Environmental Protection Agency (EPA) Office of Air and Radiation Acting Assistant Administrator Janet McCabe testified before a House oversight subcommittee today on the agency’s management of the Renewable Fuel Standard (RFS) program.
“The EPA recognizes that the delay in issuing the 2014 standards has exacerbated uncertainty in the market for both renewable fuel producers and obligated parties,” said McCabe in her prepared remarks. “Issuing rules every year has proven to be a significant implementation challenge, particularly in the last several years as cellulosic biofuels have continued to face challenges in scaling up to commercial production and the fuel pool has become saturated with E10, raising concerns about the E10 blend wall.”
Facing questioning by lawmakers about the delay and EPA’s pledge to get the standards for 2014, 2015 and 2016 released some time next year, McCabe was unable to provide any time frame when that might be accomplished. Subcommittee Chair James Lankford (R-OK) expressed his doubt EPA can get it done. “My concern is that this is going to come out November 30 of 2015 and we’ll literally have two years in a row that we will not have anything,” he said. “It cannot take that long to promulgate a rule.”
Biofuels organizations reacted to McCabe’s testimony. “While it’s important for EPA to put the annual RFS rulemaking process back on schedule, it’s much more important for the Agency to get the RFS right,” said Brian Jennings with the American Coalition for Ethanol (ACE). “We look forward to working with EPA to ensure they use their authority to hold oil companies legally responsible for making cleaner and less expensive renewable fuel choices, such as E15 and E85, available to consumers as they issue the final 2014 rule, and RFS proposals for 2015 and 2016.”
Growth Energy CEO Tom Buis also stressed the importance of EPA getting the methodology right. “The EPA’s proposed rule was flawed from the beginning. There was no way the methodology in the proposed rule would ever work, as it went against the very purpose and policy goals of the RFS,” said Buis. “Hopefully, the EPA can get back on track, establish certainty among stakeholders and implement the RFS as it was originally envisioned.”
As nations are meeting in Peru for the COP 2014 global conference on climate change, the Global Renewable Fuels Alliance (GRFA) stressed that biofuels, like ethanol, are one of the most commercially viable methods to reduce transport fuel greenhouse gas (GHG) emissions.
“Nearly a third of global GHGs come from the transportation sector, those GHGs need to be a priority if we are going to make a significant contribution to combating climate change. Biofuels must be an integral part of that fight,” said GRFA spokesperson Bliss Baker.
Since biofuels such as ethanol are proven to reduce harmful GHGs from 40% to 90% compared to fossil fuels around the world, Baker says GRFA believes that policies adopted at COP 2014 must include the increased use of biofuels.
Earlier this year the GRFA forecasted that 2014 global ethanol production would reach 90.38 billion litres and its use worldwide would reduce GHG emissions by over 106 million tonnes globally. (S&T)2 Consultants Inc., an internationally renowned energy and environmental consulting firm, in partnership with the GRFA produced data which showed that these GHG reductions are equal to removing over 21 million cars off the road annually.
“106 million tonnes is a substantial GHG savings, it’s the same as removing the annual emissions from 14 average-sized coal-fired power plants. However, as the IEA has prescribed recently, more biofuels are needed to further reduce the emissions from the global transport sector,” said Baker.
The Windy City moved another step closer to cleaner air with 15% ethanol as the City Council Finance Committee passed the Chicago Clean with E15 Ordinance on Monday. The ordinance would make E15 available as an option to Chicago drivers, and now moves to the full City Council for a hearing on Wednesday.
“I look forward to the full Council vote, and to giving Chicagoans a cleaner, less expensive option,” said co-sponsor Alderman Anthony Beale.
Supporters of the bill delivered a petition with 7,673 signatures to the committee meeting on Monday. “I’m very pleased this ordinance has such strong support within the Council and across Chicago,” Beale added.
Among the organizations supporting the ordinance are the American Coalition for Ethanol (ACE), Growth Energy, and the Renewable Fuels Association (RFA). “The city of Chicago has always been a leader when it comes to fuel. It was the first city in the United States to ban lead in gasoline, the first to choose ethanol over MTBE in reformulated gas, and this ordinance would make Chicago the first major city to guarantee drivers the choice of a lower cost, higher octane, clean E15 fuel,” said ACE Senior Vice President Ron Lamberty.
