EPA Official Apologizes to Ethanol Industry

Cindy Zimmerman

nec15-grundlerLast year at the National Ethanol Conference, EPA’s Director of the Office of Transportation and Air Quality told the ethanol industry that the agency intended to finalize the volume requirements for the Renewable Fuel Standard (RFS) by the end of spring 2014.

As everyone knows, that never happened and today EPA’s Chris Grundler began his remarks to the ethanol conference with an apology. “I wanted to come to Texas and personally tell you all how sorry I am that we did not get our work done,” he said. “We did not finalize a standard in 2014 that I promised we would when I appeared before all of you in Orlando.”

Gundler offered no excuses but pledged to get the RFS back on track with a three year standard for 2014, 2015 and 2016 that they hope to have done by the end of this spring. “Obviously implementing the RFS has been very challenging for us,” he said, noting that finalizing annual rules has been a “tall order.”

Listen to all of Grundler’s remarks here: EPA's Chris Grundler at NEC 15

2015 National Ethanol Conference Photo Album

Audio, EPA, Ethanol, Ethanol News, National Ethanol Conference, RFA, RFS

Study- Clean Power Plan Won’t Affect Reliability

Joanna Schroeder

The second study in a few days has been released that finds that implementing the Environmental Protection Agency’s (EPA) Clean Power Plan will not negatively affect grid reliability. Analysis Group’s report, “Electric System Reliability and EPA’s Clean Power Plan: Tools and Practices,” addresses the impact of ongoing changes in the energy industry for stakeholders and offers recommendations to ensure reliability.

The report shows that “the industry, its reliability regulators, and the States have a wide variety of existing and modified tools at their disposal to help as they develop, formalize, and implement their respective State Plans.” In particular, it notes that, “These two responsibilities – assuring electric system reliability while taking the actions Screen Shot 2015-02-19 at 3.32.08 PMrequired under law to reduce CO2 emissions from existing power plants – are compatible, and need not be in tension with each other as long as parties act in timely ways.”

The report was a response to concern raised around the Clean Power Plan specific to grid reliability, or that adding more renewable energy such as wind and solar to the electric grid would create energy output issues especially during peak times. With this is mind, the report authors note “[A] recent survey of more than 400 utility executives nationwide found that more than 60 percent felt optimistic about the Clean Power Plan and felt that EPA should either hold to its current emissions reduction targets or make them more aggressive.”

To date, more than 4 million comments have been submitted to the EPA, many around reliability concerns. Groups have begun studying potential impacts of the U.S. grid should the Clean Power Plan be implemented as proposed. This report, along with others, have found that the energy industry’s past experience and ongoing efforts should address concerns.

However, the report highlights what should be a concern, that has historically been ignored, and that is the “reality” of public policy and industry action” “many of these comments tend to assume inflexible implementation and present worst case scenarios, with an exaggerated cause-and-effect relationship. Moreover, many comments … tend to assume that policy makers, regulators, and market participants will stand on the sidelines until it is too late to act. The history of the electric system and its ability to respond to previous challenges including industry deregulation and previous Clean Air Act regulations … prove that this is highly unlikely.”

Analysis Group previously released two other reports examining the ability of states to implement the EPA’s Clean Power Plan and implications for electric reliability: “EPA’s Clean Power Plan: States’ Tools for Reducing Costs and Increasing Benefits to Consumers,” and “Greenhouse Gas Emission Reductions From Existing Power Plants: Options to Ensure Electric System Reliability.”

