NBB Challenges EPA Rules on Argentinian Biodiesel

John Davis

scalesofjustice1The National Biodiesel Board (NBB) is challenging the federal government’s rules on the import of Argentinian biodiesel. This article from the NBB’s ally, the American Soybean Association (ASA), says NBB filed a legal brief with the U.S. Court of Appeals for the District of Columbia Circuit that says the way the Environmental Protection Agency (EPA) is handling Argentinian biodiesel violates the Renewable Fuel Standard (RFS).

In January of 2015 the U.S. EPA approved an application to streamline the process for Argentinian biodiesel imports to demonstrate compliance with the eligible renewable biomass and sustainability verification requirements of the RFS. The application was submitted to EPA by CARBIO, the trade association representing Argentinian biodiesel producers. The EPA approval allows a more streamlined survey approach for demonstrating feedstock sustainability instead of the more rigorous map and track requirements.

The NBB filed the initial petition in December 2015 seeking court review of the EPA decision, citing the lack of a public comment period, the adequacy of the Argentinian plan, and the inability of EPA to verify that the plan meets RFS requirements.

In the brief filed this week, the NBB responded to EPA’s claims that the U.S. biodiesel industry is not a proper party to challenge EPA’s decision and that EPA can act outside of the public eye and without the court’s oversight in this case. The reply brief reminds the Court that EPA never disputed that Argentina continues to expand its agricultural base or that the CARBIO proposal was the first of its kind and differed from what EPA previously noticed to the public.

The NBB also previously filed an administrative petition for reconsideration with the EPA regarding this decision. However, EPA has not responded to that administrative petition, choosing instead to argue in Court. Final briefs in the case are due next month, after which oral arguments will be scheduled.

ASA points out that imports of biodiesel from Argentina to the U.S. increased sharply toward the end of 2015 and are expected to rise again this year.

Biodiesel, NBB

Oregon Starts Push for Renewable Diesel

John Davis

oregongovThe state government in Oregon is using a combination of incentives and technical expertise to support adoption of renewable diesel. This news release from the Oregon Department of Energy (ODOE) says some of the results of the initiatives include reduced emissions and a decrease in fleet maintenance for the Eugene Water & Electric Board, which began testing this innovation in alternative fuel in September 2015.

“Public agencies and companies across Oregon are working on ways to reduce their greenhouse gas emissions and reach their climate goals,” said ODOE Director Michael Kaplan. “ODOE helps them get there by offering expertise on fleet management and innovative products like renewable diesel.”

In 2014, ODOE issued the Eugene Water & Electric Board a tax credit for installing an alternative fuel fueling station to run its fleet of vehicles. The station was designed to pump biodiesel, a well-known alternative fuel also made from natural fats and oils. But ODOE Senior Policy Analyst Rick Wallace thought EWEB could go even “greener” by using renewable diesel rather than biodiesel.

EWEB was enthusiastic about giving the product a try. “Moving our fleet to biodiesel helped us achieve our carbon reduction goals,” said EWEB Fleet Manager Gary Lentsch. “Switching to renewable diesel has taken us to another level.”

EWEB quickly realized the benefits of switching to renewable diesel for its fleet of 85 diesel vehicles. Using a regular gallon of diesel fuel emits more than 30 pounds of greenhouse gases into the air. Using a gallon of renewable diesel emits fewer than 10. EWEB is currently using about 6,100 gallons of renewable diesel a month.

EWEB also discovered that renewable diesel is much easier on vehicle engines and diesel particulate filter systems. After making the switch, Lentsch noticed a significant decrease in maintenance issues. “We have telematics on all of our vehicles and equipment so we know what’s going on with our fleet,” he said. “It wasn’t uncommon to get alert codes on our vehicles, and our shop would have to manually empty the filters (known as regeneration). After we switched to renewable diesel, our trucks don’t require regeneration as often as when they were using regular diesel. As a matter of fact, the shop hasn’t done a manual re-gen since the switch. Now, our trucks are staying in service longer with less down time.”

Renewable diesel is seen as an emerging market in the state.

Biodiesel, renewable diesel

Biofuel Industry’s United Stand

Joanna Schroeder

The biofuel industry continues to maintain its united front on encouraging legislative support for the Renewable Fuel Standard (RFS) especially during the presidential campaigns. Leaders from the renewable fuels and agriculture community released a public letter to allies outlining their support for America’s Renewable Future (ARF) to protect the RFS.

Screen Shot 2016-01-18 at 12.11.31 PMThe letter urges Iowa voters to turn to ARF to know where candidates stand on the RFS. It also designates the organization as the definitive voice on the issue. This letter comes as Sen. Ted Cruz has been under fire for his confusing stance on ethanol and the RFS. In a statement from ARF, they said they are committed to continuing let Iowans know that despite his change in tone, Cruz is still anti-RFS and he will destroy Iowa’s agriculture economy and Iowa farmers.

