Impact of Lowering RFS on Advanced Biofuels

Cindy Zimmerman January 29, 2014

The comment period is now over for the EPA proposal that would lower the volume requirements under the Renewable Fuel Standard this year, but it will be some time yet before a decision is made since the agency likely has tens of thousands of comments to read.

In this Ethanol Report, several representatives of the cellulosic ethanol and advanced biofuels industry comment on how the proposal would impact them. The report includes comments from:

Chris Standlee, Executive Vice President, Abengoa Bioenergy U.S. Institutional Affairs
Brian Foody, President and CEO, Iogen Corporation
Delayne Johnson, General Manager, Quad County Corn Processors
Brooke Coleman, Executive Director, Advanced Ethanol Council
Bob Dinneen, Renewable Fuels Association President and CEO

Listen to or download the podcast here: Ethanol Report with Advanced Biofuels Producers

Subscribe to “The Ethanol Report” with this link.

advanced biofuels, AEC, Audio, Cellulosic, Ethanol, Ethanol News, Ethanol Report, RFA, RFS

EcoEngineer’s Jim Baker Wins Coveted FFV Mower

Joanna Schroeder January 29, 2014

If there was one item that was coveted above all others at the 8th Annual Iowa Renewable Fuels Summit, it was the E85, flex fuel riding lawn mower donated by John Deere. Attendees who submitted comments to the EPA were registered to win and people were jockeying for position to run up to the podium when their number was announced….and the winner is…Jim Baker with EcoEngineers who noted that he is going to have to buy a new house with a bigger yard to get the full value out of his new toy.

Jim was so excited he was hoping to drive it home but, well, it was a tad cold out. EcoEngineers, who is based in Des Moines, is a company specializing in biofuel compliance issues such as RIN management, plant registrations and more. EcoEngineers also hosts webinars for the industry as well as workshops. It is anticipated that when the weather gets warmers Jim will ride to work on his E85 John Deere riding mower and as a gal about town, I will be sure to get a photo and tweet it out.

Want to get a peek at this bad boy? Jim is taking applications for lawn mowing jobs. I suspect there will be a lot of people lining up to mow his lawn this summer.

Monte Shaw, the executive director of the Iowa Renewable Fuels Association (Iowa RFA) who was the host of the event, said that he wanted to give special thanks to John Deere for their support of the event and the industry. John Deere has been selling agricultural equipment designed to use biodiesel for years.

Listen to my interview with Jim Baker here: EcoEngineer's Jim Baker Wins Coveted FFV Mower

View the 2014 Iowa Renewable Fuels Summit photo album.

Audio, biofuels, E85, Ethanol, Iowa RFA

Bob Dinneen: Consumers Want Choice at the Pump

Joanna Schroeder January 29, 2014

Bob Dinneen, president and CEO of the Renewable Fuels Association gave a legislative update during the 8th Annual Iowa Renewable Fuels Summit and spoke of the efforts of Big Oil to quash the renewable fuel industry. The Summit took place on the last day of the EPA comment period for the 2014 proposed Renewable Fuel Standard (RFS) and Dinneen told a funny story.

In December when the EPA hosted its public hearing, that lasted nearly 10 hours, the American Petroleum Institute (API) hired young kids to ride around in support of oil. However when Iowa Governor Terry Branstad gave his comments (he also gave an impassioned speech during the Summit) the kids hired by API cheered for renewable fuels. Needless to say, Dinneen noted that API was none too happy, but he said that shows that consumers do want the choice and they will choose renewable fuels like ethanol.

So I asked Bob why this fight is this happening. Why did the EPA go backwards on its 2014 RFS proposal?

“Well it’s happening because some bean counter in the Office of Management and Budget decided to take API’s talking points and accept them as fact,” answered Dinneen. “That somehow the rising price of renewable fuel credits (RINs) was going to drive up the price of gasoline. “Now there is no credible evidence to make that suggestion. Indeed if you were to plot the price of RINs versus the price of gasoline, there is actually a negative correlation suggesting that gasoline prices will be driven down by higher RIN prices.”

Dinneen noted that the EPA has become confused by the issue and hopes as the agency reviews all the comments will have a better understanding in RINs and what they were supposed to do – incentivize investment in E85 refueling infrastructure, allow E15 to be offered and provide consumer choice at a reasonable cost.

This fight is about access to the consumer, its about market share said Dinneen. API has been losing battles and is trying to re-litigate the RFS. Yet Dinneen said the RFS is doing everything it is supposed to do. He believes that at the end of the day, API will lose again.

This process will take several months. “I wish they would come to their senses sooner. The marketplace could certainly use the certainty that that would provide. But the reality is its going to take a while,” explained Dinneen.

I asked him what consumers should do after the comment period closes. “Consumers should recognize while farmers have a lot of stake here, they do as well,” answered Dinneen. “Because without ethanol, without the RFS, there price of gasoline goes up. So consumers should recognize they have as much at stake in all of this as the ethanol industry itself.”

