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Bill would increase SRE transparency, reallocate waived volumes

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By Erin Voegele

May 23, 2019

PolicyBusiness

Reps. Collin Peterson, D-Minn., and Dusty Johnson, R-S.D., introduced legislation May 23 that aims to increase transparency surrounding Renewable Fuel Standard small refinery exemptions (SREs) and ensure any waived volumes are reallocated.

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U.S. Reps. Collin Peterson and Dusty Johnson and co-chairs of the Congressional Biofuels Caucus introduced a bill May 23 that establishes a June 1 deadline for refineries to submit SRE petitions from their RFS obligations and increases transparency.

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The U.S. Department of Energy's Argonne National Laboratory recently released an updated version of its Water Analysis Tool for Energy Resources (WATER), an online computer model meant to help bioenergy developers preserve critical resources.

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The U.S. EPA has released renewable identification number (RIN) generation data for April, reporting that more than 1.69 billion RINs were generated during the month, including more than 33.68 million cellulosic RINs.

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Thirteen trade groups representing farmers, rural lenders, crop and biobased oil producers, and biodiesel producers wrote leaders of the House of Representatives and Senate May 22, asking them to take action by extending the biodiesel tax credit.

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New data from CARB indicates that the LCFS continues to drive production of a growing volume of cleaner transportation fuels for California consumers. To date almost 3.3 billion gallons of petro diesel have been displaced by low-carbon alternatives.

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New 2018 data from the California Air Resources Board indicates that, to date, the state's LCFS has replaced 3.3 billion gallons of diesel with cleaner fuels. The data also shows fuel producers are in 100 percent compliance with the LCFS.

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On May 17, Gov. Pete Ricketts proclaimed May as Renewable Fuels Month in Nebraska during a ceremony a local fuel station. Following the official proclamation, the governor stepped up to the pump to fill customers' tanks with E15.

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ACE CEO Brian Jennings highlighted the scientific and economic opportunities U.S. farmers and biofuel producers hold to support climate change mitigation and get the rural economy back on track in a letter to Senate Ag committee leaders.

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The House Biofuels Caucus sent a bipartisan letter to U.S. EPA Administrator Andrew Wheeler May 20 expressing support for year-round sales of E15 and urging the agency to complete its proposed RIN reforms in a separate rulemaking.

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The U.S. EPA delivered its proposed Renewable Fuel Standard “reset� rule to the White House Office of Management and Budget May 20. OMB review marks a final step before a proposed rule is released for public comment.

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A U.S. appeals court denied a motion filed by the Advanced Biofuels Association last month seeking an injunction to prevent EPA from granting additional small refinery exemptions under RFS until its pending lawsuit with the agency is resolved.

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The U.S. EPA delivered its proposed Renewable Fuel Standard “reset� rule to the White House Office of Management and Budget May 20. OMB review marks a final step before a proposed rule is released for public comment.

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FROM THE JUNE ISSUE: The U.S. EPA hasn't issued a new pathway approval in over a year, but technology providers for corn kernel fiber-to-cellulosic ethanol remain optimistic.

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FROM THE JUNE ISSUE: Editor Lisa Gibson previews the magazine, including feature articles about D3 RIN pathway approvals, a summary of ACE's April fly-in, the 2019 FEW award winners, and more.

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Rep. Bill Flores, R-Texas, has reintroduced legislation that aims prevent RFS blending obligations from requiring ethanol to make up more than 9.7 percent of the total volume of gasoline projected to be sold in the U.S. for a given calendar year.

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A court on May 17 denied a motion filed the ABFA last month seeking a preliminary injunction preventing the EPA from granting any additional small refinery exemptions (SREs) under the RFS until its pending lawsuit with the agency is resolved.

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FROM THE JUNE ISSUE: The American Coalition for Ethanol's annual Washington, D.C., fly-in attracts participants from all sectors affected by ethanol to spend an afternoon lobbying for the industry.

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Ethanol could generate significant cost savings while boosting octane in fuel supplies in Indonesia. That's the message the USGC and its partners are conveying to Indonesian importers and government agencies to promote increased ethanol use.

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FROM THE JUNE ISSUE: Driving global ethanol demand by strengthening nations' fuel policies critical in reducing greenhouse gas emissions.

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The USGC is encouraging ethanol use in the South Korean transport sector, working with the USDA's Foreign Agricultural Service to provide information on the environmental, human health and economic benefits of blending ethanol into fuel supplies.

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The U.S. EPA released updated data on small refinery exemptions (SREs) May 16, reporting one of the 40 SRE applications filed for compliance year 2018 was withdrawn or declared ineligible. The 39 remaining SRE petitions for 2018 are still pending.

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Leaders of the Senate Finance Committee announced the formation of several bipartisan taskforces May 16 to examine 42 temporary tax provisions that expired or will expire by the end of 2019, including those related to biofuels and bioenergy.

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The U.S. EPA reportedly changed its small refinery exemption (SRE) evaluation process at least four months before a 2017 court ruling the agency often cites as the reason for its changed process. The policy change has financially benefited refiners.

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U.S. Senate Finance Committee Chairman Chuck Grassley and Ranking Member Ron Wyden announced the formation of several bipartisan task forces to examine temporary tax provisions that expired, or will expire, between Dec. 31, 2017, and Dec. 31, 2019.

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Ethanol: Let's Ride the Wave

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By Dave VanderGriend

May 15, 2019

FROM THE JUNE ISSUE: Making ethanol part of the "green wave" by debunking environmental misinformation.

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USGC members and staff participated in a recent trade mission to engage targeted Taiwan customers, connect them with U.S. suppliers to capture additional demand for products like U.S. DDGS and encourage increased ethanol use.

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The RFS has lowered gas prices by an average of 22 cents per gallon in recent years and saved the typical American household $250 annually, according to a study published May 15 by economist and energy policy expert Philip K. Verleger, Jr.

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The European Commission issued a decision May 14 announcing it will repeal anti-dumping duties on European Union imports of U.S. ethanol. The anti-dumping duties have been in place since early 2013.

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A grassroots effort is underway to help convince automakers to continue to produce FFVs. To date, nearly 750 people have signed an online petition. Organizers of the effort are hoping to grow that number to at least 10,000.

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