EPA Denies Small Refinery Petitions

Cindy Zimmerman

On Friday, EPA announced its decision denying 26 petitions seeking small refinery exemptions (SREs) from the Renewable Fuel Standard (RFS) program for one or more of the compliance years between 2016 and 2023.

Consistent with the April and July 2022 Denials of Petitions for RFS Small Refinery Exemptions, the action announced today applies EPA’s current interpretation of the Clean Air Act SRE provisions, consistent with a U.S. Court of Appeals for the Tenth Circuit holding in Renewable Fuels Association et al. v. EPA. The Tenth Circuit held that SREs may only be granted when a small refinery’s hardship is caused by compliance with the RFS program. After reviewing more than a decade of RFS market data and confidential information submitted by petitioning small refineries, EPA concluded that none of the 26 SRE petitions demonstrated disproportionate economic hardship caused by compliance with the RFS program.

Renewable Fuels Association President and CEO Geoff Cooper thanked the Biden Administration for keeping its promises to restore integrity and certainty to the RFS program. “Under their leadership, the RFS is finally working as intended to drive increased production and use of low-carbon renewable fuels. Today’s action is consistent with the Tenth Circuit Court’s landmark decision and honors the administration’s longstanding commitment to implementing the RFS in a way that is fair, transparent, and focused on growth. As a result of today’s announcement, drivers will enjoy greater access to cleaner, American-made, lower-cost renewable fuels.”

American Coalition for Ethanol (ACE) CEO Brian Jennings also welcomed the decision. “ACE members are grateful the Biden EPA is fulfilling its commitment to apply the law with respect to Small Refinery Exemptions, consistent with the Agency’s previous actions in April and June of 2022 and the Tenth Circuit Court’s ruling that small refinery exemptions may only be granted when a small refinery’s hardship is caused by the RFS program itself. Upholding the RFS in this way helps the program serve as an effective tool to maximize the use of cleaner biofuels available here and now.”

ACE, EPA, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Ethanol Supply Strong, Exports Decline

Cindy Zimmerman

U.S. ethanol production declined slightly the week of July 7, but was still 2.7% more than the same week last year and 1.0% above the five-year average for the week, according to the latest analysis by the Renewable Fuels Association. Ethanol stocks were reported at 22.658 million barrels, a jump of 398,000 from the week before, but a drop of 948,000 barrels on the year.

While there were zero ethanol imports recorded for the 31st consecutive, U.S. ethanol exports declined to an estimated 51,000 b/d (15.0 million gallons for the week), the lowest volume in nearly 2 years.

Ethanol, Ethanol News, RFA

Clean Fuels Foundation Highlights Biodiesel Benchmarks

Cindy Zimmerman

The Clean Fuels Alliance Foundation commemorated significant developments for biodiesel during the recent board meeting held in Washington, D.C. last month, including successful implementation of B100 EPA Diesel Emissions Reduction Act (DERA) grants and advancements in modeling techniques that have led to lower land use scores for biodiesel feedstocks and other advanced biofuels.

The Foundation has played a pivotal role in elevating national awareness of B100 (100% biodiesel use in vehicles) through its groundbreaking efforts in securing the first B100 EPA DERA grants in 2020, collaborating with the Iowa Department of Transportation and the District of Columbia. As a result, over 130 B100-powered vehicles, ranging from snowplows to trash haulers, now form an integral part of these fleets.

The impactful DERA projects showcase the immense potential of B100 as a carbon reduction strategy garnering attention from major fleets while prompting adoption of the technology in several national locations. Such achievements underscore the Foundation’s commitment to driving sustainable advancements in the biofuel industry and transforming transportation with cleaner alternatives.

According to Veronica Bradley, Director of Environmental Science for Clean Fuels, the Foundation’s research modeling projects have helped lower the indirect land use change carbon intensity of soybean oil for biodiesel from 62 g CO2e/MJ to 9 g. “I believe it has room for even further improvement as the agricultural industry lowers its carbon footprint. These accomplishments are a testament to the Foundation’s commitment to advancing sustainable practices in the biofuel industry.”

The Foundation offers educational tours for Congressional staff and members, with recent tours held in Maryland and Louisiana and another scheduled for September in California.

Biodiesel, Clean Fuels Alliance

USDA Expands Crop Insurance for Camelina

Cindy Zimmerman

The U.S. Department of Agriculture (USDA) recently announced the expansion of crop insurance for camelina in direct response to the anticipated increase in demand for the crop for biofuel production.

The USDA’s Risk Management Agency (RMA) is expanding crop insurance for camelina by allowing written agreements in select counties in Colorado, Idaho, Kansas, Montana, Nebraska, North Dakota, Oklahoma, Oregon, Texas, and Washington. In addition, the fall planted practice was expanded to Harper County, Kansas, which paved the way for the expansion in the Great Plains. RMA collaborated with stakeholders to make this expansion possible.

