 3.8 million cars from the roads.

Photo Credit: Joanna Schroeder

“When it comes to quantifying carbon benefits, biofuels have been the most heavily scrutinized products in the world market,” said Don Scott, director of sustainability with the NBB. “This heavy scrutiny and improving analysis provide confidence that biodiesel provides significant benefits over fossil fuels.”

CRC members include companies such as Ford, General Motors, Chrysler, American Petroleum Institute (API) and others, and conducts environmental and engineering research related to automotive and petroleum use. In addition, CRC hosts workshops to discuss lifecycle analysis of biofuels. According to NBB, these workshops include a heavy emphasis on indirect land use change (ILUC). NBB notes that ILUC was once thought to be a detriment to the net carbon benefit of biofuel policies, but this is proving to be incorrect. To examine ILUC more closely, CRC has called on experts in economic modeling and lifecycle analysis including experts with the EPA, U.S. Department of Energy, California Air Resources Board, European Commission, environmental advocacy groups, and leading academic institutions from Europe and North America.

“Whether and how indirect land use change can be accounted for has always been controversial. With continued improvements to the science behind it; there is clear consensus that it does not override the carbon benefit of renewable fuels,” said Jan Lewandrowski economist for USDA’s Climate Change Program. “The scientific community’s efforts to improve the data quality and reduce uncertainty within economic modeling shows that the agricultural sector can provide powerful tools to reduce carbon emissions while providing food and fuel to the world. Additionally, regions with renewable natural resources can experience sizable economic benefits by making wise investments in agriculture.”

The growing body of research supporting this conclusion, cites NBB, includes analysis published by the National Renewable Energy Laboratory, Argonne National Laboratory, USEPA, USDA and the California Air Resources Board. Each of these institutions has affirmed that U.S. biodiesel reduces GHG emissions by at least 50 percent and often as much as 85 percent compared to petroleum diesel fuel.

advanced biofuels, Biodiesel, Indirect Land Use, NBB

Advanced #Biofuel Production in One-Pot

Joanna Schroeder May 18, 2016

A strain of bacteria, Escherichia coli (E. coli), engineered by researchers at Lawrence Berkley National Laboratory enables a “one-pot” method for producing advanced biofuels from a slurry of pre-treated plant material. The bacteria is able to tolerate the liquid salt used to break down plant biomass into sugar-based polymers. However, the salt solvent, called ionic liquids, interferes with later stages of the production process; thus, it needs to be removed. This problem is solved with the engineered strain and eliminates the need to remove ionic liquids saving time and money.

Marijke Frederix (left) and Aindrila Mukhopadhyay in a microbiology lab at the Joint BioEnergy Institute. (Credit: Irina Silva/JBEI, Berkeley Lab)

“Being able to put everything together at one point, walk away, come back, and then get your fuel, is a necessary step in moving forward with a biofuel economy,” said study principal investigator Aindrila Mukhopadhyay, vice president of the Fuels Synthesis Division at the Joint BioEnergy Institute (JBEI), a DOE Bioenergy Research Center at Berkeley Lab. “The E. coli we’ve developed gets us closer to that goal. It is like a chassis that we build other things onto, like the chassis of a car. It can be used to integrate multiple recent technologies to convert a renewable carbon source like switchgrass to an advanced jet fuel.” Study results were published in Green Chemistry journal.

As explained by Aindrila, the basic steps of biofuel production start with breaking apart the cellulose, hemicellulose and lignin that are bound together in the complex plant structure. Traditionally, enzymes are then added to release the sugars from the mixture of cellulose and hemicellulose, a step called saccharification. Bacteria can then take that sugar and churn out the desired biofuel. The multiple steps are all done in separate “pots”.

A JBEI research team has pioneered the use of ionic liquids, salts that are liquid at room temperature, to tackle the deconstruction of plant material because of the efficiency with which the solvent works. However, what makes ionic liquids ideal for deconstruction also makes it harmful for the downstream enzymes and bacteria used in biofuel production. Based on previous work, a suite of saccharification enzymes were discovered that were tolerant to ionic liquids.Read More

advanced biofuels, biojet fuel, biomass, Research

RFF, MathPro Host #Ethanol Octane Webinars

Joanna Schroeder May 17, 2016

Members of the ethanol industry interested in learning more about the octane benefits of ethanol, as well as other ethanol benefits, can now do so in a five-part webinar series hosted by the Renewable Fuels Foundation (RFF), the education and research arm of the Renewable Fuels Association (RFA), and MathPro, fuel refining experts. The webinar series kicks off next month and will focus on ethanol’s unique octane properties and ethanol’s potential role as the octane source of choice in future fuels. RFA says the webinar series is in response to the call from automakers for higher octane fuels that provide better engine efficiency and to assist in facilitating compliance with future fuel economy and greenhouse gas reduction standards.