Growth Energy CEO Tom Buis noted that approval of the ordinance will provide choice for consumers and jobs for the state. “(T)hey have displayed their resolve to ensure that Chicago motorists and other consumers have market access to a sustainable, cleaner burning, less expensive homegrown fuel that supports 73,156 Illinois jobs and generates $4.7 billion for the state’s economy,” said Buis. “By moving to E15, Chicago can help create an additional 12,000 Illinois jobs that can’t be outsourced.”
The ordinance would require all filling stations in the city to provide dispensing pumps and offer mid-grade E15 for sale, with a phase-in period of nearly a year and an exemption for filling stations selling less than 850,000 gallons of fuel per year.
The CEO and founder of the nation’s largest agricultural residue and forage harvesting business will be discussing biofuel feedstocks on a panel at the BIO Pacific Rim Summit in San Diego this week.
Bill Levy of Oregon-based Pacific Ag will take part in the panel which will explore the realities faced by feedstock producers in today’s marketplace. Panelists will delve into issues in production and logistics, feedstock availability, ability to scale, competing applications for feedstock use, and new markets.
“There are many concerns surrounding the economic feasibility of harvesting biomass for food and fuel. The biggest hurdle of biomass conversion is price and volume predictability,” said Levy of his panel remarks. “What Pacific Ag offers is a sustainable supply at a consistent price necessary for industrial uses of biomass.”
Pacific Ag is leading the biomass harvesting revolution and has been expertly handling biomass logistics for more than 16 years – longer than any other U.S. company. Today, Pacific Ag is the exclusive biomass harvesting and logistics company for Abengoa’s cellulosic ethanol plant located in Hugoton, Kansas and is also working with DuPont’s cellulosic ethanol facility expected to go online in early 2015.
The “Feedstocks: A Global Comparison” panel is taking place Tuesday, December 9, at 8:00 am PT during the BIO Pacific Rim Summit.
The Renewable Fuels Association (RFA) is urging the California Air Resource Board (CARB) to adjust its current indirect land use change (ILUC) analysis to better reflect real-world land use patterns.
In written comments submitted on Friday, RFA’s Senior Vice President Geoff Cooper pointed to the recent study released by Iowa State University’s Center for Agricultural and Rural Development (CARD) raising concerns about CARB’s current ILUC predictions. Cooper called on CARB to “take into account the new CARD/ISU research and use it to immediately re-calibrate” the agency’s ILUC model.
Cooper calls the study a “remarkably important—and potentially gamechanging—contribution to the debate over ILUC modeling” which used empirical data to conclude that “…the primary land use change response of the world’s farmers in the last 10 years has been to use available land resources more efficiently rather than to expand the amount of land brought into production.”
RFA’s comments urged CARB to calibrate its ILUC model using the new CARD/ISU analysis as a guide before sending the proposed rule for Low Carbon Fuel Standard (LCFS) re-adoption to the Board for consideration. If adjustments are unable to be made before the final proposal is submitted, RFA calls on CARB to “…delay proposing new ILUC factors until such time as the calibration is completed and new ILUC results are generated.”
Biodiesel producers are pleased that the U.S. House of Representatives voted overwhelmingly to reinstate the biodiesel tax incentive as part of the tax extenders package passed on Wednesday, but they would prefer a longer term deal to provide more certainty for the industry.
“While we appreciate a one-year extension, we are urging Congress to continue pressing for a longer-term policy that can afford this industry the certainty needed to invest and grow,” said National Biodiesel Board VP of Federal Affairs Anne Steckel. “Biodiesel businesses across the country are poised to expand their operations, hire new workers and build new infrastructure, but we need forward-looking policy.”
She added that the deal passed Thursday is only good until the end of this year, so the biodiesel tax incentive expire once again on January 1,for the fourth time in six years. “It is very difficult to run a business with that kind of uncertainty,” Steckel said.
