RFA Calls GAO Report on SREs “Flawed and Obsolete”

Cindy Zimmerman

The head of the Renewable Fuels Association slammed a report from the General Accounting Office on small refinery waivers (SREs) released this week that was requested over three years ago as both flawed and obsolete.

“You simply can’t make this stuff up,” said RFA President and CEO Geoff Cooper. “In the summer of 2019, a bipartisan group of renewable fuel supporters in both the House and Senate asked the GAO to investigate the gross mismanagement of the small refinery exemption program by former EPA Administrators Scott Pruitt and Andy Wheeler. Now, more than three years later—and less than one week before the mid-term elections—GAO puts out a shoddy report that is friendly to oil refiners and purports to answer questions no one ever asked.”

The GAO report found, “The U.S. Environmental Protection Agency (EPA) does not have assurance that its decisions about small refinery exemptions under the Renewable Fuel Standard (RFS) are based on valid information. In addition, EPA and the Department of Energy (DOE) do not have policies and procedures specifying how they are to consult about and make exemption decisions.”

The report claims EPA’s conclusion that small refineries do not experience disproportionate economic hardship from the RFS “relies on a potentially flawed assumption—that all parties pay and receive one price for the tradeable credits used to demonstrate compliance with the RFS. GAO found that EPA has not analyzed whether this assumption is valid.”

Cooper argues, “The bottom line is there is no such thing as ‘disproportionate economic hardship’ under the RFS. All refiners—large or small, merchant or integrated—face the same compliance obligations and they all pass their RIN costs on to fuel blenders at the terminal. Period. There is a mountain of evidence confirming this fact, and GAO’s new report will just be thrown on the growing scrap heap of refiner disinformation meant to undermine the success of the RFS.”

Cooper said the only thing GAO got right in its report was the fact that SREs reduce demand for renewable fuel, causing harm to ethanol producers.

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

First Clean Fuels Conference Uniting as One

Cindy Zimmerman

“United as One” is the theme of the inaugural Clean Fuels Conference, January 23-26, 2023 in Tampa, Florida where the role of biodiesel, renewable diesel and sustainable aviation fuel in the national commitment to decarbonization will take center stage

Formerly the National Biodiesel Conference & Expo, the event’s rebranding reflects the founding organization’s name change last year from the National Biodiesel Board to Clean Fuels Alliance America, recognizing the evolution and expansion of the clean fuels offerings for heavy-duty transportation and new markets like rail, shipping and aviation.

“It’s especially exciting to bring people together at a time when momentum for clean fuels is very much in our favor, in terms of policy, newfound market demand and more,” said Clean Fuels CEO Donnell Rehagen. “The Clean Fuels Conference is the premier industry event that brings together stakeholders from all sectors to learn, do business and strategize about how to meet the growing demand for clean fuels amid rapid decarbonization efforts.

Highlights of the conference include the return of the popular diesel vehicle Ride-and-Drive and a mainstage session putting the spotlight on the Department of Energy’s Clean Cities program. Event organizers are hoping to attract more sustainability and environmental social governance professionals this year who as well as representatives from new clean fuels markets including marine, rail and airline industry professionals.

Event organizers say booth space for the event is nearly sold out and early registration ends November 17.

Visit CleanFuelsConference.org for more information.

aviation biofuels, Biodiesel, Biodiesel Conference, Clean Fuels Alliance, renewable diesel

Biofuel Groups Praise EPA Reversal of Refinery Exemptions

Cindy Zimmerman

The Renewable Fuels Association, Growth Energy, the American Coalition for Ethanol and National Farmers Union this week filed a motion to intervene in the D.C. Circuit Court of Appeals in support of the U.S. Environmental Protection Agency’s decision to deny 69 petitions from refineries seeking small refinery exemptions (SREs) from the Renewable Fuel Standard (RFS) program for one or more of the compliance years between 2016 and 2021.

“EPA’s decision in June to deny 69 SRE petitions helped strengthen U.S. energy security, protect the climate, and deliver relief at the pump during a period of record high gas prices,” the biofuel and ag coalition said. “Now, certain refiners want to reverse this process and turn back the clock to an era of gross mismanagement and abuse of the SRE provisions of the RFS program. For far too long, many refiners got away with dodging their obligations to blend lower-carbon biofuel into the fuel supply. EPA’s denial of these SRE petitions provides a clean slate to get the RFS back on track as we head into a new era for this important program. Holding refiners accountable will ensure lower prices and cleaner options at the pump for American families.”

EPA announced the denial of the petitions June 3, 2022, concurrent with its final rulemaking to set the volumes for the 2020, 2021 and 2022 renewable volume obligations. The denials apply 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.

