Biofuel Industry Responds to RIN Integrity Proposal

biodiesel_and_ethanol_fuel_pumps_at_retail_fuel_station_e85__e10_ethanol_b5_b20_biodiesel_mind_J53-1369484The Environmental Protection Agency (EPA) released its proposed rules for the 2013 Renewable Fuels Standard yesterday. A portion of the proposal focused on dealing with Renewable Identification Number (RIN) fraud. Last year, several individuals were indicted for committing fraud by selling fake biodiesel RINS. The proposal is open for comment until March 19, 2013 and the industry is just now beginning to review and digest what it entails.

“While we are still reviewing the details, this proposal appears to be another positive step toward ensuring that RIN fraud is a thing of the past,” said Anne Steckel, National Biodiesel Board’s vice president of federal affairs. “We want to thank the EPA for working aggressively to address this issue and for proposing constructive solutions that will restore confidence in RIN markets.”

Steckel continued, “This problem was caused by a handful of wrongdoers who took advantage of a good policy for advancing America’s energy security. Two of those people are now facing significant prison time, and that enforcement along with these tightened regulations will go a long way toward preventing anything like this from happening again.”

The organization intends to continue working cooperatively with the EPA and our partners in the petroleum sector in bringing this issue to closure.

While the fraud cases were around biodiesel RINS, the EPA proposed rules addresses fraud across all renewable fuel sectors of the RFS. This includes ethanol RINS and cellulosic RINS. Tom Buis, CEO of Growth Energy said, “We are pleased to see that EPA is moving forward with a voluntary program to address the concerns raised about the integrity of RINS in the RFS program. We look forward to reviewing the proposal and will work with EPA to ensure that the program is successful.”

Biodiesel Industry Supportive of 2013 RFS Proposal

NBB-logo1The biodiesel industry is indicating is support today for the proposed rules from the EPA establishing this year’s advanced biofuels requirements under the Renewable Fuel Standard (RFs). In response, Anne Steckel, vice president of federal affairs for the National Biodiesel Board (NBB), thanked the EPA and the Obama administration for standing strong behind the advanced biofuels standards. She indicated that the U.S. biodiesel industry is ready to meet these requirements, which means reduced greenhouse gas emissions, a better economy and more domestic fuel choices for consumers.

“With plants across the country and more than a billion gallons of production last year, the U.S. biodiesel industry is already the leading producer of Advanced Biofuels in the country, accounting for more than 80 percent of required production to date,” Steckel continued. “The industry is adding new feedstocks and building capacity every year, and this policy will only help us continue that growth.”

For 2013, the EPA’s proposal calls for an overall advanced biofuel requirement of 2.75 billion gallons. Within that total, explained Steckel, the biomass-based diesel requirement – which has already been finalized and was not a part of today’s announcement – is 1.28 billion gallons. Refiners have the option of using biodiesel or other EPA-designated advanced biofuels to help fill the remaining overall advanced biofuel pool, and many experts are predicting that biodiesel will play an increasing role in doing so this year.

Advanced Biofuels Gets Court Win

NBB-logo1Last week the U.S. Court of Appeals for the District of Columbia Circuit upheld the advanced biofuels requirements under the Renewable Fuel Standard (RFS). Biodiesel is classified in the RFS as an advanced biofuels, and last year more than 1 billion gallons were produced by U.S. biodiesel producers. In response, the National Biodiesel Board’s Anne Steckel, vice president of federal affairs made the following statement:

“This is just the latest in a series of cases in which the oil industry has tried unsuccessfully to re-litigate the standards for renewable fuels, and it is yet another victory for our nation’s shift toward cleaner, more diverse energy supplies,” said Anne Steckel, vice president of federal affairs for the National Biodiesel Board. “The fact is that the RFS is a very effective program for improving U.S. energy security, creating jobs and reducing greenhouse gas emissions. We look forward to working constructively with our partners in the petroleum industry to meet these goals moving forward.”

Biodiesel Production Exceeds 1 Billion Gallons

Biodiesel PumpAccording to statistics provided by the Environmental Protection Agency (EPA) biodiesel production in the U.S. broke the 1 billion mark for the second consecutive year. The total volume of nearly 1.1 billion gallons was roughly flat over 2011 production, exceeding it by just 6 million gallons.