Clean Power Plan, Electricity, Energy, Environment, EPA

BioEnergy Bytes

Joanna Schroeder

  • http://energy.agwired.com/category/bioenergy-bytes/Kaiser Permanente has announced it will purchase enough renewable energy to provide half of the electricity it uses in California and reduce its greenhouse gas emissions nationwide by 30 percent. As part of the commitment, Kaiser Permanente has agreed to support the construction and operation of three new renewable energy projects that will come online in 2016 and generate 590 million kilowatt hours of power a year.
  • PSEG Solar Source joined with El Paso Electric (EPE) and juwi solar, Inc. to formally dedicate the PSEG El Paso Solar Center. The 13-megawatt (dc) facility is El Paso’s largest. The plant is located on 100-acre site adjacent to the existing El Paso Electric Newman Generating Station in Northeast El Paso. EPE will purchase the electricity produced by the solar facility through a 30-year power purchase agreement.
  • The new phase of the advertising campaign “Ethanol, the Completão fuel”, created for the Brazilian Sugarcane Industry Association (UNICA) by Borghi / Lowe advertising agency has boosted sales of hydrous ethanol in 4th Quarter 2014. According to data from the National Agency of Petroleum, Natural Gas and Biofuels (ANP) and evaluated by UNICA, monthly use of ethanol was 32% in the first nine months of 2014; 34.3% in October; 36.2% in November; and 36.5% in December.
  • Ecotech Institute has named Donald Smith as the new program director of Both Electrical Engineering Technology and Power Utility Technician programs. In this position, Smith is responsible for assuring all his students gain the most hands-on and applicable knowledge possible while preparing to enter the renewable energy job force.
Bioenergy Bytes

RFA CEO Unveils 10-Point Ethanol Industry Plan

Cindy Zimmerman

nec15-dinneen-sotiDuring his traditional State of the Industry speech at the National Ethanol Conference, Renewable Fuels Association (RFA) President and CEO Bob Dinneen today unveiled a 10-point plan for the future of the ethanol industry.

“The state of the ethanol industry is strong,” Dinneen declared, highlighting last year’s success despite the Environmental Protection Agency’s (EPA) indecision and proposed cuts to the Renewable Fuel Standard (RFS), pointing to the expansion of the ethanol market globally, and highlighting the emergence of cellulosic ethanol.

But, Dinneen says “there is much work left to do” and “RFA is committed to an aggressive 10-point agenda that will move the industry forward and assure continued growth and evolution.”

1. Get the Renewable Fuel Standard (RFS) on a growth trajectory that will crack the blend wall and motivate investment in new cellulose technologies
2. Grow market opportunities for higher-level ethanol blends including E15 and E85
3. Secure parity for E10 and E15 with respect to EPA’s RVP regulations
4. Expand export markets
5. Create a level playing field for cellulosic biofuels by securing a long-term tax incentive
6. Develop a roadmap for Renewable Super Premium (RSP)
7. Support low carbon fuels programs “done right” and developed with the best available science
8. Improve railroad service while prioritizing highly volatile crude oil for railcar safety modifications
9. Continue to promote safety practices and procedures both at the plant and in the transport of ethanol
10 Provide detailed technical guidance that establishes a solid foundation for the industry’s fuel marketplace and policy priorities

Read Dinneen’s remarks, see the video of the remarks, and download the audio here: RFA CEO Bob Dinneen Remarks at NEC 15

2015 National Ethanol Conference Photo Album

Audio, Ethanol, Ethanol News, National Ethanol Conference, RFA

State of the Ethanol Industry – RFA CEO Bob Dinneen

Chuck Zimmerman

This morning at 8am central we will live stream the session from the National Ethanol Conference featuring Renewable Fuels Association CEO Bob Dinneen. Bob will deliver this annual state of the industry address a few minutes after 8am and we’ll be recording it so that you can watch and listen later if you miss the broadcast or want to review it. All you’ll have to do is click on the player button in the video embed below when we’re live.

Post Update: Below is the recording of the presentation.


Live stream videos at Ustream

2015 National Ethanol Conference Photo Album

Audio, biofuels, Ethanol, Ethanol News, National Ethanol Conference, RFA, Video

Pittsburgh to Run City Trucks on Biofuels

John Davis

pittsburghThe City of Pittsburgh soon could be running some of its trucks on biofuels. This article from the Pittsburgh Post-Gazette says a proposal is before the city council to enter into a $150,000 agreement with Optimus Technologies to convert about 20 Department of Public Works trucks to run on the green fuel, which will reduce emissions and save the city money.

Grant Ervin, the city’s sustainability manager, said Optimus’ Vector fuel system was tested on five municipal trucks in a pilot program that started in 2013. The goal is to add it to other city vehicles as an analysis of the city’s fleet needs continues.