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

Clean Fuels Help California GHG Drop

Cindy Zimmerman

California’s latest Greenhouse Gas Inventory reports a 16% decrease in transportation carbon emissions for 2020, due in part to increasing use of biodiesel and renewable diesel.

Clean Fuels Alliance America notes that the state’s analysis found the percentage of biodiesel and renewable diesel in the total diesel pool grew from 0.4% in 2011 to 20.8% in 2020 through the Low Carbon Fuel Standard (LCFS). According to California Air Resources Board data, biodiesel and renewable diesel generated 44% of the LCFS credits in 2020.

“As California aims to continue its progress in reducing carbon emissions, it is relying on increased production, import and blending of clean fuels like biodiesel and renewable diesel,” Clean Fuels’ CEO Donnell Rehagen stated. “Continued growth of the clean fuels sector is vital to maintaining progress in meeting carbon reduction goals and increasing climate benefits across the country.”

Without renewable fuels like biodiesel and renewable diesel, the analysis notes, California’s tailpipe fossil CO2 would have been 15 million metric tons higher in 2020. The reduction is equivalent to taking 3.2 million passenger vehicles off the road for the year.

Clean Fuels Director of State Governmental Affairs Floyd Vergara added, “Heavy duty transportation is a particularly tough sector to decarbonize just like aviation, rail, and marine transportation. California’s analysis demonstrates the critical role low carbon fuels are playing to achieve carbon reductions today. Additionally, using biodiesel and renewable diesel substantially reduces particulate matter emissions and the health impacts and costs associated with them.”

Biodiesel, Clean Fuels Alliance, renewable diesel

Research Reveals Farmer Concerns About Carbon Markets

Cindy Zimmerman

Are farmers ready for carbon markets – or not?

That was the question that Farm Journal’s Trust In Food™ set out to answer in its inaugural “Ready or Not? Ag Carbon Markets and U.S. Farmers” report, highlighting perspectives from 500 U.S. row crop producers on pathways and barriers to participating in carbon ecosystems.

The answer? “Not quite yet,” according to Amy Skoczlas Cole, executive vice president of Trust In Food. “Our initial findings suggest that even the most carbon-curious farmers are signaling that their participation under current market conditions would require prohibitive investments of time, effort and resources without fair financial and market returns,” she said. And that is something everyone in the carbon market value chain should take very seriously with so much being staked on it as a critical tool for addressing climate change.

The majority of farmers surveyed report serious concern about overcoming technical and financial roadblocks to success in carbon markets. In addition to more fundamental warning signs, producers fear that costs will outweigh benefits; that ongoing compliance will require too high a burden; that existing conservation ag practices will not be compensated fairly; that data will not be handled appropriately or will be difficult to collect; or that upfront investments will be a barrier to entry. More than half of farmers surveyed labeled each respective concern a “significant” challenge to carbon market entry.

Learn more in this interview with Cole and read the full report.
Interview with Amy Skoczlas Cole, Trust In Food 20:09

Audio, Carbon, Farming

Clariant Buys BASF’s U.S. Attapulgite Business

Cindy Zimmerman

Specialty chemical company Clariant has completed the acquisition of BASF’s U.S. based Attapulgite business assets for $60 million. The transaction includes the transfer of land as well as mining rights, the processing facility, and inventories, which will be integrated into Clariant’s Functional Minerals business.

Adsorbent clays, such as attapulgite, are an important enabler for growth in the purification of edible oils and renewable fuels. In edible oil they remove contaminants thereby enhancing the shelf-life and oil quality, whereas in renewable fuels they play a key role in removing contaminants during the pre-treatment process, thereby protecting the catalyst. This enables a particularly stable and economically viable process. Clariant offers unique technologies for the purification of biodiesel to reduce greenhouse gases in road transportation and for the purification of pyrolysis oil to enable the chemical recycling of plastics.

North America is a strategic region for Clariant with numerous growth opportunities in the edible oil and renewable fuel markets.

Biodiesel, biofuels

Clean Fuels Help Enhance Tight Diesel Supplies

Cindy Zimmerman

The latest report from the Energy Information Administration (EIA) has set off fears of a looming diesel shortage by Thanksgiving, but clean fuels are helping to augment supplies.

EIA reports that, as of Oct. 14, the U.S. had only 25 days of reserve diesel supply, the lowest since 2008. In addition, distillate fuel, which includes heating oil inventories, is about 20% below the five-year average and some areas in the Northeast are already rationing heating oil as temperatures drop.

In a statement, Clean Fuels Alliance America said, “The clean fuels industry is working hard to provide better, cleaner transportation and heating fuels as petroleum supplies fall short. The U.S. supply of biodiesel and renewable diesel increased by 400 million gallons during the first three quarters of 2022 compared to the same time period in 2021, according to EPA data. Without the additional supply, prices would be about 4% higher than they are right now, per a recent study by WAEES. Our industry is continuing to grow and innovate to meet Americans’ needs for affordable, essential energy supplies.”

