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 October 15, 2019, EPA Administrator, Andrew Wheeler, signed a supplemental notice of the proposed rule on the Renewable Fuel Standard (RFS) that proposes to establish the cellulosic biofuel, advanced biofuel, and total renewable fuel volumes for 2020 and the biomass-based diesel volume for 2021. Although the rule does not change the volumes for 2020 and 2021 proposed in July 2019, it proposes and seeks comment on adjustments to the way that annual renewable fuel percentages are calculated. Annual renewable fuel percentage standards are used to calculate the number of gallons each obligated party is required to blend into their fuel or to otherwise obtain renewable identification numbers (RIN) to demonstrate compliance. Specifically, EPA is seeking comment on projecting the volume of gasoline and diesel that will be exempt in 2020 due to small refinery exemptions based on a three-year average of the relief recommended by the U.S. Department of Energy (DOE), including where DOE had recommended partial exemptions. EPA intends to grant partial exemptions in appropriate circumstances when adjudicating 2020 exemption petitions. EPA proposes to use this value to adjust the way it calculates renewable fuel percentages.

According to the prepublication notice, comments must be received on or prior to November 29, 2019. EPA will hold a public hearing in Ypsilanti, Michigan, on October 30, 2019, starting at 9:00 a.m. (EDT).


 

By Lynn L. Bergeson

On October 4, 2019, U.S. Environmental Protection Agency (EPA) Administrator, Andrew Wheeler, and U.S. Department of Agriculture (USDA) Secretary, Sonny Perdue, announced President Trump’s negotiated agreement on the Renewable Fuel Standard (RFS).  Under the agreement, EPA and USDA will undertake the following actions:

  • In a forthcoming supplemental notice building off the recently proposed 2020 Renewable Volume Standards and the Biomass-Based Diesel Volume for 2021, EPA will propose and request public comment on expanding biofuel requirements beginning in 2020.
    • EPA will seek comment on actions to ensure that more than 15 billion gallons of conventional ethanol be blended into the nation’s fuel supply beginning in 2020, and that the volume obligation for biomass-based diesel is met.  This will include accounting for relief expected to be provided for small refineries.
       
    • EPA intends to take final action on this front later this year.
       
    • In the most recent compliance year, EPA granted 31 small refinery exemptions.
       
  • Building on the President’s earlier decision to allow year-round sales of E15, EPA will initiate a rulemaking process to streamline labeling and remove other barriers to the sale of E15.
     
  • EPA will continue to evaluate options for [renewable identification number] RIN market transparency and reform.
     
  • USDA will seek opportunities through the budget process to consider infrastructure projects to facilitate higher biofuel blends.
     
  • The Administration will continue to work to address ethanol and biodiesel trade issues.
EPA Administrator Wheeler commended Trump’s leadership in this matter, stating that this agreement continues to promote domestic ethanol and biodiesel production in support of U.S. farmers.  In addition, the agreement, according to USDA Secretary Perdue, found a way to pursue policy that promotes economic growth and energy security. A number of other elected officials also applauded Trump’s agreement.
Tags: RFS, Biofuel, EPA

 

By Lynn L. Bergeson

On October 2, 2019, the government of Quebec, Canada, published in its Official Gazette a notice of a draft regulation setting standards for the integration of renewable fuels into gasoline and diesel fuel.  Under the draft regulation, the standards will apply on July 1, 2021, and will then increase. As of July 1, 2025, the integration of a minimum volume of ethanol of 15 percent into gasoline and a minimum volume of biobased diesel fuel of 4 percent into diesel fuel will be required. Given the evaluation by the Canadian government of this matter, the notice states that the proposed regulation would have no particular impact on small and medium-sized businesses because the petroleum products distribution sector is made up of large businesses.  Also on July 1, 2025, enterprises subject to the regulation will invest a total of 110 million Canadian dollars in infrastructure to comply with the set standards for the integration of renewable fuels into gasoline and diesel fuel.


 

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

On October 2, 2019, the Green Party of Canada commented, via a press release, on its Green Climate Action Plan called “Mission:  Possible.” Aiming to exceed the U.S. Green New Deal, under this plan, the Green Party outlines a 20-step action plan to achieve the goal of zero emissions by 2050.  Part of the strategy outlined emphasizes the idea that heavy-duty industrial machinery will need to rely on biofuels.  Although the plan is to ban internal combustion engines and ensure that cars, buses, and trains are powered by electricity by 2030, biofuels will still be needed for fishing, mining, and forestry equipment.  According to the plan, these biofuel needs will be addressed through the creation of biofuels using waste plant matter from forests and agriculture -- and only plant-based biofuels.  Claiming that food that would otherwise be used to feed Canadians, the Green Party highly opposes food-based biofuels.  Its plan, therefore, promotes development of local, small-scale biodiesel production that would rely primarily on used vegetable fat from restaurants across Canada, along with wood and agricultural waste.  Fuel switching to biodiesel would be required for agricultural, fishing, and forestry equipment.


 

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

On October 2, 2019, the Governor of Minnesota, Tim Walz, announced that applications are now open for all 15 seats on the Governor’s Biofuels Council.  Established in September 2019 by Governor Walz, the Governor’s Biofuels Council advises the Governor and cabinet on how best to support Minnesota’s biofuels industry. Council members will include representatives of agriculture, biofuels, and transportation industries and environmental and conservation groups.  The Governor’s Biofuels Council is tasked with creating a report to advise the Governor and cabinet on the best methods to expand the use of biofuels, increase the carbon efficiency of biofuels, and implement biofuels as part of Minnesota’s larger goal to reduce greenhouse gas (GHG) production in the transportation sector.  Under Governor Walz’s September 16, 2019, Executive Order, the Governor’s Biofuels Council must complete the report by November 2020.  Thus far, 30 individuals have applied, and Governor Walz encourages “Minnesotans in every corner of the state to apply and share their expertise on this critical issue.”  Interested parties can access the application here.


 

 

 

 

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

 
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