54 Reps Call for Reversal on Biodiesel RFS Proposal

John Davis

us-capitol-fiscal-cliff-voteFifty-four members of Congress from both sides of the political aisle are calling on the Obama Administration to reverse course on its proposal to cut the amount of biodiesel to be required to be blended into the Nation’s fuel supply. This news release from the National Biodiesel Board says the call comes as the Environmental Protection Agency (EPA) has proposed biodiesel production under the Renewable Fuel Standard (RFS) for 2014 and 2015 to be 1.28 billion gallons, despite the fact the green fuel’s numbers are expected to hit 1.7 billion gallons this year.

In a letter led by U.S. Reps. Tom Latham, R-Iowa, and Mike McIntyre, D-N.C., the U.S. representatives – a bipartisan group representing districts from California to Iowa to Florida – called on the Administration to establish an RFS volume that is at least consistent with this year’s anticipated production of 1.7 billion gallons. The letter … was sent to the EPA and other Administration officials.

“It is clear that biodiesel has been a great RFS success story. It has exceeded RFS targets in each year and is clearly poised to do so again in 2013,” the lawmakers wrote. “This type of reduction could have very damaging repercussions. It could result in dozens of biodiesel facilities shutting down permanently and ceasing production.”

“We would strongly urge you to continue your support for this developing and fragile industry with a reasonable increase in the RFS volume requirement for 2014 and responsible growth in the future,” the letter states.

This comes on the heels of a similar letter last month sent by 32 U.S. senators, and it comes with similar warnings of dire consequences:Read More

Biodiesel, EPA, Government, NBB

Senate Energy Tax Reform Proposal

Cindy Zimmerman

Baucus1Senate Finance Committee Chairman Max Baucus (D-MT) today unveiled a proposal to streamline energy tax incentives.

“It is time to bring our energy tax policy into the 21st century,” Senator Baucus said. “Our current set of energy tax incentives is overly complex and picks winners and losers with no clear policy rationale. We need a system of energy incentives that is more predictable, rational, and technology-neutral to increase our energy security and ensure a clean and healthy environment for future generations.”

The discussion draft released today focuses on reforming the current set of energy related tax preferences. Under current law, there are 42 different energy tax incentives, including more than a dozen preferences for fossil fuels, ten different incentives for renewable fuels and alternative vehicles, and six different credits for clean electricity. Of the 42 different energy incentives, 25 are temporary and expire every year or two, and the credits for clean electricity alone have been adjusted 14 times since 1978 – an average of every two and a half years. If Congress continues to extend current incentives, they will cost nearly $150 billion over 10 years.

aeclogoAdvanced Ethanol Council (AEC) Executive Director Brooke Coleman commended the proposal. “Senator Baucus has rightly put all existing policies on the table while proposing a new path that will achieve these goals and ensure that the United States leads instead of follows when it comes to developing new technologies and producing less carbon intensive energy,” said Coleman in a statement.

Coleman said they look forward to working with Chairman Baucus and the Senate Finance Committee to ensure that any new piece of legislation covers the critical bases when it comes to maximizing investment. He also called for immediate energy tax extenders in the context of the proposal’s 3-year extension of existing law. “The proposal admirably calls for a 3-year extension of existing law for cellulosic biofuels to provide a reasonable ramp to a new tax regime. We commend the Chairman for recognizing the hazards of frequent expirations and change of law. That said, tax provisions for cellulosic biofuels still come off the books in two weeks while those offered to the fossil fuel industry persist. We recommend that Congress invoke the ‘do no harm’ principle going forward and pass extenders in 2013.”

advanced biofuels, AEC, Ethanol, Ethanol News, Government

Benefits of Biodiesel Topic During IRFA Summit

Joanna Schroeder

IowaRFAlogoThe Iowa Renewable Fuels Association (IRFA) has announced additional speakers for its 2014 Annual Iowa Renewable Fuels Summit and Trade Show. These new speakers will address the biodiesel market through policy initiatives and broader distribution networks. The event takes place January 28, 2014 at The Meadows Conference Center at Prairie Meadows in Altoona, Iowa.

The “More B for Me: Growing Biodiesel’s Popularity” panel will include Michael Whitney of Love’s Travel Stops, who will discuss the company’s move to higher biodiesel blends at its Travel Stops and the future outlook for this renewable fuel as part of Love’s business plan. Love’s has been in the convenience store and travel center business for more than three decades with 300 stores in 39 states.