Heating oil prices hit $4.09 a gallon in New York last week, compared to $2.46 last year at this time and the EIA estimates home heating costs will jump 27 percent this winter. Bioheat® fuel is a blend of biodiesel and ultra-low sulfur heating fuel and an alternative to both traditional heating fuel and natural gas that can be used in existing home heating fuel systems.

Legislation placing a 5% Bioheat® fuel mandate (B5) was set to go into effect in the state of New York on July 1, 2022, and increases to B10 blends effective in 2025 and B20 blends by 2030. While the B5 mandate is in effect in New York City and Nassau, Suffolk and Westchester counties (accounting for 70% of the state’s heating oil market by volume), enforcement of the 5% bioheating fuel mandate in parts of upstate New York are delayed for another year.

New York has long championed the use of biodiesel and Bioheat® fuel to meet its clean energy goals, and the clean fuels industry remains poised and ready to continue delivering substantial carbon reduction benefits to New Yorkers. In fact, from 2013 – 2020, New York City municipal buildings used 222.9 million gallons of Bioheat® fuel, and more that 75% of all No.2 heating oil used by NYC municipal buildings is blended with Bioheat® fuel.

Biodiesel, biofuels, Bioheat, Clean Fuels Alliance

Ethanol Report with New RFA Chair

Cindy Zimmerman

The Renewable Fuels Association elected officers at its recent annual membership meeting and Erik Huschitt, CEO of Badger State Ethanol in Monroe, Wisconsin, was elected Chairman of the organization. Huschitt has been with Badger State for more than 20 years and also currently serves as president of the Wisconsin BioFuels Association.

In this edition of The Ethanol Report, we have a conversation with Huschitt about some of the most pressing industry issues and get a preview of the 2023 National Ethanol Conference to be held in Orlando, February 23-March 2.

Ethanol Report 10-28-22 20:30

The Ethanol Report is a podcast about the latest news and information in the ethanol industry that has been sponsored by the Renewable Fuels Association since 2008.

Choose an option to subscribe

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

EPA Approves Expanded Nebraska E30 Research

Cindy Zimmerman

The Environmental Protection Agency (EPA) has approved the continuation of ground-breaking research being done in Nebraska on the long-term adaptability and feasibility of E30 fuel.

Results of the State’s initial pilot program, launched in 2019, showed that E30 is safe and reliable fuel for use in conventional vehicles. Under EPA current guidelines, only flex fuel vehicles (FFVs) can use ethanol blends higher than E15, but the State intends to underscore its initial findings in order to support regulatory change to make E30 accessible to all drivers.

“Promoting higher ethanol blends should be a centerpiece of our national strategy to lower gas prices,” said Gov. Pete Ricketts. “Nebraska has already demonstrated that E30 can be used in regular vehicles without reducing performance or requiring extra maintenance. With our expanded study, we’ll be in an even stronger position to advocate regulatory change to make E30 accessible to everyone.”

Nebraska Ethanol Board executive director Reid Wagner said, “Through the first phase, we found a few parameters we want to look at closer to provide a more robust demonstration of the performance of ethanol. The E30 demonstration is academically and scientifically grounded and will be a key driver in continuing our efforts to show ethanol’s superiority in performance, cost, and health versus gasoline.”

The second phase of the E30 demonstration will begin in the fall 2022 and include up to 825 State vehicles. While further demonstrating the safety and reliability of E30, the State will also significantly reduce its fuel costs and carbon footprint through the program.

Read more from the Nebraska Ethanol Board

blends, Ethanol, Ethanol News

MN Governor Urged to Keep Pushing for E15

Cindy Zimmerman

The Minnesota Bio-Fuels Association (MN Bio-Fuels), along with other biofuel and agriculture stakeholders in the state, are asking Gov. Tim Walz to remain committed to a regulatory solution that will ensure the year-round availability of E15.

Besides MN Bio-Fuels, the other signatories on the letter were the Minnesota Corn Growers Association, the Minnesota Farm Bureau Federation, the Minnesota Farmers Union (MFU), POET LLC and Green Plains Inc.

Earlier this year, Walz joined seven other Midwest governors in asking EPA to begin a rulemaking process to remove unnecessary and outdated regulations that prevent the sale of E15 during the summer driving season.
Specifically, the governors are requesting EPA remove the 1-PSI Reid Vapor Pressure (RVP) waiver for E10 blends, which would eliminate the current disparity between E10 and E15 and place both fuels on equal regulatory footing in the summer months.

According to the Minnesota Department of Commerce, E15 sales in Minnesota from June to August this year was 27.25 million gallons, 12 percent higher than the volume sold in the preceding three months.

E15, Ethanol, Ethanol News