The Biobased and Renewable Products Advocacy Group (BRAG) helps members develop and bring to market their innovative biobased and renewable chemical products through insightful policy and regulatory advocacy. BRAG is managed by B&C® Consortia Management, L.L.C., an affiliate of Bergeson & Campbell, P.C.


 

 

 

By Lynn L. Bergeson

On August 21, 2019, Iowa Democratic Representative Cindy Axne asked the U.S. Environmental Protection Agency’s (EPA) Inspector General (IG) to investigate how EPA decided to grant the exemptions from the Renewable Fuel Standard (RFS) requested by oil refiners. EPA approved 31 petitions for waivers from the 2018 requirements.  Lawmakers are not pleased at what appears to be EPA favoring the oil industry. Hence, Representative Axne’s call for an IG investigation into how EPA decided to expand the number of waivers it issued since President Trump came into office. Representative Axne held a press conference on August 21, 2019, at Southwest Iowa Renewable Energy, an ethanol producer in Iowa.  This is the same plant where Trump touted his action expanding sales of 15 percent ethanol.
 
According to Reuters, Trump is seeking to mollify corn farmers who are incensed over the exemptions. He personally approved EPA’s decision to go ahead with the waivers, but in a cabinet meeting, Trump told his staff to figure out a way to pacify the farmers.  Alarmingly, and according to a refinery industry source, the President also asked EPA Administrator Andrew Wheeler if he could take the exemptions back; he was told he could not.
 
Citing data from the Energy Information Administration (EIA), EPA stated the United States had been setting records for both ethanol production and exports. “There is zero evidence that EPA’s Congressionally mandated small refinery exemption program, which provides regulatory relief to small refineries around the country, has had any negative impact on domestic corn ethanol producers,” EPA said in a statement. Nonetheless, POET, the largest U.S. ethanol producer, has idled an Indiana plant due to the waivers. “Our industry invested billions of dollars based on the belief that oil could not restrict access to the market and EPA would stand behind the intent of the Renewable Fuel Standard,” POET CEO Jeff Broin said in a statement. “Unfortunately, the oil industry is manipulating the EPA and is now using the RFS to destroy demand for biofuels.”

Tags: EPA, RFS, Biofuel

 

By Lynn L. Bergeson

On August 28, 2019, from 10:00 a.m. to 3:30 p.m. (CDT), the Nebraska Ethanol Board (NEB) will host a free workshop for fuel retailers across the state to demonstrate the benefits and ease of offering ethanol-15 (E15) fuel to customers. The one-day workshop will cover misconceptions about the cost of offering E15, best practices, and resources to make implementing and labeling infrastructure easy and affordable. Space is limited, and interested parties must register by August 23, 2019.

Tags: E15, Biofuel

 

 

 

By Lynn L. Bergeson and Ligia Duarte Botelho, M.A.

On July 26, 2019, U.S. Senator Pat Toomey (R-PA) announced that he is working with U.S. Senator Dianne Feinstein (D-CA) on the Restore Environmental Sustainability to Our Renewable Energy (RESTORE) Act. In an effort to end what Toomey describes as an “egregious form of corporate welfare that hurts the environment and drives up the cost of everything,” the RESTORE Act would abolish the corn ethanol mandate under the Renewable Fuel Standard (RFS). Toomey further argues that, because the RFS forces drivers to purchase billions of gallons of corn ethanol annually, it also harms the environment and causes prices to rise, not only of gasoline, but also of damaged engines and groceries. Calling for a phaseout of the ethanol mandate, the RESTORE Act focuses on transitioning to advanced, lower carbon fuels for the country’s transportation needs.
 
The RESTORE Act is not Toomey’s and Feinstein’s first attempt to abolish the corn ethanol mandate. In 2015, Feinstein and Toomey offered an amendment to the Keystone pipeline bill that would have repealed the corn ethanol mandate under RFS: the Corn Ethanol Mandate Elimination Act of 2015. This Feinstein-Toomey amendment suggested the same modifications the RESTORE Act now proposes and the language used to describe the need for these changes is similar in both Toomey’s July 2019 and Feinstein’s 2015 announcements. Using the exact same arguments that were used in 2015, the RESTORE Act demonstrates Toomey and Feinstein’s determination to abolish the corn ethanol mandate.

Tags: Biofuel, RFS

 

By Lynn L. Bergeson

On August 6, 2019, the Minnesota Department of Agriculture (MDA) announced four grants aiming to expand biofuel access and production to advance the state’s renewable energy efforts. Awarded to four recipients by MDA’s Agricultural Growth, Research and Innovation (AGRI) Program, the grants total more than $500,000. One Bioenergy/Biochemical Pilot Project Grant was awarded, providing funding to advance bioenergy and biochemical production technology to a commercial scale. Three Biofuel Blending Infrastructure Grants were awarded to expand the use of blending infrastructure equipment in Minnesota.


 

By Lynn L. Bergeson and Ligia Duarte Botelho, M.A.

On July 31, 2019, EPA held a public hearing in Ypsilanti, MI, to obtain stakeholders’ input on its proposed rule to set Renewable Fuel Standard (RFS) 2020 renewable volume obligations (RVO) and 2021 biomass-based diesel volume. Among the various stakeholders providing oral statements to EPA were representatives from Growth Energy, the National Corn Growers Association (NCGA), the Renewable Fuels Association (RFA), Hero BX, and the National Biodiesel Board (NBB). Most of the oral comments provided were in opposition to the proposed rule. Industry representatives highly critized the proposed rule, stating that the RVOs proposed were unreasonable and would negatively impact economic growth through demand destruction and job losses. Many stakeholders also expressed disappointment that, in its proposed rule, EPA failed to account for approved Small Refinery Exemptions (SRE) granted. In agreement with other stakeholders’ comments, Growth Energy’s Vice President of Regulatory Affairs, Chris Bliley, stated that progress made thus far under the RFS Program is being threatened by this proposal. Bliley also added that too many exemptions have been granted in secrecy by EPA. Criticism was also made regarding compliance costs and its negative impact on jobs should this rule be approved. Tim Keaveney, Executive Vice President of Business Development at Hero BX, urged EPA to raise the RVOs for biodiesel to enable further industry growth. Overall, there seemed to be a general agreement that the proposed rule betrays President Trump’s commitment to maintaining the RFS Program.

Tags: EPA, RVO, RFS, Biofuel

 
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