logo
menu
← Return to the newsfeed...

US Environmental Protection Agency holds public hearing on RFS proposal and hears views from biofuels industry

The US Environmental Protection Agency (EPA) has held a public hearing on the proposal for the Renewable Fuel Standard (RFS) and has heard the views of industry experts.

US trade body National Biodiesel Board (NBB) had several witnesses testify before the EPA staff and advocate for higher volumes of advanced biofuels and biomass-based diesel.

“The current numbers short-change the progress we have made. They are a step back for the RFS, job creation, small businesses and rural economies. Let me assure you—these steps backwards are not about paper but people,” said Donnell Rehagen, CEO at the National Biodiesel Board.

NBB supports increases in the volume requirements, believing the agency must be more aggressive in meeting Congress’s goals to prioritise and move this country toward advanced biofuels. This would create jobs, improve the economy and benefit public health and the environment throughout the country, according to the NBB.

The EPA proposal would maintain the minimum required biomass-based diesel volumes at 2.1 billion gallons for 2019.The EPA also proposed to set the 2018 RFS for advanced biofuels based on a minimum applicable volume of 4.24 billion gallons, a decrease from 4.28 billion gallons for 2017. A final rule is anticipated this fall. 

With a group of roughly 20 speakers, NBB flagged key data and information for EPA staff as they take comments on this proposal. Specifically, NBB discussed market realities and underutilised capacity, the impacts on small businesses and manufacturing, feedstock availability and consumer choice.

‘Flexibility of biodiesel’

“The market today has shown it can be used in a variety of locations, in all temperatures and in numerous, diverse applications. This market extends across the country—in rural areas, in urban areas, on-road, off-road and even in homes, buildings and factories. That’s the flexibility of biodiesel, which can be used throughout the distillate fuel market. This market is expected to increase, and the RFS program should ensure continued growth in renewable fuels for that market,” said Scott Fenwick, technical director at the National Biodiesel Board. 

“EPA’s current proposed volumes would stall biodiesel, an important Iowa manufacturing sector, at a time when it is already operating below its capacity. The US can meet production demand and has substantial room for growth, which EPA’s proposal does not acknowledge,” said Grant Kimberley, executive director of the Iowa Biodiesel Board. 

Renewable Fuels Association

In testimony delivered at a public hearing today in Washington, D.C., Renewable Fuels Association (RFA) President and CEO Bob Dinneen thanked the EPA for proposing to maintain the 15 billion gallon requirement for conventional renewable fuels in its 2018 Renewable Fuel Standard (RFS) rule, but urged the agency to increase its proposed cellulosic ethanol requirement to reflect growing bolt-on technologies at existing ethanol plants.

“We understand the agency’s dilemma in establishing an appropriate RVO for cellulosic ethanol, but we truly believe the agency has erred on the side of pessimism with regard to the potential for significant growth in cellulosic ethanol commercialisation,” Dinneen told EPA. “We know that many plants are in the process of adding bolt-on fiber conversion technology to their existing facilities that could dramatically increase cellulosic ethanol production next year, and we intend to provide you with updated projections during the comment period.”

Rob Walther, Poet VP of Federal Affairs, said: “Today, I would like to focus on how this proposed rule half delivers on the promise of the RFS and promises made by the President to the ethanol industry and agricultural sector. When President Trump visited Poet’s Gowrie, Iowa ethanol plant and shook hands with the men and women who worked there, he said our industry would continue to grow under his Administration. When our CEO met President-elect Trump, he said the same thing. And just recently on June 21st, Trump, now as President of the US, again in Iowa said clearly “we are saving your ethanol industries in the state of Iowa just like I promised I would do in my campaign.”