“That’s what really exciting about it,” Mr. Ervin said, adding that part of the cost of the program will be covered by state alternative fuel grants. “For us, it’s a tool we can extend to other vehicles. … What the Optimus technology does is basically create hybrid vehicles.”

In cold weather, when biofuel can be plagued by “gelling,” the trucks can be started on conventional diesel fuel and switched to biofuel when it warms up, said Optimus CEO Colin Huwyler.

The biofuel that could be used would be made from recycled cooking oil, non food-grade corn oil from the ethanol industry and rendered animal fat.

Biodiesel

Growth, Environmental Groups Comment on CARB

John Davis

growth-energy-logoGrowth Energy and environmental groups are adding their voices of comments to California’s proposal to its clean air regulations. In a news release, Growth says the California Air Resources Board’s (CARB) proposed amendments to the state’s Low Carbon Fuels Standard (LCFS) Regulation and the Proposed Regulation on the Commercialization of Alternative Diesel Fuels are unnecessary under the state’s environmental mandates.

David Bearden, General Counsel of Growth Energy noted, “If adopted, the current LCFS proposal will have a devastating impact on Growth Energy’s members, who will be forced to exit from the California alternative fuels market. Such an outcome will likely trigger the cost-containment caps in the proposed regulation, and any claimed benefits of the LCFS program will be compromised or lost.”

Specifically, the comments noted:

The LCFS regulation is no longer needed to achieve the greenhouse gas reductions sought in the 2009 LCFS regulation. Since the Board first adopted the LCFS regulation in 2009, much has changed in efforts by the state and federal government to reduce greenhouse gas (“GHG”) emissions from motor vehicles. Growth Energy presented a proposed alternative to the LCFS regulation to CARB staff in June 2014 that would simply adjust California’s cap-and-trade regulation to account for any incremental GHG emission reductions forgone by eliminating the LCFS. Following review of Growth Energy’s proposal, the CARB staff agreed with Growth Energy that Growth Energy’s proposal would likely achieve the same level of GHG emissions reductions as the 2009 LCFS regulation through 2020. Growth Energy’s proposal had none of the unintended negative environmental consequences of the 2009 LCFS regulation, which have been the subject of litigation, and would have eliminated the need for California businesses and consumers to pay for the LCFS program ─ costs that the CARB staff now says may range up to about 12 cents per gallon by 2020.

Growth added that the new justification for the LCFS regulation ignores the federal renewable fuels program, and CARB is not properly accounting for the beneficial effects of the federal renewable fuels standards.

Those sentiments are echoed by the Energy Future Coalition (EFC) and Urban Air Initiative (UAI), which are urging CARB to bring ethanol into the mix.

“Simply replacing gasoline, which is increasingly carbon intensive, with ethanol provides substantial carbon reductions. Using that ethanol to replace toxic compounds used for octane provides a dual benefit of protecting public health,” said David VanderGriend, President of UAI.

“Our research has shown that there is a clear linkage to gasoline and a range of negative health effects. So reducing carbon isn’t just a matter of greenhouse gas and potential climate change but also saving lives by reducing toxic emissions.”

Ethanol, Ethanol News, Growth Energy, Indirect Land Use

Clean Energy Nets North Carolina $4.8 Billion

John Davis

NCSEAThe clean energy industry in North Carolina is netting the state $4.8 billion. The NC Sustainable Energy Association (NCSEA) says the sector is a key driver in the state’s economy, growing by about 25 percent since 2012 – outpacing the growth of other industries in the state.

“This year’s Census not only reveals good news for the clean energy industry; it demonstrates powerful news for all of North Carolina,” said NCSEA executive director, Ivan Urlaub. “Consider the rise of clean energy business sectors like building efficiency and energy storage, which are creating immediate jobs and lowering business expenses, while preparing our state to affordably meet future energy demand. Our state is not only better off with clean energy, it’s thriving – and becoming a national model for how clean energy development can help strengthen economic competitiveness.”

Driven largely by the state’s market-based clean energy policies, North Carolina was recently named one of the fastest growing markets for clean energy solutions, and is ranked fourth nationwide in installed solar power. NCSEA created the Census in 2008, a first of its kind nationally, to help measure the impact of North Carolina’s clean energy policies and identify where policy is and is not achieving the results that policymakers, economic developers and industry members envisioned. One such policy is the Renewable Energy Investment Tax Credit, which has reportedly returned $1.93 for every $1.00 utilized by state and local governments.