“The biodiesel incentive is proven to create jobs and economic activity, and it pays tremendous dividends in terms of reducing costly pollution and improving our energy security as well,” said NBB Board Chairman Steven J. Levy, managing director at Sprague Operating Resources. “It is a successful policy that is working so there is no reason to have this kind of perpetual uncertainty.”
The House voted 378-46 Wednesday night to approve HR 5771, setting up a potential Senate vote in the coming days.
Some drivers in the Sunshine State will now have access to 15% ethanol fuel (E15), approved by the Environmental Protection Agency (EPA) for use in vehicles 2001 and newer.
In partnership with Protec Fuel, retail stations in Ft. Myers and Sarasota operated by Mid-State Energy are holding kickoff events with substantial discounts on E15 and E85 fuel today to celebrate the new fuel choice for consumers.
Florida-based Protec Fuel helped manage the ethanol blends installation and provide fuel for the locations. “We are proud to help introduce American-made ethanol into the fuel pool through E15 in Florida, especially as it’s a higher performance fuel at 88-octane,” said Protec vice president of business development Steve Walk. “It’s so convenient for drivers to make a difference – you can use E15 interchangeably with gas if you’re driving a 2001 or newer model.”
The Renewable Fuels Association has been working with the Florida Department of Agriculture and Consumer Services for more than two years to overcome regulatory barriers that hindered the sale of E15 in Florida. “It is exciting to see E15 continue its expansion to the East Coast and it is my hope that additional states in the South and East that don’t currently offer E15 will follow Florida’s example and begin offering low-cost E15 to their consumers,” said RFA vice president of industry relations Robert White.
The Tampa Bay Clean Cities Coalition is pleased to see the expansion of bio-based fuels in the region. “These fuels can provide a renewable and cleaner fuel option for us now with virtually no additional investment in vehicle modification or infrastructure,” said coordinator Steven Reich. “I hope that more retailers will take advantage of the availability of these fuels in their product mix.” Clean Cities coalitions throughout the nation are charged with reducing the nation’s petroleum usage by the U.S. DOE.
O God, source and giver of all things,
You manifest your infinite majesty, power and goodness
In the earth about us:
We give you honor and glory.
For the sun and the rain,
For the manifold fruits of our fields:
For the increase of our herds and flocks,
We thank you.
For the enrichment of our souls with divine grace,
We are grateful.
Supreme Lord of the harvest,
Graciously accept us and the fruits of our toil,
In union with Jesus, your Son,
As atonement for our sins,
For the growth of your Church,
For peace and love in our homes,
And for salvation for all.
We pray through Christ our Lord. Amen.
The Ford Transit 3.7L engine conversion to propane autogas is in development and expected to go in for EPA certification by January 2015, according to Blossman Services, managing member of Alliance AutoGas and exclusive United States distributor of Prins Autogas products.
The Transit will be the first “bolt & plug” conversion to be installed by Blossman Services which says the bi-fuel Prins VSI system conversion will require no intake manifold drilling, cutting, or splicing of wiring. The Ford Transit conversion will go into testing this month.
Replacing the Ford E-Series, the Ford Transit vans and wagons are available in single and dual-rear wheels models, with three body lengths, and three roof heights to choose from. Configurations cover 8, 10, 12 and 15 passenger seating, providing flexible cargo volume and payload options. Compared with the previous Ford full-size E-Series van, the all-new Transit Wagon offers higher fuel economy ratings and is designed to haul cargo or carry people. The 3.7L Ti-VCT V6 surpasses the E-Series standard 4.6L V8 gas engine in EPA estimated highway mpg by 19 percent.
The agenda for the 20th Annual National Ethanol Conference (NEC) is now available.
The theme for the 2014 conference, which will be held February 18-20 in Grapevine, Texas is “Gowing Global” with a focus on the export markets that are critical to the future growth and financial health of the ethanol industry.
Among the program highlights:
• Going Global: Building Ethanol Demand Internationally
• RFS and LCFS: Driving Demand or Stuck in Neutral?
• Advanced Ethanol Industry Breaks Through; Now What?