Listen to my interview with Bob Dinneen here: Bob Dinneen: Consumers Want Choice at the Pump

View the 2014 Iowa Renewable Fuels Summit photo album.

Audio, biofuels, E15, E85, EPA, Ethanol, Iowa RFA, RFA, RFS

EPA’s 2014 RFS Proposal Defies Statute

Joanna Schroeder January 29, 2014

The Iowa Office of the Attorney General has reviewed the Environmental Protection Agency’s (EPA) proposed 2014 Renewable Volume Obligations as part of the Renewable Fuel Standard (RFS) and concluded that the EPA must return to the forward course the legislation intended.

“It’s clear that Congress intended to establish the RFS to foster increased production of renewable fuels, and waiving the standard would contravene the intent of Congress,” said Iowa General Attorney Tom Miller during a press conference held during the 8th Annual Iowa Renewable Fuels Summit sponsored by the Iowa Renewable Fuels Association (Iowa RFA).

Miller writes in the letter to the EPA, “…the current proposal ignores the express terms of the statute and would contravene Congressional intent to foster increased production of renewable fuels.” Miller noted in the letter that according to the Clean Air Act, the EPA is authorized to waive the RFS only when implementation of the statutory standards would severely harm the economy or when there is an “inadequate domestic supply” – not distribution capacity – of renewable fuel, not blended fuel.

This is not the case, said Miller.

Renewable fuels are a critical part of Iowa’s economy according to Miller and provide a key market for agricultural crops and jobs. “If the EPA waived national fuel standards, not because of an inadequate supply of renewable fuel, but rather because of limited distribution capacity of blended fuels, it would be removing the incentives adopted by Congress to foster increased production of renewable fuels and greater energy independence,” concluded Miller.

Listen to press conference with IA General Attorney Tom Miller here: EPA's 2014 RFS Proposal Defies Statute

View the 2014 Iowa Renewable Fuels Summit photo album.

Audio, Biodiesel, biofuels, EPA, Ethanol, Iowa RFA, RFS

Could Drones (UAV’s) Be Utilized On Your Operation?

Jamie Johansen January 29, 2014

Our latest ZimmPoll asked the question, “What’s your opinion of state HSUS Ag Councils?”

We had an overwhelming large turn out of voters for this controversial ZimmPoll question. The majority of voters agree that if the HSUS label is present in anything, then it can’t be trusted. However, many are eager to work with the group. Everyone is entitled to their own opinion. It will be interesting to see how productive these HSUS Ag Councils are and if their goals aline with those of the agricultural community.

Our poll results:

Can’t trust HSUS – 55%
Should work with HSUS – 32%
Waste of time – 7%
Don’t know – 2%
Other – 4%

Our new ZimmPoll is now live and asks the question, “Could drones (UAV’s) serve a purpose on your operation?”

Precision technology in the agricultural industry is impossible to ignore and continually growing interest with farmers and ranchers globally. We have been seeing a lot of talk about unmanned aerial vehicles (UAV’s) or better known as drones. The use of drones to fly over crops and livestock to maximize profits is one of the hottest topics entering the agriculture sector. The sky seems to be the limit when it comes to the possibilities with this new technology, but advancements won’t be seen at all until approval is given from the FAA. The price tag might seem high to some, but others may see only see the benefits. We did a similar ZimmPoll on this topic last year asking, “What use would you have for an Unmanned Aerial Vehicle?” Could you see yourself utilizing these unmanned aircrafts to increase profitability on your operation?

ZimmPoll

Young Scientist’s Share Passion for Biodiesel

Jamie Johansen January 29, 2014

Students from across the country took advantage of this year’s National Biodiesel Conference and presented their research to gain feed back and awareness of the biodiesel industry. This opportunity also allowed them to network with fellow researchers and learn more about the biodiesel community.

Chuck met up with three of the young people and they shared what sparked their interest in biodiesel and what their research has consisted of. All three were really excited to see how respective the professionals they presented to were to their new ideas and research.

They also committed about the opportunity to met and ask questions from other fellow students who attended the event. Peer review is an essential part of these in-depth research studies.

You can listen to Chuck’s complete interview with these young scientists here: Interview with Student Scientists

2014 National Biodiesel Conference Photo Album

Biodiesel, Biodiesel Conference, Education, NBB, Research

Biodiesel’s Role in Bio-based Products

Jamie Johansen January 29, 2014

Director of bio-based products for the United Soybean Board (USB), Michael Erker, was one of the many attendees of the 2014 National Biodiesel Conference. He works with many bio-based products including biodiesel. He gives insights into what bio-based products that contain biodiesel include and shares how involved USB is in funding biodiesel research.