The ethanol octane webinar series includes:

Webinar #1: “All About Octane” – June 9 (11am-12pm CDT)
Webinar #2: “Gasoline Refining and Blending 101” – July 7 (11am-12pm CDT)
Webinar #3: “Gasoline Blending 102 (with Ethanol)” – July 28 (11am-12pm CDT)
Webinar #4: “Future CAFE Standards” – Aug. 18 (11am-12pm CDT)
Webinar #5:“Economics of High Octane Fuels” – Sept. 8 (11am-12pm CDT)

“Guided by the experts at MathPro, these webinars will provide stakeholders with a better understanding of ethanol’s important role in the fuel supply today, as well as the immense opportunities and challenges that lie ahead for ethanol-based high octane fuels,” said RFA President and CEO Bob Dinneen. “As automakers continue to pursue higher octane fuels, ethanol is well positioned to serve as the lowest-cost, lowest-carbon and cleanest octane source on the market. But there are a number of obstacles that must be overcome in order to solidify an expanded role for ethanol in our future fuels.”

The webinars are offered to RFA members at no charge. The fee for non-members is $250 per session or $1,000 for all five webinars. To reserve your spot, contact Missy Ruff.

biofuels, Education, Ethanol, Ethanol News, RFA

UCR Awarded $1.3 for Waste-to-Energy Research

Joanna Schroeder May 17, 2016

The U.S. Department of Agriculture (USDA) has awarded two University of California Riverside (UCR) researchers with $1.3 million for waste-to-energy research focused on creating biofuels and biochemicals from waste plant materials. Charles Wyman, Distinguished Professor in Chemical and Environmental Engineering and holder of the Ford Motor Company Chair in Environmental Engineering at the Center for Environmental Research and Technology (CE-CERT), and Charles Cai, Research Engineer at CE-CERT and Adjunct Assistant Professor, both with Riverside’s Bourns College of Engineering, lead the team that is looking to convert poplar wood into ethanol and polyurethanes based on novel platforms for pretreatment and lignin polymer synthesis.

Charles Wyman, the Ford Motor Company Chair in Environmental Engineering at UC Riverside.

The Wyman/Cai team has patented the method, Co-solvent Enhanced Lignocellulosic Fractionation (CELF), and is using this platform to convert raw ag and forest residues into biofuels and other biochemicals. The goal is to create a pathway in which biofuels and biochemicals can be produced from biomass at high enough yields and low enough costs to become a market competitor to traditional fuels and chemicals. The research team believes CELF will enable production facilities to increase revenue by offsetting pretreatment costs, thus improving overall production economics.

“This project takes advantage of the unique ability of our novel CELF technology to effectively fractionate lignin from low-cost non-food sources of cellulosic biomass such as agricultural and forestry residues for conversion into polyurethanes that increase revenues for biorefineries while also enhancing ethanol yields,” explained Wyman. Wyman leads a team of researchers at UCR’s CE-CERT as well as their additional research partners University of Tennessee Knoxville and MG Fuels LLC.

The funding is one of seven institutions to receive a share of $10 million from the Biomass Research and Development Initiative (BRDI), a joint initiative between USDA’s National Institute of Food and Agriculture and the Department of Energy (DOE).

advanced biofuels, biochemicals, Ethanol, Research, Waste-to-Energy

EPA Honors Biodiesel Leaders

Joanna Schroeder May 17, 2016

Two long-time biodiesel leaders have been honored by the U.S. Environmental Agency (EPA) for their commitment to the environment – Harvard University Fleet Management Division and Medford Township Public Schools in Medford, NJ. Joe Biluck, Medford’s director of operations and technology, and David E. Harris Jr., Harvard’s director transit and fleet management, are the champions behind their fleets’ switch to biodiesel.

Biluck and Harris also serve as volunteer Biodiesel Ambassadors by educating other fleets on the benefits of biodiesel and how it can help achieve environmental benefits such as lowering greenhouse gas emissions and toxic air pollution.

“These EPA Awards shine a spotlight on the environmental leadership that we have seen at Harvard and in Medford in their mission to replace petroleum with cleaner-burning biodiesel,” said Ron Marr, chairman of the National Biodiesel Board (NBB). “NBB is proud to work with both Dave Harris and Joe Biluck, and their leadership and vision is helping to improve environmental quality and lower emissions through the use of America’s Advanced Biofuel.”

EPA’s Region 2 presented Medford with the 2016 Environmental Champion Award at a ceremony in New York City. The award honors Medford’s outstanding commitment to protecting and enhancing environmental quality and public health. According to NBB, Medford’s leadership in the use of biodiesel alone has eliminated 123,376 pounds of smog-forming emissions, 2,408 pounds of diesel particulate matter and reduced its fleet operation costs by over $170,000. In 1997, Medford was the first school district in the country to use biodiesel. Today, it is the nation’s longest continuous user of biodiesel in a student transportation fleet.