Joining Whitney will be Minnesota Soybean Processors’ Ron Marr, who will outline the State of Minnesota’s plans to increase biodiesel use by transitioning from a B5 standard to a B10 standard. The Minnesota Soybean Processors is a member cooperative that owns and operates a soybean crush facility and biodiesel plant in Brewster, Minnesota.

“This biodiesel panel will provide great insight into the benefits of biodiesel and its successful emergence as the nation’s only commercially available advanced biofuel,” said IRFA Managing Director Lucy Norton. “This panel will be an excellent compliment to a great line-up of speakers representing the Renewable Fuels Association, Chrysler Group, Ricardo, Inc., DuPont Cellulosic Ethanol, and the National Renewable Energy Lab.”

IRFA says its Summit is a great opportunity to network with biofuels professionals and business leaders from throughout the Midwest, and listen to experts address the key issues that are shaping the future of the renewable fuels industry.

The Summit is free, open to the public, and pre-registration is required. Click here to register and learn about sponsorship opportunities.

Biodiesel, biofuels, Ethanol, Iowa RFA, Renewable Energy

EU Guidelines Undermine Renewable Energy

Joanna Schroeder

The European Commission proposes putting an end to differentiated support for renewable technologies such as onshore and offshore wind in its consultation of draft State aid guidelines for energy and the environment published this week according to the European Wind Energy Association (EWEA). This would effectively stop Member States from determining their own energy mix – a fundamental principle of EU energy policy says EWEA.

AREVA OFFSHORE MASTS“These guidelines, if adopted in their present form, endanger Member States’ ability to meet their 2020 renewable energy targets cost effectively,” said Pierre Tardieu from the EWEA. “Moreover, following the destabilising regulatory changes for renewable energy in many countries, requiring further fundamental changes to support mechanisms would cause major investor uncertainty.” The organization has drafted its own brief related to the EU’s proposed guidelines.

EWEA is calling for Member States and stakeholders to speak out to ensure the guidelines do not put at risk their path to the 2020 targets when they take part in the consultation on the proposal that has been launched. The guidelines are expected to enter into force on 1 July 2014.

Separately, the European Commission has announced investigations into the German renewable energy support mechanism, the EEG, and the UK’s measures offering generous support to nuclear energy.

“The EEG investigation risks undermining the wind industry in Germany by destabilising investors, and putting at risk the jobs, energy security and industrial leadership brought by wind and other renewables,” said Tardieu. “The Commission needs to carry out this investigation as rapidly and with as little disruption as possible.”

“The UK nuclear investigation is welcome, since the proposed 35-year subsidy would wreck efforts for a single European electricity market until after the year 2058 – over 100 years after the first commercial nuclear power plant was installed at Sellafield/Windscale in the UK,” Tardieu concluded.

Alternative energy, International, offshore wind, Wind

Iowans Deserve a Fair Hearing on Renewable Fuels

Joanna Schroeder

Americans United for Change is echoing Iowa Governor Terry Branstad and Iowa Senator Tom Harkin along with the rest of the Iowa congressional delegation for the EPA to hold a hearing in Iowa on the Renewable Fuel Standard. Iowa is the country’s leader in production of renewable fuels with 42 ethanol refineries capable of producing over 3.8 billion gallons annually, with one wet mill and three cellulosic ethanol facilities currently under construction. In addition, Iowa has 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually.

The Iowa legislators are making the call in an effort to put faces on what they call the devastating consequences of the 2014 proposed Renewable Fuel Standard (RFS) rule that more oil and less biofuel be used in gasoline next year. Before making a final decision, the EPA would benefit from hearing not only phony reports from big oil lobbyists at hearings in Washington, says Americans United for Change, but the truth straight from Americans who benefit from the RFS – from family farmers, ethanol industry workers, secondary industries, surrounding economies and American consumers paying less at the pump.

Screen Shot 2013-12-18 at 8.27.17 AMAmericans United for Changes cites among the long list of CONS to scaling back the RFS is that it will threaten invaluable innovations towards the next-generation in cleaner burning fuels, including cellulosic ethanol plants in Iowa scheduled to start operation next year.  Rather than using kernels of corn, these advanced plants will make the fuel from the “biomass” of various low-value plant material including corn stalks and wood chips.

Brad Woodhouse, President, Americans United for Change said, “It’s been a good year for Big Oil – a very, very good year.  When the EPA released its draft RFS rule, stock values shot through the roof for four of the “Big Five” oil companies – amounting to a $23 billion windfall profit in just one day. And now this week came the reports that Exxon shares have hit an all-time high. Of course, reporting obscene profits is nothing new for the oil industry, even after the RFS went into effect. The Big Five’s CEOs have managed to do very well for themselves despite the competition from the cleaner, cheaper, higher performing renewable fuels that have created hundreds of thousands of jobs in America.

