EPA Official Testifies About RFS Management

epa-mccabe-hearingEnvironmental 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.”

Click here to watch the hearing.

E15 Ordinance Passes Chicago Council Committee

chicago-e15The 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.

Hear Biofuels Reps Talk About RFS Delay

epa-150Biofuels 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:

American Coalition for Ethanol (ACE)Interview with ACE Executive Vice President Brian Jennings

Growth Energy
Interview with Growth Energy CEO Tom Buis

National Biodiesel Board (NBB)Interview with NBB Vice President of Federal Affairs Anne Steckel

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).

Ethanol Industry Reacts to EPA Delay

The ethanol industry wasted no time today in reacting to the Environmental Protection Agency’s announcement that final 2014 volume obligations under the Renewable Fuel Standard will be put off until next year.

RFANewlogoRenewable Fuels Association (RFA) president Bob Dinneen calls it “a cloud of uncertainty with a silver lining.”

Deciding not to decide is not a decision. Unfortunately, the announcement today perpetuates the uncertainty that has plagued the continued evolution of biofuels production and marketing for a year. Nevertheless, the Administration has taken a major step by walking away from a proposed rule that was wrong on the law, wrong on the market impacts, wrong for innovation, and wrong for consumers.

growth-energy-logoGrowth Energy CEO Tom Buis commended EPA and said it was the “appropriate decision” for the agency and is a win for the industry.

Today’s announcement is a clear acknowledgement that 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. The EPA wisely decided not to finalize the rule so they could fix the flawed methodology. Their initial proposal over a year ago was unacceptable and simply acquiesced to the demands of Big Oil and their refusal to blend more renewable fuels into the marketplace.

ACElogoAmerican Coalition for Ethanol (ACE) Executive Vice President Brian Jennings credits ethanol supporters for helping the EPA reconsider the 2014 RVO obligations under the Renewable Fuel Standard.

Big Oil came close to bullying the Administration to completely rewrite the RFS this year so oil companies could escape their legal responsibility to blend more ethanol in gasoline. But thanks to thousands of comments from ACE members and other biofuel supporters, EPA wisely chose to reconsider their ill-advised proposal which would have legitimized the so-called ‘blend wall’. While we will reserve full judgment until they finalize the 2014 targets next year, it certainly appears the Administration recognizes their proposed RFS changes were inconsistent with legislative history and the Clean Air Act.

Growth Energy Comments on LCFS & Ethanol

growth-energy-logoA group representing ethanol producers in this country is giving the state of Washington a piece of its mind on the state’s draft report on the potential implementation of a Low Carbon Fuel Standard (LCFS). This news release from Growth Energy says the comments outline how implementation of a LCFS could potentially displace clean burning, domestically-produced renewable fuels without significant environmental benefit.

Upon submission of the comments, Chris Bliley, Director of Regulatory Affairs for Growth Energy, noted, “As Washington considers a potential low carbon fuel standard, we wanted to make them aware of our strong objection to the inclusion of controversial theories such as indirect land use change. Ethanol continues to significantly lower greenhouse gas emissions in our transportation fuel. Washington should carefully consider these issues before moving forward with a California-style LCFS regulation.”

The comments outlined that, “With the success of a national biofuels program in mind, Washington’s draft report raises a number of issues related to the potential adoption of a low carbon fuel standard (LCFS) in Washington. One of the most controversial features of a potential state-level LCFS regulation is the belief that by regulating the carbon intensity of alternative fuels somehow value is added separate and apart from other efforts to reduce transportation sector greenhouse gas emissions by causing changes in biofuel production methods… To date there has been no net reduction in GHG emissions nationwide; the only impact has been ‘fuel shuffling,’ a resulting phenomenon which itself is likely to increase GHG emissions by requiring the transport of ethanol and other fuels further distances than if states did not try to regulate the carbon intensity of the ethanol sold or used within their borders.”

You can read all of Growth Energy’s comments here.

Growth Energy Looks for Ethanol Exports to Panama & Peru

growth-energy-logoAmerican ethanol exports could be expanding to Panama and Peru. Growth Energy officials, along with the U.S. Grains Council and the Renewable Fuels Association, took part in a market development mission to explore export opportunities for the green fuel to the Central and South American countries.

“The mission has been a great experience,” said [Alex Marquis, Logistics Manager of Marquis Energy, who represented Growth]. “The mission delegates met with a number of Peruvian government officials over the span of two days, and the access provided was impressive. Though more work and dialogue is needed to cultivate relationships with key Peruvian contacts, these discussions revealed that Peru’s burgeoning economy offers growth potential for American renewable energy groups,” Marquis added.