“These numbers reflect the ongoing growth and development of our industry and represent real jobs at plants across the country,” said Anne Steckel, vice president of federal affairs for the National Biodiesel Board (NBB).”Biodiesel continues to account for the vast majority of the nation’s Advanced Biofuel production and is playing a significant role in diversifying our energy supplies with clean, American-made fuel.”

According to EPA numbers. production for the month of December totaled just 59 million gallons, the lowest monthly volume of the year. The December total marked the close of a year-end slump in which biodiesel production dropped significantly as Congress failed to renew the biodiesel tax incentive. However, with the new year brought the $1-per-gallon incentive renewal as part of the “fiscal cliff” legislation.

“It’s difficult not to wonder how much additional production and jobs could have been created if the biodiesel tax incentive had remained in place in 2012,” Steckel said. “It was a missed opportunity that significantly hurt many producers. But we are pleased that Congress reinstated the tax credit earlier this month and we expect significant growth in 2013.”

EPA’s reports biodiesel production as part of its Biomass-based Diesel category in the Renewable Fuel Standard (RFS). The EPA numbers show a total of just over 62 million gallons of Biomass-based Diesel for the month of December, but that figure includes several million gallons of renewable diesel production.

Are You Ready for 2013 National Biodiesel Conference

National Biodiesel Conference 2013For the first time ever the National Biodiesel Conference will be held in Las Vegas. The Domestic Fuel team will be there. Here’s where you can find registration information.

To get a preview of what’s to come listen in on an interview with Jessica Robinson, Director of Communications for the National Biodiesel Board. The conference theme is Momentum. Jessica says the theme fits on several levels. To start with, the National Biodiesel Board and biodiesel is celebrating its 20th anniversary. Then you have to look at the challenging year the industry had in 2012. Now NBB feels like it is poised for new growth in 2013. It is the first time the conference has been held in Las Vegas.

You can listen to my preview interview with Jessica here: Preview Interview with Jessica Robinson

Ag Secy Vilsack to Address NBB Conference

USDA Secretary Tom Vilsack, who just accepted a second four-year term as part of the Obama Administration’s second term, will give a keynote address at the National Biodiesel Conference & Expo in Las Vegas February 4-7, 2013. Vilsack is widely recognized for his leadership in support of the biofuels industry. His address will close out the conference on Thursday, Feb. 7.

Tom Vilsack and biofuels Photo USDA,jpg“Sec. Vilsack is one of the strongest advocates for renewable fuels in the nation, and we are thrilled to have him speak to our industry at the conference,” said Joe Jobe, CEO of the National Biodiesel Board. “Federal biodiesel policies reduce dependence on foreign oil, build green jobs at home, and are stimulating a rural renaissance. Sec. Vilsack has played a huge role in the continued support for these policies, and we’re looking forward to thanking him for his unwavering support.”

Vilsack has called the biodiesel industry a shining example of the promise of a new rural economy, creating opportunities for energy security, farmers, and revitalized job growth in small towns.

In March 2011, President Obama laid out is goal of reducing oil imports by half by 2020 in his Blueprint for a Secure Energy Future. As part of the plan, the Environmental Protection Agency (EPA) has increased the federal targets for biodiesel under the Renewable Fuel Standard to 1.28 billion gallons. Another win for energy security came on Jan. 1, 2013 when Congress passed the American Tax Relief Act, which included a $1 dollar per gallon biodiesel tax incentive.

Jobe added, “As we celebrate the 20th anniversary of the National Biodiesel Board, one of our goals for this conference is to examine where we see America’s Advanced Biofuel in the next 20 years. The Secretary has a vision for American agriculture’s contribution to energy security and the economy, and we are eager to hear his insight on our long-term role.”

You’re Invited – Green Guides Webinar

What’s it mean to be “green,” “non-toxic” and “renewable”? You’ll will be able to answer these questions after participating in the upcoming webinar: FTC ‘Green Guides’: Implications for biodiesel and biobased communications being held on January 17, 2013 at 1:00 CST.