The camelina crop insurance policy offers Actual Production History coverage, which insures a producer’s historical yield. Only camelina grown under contract with a processor is eligible for coverage, and the price in the contract is used to establish the insurance coverage. Producers that are interested in planting and insuring camelina should speak to their crop insurance agent about additional details, including upcoming sales closing dates for their area and the written agreement process.

The changes to the camelina crop insurance pilot program are now available on the USDA Risk Management Agency website.

aviation biofuels, biofuels, feedstocks, SAF

Biofuel and Farm Groups Join Tailpipe Emissions Letter

Cindy Zimmerman

Biofuel groups and farmer organizations were among some 100 transportation fuel stakeholders who sent a letter this week urging the Biden administration to reverse course on its proposed tailpipe emissions standards for light, medium and heavy-duty vehicles.

“We share the goal of reduced greenhouse gas emissions across the broader economy and, specifically, those from energy production, transportation, and use by society,” the letter states. “EPA’s proposals inhibit the marketplace from identifying the most efficient, lowest cost opportunities to reduce GHG emissions from vehicles and greatly restrict consumer choice. We are concerned that such a prescriptive policy is not in the best interest of the consumer or of U.S. energy and economic security.”

The letter also expressed concerns with EPA’s narrow focus on electric vehicles to achieve compliance and highlighted the benefits of evaluating a broader range of emissions reductions pathways.

“A diversified portfolio of vehicle and fuel technologies that meets the multitude of transportation needs of Americans and makes meaningful GHG reductions can be achieved while also allowing new zero-emission vehicle, and specifically battery electric vehicle, technologies to advance,” the signatories wrote. “Improved crop yield, innovative biofuel and refined product processing, and manufacturing efficiency tied with carbon capture each represent promising advancements for current liquid and gaseous fuels to continue to accelerate emissions reductions.”

While the majority of the groups signing the letter were petroleum manufacturers, marketers and retailers, the American Farm Bureau, National Corn Growers Association (NCGA), Clean Fuels Alliance America, and the Renewable Fuels Association (RFA) were among the farm and biofuel groups included.

NCGA vice president of public policy Brooke Appleton participated in a press conference on the issue with leaders from the American Petroleum Institute, the U.S. Chamber of Commerce and the American Fuel & Petrochemical Manufacturers. Listen to her comments here:

API press call - Brooke Appleton, NCGA (3:17)

Audio, corn, Ethanol, Ethanol News, NCGA, Renewable Fuels Association, RFA

South Dakota Ethanol Plant Explosion

Cindy Zimmerman

Onida Fire Department photo

An explosion rocked Ringneck Energy ethanol plant in Onida, South Dakota Sunday causing major structural damage to the facility.

No one was injured at the plant but DRG Media Group reports there were six employees working at the time. “The explosion occurred in the ethanol production side of the plant,” said Onida Volunteer Fire Department Chief Caleb Shepherd. “Major damage to the facility. It will be out of operation for quite some time.”

The South Dakota Fire Marshal’s Office will begin an investigation on Monday.

Ethanol, Ethanol News

Ethanol is Star of Trump Rally

Cindy Zimmerman

Former President Donald Trump held a rally and launched his Farmers for Trump coalition this past weekend in Council Bluffs, Iowa to tout his support of agriculture and ethanol.

The Republican presidential candidate highlighted actions he took while in office to help farmers, such as rolling back the Waters of the United States, ending the estate tax, renegotiating trade agreements, and supporting ethanol, while attacking both his GOP opponent Ron DeSantis and current President Joe Biden. “Every Iowan needs to know that Ron ‘DeSanctus’ totally despises Iowa ethanol and ethanol generally,” said Trump. “Joe Biden is trying to kill Iowa ethanol and replace it with expensive electric cars.”

Trump made note of the year-round E15 waiver that he announced in 2019, not far from where the rally was held on Saturday. “In addition, I dramatically increased the number of fueling stations where E15 could be sold,” he said. “I like to say very strongly and proudly that I fought for Iowa ethanol like no president.”

Listen to some of Trump’s remarks here:
Pres. Donald Trump Iowa rally (26:56)

RFA’s Justin Schultz (2nd from left) on panel prior to Trump rally (RFA Twitter)

One of the people sharing the stage with President Trump was Renewable Fuels Association Director for Environment, Health & Safety Justin Schultz who previously worked for the Southwest Iowa Renewable Energy (SIRE) plant where Trump announced the E15 waiver in 2019. Schultz participated in a pre-rally panel where he talked about the importance of ethanol, which he tied into the theme of national security. “I served in the military for 23 years, I got two combat tours overseas, and when I think about foreign dependence on oil and what we are able to do in the state of Iowa and the Midwest to basically get rid of that dependence, it’s with products like E15,” said Schultz.

Schultz noted that 15 percent of the ethanol industry workforce is made up of veterans. “This agricultural community, we’re the toughest people in the nation, we’re the type of people that roll up our sleeves and get things done,” he said.