• Global Energy Market Outlook
• Global Grain Market Outlook
• The Road Ahead for Higher Blends
• How Rail Safety and Congestion are Impacting the Marketplace
As always, the agenda also includes the annual State of the Industry address by Renewable Fuels Association president and CEO Bob Dinneen, as well as the popular Washington Insiders Panel.
Early registration prior to January 30 saves $100 for both RFA members and non-members.
The Chicago City Council is on the verge of passing the “Chicago Clean Air Choice Ordinance,” which was proposed by city aldermen earlier this year, but the oil industry is fighting it.
The ordinance allows city drivers to choose 15% ethanol at the pump. The original ordinance was introduced last summer, while the enhanced ordinance includes an exemption for filling stations selling less than 850,000 gallons of fuel per year and provides a phase-in period of nearly a year.
The law would require all filling stations in the city to provide dispensing pumps and offer mid-grade E15 for sale. The proposal offers as justification the fact that Chicago is dedicated to reducing fuel costs, that ethanol is a renewable domestic fuel that burns cleaner than gasoline, E15 is approved for use in model year 2001 and newer vehicles and is less expensive than gasoline, “with expected savings between 5 and 15 cents per gallon.”
In addition, the ordinance points out that “Illinois is the third largest ethanol producing state in the nation, with 14 ethanol plants that can produce 1.5 billion gallons of ethanol per year.”
With oil companies working against passage of the ordinance, supporters have started a petition drive to allow ethanol proponents to voice their opinions to the city council. Over 4,000 from around the country have already signed on and many have left messages to state their reasons.
“Big Oil has arrived on the scene and is ready to spend whatever it takes to keep this legislation from seeing the light of day,” says Gene Griffith, CEO of Patriot Renewable Fuels, one of the 14 ethanol plants in Illinois. He is urging supporters to sign the petition in support of the ordinance.
Biofuels industry representatives spent Friday afternoon fielding calls from reporters to comment on the Environmental Protection Agency decision to put off finalizing 2014 volume standards under the Renewable Fuel Standard program until next year.
Domestic Fuel caught up with four of the industry groups, starting with Bob Dinneen with the Renewable Fuels Association (RFA), already posted previously.
Listen to the interviews below:
On Monday, biofuels industry leaders will hold briefings for Capitol Hill staff and the media to discuss the implications of the decision and where we go from here. The Fuels America briefing will feature Buis, Dinneen, Advanced Ethanol Council (AEC) Executive Director Brooke Coleman, and Brent Erickson with the Biotechnology Industry Organization (BIO).
As the Environmental Protection Agency announced Friday that it will be next year before 2014 volume standards can be finalized, the Renewable Fuels Association (RFA) offered comments on behalf of the industry on the development.
In this Ethanol Report, RFA president and CEO Bob Dinneen talks about their reaction and what the continued uncertainty means for the industry going forward.Ethanol Report on RFS Delay
The biodiesel industry and soybean growers weighed in on the EPA decision today to delay 2014 volume requirements under the Renewable Fuel Standard (RFS).
“This Administration says over and over that it supports biodiesel, yet its actions with these repeated delays are undermining the industry,” said National Biodiesel Board Vice President of Federal Affairs Anne Steckel. “Biodiesel producers have laid off workers and idled production. Some have shut down altogether. We know that fuels policy is complex, but there is absolutely no reason that the biodiesel volume hasn’t been announced. We are urging the Administration to finalize a 2014 rule as quickly as possible that puts this industry back on track for growth and puts our country back on track for ending our dangerous dependence on oil. We also urge them to move quickly on 2015 so that we don’t repeat this flawed process again next year.”
“The continued delays create great uncertainty for the biodiesel industry and soybean farmers and limits the industry’s ability to invest and expand,” said American Soybean Association President Ray Gaesser. “The Proposed Rule was unacceptable and would have taken biodiesel backward from the amounts produced and utilized in 2013. However, ASA believes that EPA can and should finalize a 2014 rule that sets the biomass-based diesel volumes at or above the nearly 1.8 billion gallons that were produced and consumed in the U.S. in 2013.”