NBB-logo1During the webinar, participants will learn what the Federal Trade Commission’s (FTC) revised “Green Guides” mean for biodiesel and biobased products manufacturers and marketers.  FTC has recently updated its “Green Guides,” which are designed to help marketers ensure that the claims they make about the environmental attributes of their products are truthful and non-deceptive.

The National Biodiesel Board (NBB) is offering this webinar to NBB members and biobased products manufacturers. The featured speaker is FTC Senior Attorney Laura Koss. In addition to her extensive work on the “Green Guides,” Koss has worked on a variety of matters, including investigations involving the advertising and promotion of dietary supplement products and country-of-origin claims. Prior to working at the FTC, Ms. Koss was an Associate at the international law firm Crowell & Moring in Washington, D.C.  She holds a bachelor’s degree from Cornell University and a J.D. from Harvard Law School.

Click here to learn more about the webinar and to register.

Students Earn Scholarships to Futher Biodiesel Education

StudentScholarship_Robert_Willis_USUSeveral students from around the U.S. will get a hands-on biodiesel education during the National Biodiesel Board’s Annual Conference: Momentum, February 4-7, 2013 in Las Vegas. Sixteen young college scientists were selected to receive scholarships to the conference, a program the National Biodiesel Board views as a long-term investment.

“There is tremendous potential for this NBB program to have a lasting impact on biodiesel research,” said Kyle Anderson, NBB’s Technical Projects manager. “It’s a great investment to share solid information and build relationships with tomorrow’s scientific thought leaders.”

The scholarships were awarded to members of the Next Generation Scientists for Biodiesel, an NBB program that aims to educate and collaborate with young scientists. This year’s scholars come from schools such as Utah State University, University of Colorado, Texas A&M, Southern Illinois University, and Clemson University.

“I believe the knowledge and professional network I will gain from this conference will only allow my passion for biofuels to grow, and will strengthen my commitment to continue in a field that is so important to our quest for global sustainability,” said Nina De la Rosa, an Environmental Studies student at Florida International University in Miami who was awarded one of the scholarships, and will present a poster on her research during the event.

The scholarships are funded by state soybean organizations and the United Soybean Board through the soybean checkoff. To learn more about the NBB Conference including online registration click here. You can learn more about the Next Generation Scientists for Biodiesel here.

Sen. Byron Dorgan to Keynote NBB’s Momentum

Retired Senator and biodiesel champion Byron Dorgan will be the keynote speaker on Wednesday, February 6, 2013 at the National Biodiesel Conference & Expo in Las Vegas. While serving as a senator, Dorgan consistently sponsored legislation that became the Renewable Fuel Standard (RFS), and advocated for the DorganLRbiodiesel tax incentive and energy program in the Farm Bill. A recognized leader and expert in energy and agriculture issues, Dorgan remains well-positioned to help shape future energy policy.

First elected to Congress in 1980, Dorgan represented his home state of North Dakota for 12 years in the U.S. House followed by 18 years in the U.S. Senate where he was a senior senator on the Appropriations, Energy, and Commerce Committees in the Senate. After retiring, he became a senior fellow at the Bipartisan Policy Center, where he recently joined former Senate Majority Leader Trent Lott to launch and chair the center’s Strategic Energy Policy Initiative. He also serves as co-chairman of the government relations practice Arent Fox.

“During his career in public office, Senator Dorgan consistently championed renewable energy and energy independence, promoted the economic needs of rural America, and fought for sound economic policies,” said Joe Jobe, CEO of the National Biodiesel Board. “Senator Dorgan continues to be a thought leader in Washington D.C. and is highly engaged in energy policy development. We’re thrilled that he will join us to share his insights as we lay a course for America’s Advanced Biofuel for the next 20 years.”

Dorgan is on the short list to become Energy Secretary during President Obama’s second term should current Secretary Steven Chu resign.

Click here for more conference information and to register.