Listen to Justin’s comments here:
Pre-Trump Rally panel - Justin Schultz, RFA (3:42)

Audio, Ethanol, Ethanol News, politics, Renewable Fuels Association, RFA

Ethanol Exports Down, DDGs Up in May

Cindy Zimmerman

U.S. ethanol exports were down 10 percent in May to 113.2 million gallons (mg), mainly due to lower undenatured non-beverage, non-fuel ethanol shipments, including 12.6 mg lower exports to India, according to the latest analysis by the Renewable Fuels Association (RFA).

Canada was our largest destination for the 26th consecutive month and accounted for 45% of global ethanol sales. The 51.0 mg of ethanol shipped north of our border (a 9% increase over April and the second largest on record) included 73% of total U.S. denatured fuel exports for the month. Other substantial markets included the European Union (22.6 mg, +37%)—primarily shipped to the Netherlands, marking the country’s second-largest import volumes on record—the United Kingdom (9.7 mg, -7%), South Korea (9.6 mg, -10%), Peru (6.2 mg, +113%), and Colombia (6.0 mg, +116%). Brazil again remained essentially absent from the market with a 16% tariff on U.S. ethanol in place. Year-to-date U.S. ethanol exports total 593.0 mg, lagging 18% behind last year at this time.

Meanwhile, exports of the ethanol co-product dried distillers grains (DDGS) hit a 9-month high of 958,385 metric tons (mt) in May. This was 23% more than April but one percent behind last year. The bulk of DDGS shipments went to just six countries with Mexico up four percent to capture the largest market share for the 11th consecutive month and Turkey’s imports were up sevenfold to a 22-month high of 146,559 mt. South Korea, Indonesia, Vietnam, and Canada rounded out our largest global customers for the month. In addition, several smaller markets logged near-record volumes. For example, Tunisia imported 20,008 mt and Guatemala bought 18,016 mt. Year-to-date DDGS exports, totaling 4.17 million mt, lag 11% behind last year at this time.

Ethanol, Ethanol News, Exports, Renewable Fuels Association, RFA

Clean Fuels Alliance Grows Diverse Membership

Cindy Zimmerman

Clean Fuels Alliance America continues to grow a more diverse membership as interest in low carbon fuels gains momentum.

Since January, Clean Fuels has welcomed nine new companies, according to CEO Donnell Rehagen. “The success of our industry relies on growing support from a broad mix of organizations who understand the value of clean fuels as a solution to decarbonize,” said Rehagen. “The addition of these members demonstrates the benefit they see in being part of our trade association and the ongoing expansion of this industry.”

Clean Fuels’ newest members include:
Biodiesel Coalition of Missouri, an industry organization
Canary Biofuels Inc., a Canadian- and California-based biofuel producer
CNH Industrial America, a heavy equipment manufacturer
Consolidated Grain & Barge, an agricultural transportation and storage company
Gevo, a leader in next generation renewable gasoline, jet fuel, and diesel fuel
Gilbarco Veeder-Root, fueling and convenience store equipment and technology
Indigenous Energy, Inc., a renewable fuels and energy consulting firm
Par Pacific Holdings, financial and investment firm
Restaurant Technologies, maker of automated oil storage, handling, and management systems

Biodiesel, biofuels, Clean Fuels Alliance

Groups Urge Fairness in Tailpipe Emissions Standards

Cindy Zimmerman

Seven national associations representing the renewable fuel supply chain sent a letter this week to EPA Administrator Michael Regan asking him to adopt a market-oriented, technology-neutral approach to transportation decarbonization in its upcoming final tailpipe emissions standards for 2027-2032 light- and medium-duty vehicles.

The groups wrote that the proposed rule favors electric vehicles while failing to consider the decarbonization potential of existing biofuels that can improve the emissions profile of the vast majority of cars on the road today. The organizations recommend that EPA account for all emissions relating to different fuel and engine technologies and equitably incentivize emissions reductions from all of those technologies.

If finalized as proposed, EPA expects its tailpipe emissions standards could result in EVs accounting for 67% of new light-duty vehicle sales and 46% of new medium-duty vehicle sales by 2032. “The speed at which the Agency appears to anticipate the market and consumers will transition to electric vehicles is divorced from our members’ assessment of reality,” according to the letter. “The Proposed Rule does not appreciate the market obstacles associated with such a massive transition in consumer behavior. It also abandons proven decarbonization technologies, such as higher-octane liquid fuels, that can deliver material emissions reductions using existing infrastructure, existing vehicles, and working with consumers’ existing behavioral proclivities.”

The organizations submitting the letter include the Renewable Fuels Association; National Association of Convenience Stores; NATSO, Representing America’s Travel Plazas and Truckstops; National Corn Growers Association; National Farmers Union; SIGMA: America’s Leading Fuel Marketers; and Growth Energy.

corn, Ethanol, Ethanol News, Renewable Fuels Association, RFA