The letter was signed by the following leaders: Tom Buis, CEO – Growth Energy; Bob Hemesath, President – Iowa Corn Growers Association; Tom Brooks, President – Iowa Renewable Fuels Association; Jeff Broin, CEO – POET Biorefining; Bob Dineen, President & CEO – Renewable Fuels Association; Wayne Fredricks, President – Iowa Soybean Association; Joe Hrdlicka, Executive Director – Iowa Biotech Association; Grant Kimberly, Executive Director – Iowa Biodiesel Board; Will Rogers, Director of Government Affairs – Iowa-Nebraska Equipment Dealers; Bruce Rastetter, CEO – Summit Agricultural Group; and Brian Jennings, Executive Vice President – American Coalition for Ethanol.

Biodiesel, biofuels, Ethanol, RFS

More Renewable Energy = Higher GDP

Joanna Schroeder

According to a new report, achieving a 36 percent global share of renewable energy by 2030 would increase global domestic product (GDP) by up to 1.1 percent or nearly U.S. $1.3 trillion. “Renewable Energy Benefits: Measuring the Economics,” conducted by the International Renewable Energy Agency (IRENA), provides a global estimate of the macroeconomic impacts of renewable energy deployment. Specifically, it outlines the benefits that would be achieved under the scenario of doubling the global share of renewable energy by 2030 from 2010 levels.

“The recent Paris Agreement sent a strong signal for countries to move from negotiation to action and rapidly decarbonise the energy sector,” explained  Adnan Z. Amin, IRENA Screen Shot 2016-01-18 at 10.08.14 AMDirector-General. “This analysis provides compelling evidence that achieving the needed energy transition would not only mitigate climate change, but also stimulate the economy, improve human welfare and boost employment worldwide.”

The report also looks at country-specific impacts. Japan would see the largest positive GDP impact (2.3 percent) but Australia, Brazil, Germany, Mexico, South Africa and South Korea would also see growth of more than 1 percent each. In addition, the impact of renewable energy deployment on welfare is estimated to be three to four times larger than its impact on GDP, with global welfare increasing as much as 3.7 percent. Employment in the renewable energy sector would also increase from 9.2 million global jobs today, to more than 24 million by 2030.

The report also found that a transition towards greater shares of renewables in the global energy mix would also cause a shift in trade patterns. It would more than halve global imports of coal and reduce oil and gas imports, benefiting large importers like Japan, India, Korea and the European Union. Fossil fuel exporting countries would also benefit from a diversified economy.

“Mitigating climate change through the deployment of renewable energy and achieving other socio-economic targets is no longer an either or equation,” added Amin. “Thanks to the growing business case for renewable energy, an investment in one is an investment in both. That is the definition of a win-win scenario.”

Climate Change, Renewable Energy

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1The International Renewable Energy Agency (IRENA) and the Abu Dhabi Fund for Development (ADFD) have announced USD 46 million in concessional loans for four renewable energy projects in developing countries. The loans will fund a wind and solar project in Antigua and Barbuda, a solar project in Burkina Faso, a solar and wind project in Cabo Verde and a solar project in Senegal. The four projects will result in nearly 12 MW of new renewable energy capacity, reduce emissions, create jobs, and electrify rural communities without access to modern energy services.
  • Guzman Energy has reached an innovative agreement with the City of Aztec, New Mexico to serve as the city’s primary power source – as well as construct, own and operate a solar energy farm. The project, which combines traditional power supply with the development and ownership of solar energy, will reduce the city’s energy costs as well as provide residents with clean renewable energy.
  • Zoetic Global, a US-based project developer, has executed a 20-year power purchase agreement with the Electricity Company of Ghana (ECG) for 100 MW of additive power generation at the nation’s Akosombo Dam on Lake Volta. The project will involve an array of modular hydrokinetic turbines to be deployed in the post-dam wash of the Akosombo Dam. The In-Stream Auger Turbine (IAT) technology being used is designed for high efficiency power generation from flowing water and will leverage existing infrastructure at the dam site including grid connections, access roads, and on-site maintenance buildings.
  • Open Energy, an innovative commercial solar debt finance provider, has announced the closing of a loan totaling $1.2 million to SunLight General Solar Fund III. The New York City based investment fund invests in distributed generation solar projects. The SunLight investment fund received a hybrid term and construction loan for four commercial solar projects, including a school district and a private business in New Jersey, as well as a school district and a municipality in Massachusetts.
Bioenergy Bytes

Berkely Lab Study Finds RPS Policies Save Money

Joanna Schroeder

In 2013, there were $2.2 billion in benefits from reduced greenhouse gas emissions and $5.2 billion came from reductions in other air pollution for states with renewable portfolio standards (RFS) according to a new study. “A Retrospective Analysis of the Benefits and Impacts of U.S. Renewable Portfolio Standards,” evaluates the benefits and other impacts of RPS policies and was conduced by researchers from U.S. Department of Energy’s Lawrence Berkeley National Laboratory (Berkeley Lab) and National Renewable Energy Laboratory (NREL).

