RFA Spotlights Ethanol’s Carbon Reduction Benefits

Cindy Zimmerman

The Renewable Fuels Association is leading the charge on a national and global basis to spotlight ethanol’s carbon reduction benefits and how it can play an even greater role going forward in the fight against climate change.

As leaders from around the world are gathering in Egypt for the 2022 United Nations Climate Change Conference, better known as COP27, RFA sent the simple message that ethanol is a low-carbon renewable fuel available today to help meet climate goals and it’s well on its way to net-zero carbon emissions.

RFA also released an updated one-page fact sheet about ethanol’s carbon benefits. “It is our hope that U.S. policymakers ensure ethanol and other renewable fuels are an important part of the discussions at COP27,” said RFA President and CEO Geoff Cooper. “More and more national capitals across the globe are rightfully looking at the value of renewables like ethanol to sustainably fuel their vehicles and power their green economies.”

Meanwhile, RFA laid out the ethanol industry’s priorities in separate comments and testimony to the U.S. Department of Treasury, Internal Revenue Service and the U.S. Department of Agriculture as the agencies prepare to implement the Inflation Reduction Act’s renewable energy tax and grant programs.

“The energy provisions in the Inflation Reduction Act represent the most significant federal commitment to low-carbon biofuels since the Renewable Fuel Standard was expanded by Congress in 2007,” said Cooper. “If implemented correctly, the IRA’s clean energy measures will stimulate unprecedented investment and decarbonization in the ethanol sector. But if the federal government gets implementation wrong, it will be an enormous missed opportunity for ethanol and other renewable fuels to play a leading role in the fight against climate change.”

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Biofuel Groups Urge Congress to Avoid Rail Strike

Cindy Zimmerman

The Renewable Fuels Association (RFA) joined nearly 200 organizations representing agricultural, food and renewable fuels industries last week in a letter urging Congress to act quickly to prevent a rail strike and service shutdown on November 19, the deadline for unions and railroads to finalize an agreement.

“A strike or lockout combined with existing challenges in the rail system, at our ports, with trucking and with record low water levels on the Mississippi River impacting numerous barge shipments would be catastrophic for the agricultural and broader U.S. economies,” wrote the Agricultural Transportation Working Group in a letter to congressional leadership. “Congress must act to prevent this from occurring if the parties cannot reach agreement.” The group pointed out that critical inputs and agricultural products such as ammonia shipments could be embargoed as early as November 14, the day Congress returns to session.

More than 70 percent of the ethanol produced in the United States is transported by rail across the lower 48 states as well as into Canada and Mexico. Over the last five years, U.S. railroads have transported an average of nearly 395,000 carloads of ethanol per year.

“The U.S. ethanol industry is highly reliant on the rail system to get our products to market,” said RFA President and CEO Geoff Cooper. “More than 400,000 workers whose jobs are supported by the ethanol industry are depending on Congress, the Biden administration, the railroads, and the unions to work this out as quickly as possible. If the nation’s trains stop running, the nation’s ethanol biorefineries stop running too.”

The administration brokered an agreement between the National Railway Labor Conference (NRLC) and twelve unions on September 15 but two unions have voted to not
ratify and congressional action will be necessary if the parties fail to reach agreement.

Ag group, biofuels, Ethanol, Ethanol News, Renewable Fuels Association, RFA, transportation

EPA Biofuel Proposal Deadline Extended to Nov 30

Cindy Zimmerman

On Friday, the U.S. Environmental Protection Agency (EPA) and Growth Energy agreed under their consent decree to delay issuance of the proposed 2023 Renewable Volume Obligation (RVO) under the Renewable Fuel Standard (RFS) by two weeks to no later than November 30, 2022. EPA is still required to adhere to the consent decree deadline for finalizing the RVOs by no later than June 14, 2023.

“We agreed to EPA’s request for a two-week extension on the condition that November 30 will be the final deadline and there will be no further extensions of any deadline for action, as underscored in the stipulation document filed today,” said Growth Energy CEO Emily Skor.

The consent decree agreement followed Growth Energy’s notice of intent to sue and filing of a complaint in federal district court in response to the agency’s violation of the statutory deadlines to issue renewable fuel volume requirements for the RFS program.

EPA, Ethanol, RFS

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