If allowed to stand, the EPA draft rule would reverse huge economic and environmental gains made under the highly successful RSS, which renewable fuel supporters saying has driven down prices at the pump while driving local economies in the American heartland.

“If you think the American consumer will benefit from petroleum-based fuels being the only choice at the pump, the proposed EPA rule is for you,” continued Woodhouse. “But if you think big oil does not need any more government assistance after taking billions every year in taxpayer subsidies while raking in record profits on Wall Street, then join us in commenting against the EPA’s proposed rule at SavetheRFS.com.”

“If you don’t think we need to send any more our troops, money, and jobs overseas to help the oil industry’s bottom line, then comment against the EPA’s proposed draft rule.  If you’re for invaluable innovations towards more environmentally friendly fuels and not escalating the use of dirty foreign oil, then comment against the EPA’s proposed rule today,” added Woodhouse. ” We know the EPA can find the time to come to Iowa and get the facts they need to make a better decisions not just for rural Americans, but for all American consumers.”

Biodiesel, biofuels, Ethanol, RFS

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFA vibrant look reflecting strong connections from its farmer-owners to the global marketplace, along with enhanced functionality, are the hallmarks of the new website of CHS Inc., the nation’s leading farmer-owned cooperative and a global energy, grains and foods business. The new website also features mobile capability that allows users to navigate seamlessly from desktop to tablet to smart phone.
  • Unirac, Inc., a Hilti Group Company and rovider of high quality, competitive solar photovoltaic (PV) mounting solutions, has been selected by Renewable Energy Systems Canada Inc., to provide two 10 megawatt (MW) Ground Mount Steel racking solutions for solar PV projects located in Ontario, Canada. The projects will be executed in two phases, which started in the fall of 2013, with final completion in 2014. The solar projects will provide clean energy to power the equivalent of 4,000 homes annually.
  • Pennsylvania Governor Tom Corbett has awarded nearly $2 million in Alternative Fuel Incentive Grants (AFIG) to four successful applicants for their innovative alternative fuel technology projects. In addition to GE’s demonstrating of a dual fuel locomotive, the innovative projects include upgrading technology for recharging electric vehicles and hydrogen fueling stations, and design and testing of natural gas retrofit kits for gasoline direct injection engines. An estimated 15 new fueling stations and 30 existing stations will be supported by these vehicles.
  • Dominion has placed in service a group of solar generation projects in Marion County, Ind., that will generate up to 28.6 megawatts of electricity. This is the third solar generation facility Dominion has placed in service this year.
Bioenergy Bytes

Vivent Solar Sends Kids to Science Camp

Joanna Schroeder

Vivint Solar is sending kids to science camp. The solar company announced that it has matched the maximum fundraising efforts of $15,000 of the Windsor, California community to enable every sixth grader the opportunity to attend a three-day science camp in February.

VIVINT SOLAR WINDSOR MIDDLE SCHOOL CHECKDue to budget cutbacks, the students were at risk of not being able to attend camp this next year. The Alliance Redwoods science camp, in Occidental, Calif., costs about $165 per student, and the community had only raised about half of the funds needed before Vivint Solar stepped in to pay the difference.

“We are proud to invest in the outdoor environmental education that science camp provides to young students,” said Greg Butterfield, CEO of Vivint Solar. “The long-term value of giving to the Windsor Middle School community during the holiday season is priceless to our team.”

The company found out about the shortfall from first-grade teacher Kelli Wong, a teacher at Healdsburg Elementary and Vivint Solar customer.

“I know that Vivint Solar is concerned about the environment, with their focus on the sun as a powerful and renewable resource,” said Wong, a parent of a sixth grader at Windsor Middle School. “I, and the entire community, was so excited when Vivint Solar responded so quickly to our need and invested in the science camp experience. The sixth-graders are beyond ecstatic about being able to go to camp together for a once-in-a-lifetime learning opportunity that is in line with the school’s emphasis on environmental stewardship.”

In addition to funding, Vivint Solar representatives will visit the camp when the students arrive to hand out t-shirts, water bottles and other necessities to ensure the campers are ready to learn and have fun.