Fiscal Cliff Aversion Benefits Biodiesel

The U.S. House of Representatives burned the midnight oil of the first day in the New Year and signed the Senate’s “fiscal cliff” bill. The package includes several tax extenders items, including the reinstatement of the 2013 biodiesel blenders tax credit as well as retroactive credit for 2012. Shortly after the vote, the biodiesel industry reacted including the Renewable Energy Group (REG), the country’s largest biodiesel producer.

us-capitol-fiscal-cliff-vote Photo: Bloomberg | ANDREW HARRAR“We are thankful that Congress and the President support the growth of the biodiesel industry through the reinstatement of the credit and for recognizing biodiesel’s important role in energy and food security and job creation. This tax credit provides certainty for our petroleum distributor customers and, in turn, market stability for commercial biodiesel producers like us.”

The National Biodiesel Board will have something good to celebrate during its 10th Annual Conference: Momentum next month. The $1-per-gallon biodiesel tax incentive was first implemented in 2005. Congress has allowed it to lapse twice, in 2010 and again in 2012. Under the legislation approved by the House on Tuesday and first passed by the Senate on Monday, the incentive will be reinstated retroactively to Jan. 1, 2012 and through the end of 2013. Each time the tax credit lapsed, thousands of jobs were lost and production dropped.

“It’s been a long year with a lot of missed opportunity and lost jobs in the biodiesel industry. But we’re pleased that Congress has finally approved an extension so that we can get production back on track,” said Anne Steckel, vice president of federal affairs at the National Biodiesel Board (NBB). “This is not an abstract issue. In the coming months, because of this decision, we’ll begin to see real economic impacts with companies expanding production and hiring new employees.”

Randy Olson, executive director of the Iowa Biodiesel Board, added,  “The passage of the biodiesel tax incentive will mean tangible job creation in Iowa and beyond.  Encouraging production of American-made fuel brings economic development and energy security – two of our nation’s top priorities.  This is an investment in American energy that will pay dividends.  Although the federal Renewable Fuel Standard helped create market stability, one Iowa plant was forced to shut its doors temporarily. The reinstatement of the tax incentive will help Iowa biodiesel reach its full potential.  In 2013, we can expect a thriving industry that contributes even more to the state’s economy.”

It is expected that President Obama will sign the package quickly. The new Congress begins on January 3, 2013 and members have stated that they will continue to work through the country’s financial issues.

Bioheat is Cool

The National Biodiesel Board has launched a new television advertising campaign in the Northeast to promote the use of Bioheat. Bioheat is heating oil blended with biodiesel and is a renewable option for consumers and businesses that use heating oil to heat homes and offices. The campaign is funded by the Nebraska Soybean Board, the United Soybean Board, the Iowa Soybean Association and the South Dakota Soybean Research & Promotion Council.

BioheatTVThe commercials began running throughout the Northeast in late November, and will run for the next few months during local newscasts and football pregame shows in markets such as Boston, New York City, and Hartford, Conn. The ads highlight the benefits of Bioheat, including greater energy independence, supporting American Jobs, and “making the air in your home and town cleaner.”

“Strong imagery supporting our message is an advantage in creating a connection with customers,” said Paul Nazzaro, petroleum liaison for the National Biodiesel Board. “Consumers see the visual of a Bioheat truck, and see families like theirs, which helps personalize the message. Our goal is simply to pique their curiosity, drive them to the Bioheat website, and contact a dealer who carries it.”

In New York City, one of the commercials congratulates the city on using 2 percent biodiesel in all of its heating oil, thanks to a law that took effect in October. The ads proclaim New York City “Proud 2B2,” a play on the B2 requirement. The campaign is also a marketing tool for Bioheat dealers who can use the commercials in their own markets or on their websites.

Greg Anderson, a fifth generation farmer in Newman Grove, Nebraska said of the Bioheat campaign, “The oilheat market genuinely wants and needs our product, which empowers farmers to continue participating in the U.S. energy sector. Soybean farmers are very proud to wave the Bioheat flag because we recognize the tremendous potential it holds for both our industries.”

DF Cast: Biodiesel Helps Livestock Producers

We’ve known for quite a while that biodiesel is helping the bottom lines of feedstock producers, in particular, the nation’s soybean growers. But a new study from the National Biodiesel Board says livestock producers are also sticking more green in their pockets thanks to the green fuel.