“When we talk about bio-based products made from soybean oil or meal, that includes biodiesel. Biodiesel soy methyl ester are a great solvents. You not only get biodiesel, you get many other products like hand cleaners, paint strippers or other personal care products.”

USB gets very involved with research projects and are major funders for biodiesel. You can bet that they have had their hand in about all research projects the National Biodiesel Board has conducted. Michael also shared their investment with Ford and research to bring soy tires to vehicles nationwide.

You can listen to Chuck’s complete interview with Michael here: Interview with Michael Erker

2014 National Biodiesel Conference Photo Album

Audio, Biodiesel, Biodiesel Conference, Soybeans, USB

Biodiesel Foundation’s Never Ending Support

Jamie Johansen January 29, 2014

It is easy to say that many of the promotional opportunities we see from the biodiesel industry wouldn’t be possible without the Biodiesel Foundation. During the 2014 National Biodiesel Conference the foundation was hard at work to raise money in order to increase awareness.

Beth Calabotta, Vice President of the Biodiesel Foundation, shared with Chuck in an interview that their goal is to work to promote biodiesel education, infrastructure and awareness.

“We promoted a sustainability tour where we brought a lot of policy makers and their support staff out to see farms in Iowa and biodiesel plants. They really got a feel for what the renewable fuels industry is. We have co-hosted a tour of some environmental groups from California who had never been to a farm before and actually see how biodiesel is made. We have also been sponsoring some educational studies at Purdue University aimed at really understanding what this indirect land use change is and really improving the science.”

The Foundation has a very wide variety of people on it’s board, including producers, farmers and many others involved and passionate about the industry. Those interested in doing their part and contributing to the Biodiesel Foundation can do so at www.BiodieselFoundation.org.

You can listen to Chuck’s complete interview with Beth here: Interview with Beth Calabotta

2014 National Biodiesel Conference Photo Album

Audio, Biodiesel, Biodiesel Conference, NBB

Campaign Looks to Stop Grease for Biodiesel Thefts

John Davis January 29, 2014

Not long ago, they couldn’t give the stuff away. Now, with the rise of biodiesel, inedible kitchen grease (IKG) has become a hot commodity … so hot it’s being stolen. This article from Biodiesel Magazine says a new campaign is underway to stop those thieves in their slippery tracks.

David Isen, asset protection manager for Imperial Western Products, spoke on an IKG theft panel at the California Biodiesel and Renewable Diesel Conference in San Diego last week. In a low market, Isen said 20 to 30 percent of IKG is lost to grease thieves.

Isen said there are two types of grease thieves in California: those licensed by the California Department of Food and Agriculture, which are opportunists and account for only 20 percent of stolen grease; and the unlicensed bootleggers, which account for the lion’s share of 80 percent of stolen product—where the real threat lies.

Not only do grease thieves steal IKG from containers owned by legitimate businesses, but Isen warned some go to extremes by highjacking whole containers and repainting them to try covering their tracks. They employ tactics to cut, damage or destroy containers, or even buy container keys from competitors, to illegally obtain product.

He offered tips to help identify habitual grease thieves in California. Watch for an expired or fake IKG sticker on their truck or no sticker at all. Their trucks will also often lack company signage and a California business license number. Grease thieves can also be spotted by their dirty and atypical collection vehicles, and may be lacking a TK or TL sticker indicating it’s a licensed truck or trailer. Isen also said to be wary of collectors operating between the hours of 2am and 6am.

New highway billboards in the “Stop Grease Theft Now” program will be going up soon, getting out the message of $500 rewards for information leading to the arrest of individuals responsible for stealing IKG. New bills in the California legislature are also looking to give law enforcement the tools it needs to stop this crime.

Biodiesel

Ontario Biodiesel Brewers Form Group

John Davis January 29, 2014

A new group looks to promote biodiesel for refiners in Ontario, Canada. The Ontario Biodiesel Association (OBA) promises to work together to promote the production and use of the green fuel.

OBA members currently produce 100% of the grain-oil based biodiesel in Ontario which accounts for 75% of the total provincial production capacity of all biodiesel. OBA members have invested over $80 million in plant and equipment to produce biodiesel in the province. Besides environmental benefits, the biodiesel industry provides a direct and indirect positive economic impact on the province and its agricultural sector.

“OBA’s strength is the unity of biodiesel producers, supporting Provincial policy development, to improve Ontario’s air quality by promoting increased use of Biodiesel. The OBA is working with the Ontario government, feedstock suppliers and other key stakeholders to the industry to reach this goal.” Paul Grenier, Executive Director, Ontario Biodiesel Association.

OBA members include Methes Energies Canada Inc. located in Mississauga and Sombra (55 million liters/year), Great Lakes Biodiesel (GLB) in Welland (170 million liters/year), and Noroxel Energy Limited in Springfield, just outside of Alymer (5 million liters/year).

Biodiesel, International

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