EPA’s New England office honored Harvard University’s Fleet Management Division with the 2016 Environmental Merit Award on May 10 at a ceremony in Boston, Ma. NBB nominated Harvard for this award, which recognizes the University’s exceptional work and commitment to the environment. In 2004, Harvard was the first Ivy League school to power its diesel vehicles with cleaner burning biodiesel and since then its biodiesel program has grown. In the past year alone, Harvard’s biodiesel use resulted in the following estimated emissions reductions: 15 percent reduction in carbon dioxide; 12 percent reduction in carbon monoxide; 20 percent reduction in both hydrocarbon and sulfur dioxide and 12 percent reduction in particulate matter.

advanced biofuels, Biodiesel, EPA, NBB

EPA Gives OMB RFS Modification Proposal

Joanna Schroeder May 17, 2016

The Environmental Protection Agency (EPA) has delivered a proposal to the White House Office of Management and Budget (OMB) that would amend the Renewable Fuel Standard (RFS). The “Renewable Enhancement and Growth Support Rule,” would resolve outstanding issues and provide clarification on certain RFS requirements.

The rule would also allow for feedstocks partially converted at a facility other than a renewable fuel production facility to be converted at such a facility and quality under the RFS. In addition, the rule would add new registration, recordkeeping and reporting requirements for various renewable fuel production facilities using carbon capture and storage (CCS) technologies should the EPA all CCS as a lifecycle GHG emissions reduction technology as part of the RFS.

Among other changes, the rule proposes to implement fuel quality specifications for blends containing 16 to 83 volume percent ethanol. The EPA says this would provide substantial additional flexibility for ethanol flex fuel (EFF) producers that accommodate current market realities while continuing to ensure EFF quality is consistent with controlling pollution when used in flexible fuel vehicles, and could result in an increased use of ethanol in motor fuels, furthering RFS goals.

The OMB has also received and is reviewing a proposal from the EPA for the proposed 2017 RFS rules.

advanced biofuels, Biodiesel, EPA, Ethanol, RFS

Long-Term Biodiesel Tax Incentive Bill Introduced

Joanna Schroeder May 16, 2016

U.S. Representatives Kristi Noem (R-SD) and Bill Pascrell (D-NJ) have introduced legislation to extend the biodiesel tax incentive through 2019 and modify the program to become a domestic production credit. The $1-per-gallon biodiesel tax credit has been lapsed and reinstated multiple times. It is scheduled to expire yet again on December 31, 2016. This bill would extend the incentive three years while also changing its focus to support domestically produced biodiesel.

“While oil tax breaks remain permanently written into the tax code, the biodiesel tax incentive is yet again set to expire in less than eight months,” said National Biodiesel Board (NBB) Vice President of Federal Affairs Anne Steckel in response to the introduction of the bill. “This is no way to do business. Biodiesel producers need stable, predictable tax policy to continue to grow and hire. We want to thank Reps. Noem and Pascrell for taking the lead on this issue to create that stability and spur economic activity.”

According to NBB, foreign biodiesel imported to the U.S. and then blended with petroleum diesel is eligible for the tax incentive. As a result, more foreign biodiesel producers are taking advantage of the tax credit by shipping their biodiesel to the states. Today imported biodiesel makes up nearly a third of the U.S. market, around 670 million gallons.

“In addition to extending the incentive, this bill includes an important reform ensuring that this tax incentive is directed toward domestically produced biodiesel,” added Steckel. “This would not only reduce the cost of the tax incentive to the Treasury, but it would level the playing field for American producers who are now competing against predatory imports that are getting subsidies in their country of origin only to be shipped to the U.S. to receive another incentive from American taxpayers. Incentivizing foreign biodiesel production was never the intent of this incentive, and Congress should reform it immediately.”

The American Soybean Association (ASA) also commended Reps Noem and Pascrell for the introduction of the legislation. Also calling out the need for long-term policy to keep the industry strong, President and Delaware farmer Richard Wilkins also noted that uncertainty not only negatively affects industry investment, but hurts farmers.

“In a farm economy that is dealing with low crop prices, that uncertainty and added stress are things that farmers don’t need. In the challenging political environment of an election year, it may be easier for lawmakers to pull back from working together, even on common-sense legislation like this, which is what makes the leadership shown by Representatives Noem and Pascrell so commendable.” Wilkens concluded, “We appreciate their work on this issue and we urge Congress to support the extension and restructuring of the biodiesel tax credit.”

advanced biofuels, Biodiesel, Legislation, NBB, Soybeans

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