“Yet, the proposed rule offered by EPA would be the first in the ten-year history of the RFS programme that lowers the total volumes of biofuels from a prior year. While volumes that starch ethanol or conventional can take advantage of remain at their cap of 15 billion gallons, the emerging cellulosic industry took a cut. These cellulosic fuels will be initially built out in Iowa, Wisconsin, Michigan, Ohio, and other Midwestern states. At a time that the agricultural crisis noted by the Wall Street Journal, is picking up momentum and rural America is in serious jeopardy of mass farm bankruptcies, we can ill afford regressions in the federal government’s commitment to the heartland.”

On small businesses, investments and manufacturing 

“While we have looked at expanding our biodiesel production, the continual uncertain [renewable volume obligations] RVO policy has stymied our expansion appetite,” testified Ron Marr of the Minnesota Soybean Processors.

“We, and many other small producers, have had to struggle in a difficult business environment when EPA proposes RVOs that are well below what the biodiesel industry can produce. NBB has proposed very reasonable volumes of at least 2.75 billion gallons for biomass-based diesel in 2019 and at least 5.25 billion gallons of advanced biofuels for 2018. These volumes are well within the capabilities of the biodiesel industry and should be strongly considered. Anything less certainly misses the opportunity to help meet the objectives of the RFS and perpetuates the difficult business climate in which small producers like Newport Biodiesel must operate,” said Bob Morton of Newport Biodiesel. 

“If EPA were to leave the biomass-based diesel RVO at 2.1 billion gallons for 2019—or worse—reduce the RVOs based on ill-conceived and illogical arguments, EPA not only will badly damage American investment made in this industry, but will severely limit and discourage further investment and growth in this important manufacturing sector,” said Paul Teta, VP and General Counsel at Kolmar Americas.

Farming economy

“The US soybean harvest last year was a record 4.3 billion bushels—380 million bushels larger than the previous year. Those additional bushels represent an extra half a billion gallons of vegetable oil that the global market has had to absorb resulting in lower prices for agricultural producers and lower profit potential. USDA forecasts a similar crop of 4.25 billion bushels in 2017. I note these examples of excess supplies as our modeling results indicate RVOs could be increased to levels supported by the National Biodiesel Board and feedstock prices would still be less than their five-year average,” testified J. Alan Weber, partner at MARC-IV. 

“Biodiesel also makes farming more profitable. It contributes about 63 cents per bushel of soybeans, while lowering the price of meal for livestock producers and the food supply. … Biodiesel has revitalized many rural areas of Iowa, and reversing course would harm those communities,” said Grant Kimberley, executive director of the Iowa Biodiesel Board. 

Consumer choice

“Consumers choose biodiesel. They choose it because of the lower costs at the pump, because it provides better lubricity than petroleum diesel and because of the air quality benefits for their communities,” said NBB’s Scott Fenwick. 

Background to RFS

The RFS—a bipartisan policy passed in 2005 and signed into law by President George W. Bush—requires increasing volumes of renewable fuels to be blended into the US fuel stream. 

“The RFS was designed to drive investment and innovation by providing stability and incentives for the development of clean alternative fuels. This proposal falls short of that goal. This proposal only perpetuates the status quo that Congress decisively sought to change in passing the RFS—the lack of real, sustainable alternatives to petroleum, particularly diesel fuel,” said NBB’s Anne Steckel. 

“The biomass-based diesel industry has responded to Congress’ directives under the RFS program. It has made investments, it has diversified its feedstocks and it has become more efficient—all the while, promoting the goals of the program: creating a better environment, improving the economy, and strengthening this country’s energy independence and security,” said NBB’s Doug Whitehead. 

The law is divided into two broad categories: conventional biofuels, which must reduce greenhouse gas emissions by at least 20%, and advanced biofuels, which must have a 50 percent reduction. Biodiesel is the first advanced biofuel to reach commercial-scale production nationwide and has made up the vast majority of advanced biofuel production under the RFS to date, the NBB said.

To find out more about the biofuels market come and visit the tenth Biofuels International Conference & Expo. Register now for Biofuels International 2017 for two days of essential learning to network with experts, sharpen your biofuels knowledge and improve your skills, on 4-5 October.





221 queries in 0.541 seconds.