Alternative energy, Education, Solar

DF Cast: EPA Proposal More Than Just Numbers

John Davis

We’ve heard a lot of the national numbers in the Environmental Protection Agency’s proposal to cut the amount of ethanol and biodiesel going into the country’s fuel supply… cellulosic biofuels at 17 million gallons, biomass-based diesel at 1.28 billion gallons, advanced biofuels at 2.20 billion gallons and renewable fuels at 15.21 billion. But outside of all these national numbers is the impact it will have on the small rural communities that have finally come out of economic depressions to host these biofuels operations, through direct jobs at the refineries and the boost to the farmers and their locally grown crops that serve as feedstocks for biodiesel and ethanol.

In this edition of the Domestic Fuel Cast, we speak with several people who are already seeing the impacts that just this proposal is presenting, including Iowa Governor Terry Branstad; Mark Beemer with Aventine REI; President and CEO of ethanol producer East Kansas Agri-Energy Jeff Oestmann; and Rick Schwarck, who serves as the president of Iowa Renewable Fuels Association and Absolute Energy, an ethanol producer on the Iowa-Minnesota border.

It’s a perspective of where the rubber meets the road, and you can hear more of it in the latest Domestic Fuel Cast: Domestic Fuel Cast - EPA Proposal More Than Just Numbers

You can also subscribe to the DomesticFuel Cast here.

Audio, Biodiesel, biofuels, Domestic Fuel Cast, EPA, Ethanol, RFA, RFS

Biodiesel Giant REG Buying Syntroleum

John Davis

REGSyntIowa-based Renewable Energy Group (REG) is planning on buying the assets of Oklahoma’s Syntroleum Corporation. REG announced it had agreed to acquire all of Syntroleum’s assets, including the company’s pioneering Fischer-Tropsch gas-to-liquids and renewable diesel fuel technologies and the company’s 50 percent share in Dynamic Fuels’ 75-million gallon renewable diesel production facility in Geismar, Louisiana. The deal is worth nearly 3.8 million shares of REG common stock (subject to reduction in the event that the aggregate market value of the REG common stock to be issued would exceed $49 million or if the cash transferred to REG is less than $3.2 million).

“Combining Syntroleum’s renewable and synthetic fuel technologies with REG’s expertise in biodiesel production, sales, marketing and logistics should be a positive outcome for investors in both companies,” said Renewable Energy Group, Inc. President and Chief Executive Officer Daniel J. Oh. “This will help us grow our advanced biofuel business, enhance our intellectual property portfolio, expand our geographic footprint and launch REG into new customer segments.”

“Today’s announcement marks the culmination of our comprehensive process to review Syntroleum’s strategic alternatives to enhance shareholder value,” said Syntroleum President and CEO, Gary Roth. “We are extremely pleased to have found a great partner in REG and to provide our stockholders with the opportunity to participate in a company with significant upside potential. We are confident that REG’s multi-feedstock business model and the combination of our strong management teams will drive increased value for Syntroleum’s stockholders and is the best path forward for Syntroleum.”

Syntroleum has been rumored to be on the sales block since this summer. With the buy, REG, already the Nation’s biggest biodiesel producer, expands its reach beyond its eight active biodiesel refineries in four states with a combined nameplate production capacity of 257 million gallons.

Biodiesel

Obama’s Proposed Biodiesel Cuts Could Cost Dems

John Davis

showsDemocrats looking to make gains on the Republican majority in the U.S. House and hold back any possible GOP takeover in the Senate in the 2014 elections could be hurt by the Obama Administration’s proposal to cut the amount of biodiesel in the Nation’s fuel supply. And that criticism is coming from one of the Democratic Party’s own. This opinion piece in Roll Call from former Mississippi Democratic congressman Ronnie Shows, says the proposal is likely to hurt fellow Democrats in some important states.

The biodiesel announcement was puzzling because the president has stated for years that advanced biofuels, such as biodiesel, are a critical component of this nation’s fuel supply. Throughout his presidency and even on the campaign trail, Obama has made his support of advanced biofuels a hallmark of his administration’s efforts to reduce our dependence on foreign sources of oil…

But despite the president’s recent support of biodiesel, as you read this, the EPA, which determines the number of gallons of biofuels federally required in the nation’s fuel supply, is soliciting comments on a proposal to reduce the amount of biodiesel sold every year in the United States by hundreds of millions of gallons.

Why the Obama administration is doing this to biodiesel is unclear, but I suspect the White House is planning to deny the Keystone XL pipeline — and offer Big Oil a consolation prize by cutting competition from renewable fuels, even advanced renewables such as biodiesel.

Shows goes on to say that the biodiesel proposal really hurts Democrats in key battleground states, such as North Carolina and Iowa. He concludes that the Administration’s lack of decisiveness on biodiesel could play into the hands of Republicans who accuse the White House of being “rudderless.”

Biodiesel, Government, politics, RFS