“Exploratory trade missions like these allow the industry to identify new market opportunities across the globe and raise awareness of the benefits of renewable fuels. Ethanol can play a key role in improving the global environment and reducing the world’s dangerous dependence on fossil fuels,” stated Tom Buis, CEO of Growth Energy.

Growth Energy also participated in trade missions to China, Korea and Japan earlier this year.

Growth Energy Staffer on Advisory Committee

growth-energy-logoU.S. Secretary of Commerce Penny Pritzker has appointed Jim Miller, Growth Energy’s Vice President and Chief Economist, to a position on the Department of Commerce’s Renewable Energy and Energy Efficiency Advisory Committee. The departmental committee was established to advise the Secretary on programs and policies to expand U.S. renewable energy and energy efficiency exports.

“This is a wonderful opportunity to help increase awareness of the importance of renewable fuels as well as expand markets across the globe to help export clean, sustainable energy that will help create jobs right here at home, while improving the environment around the globe and reducing the world’s dependence on fossil fuels,” said Miller.

Miller previously served as the Senior Policy Advisor on the Budget Committee under Senator Kent Conrad (D-N.D.). Prior to his service on Capitol Hill, Miller was appointed by President Obama and confirmed by the U.S. Senate to serve as the Under Secretary for Farm and Foreign Agriculture Services at the U.S. Department of Agriculture.

Also appointed to the committee was Kelly Davis of the Renewable Fuels Association.

Growth Energy Shows Ethanol’s Commitment to Ag Future

growth-energy-logoA group that represents the producers and supporters of ethanol who feed the world and fuel America is showing its commitment to the future of agriculture. Growth Energy announced a multi-year commitment and new partnership with the National FFA Organization to build on critical projects that prepare today’s students to become tomorrow’s leaders in American agriculture, starting with teacher and student workshops presented by Growth Energy this week at the 87th National FFA Convention & Expo in Louisville, Kentucky.

“Growth Energy is thrilled to help sponsor several important programs for FFA, including expanded opportunities to continue to educate FFA’s members on critical issues such as the important role that biofuels and energy play in American agriculture. Additionally, together, we will continue to build a robust networking system to attract new agricultural teachers and highlight the opportunities FFA members have as they enter the workforce. Ultimately, this comes down to investing in our most valuable resource —tomorrow’s leaders of American agriculture,” stated Tom Buis, CEO of Growth Energy.

Specifically, the Growth Energy partnership will focus on assistance in supporting the Curriculum for Ag Science Education (CASE), as well as a personalized career exploration and development resource called “My Journey.” Furthermore, Growth Energy will also support the TeachAg program in efforts to attract more teachers for the enhanced education of FFA members. Additionally, Growth Energy will be leading select National FFA Convention sessions and providing support for FFA during their Washington, D.C. leadership conference.

“FFA is critical to the future of American agriculture. As our nation’s farmers become more productive and efficient, it is important that the next generation learns the best ways to provide both food and fuel while understanding the significance of being a true steward of the land and ensuring sustainable farming for generations to come,” added Buis.

Buis added that he was an FFA member, as was Jeff Broin, the co-chairman of Growth Energy’s Board of Directors. They called the programs and services FFA provides “immeasurable” and a preparation for students “for the challenges of tomorrow,” while also fostering leadership, innovation and stewardship of the land.

Robert Baker Wins Growth/New Holland Sweepstakes

Robert Baker of Sue City, Missouri has won the 2014 Growth Energy Individual Membership Sweepstakes sponsored by New Holland. His prize included 200 hours of usage of a CR8090 combine with a New Holland Twin Rotor CR8090 combine corn head for the 2014 harvest season.

“I am very excited, and I have a son and grandson that are more excited than me because they get to run [the combine],” said Baker.

Baker is a farmer who has invested in the Macon, Missouri, POET Biorefining plant, and regularly provides feedstock. The 14-year-old plant gained national coverage in 2010 when President Obama visited to learn more about ethanol production and gave a speech discussing the ability of ethanol to “contribute to our clean energy future”.

new-holland8090“We are proud to support a farmer who works so hard every day to grow crops to help feed the world and fuel our nation,” said Growth Energy CEO, Tom Buis. “Our members are working hard to revitalize our rural economies, create new jobs and ensure our nation will have a sustainable and secure energy future. This sweepstakes was part of a larger effort to continue to build grassroots support for biofuels across the country. Our growing grassroots advocates, such as Mr. Baker, help promote our industry and ensure that lawmakers in Washington understand the important role the RFS and biofuels play across America’s heartland. ”

The Growth Energy Individual Membership Sweepstakes offered all new or renewing individual members a chance to win either a NASCAR ticket package or usage of a New Holland combine. The total prize package for the combine is valued at $35,584.