RPS report from NRELRPS policies require utilities or other electricity providers to meet a minimum portion of their energy output with eligible forms of renewable electricity such as wind and solar power.  The report finds there are 29 U.S. states plus Washington, D.C., with RPS policies in place and they have been a driver for renewable electricity generation in the U.S. over the past decade. Many states are currently considering whether to extend, eliminate, or otherwise revise existing RPS policies and the goal of the report is to help officials evaluate their programs.

“Our goal was to estimate the magnitude of RPS benefits and impacts at a national-level, using established methodologies, while recognizing that individual states can perform their own, more-detailed assessments,” said NREL’s Jenny Heeter one of the report’s authors.

In addition to evaluating environmental benefits, the study also assessed other impacts. The research estimates that RPS policies supported 200,000 renewable energy-related jobs in 2013, saved consumers up to $1.2 billion from reduced wholesale electricity prices and another $1.3 to $3.7 billion from reduced natural gas prices.

This work was a follow-up and complement to an earlier study by the two labs that focused on the costs of state RPS programs to-date and that noted the need for a full understanding of the potential benefits, impacts, and costs of RPS programs. To that end, this most recent study provides a point of comparison for estimates of RPS program costs. The researchers are planning a follow-up effort for the coming year to evaluate the costs and benefits of RPS programs prospectively, considering scheduled increases to each state’s requirements as well as potential policy revisions.

Electricity, Environment, Renewable Electricty Standard (RES)

Abigail Fisler Wins NEC Scholarship

Joanna Schroeder

Abigail FislerAbigail Fisler, a junior at Dickinson College in Carlislie, PA, has been awarded a student scholarship to attend the 21st Annual National Ethanol Conference (NEC) in February in New Orleans. The scholarship, awarded by the Renewable Fuels Association (RFA) and the Renewable Fuels Foundation, (RFF) provides a student studying renewable fuels with complimentary registration and an opportunity to network with industry members.

Abigail is pursuing two bachelor’s degrees in environmental studies — with a focus on renewable energy and climate change — and Italian studies, respectively. She was introduced to biofuels at a young age during a fourth-grade field trip to an ethanol plant in Lakota, Iowa. Last summer, she worked as an intern for California Ethanol and Power, where she assisted with investor presentations, developing marketing materials, and providing business plan updates. This summer Abagail intends to gain additional experience in the areas of sustainable energy and policy development. She ultimately plans to work globally in the field due to her affinity for foreign languages and cultures.

“On behalf of the RFA and RFF, I am proud to hand this year’s scholarship to a talented student with a promising career in the renewable fuels industry ahead of her,” said Mike Jerke, chairman of the RFF and CEO of Guardian Energy. “Abigail’s deep resume at such a young age is a testament to her commitment to energy in the 21st century, and the NEC is the perfect place for her to extend that background further. This scholarship will provide Abigail with exclusive access to the best in the industry who will deliver insight into the important issues facing the ethanol industry.”

The National Ethanol Conference will take place Feb. 15–17 at the New Orleans Hyatt Regency. Click here for more information and to register.

Ethanol, Ethanol News, National Ethanol Conference, RFA

Neste’s Renewable Diesel to Power Super Bowl City

John Davis

Neste_logo_pmsPlenty of jaw-dropping action from this weekend’s NFL playoffs, as we get closer to knowing who will be playing in in Super Bowl 50. While we don’t know the final match-up just yet, we already know that the game’s host city, San Francisco, is scoring ecological points by running on renewable diesel. This news release from Neste says its NEXBTL renewable diesel is now being used by the City and County of San Francisco, California.

San Francisco announced December 11, 2015 that the City and County of San Francisco has completely ended its use of petroleum diesel in the City’s fleet and replaced it with renewable diesel. This switch from petroleum diesel to renewable diesel will achieve a significant 50 percent greenhouse gas emissions reduction to the city’s diesel fleet.