In this edition of the Domestic Fuel Cast, we hear from the NBB’s senior advisor for economic issues, Alan Weber, and NBB member and Nebraska farmer and livestock producer Greg Anderson, who explain the bottom line results from a new study.

Check out the NBB’s reports here: AF T BD Demand Impact Final and SBM Analysis Feb 2011 Final

You can listen to the Domestic Fuel Cast here: Domestic Fuel Cast - Biodiesel and Livestock

You can also subscribe to the DomesticFuel Cast here.

Last Call for Biodiesel Tax Incentive?

With the end of the year soon approaching, the National Biodiesel Board (NBB) is calling for the reinstating of the biodiesel tax incentive that expired at the end of 2011.  With a Congressional lame duck session on the docket for mid-November, the group is encouraging biodiesel stakeholders and supporting Americans to make a final push for the support of the tax incentive.

According to a statement from NBB, the biodiesel incentive has strong bipartisan support and points out that nearly every state in the county has a biodiesel plant. To keep the fuel flowing, NBB is asking Congress to pass a tax incentive package that include’s a $1 per gallon biodiesel tax credit.

So calling all biodiesel supporters. NBB has set up a Fueling Action advocacy website that will provide you with draft letters to Congress and local legislators as well as talking points and other educational tools to help you spread support for biodiesel.

Top Reasons to Attend Biodiesel Conference

The National Biodiesel Board (NBB) is celebrating its 20th anniversary and its 10th biodiesel conference. Don’t miss out on next year’s event: Momentum – National Biodiesel Conference & Expo 2013. The conference will take place February 4-7, 2013 in Las Vegas. But in this case, what happens in Vegas should not stay in Vegas. The tips you learn, contacts you make and insights you gain into important biodiesel policy, cutting edge technologies and more will be things you want to take home and try out. That’s why #3 on the list of the top 10 reasons that the National Biodiesel Board gives for attending the conference is…Bring it Home!

Here is a sampling of the some of the sessions you’ll not want to miss.

  • Betting on Biodiesel: Will We Reach 100% B20 Approval?
  • RINtegrity
  • The Future is Unwritten: Going “All-in” with Biodiesel Feedstocks
  • Chain Link: Developing a Supply Chain for Biodiesel
  • State of the States: Legislative and Regulatory Update
  • You Say You Want an Evolution? How a Bioheat Campaign Created Change

You can learn more about Momentum as well as register online by visiting the conference website.

New York All Bioheat All the Time

It might not seem like winter will come this year, but it will. New Yorkers are preparing for colder temperatures and on October 1, 2012, all the heating oil (oilheat) will contain at least 2 percent biodiesel. Known as Bioheat fuel, it is gaining momentum in Northeastern and Mid-Atlantic U.S. states.

In 2010, New York City Mayor Michael Bloomberg signed an air quality bill that included a Bioheat provision for heating homes and buildings. This move was followed by a New York State bill requiring a switch to Ultra Low Sulfur Heating Oil, which took place in July.

Our members truly recognize Bioheat as the evolution of oilheat,” said John Maniscalco, CEO of the New York Oil Heating Association, which strongly supported the Bioheat mandate. “NYOHA has worked closely with the National Biodiesel Board in ensuring that our member companies and their customers recognize the many environmental and other benefits of Bioheat and we are proud to say that Bioheat usage has already increased dramatically. We are just getting started.”

The beauty of biodiesel is that is can be produced from waste oils including recycled restaurant grease, in abundance throughout the city. Recognizing this resource, the city along with entrepreneurial New Yorkers began using Bioheat and in some cases in even higher blends than the 2 percent biodiesel blend required by law. As often happens when the city adopts a trend, other states have followed.

The National Biodiesel Board (NBB) hailed the groundbreaking municipal legislation, and Paul Nazzaro, who heads up the Bioheat education program for NBB said, “The consumer is the ultimate benefactor of this law, now having access to truly 21st Century heating oil. The entire petroleum supply chain deserves credit for making the changes needed to embrace blending biodiesel with heating oil to deliver Bioheat.”

No other city has a Bioheat requirement in place, but several states have passed requirements that will go into effect when contingent states pass similar laws.