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EPA publishes 2013 RIN data

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By Erin Krueger

January 30, 2014

Policy Business Markets 

The U.S. EPA has published renewable identification number (RIN) generation data for December and all of 2013, reporting that the biofuel industry generated nearly 16.62 billion RINs last year, including nearly 1 million cellulosic RINs.

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The European Renewable Ethanol Association (ePURE) has filed a complaint with the European Commission's office of complaints with a view to stopping the circumvention of EU anti-dumping duties on fuel ethanol.

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he U.S. Farm Bill is a five-year piece of legislation that typically takes six years to develop and reach consensus among U.S. senators, representatives, and the president. Orchestrating this feat is nothing short of a miracle.

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The U.S. House of Representatives has approved the conference report for the 2014 Farm Bill by a vote of 251 to 166. The farm bill conference committee approved the conference report for the bill on Jan. 27. A U.S. Senate vote is expected next week.

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Job creation, higher wages and investments in the U.S. education system were a few of several focus points during President Obama's State of the Union address, which reiterated the administration's "all-of-the-above" energy strategy.

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Cost advantage may be ethanol's real strong suit. We report this month that the implementation of E15, and the proliferation of E85 pumps and flex-fuel vehicles, hinges on ethanol's competitive price relative to gas.

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The agriculture committees of the U.S. House of Representatives and U.S. Senate have announced a bipartisan agreement on a new five-year Farm Bill. The House is expected to vote on the measure on Jan. 29, with a Senate vote expected soon after.

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The public comment period on the U.S. EPA's proposed rule to set 2014 volume requirements under the renewable fuel standard (RFS) closes on Jan. 28 at 11:59 p.m. Already, more than 15,500 comments have been filed on the proposal.

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A recent analysis published by economists with Iowa State University's Center for Agricultural and Rural Development determined that maintaining the renewable fuel standard (RFS) would not result in higher retail fuel prices for customers.

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The EPA's public comment period on its proposed 2014 renewable volume obligations (RVOs) ends tomorrow. It's not clear how long the EPA will take to digest industry feedback, nor is it clear what the agency will decide. Observers are optimistic.

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The U.S. EPA has announced it is granting petitions filed by the American Petroleum Institute and American Fuel & Petrochemical Manufacturers for reconsideration of the cellulosic biofuel volume requirement under the 2013 renewable fuel standard.

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Much of the consternation over corn ethanol, including the current debate on the renewable fuel standard, is rooted in America's ability to produce sufficient corn to meet the needs of food and fuel. This, of course, is dependent on weather.

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ICM's Steve Vander Griend has immersed himself in understanding ethanol's performance, both as a fuel and in the tests used by regulatory agencies. As one of the biofuel's top technical agents, he's working hard to true up ethanol emissions testing.

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RFS is a Gold Medal Win

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By Bob Dinneen

January 25, 2014

Just as in the last 10 minutes of the U.S./Soviet 1980 Olympic hockey game where goalie Jim Craig blocked shot after shot, the ethanol industry will continue to deflect shots from Big Oil, Congress and the EPA in order to protect the RFS.

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The Ninth Circuit Court of Appeals has denied the petitions requesting a rehearing en banc regarding California's Low Carbon Fuels Standard. As such, a prior ruling that the LCFS does not violate interstate commerce laws stands.

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Study shows statutory 2014 RFS requirement could be reached

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By Renewable Fuels Association

January 24, 2014

A new study by Informa Economics shows the originally intended Renewable Fuel Standard (RFS) 2014 blending requirements can be reached through expanded consumption of E85 and E15, as well as judicious use of carryover RIN credits.

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U.S. station owners are starting to see the retail allure of gasoline containing a third more ethanol than today's standard blend. E15's early implementation has been steady yet challenging. Now, the pace of adoption appears to be quickening.

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With the window for commenting on the EPA's proposed 2014 renewable volume obligations closing in just days, Big Oil is fighting hard against ethanol. We still face a tough fight with some regulators and Congress this year, but we will win.

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A bipartisan group of senators has issued a letter to U.S. EPA Administrator Gina McCarthy expressing concern over the EPA's proposed rule to set 2014 renewable fuel standard (RFS) volume requirements and urging the EPA to modify the proposal.

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E85 Pump Pros

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By Ron Kotrba

January 22, 2014

Propel Fuels and Protec Fuel share similar names and the goal of making America's highest ethanol blend pervasive in high-population, FFV-dense regions of the country. Will a curtailed RFS and flex-fuel vehicle uncertainty impede their progress?

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Win or lose in the RFS discussion, ethanol leaders must put their best foot forward and get ahead of the curve. It's time for producers to up their market development games and make a collective industry push for higher-level blends.

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EPA's Un-depth E15 Un-analysis

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By Ron Lamberty

January 22, 2014

Big Oil has done little to meet its increased biofuels obligations. Now, the EPA is proposing to reward their belligerence by curtailing the renewable fuels standard. It's like the IRS lowering someone's taxes because they refused to pay.

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The U.S. EPA's proposed reductions to the 2014 renewable fuel standard (RFS) volume requirements will not only impact current biofuel producers, the move is also expected to chill investment in second generation cellulosic projects and technologies.

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The European Commission has published a proposal calling for a greenhouse gas reduction of 40 percent below the 1990 level along with an EU-wide 27 percent binding target for renewable energy by 2030. The proposal doesn't address transport fuels.

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Changing the Tide

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By Robert Vierhout

January 21, 2014

By June, the European ethanol industry must find a way to convince the parliament, the European Commission, and other stakeholders that supporting first- and second-generation ethanol is a worthwhile investment. It will require a solid strategy.

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Corn kernel fiber conversion technology holds great promise, but RIN integrity standards are paramount to the value and marketability of advanced ethanol derived from this exciting new pathway. Fortunately, quality assurance plan services are here.

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Ethanol producers are enjoying generous margins in recent weeks, even as uncertainty over the fate of the renewable fuels standard (RFS) weighs upon the long-term outlook. Late November saw the best ethanol margins since the height of the 2006 boom.

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The European Renewable Ethanol Association (ePURE) calls on the European Commission to elaborate upon the successes of the current policy by proposing new binding targets for greenhouse gas reductions and renewable energy use in transport by 2030.

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The costs of fertilizer, land rents and seed, along with the associated expense of machinery depreciation, have spiked dramatically over the past several years. Has it reset the breakeven point for American corn farming?

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In December, logistics were the primary market driver in the DDGS market. Whether in railcar turn times, empty container availability or even truck availability to move the product, transportation is affecting prices.

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