City of San Francisco is now the largest city in North America to use renewable diesel. Earlier this year, the City of San Francisco tested Neste’s renewable diesel followed by an announcement that they will switch all of their diesel fleet to renewable diesel by the end of this year. City of San Francisco operates 1,966 diesel powered vehicles, which are all now using renewable diesel. The annual consumption is about 5.8 million gallons of diesel fuel. This change will completely end the use of petroleum diesel at the 53 City-run fueling facilities immediately.

“As the global climate negotiations conclude, San Francisco and cities worldwide must continue to lead by taking bold actions that reduce greenhouse gas emissions immediately,” said Mayor Edwin M. Lee. “These actions cannot wait. San Francisco has ended its use of petroleum diesel to fill up the City’s fleet of vehicles and will significantly reduce greenhouse gas emissions and improve air quality for our residents immediately today.”

Neste’s renewable diesel has been widely available in California since 2012 and is a significant contributor to the continuing success of the Low Carbon Fuel Standard and Governor Jerry Brown’s executive order to reduce greenhouse gas emissions by state agencies.

“Neste’s renewable diesel is a solution to reduce both greenhouse gas emissions and tailpipe emissions, which municipalities can greatly benefit from. Switching to it doesn’t require any additional investments on infrastructure or engine modifications. Thus, fleets can switch to renewable diesel overnight”, says Kaisa Hietala, Executive Vice President, Renewable Products, Neste Corporation. “Neste is proud and happy to support San Francisco through the supply of renewable diesel. We feel privileged to help the City and County of San Francisco become more sustainable. It is our vision to give public and private fleets, as well as consumers, options to make such responsible choices”, continues Hietala.

Biodiesel, renewable diesel

Groups Sue EPA Over RFS

Joanna Schroeder

A coalition has sued the Environmental Protection Agency (EPA), over the final rules of the Renewable Fuel Standard for 2014, 2015 and 2016 that were finalized near the end of last year. The current levels for fuels do not meet legislative mandates for those years regardless of the fact that the biofuels industry has shown they can meet fuel volumes.

rfs-mess-2A group that consists of seven industry associations including BIO, Americans for Clean Energy, American Coalition for Ethanol (ACE), Renewable Fuels Association (RFA), Growth Energy, National Corn Growers Association, the National Sorghum Producers, filed the suit on Friday, January 8, 2016 in the U.S. Court of Appeals for the District of Columbia Circuit (Case 16-1005).

According to a group statement, among other things, the petitioners intend to demonstrate that EPA’s interpretation of its general waiver authority is contrary to the statute. By focusing on fuel distribution capacity and demand rather than supply, and by failing to consider surplus RINs from prior years, the Agency erroneously concluded that there was an inadequate supply of renewable fuel to justify a waiver of the levels established by Congress. The petitioners also plan to point out other fundamental flaws and inconsistencies in the government’s rule.

A preliminary, non-binding listing of issues to be raised in the court of appeals will be filed by February 11. The statement concluded, “The petitioners look forward to presenting their arguments to the court of appeals to provide clarity and certainty to market participants concerning the requirements of the statute.”

ACE, BIO, EPA, Ethanol, Growth Energy, NCGA, RFA, RFS

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1Dyadic International, Inc. has announced that it repurchased and retired an aggregate of 2,136,752 shares of its common stock at $1.35 per share for an aggregate purchase price of $2,884,615 pursuant to a Securities Purchase Agreement entered into with Abengoa Bioenergy. The Company’s CEO, Mark Emalfarb, commented, “I am pleased that we have been able to repurchase this large block of stock and believe it will have a very positive impact on shareholder value.”
  • Three POET biorefineries will expand ethanol production capacity by a combined total of 25 million gallons in 2016. POET Biorefining – Hanlontown (Iowa), will expand from 58 million gallons per year (MGPY) to 64 MGPY; POET Biorefining – Hudson (South Dakota) will expand from 58 MGPY to 65 MGPY; and POET Biorefining – Caro (Michigan) will expand from 55 MGPY to 67 MGPY. Each plant filed separate expansion permits within their respective states and will soon be producing at the level their RIN permit allows.
  • ACCIONA Energy has started construction work on the 93 MW San Roman Wind Farm, located near the southeast coast of Texas. The project was acquired by ACCIONA Energy from developer Pioneer Green Energy. Located in Cameron County, the San Roman Wind Farm will be equipped with 31 ACCIONA Windpower AW125/3000 turbines. Each turbine has a rotor diameter of 125 meters and will be mounted on an 87.5 meter steel tower. The new wind farm will be operational by the end of 2016.
  • The U.S. Energy Information Administration has released its January 2016 Short-Term Energy Outlook (STEO) and Winter Fuels Outlook by region. The Outlook finds the amount of renewable sources used to generate electricity is expected to increase by almost 10% this year, with wind and solar power again showing strong growth in 2016.
Bioenergy Bytes