NCSEA is also crediting growing success in the biomass sector, with animal waste, poultry litter-to-energy and swine-waste-to-energy projects helping fuel the clean energy growth.

You can read the full 2014 North Carolina Clean Energy Industry Census report here.

Agribusiness, Alternative energy, Government, Waste-to-Energy

20th National Ethanol Conference Kicks Off

Cindy Zimmerman

nec15-bob-kennyFootball Hall of Fame member Kenny Houston helped Renewable Fuels Association (RFA) president and CEO Bob Dinneen get the early activities for the 20th annual National Ethanol Conference underway on Ash Wednesday in Dallas.

Houston is a former American football defensive back who played for the Houston Oilers and then the Washington Redskins between 1967 and 1980, but today he was on the golf course instead of the football field for the annual NEC golf tournament. While he was greeting golfers, two bus loads of conference attendees headed to downtown Dallas to step back in history and learn more about that fateful day in November 1963 when President John F. Kennedy was assassinated.

Dinneen is excited to be celebrating 20 years of ethanol this year and happy to see so many from the industry making the trip to Dallas this week. “We’re coming off the single most profitable year in the industry’s history, but at the same time we’re looking at another tough year – it’s a commodity market,” said Dinneen. “But this is an industry that has been seasoned, that has seen tough times, that has seen good times, and is prepared for either.”

The theme of this year’s conference is Going Global and Dinneen says the program will focus on the future of the ethanol industry in the export market, which Dinneen says is already booming. “It was critical to the industry’s profitability last year,” said Dinneen, noting exports of 836 million gallons, or about six percent of production, to over 50 countries worldwide.

Listen to Chuck’s interview with Bob here and tune in at 8:10 am Central time tomorrow to hear his state of the industry speech live: Interview with Bob Dinneen, RFA

2015 National Ethanol Conference Photo Album

Audio, Ethanol, Ethanol News, National Ethanol Conference, RFA

Isobutanol Meets Marine Performance Standards

Joanna Schroeder

Four years of testing has been completed on Gevo’s isobutanol and it meets marine performance standards. A consortium of recreational marine industry organizations conducted thousands of hours of testing and determined that isobutanol blends of up to 16.1 percent can be used in marine engines without deterioration of engine or boat performance. The tests were performed in collaboration with the National Marine Manufacturers Association (NMMA), the American Boat and Yacht Council (ABYC) and several engine and boat manufacturers across the industry. The testing was also supported by The US Department of Energy (DOE), Office of Energy Efficiency and Renewable Energy (EERE), and Argonne National Laboratory (ANL).

Tests were conducted on various engine technologies from several engine and boat manufacturers, and included measurements of gaseous and particulate engine exhaust emissions, combustion analysis, cold start, run ability, durability and more. No engine exhaust emissions failures, durability issues or run ability issues were experienced during the multi-year test program.

“This data reconfirms that the properties of isobutanol make it an excellent renewable blendstock for the marine market. We are excited to supply renewable isobutanol for marine and off-road applications and we look forward to growing this market with many of the participants from the consortium,” said Dr. Patrick Gruber, Gevo’s chief executive officer.

gevo logoDuring the Miami Boat Show, Bombardier Recreational Products (BRP) reported results of their tests and offered media and consumers test rides on a 25 Bay Boat by Crevalle Boats powered by an Evinrude E-TEC G2 300 HP engine. The fuel is a blend of 16.1 percent of Gevo’s isobutanol with gasoline.

“Boaters have the opportunity to test how the fuel works first hand at the show, and that’s definitely part of the equation in creating interest and demand for this next-generation bio-fuel,” said Jeff Wasil, engineering manager in Emissions Testing, Certification and Regulatory Development for BRP-Evinrude. “All engines performed very well throughout the testing program. It’s great to have a biofuel that is so transparent to engine and boat performance all the while minimizing fuel related issues such as phase separation of water and corrosion.”

advanced biofuels, biobutanol