Steve Murphy, General Manager at POET Biorefining – Macon, added, “The economic impact of the ethanol industry here in Missouri is undeniable and what we do here at POET goes far beyond the production process. As the first ethanol plant in the state of Missouri, we are proud of the added value our facility brings to producers and this community. However, we wouldn’t be able to offer consumers cheaper and cleaner choices at the pump if it weren’t for producers like Robert. All of us at POET Biorefining – Macon sincerely thank Robert for his continued support and extend him our congratulations.”

Big Oil Denied Again

Big Oil has been denied again. The U.S. Circuit Court of Appeals for the District of Columbia has found that the American Petroleum Institute (API) and the Engine Products E15 Bargain!Group (EPG) did not have standing against keeping E15 out of the marketplace. In the rule the judge wrote, “they cannot show that their members have suffered or are threatened with suffering a relevant injury.”

The court held to their previous ruling in GMA v. EPA and likewise denied standing to those who challenged the E15 waiver decision. Growth Energy successfully sought a waiver from the U.S. Environmental Protection Agency in 2009 to allow retailers and consumers to choose E15 – a blend of up to 15 percent ethanol. EPA granted the waiver in 2011 for all 2001 and newer motor vehicles.

“Today is another victory for ethanol and the American motorist,” said Tom Buis, CEO of Growth Energy. “To continue to achieve the success of the Renewable Fuel Standard, [RFS] Growth Energy led the fight for E15 which is now being sold by over 90 retailers in 14 states. This decision is important because it continues to uphold the choice and savings for the American motorist with E15.”

Food Prices Still Up Despite Lower Corn Prices

With record corn production forecast this year comes lower corn prices, which makes the food versus fuel argument harder than ever to make, according to Growth Energy.

Total corn production is now projected at 14.475 billion bushels, 550 million bushels more than last year’s record, while the average price received by farmers is expected to be $3.40 per bushel, the lowest price in eight years.

Meanwhile, the United Nations Food and Agriculture Organization (FAO) reports the international food price index is down 6.0 percent over the last year, grain prices are down nearly 9 percent since 2013, but meat prices are nearly 22 percent higher than a year ago.

Domestic food prices are up 2.5 percent compared to December 2013, nearly the same as the overall Consumer Price Index, which is up 2.1 percent for the same period. But while corn and other grain prices are rapidly declining, consumer meat prices are up 11.6 percent since last December.

growth-energy-logo“The current WASDE projections and recent reports from the FAO and Bureau of Labor Statistics further confirm that there is virtually no correlation between U.S. ethanol production and consumer food prices,” said Tom Buis, CEO of Growth Energy. “Corn prices are below the cost of production for most farmers, and ethanol is selling approximately $1.00 per gallon less than the gasoline on the wholesale marketplace.”

“As integrated livestock and poultry companies brag about their record profits and margins to their stockholders and investment bankers, the Turkey Federation, National Chicken Council and The National Council of Chain Restaurants, all allies of Big Oil, continue their campaign to intentionally mislead Americans about the cause of rising food prices in the U.S,” Buis added.

Minnoco Expands Higher Ethanol Blends in Twin Cities

Independent fuel retailer Minnoco is expanding its outlets with 18 new locations joining the brand. When completed, the brand will feature 24 retailers, many of whom will be offering higher blends of ethanol, such as E15, and biodiesel to consumers.

“Our owners believe we have a competitive advantage by offering more fuel choices like E15 to consumers,” stated Lance Klatt, executive director for Minnoco. “Our new brand not only draws in consumers for more affordable fuels but is also a great business model for retailers.”

Minnoco signLeveraging existing convenience store and automotive repair locations in many cases, retail owners are moving away from a branded oil contract into the independent brand of Minnoco. “With Minnoco, I’m able to offer E15 as a more competitive fuel to my customers at a much lower price vs. regular,” explained Rick Bohnen, president of Minnoco and owner of Penn Minnoco. “This is a better business model for me because it significantly reduces my operational costs vs. branded fuels and I’m able to pass the savings on to consumers.”

In addition, Minnoco retailers have more freedom to offer biofuels that are grown and produced in Minnesota. Though the product offering will vary slightly by retail location, Minnoco will be offering E15, E30, E85 and diesel along with regular grades of gasoline.

“All of our regular 87 gas already contains 10% ethanol,” explained Jerry Charmoli, Minnoco owner and a mechanic for more than 30 years. “E15 is approved for vehicles 2001 and newer and we’ve had zero problems, in fact my customers love the cost savings and extra performance.”

In response to the announcement today by Minnoco, Growth Energy CEO Tom Buis said, “Minnesota has always been a leader in offering renewable fuels to consumers. I am glad to see an increasing number of service station owners and convenience stores offer a higher performing, less expensive, renewable fuel option. Minnoco understands what consumers want, and also appreciates the importance of improving our environment, creating and supporting jobs right here in America that cannot be outsourced, and reducing our dangerous addiction to fossil fuels and foreign oil, all while saving consumers at the pump.”

Protec Fuel Expands E15, E85 in the South

Protect Fuel is working with retailers in the South and Southeast to open 28 E15 and E85 stations. The announcement marks the first phase of an introduction of E15 to cities including Atlanta, Georgia and Houston, San Antonio and Dallas, Texas. Florida and Virginia will also be on the target list.

protecfuel1“Because of the success of our retailers who have offered E85 in the past, our retail customers are asking us for E15,” said Todd Garner, CEO of Protec Fuel. “With our proven expertise in the field, it’s natural for us to help meet the demand of many convenience store retailers – large and small – who want to offer products different than their competitors. Further, this can aid in helping to meet the Renewable Fuel Standard [RFS] blend wall, after market concentration of E10,” Garner said.

E15 can be used in vehicles 2001 or newer while E85 can be used in any flex fuel vehicle. Protec Fuel provides ethanol blends to retailers as well as installs ethanol stations. The company currently supplies, either directly or through distribution partners, more than 200 E85 stations.

In response to the announcement, Tom Buis, Growth Energy CEO said, “Protec has listened to their customers and retailers, and has taken the initiative to offer higher ethanol blends that improve the environment, create jobs at home, and strengthen our energy and national security. Furthermore, Protec knows that by offering a homegrown, less expensive fuel they will continue to build a customer base by providing a choice and savings at the pump.”

“Bottom line – consumer demand for homegrown, high performance, low cost fuels cannot be ignored,” added Buis. “E15 continues to spread across the nation and Protec is a leader in a larger movement that will increase E15’s footprint across our nation, finally ending Big Oil’s stranglehold on the liquid fuels marketplace.”

Growth Energy’s Model Ethanol Plant

Growth Energy Model PlantDuring the Farm Progress Show last week several companies featured some cool technologies and displays featuring agriculture’s role in producing clean energy such as biofuels. One partnership that has been very successful is that between New Holland and Growth Energy. New Holland has very publicly shown its support for ethanol has developed equipment for farmers to more easily harvest their energy crops.

When visiting the New Holland booth not only could you see this amazing equipment, but you were able to see a model ethanol plant – thousands of Farm Progress attendees have never has the opportunity to visit an ethanol plant.

In this video with Kelly Manning, vice president of development for Growth Energy, you can get your own virtual tour of the ethanol plant. The educational display was under glass and the ethanol plant was built to scale demonstrating the role feedstocks play in the production process as well as how the products are delivered from the plant.

CHS Supports Cenex Tank Program to Boost E15

CHS has developed a new program to better enable some of the 1,400 Cenex branded locations across the country to meet consumer demand for E15 ethanol fuel blend. “We are excited to offer a new Cenex® Tank Program, which further demonstrates CHS leadership in renewable fuels and helps keep the Cenex brand at the forefront in meeting consumer demand for ethanol blends,” said Doug Dorfman, CHS vice president – refined fuels.

Cenex StationThe Cenex Tank Program will cover a significant portion of the cost to purchase and install an additional storage tank for the purpose of offering E15 for interested retailers. The Cenex network was one of the first to begin offering mid-level ethanol blends and according to Dorfman, the stations have seen significant increases in ethanol sales.

“Growth Energy applauds CHS Inc. and Cenex for their steadfast commitment to renewable fuels and their announcement of the Cenex Tank Program, which will better enable some of the 1,400 Cenex branded locations to meet consumer demands for E15,” said Tom Buis, CEO of Growth Energy in response to the news. “The new program will cover a substantial part of the cost to obtain and install an additional E15 storage tank for retailers interested in expanding their offerings.”

Buis continued, “Their decision also demonstrates the strength of consumer demand for higher ethanol blends such as E15. It proves once again that consumers will select a high performance, low cost fuel when given the choice. Cenex is clearly a leader in the marketplace and is acutely in tune with what their customers want and need. I am impressed by all that Cenex is doing for our consumers and our country. They are empowering consumers with the ability to improve our environment and increase our nation’s energy and national security, all while saving money at the pump.”

Currently, E15 is available at more than 90 stations. The locations are spread between 14 states including: Wis., S.D., Ohio, Neb., N.D., N.C., Mo., Minn., Miss., Kan., Ind., Ill., Iowa and Ariz.