By Lynn L. Bergeson and Carla N. Hutton
The U.S. Environmental Protection Agency (EPA) announced on April 28, 2023, that it issued an emergency fuel waiver to allow E15 gasoline -- gasoline blended with 15 percent ethanol -- to be sold “during the summer driving season.” EPA states that this action will provide relief from ongoing market supply issues “created by Russia’s unprovoked war in Ukraine by increasing fuel supply and offering consumers more choices at the pump.” According to EPA, the waiver will help protect Americans from fuel supply crises by reducing reliance on imported fossil fuels, building U.S. energy independence, and supporting American agriculture and manufacturing. EPA notes that current estimates indicate that, on average, E15 is about 25 cents a gallon cheaper than E10.
|
Bergeson & Campbell, P.C. (B&C®) is a Washington, D.C., law firm providing biobased and renewable chemical product stakeholders unparalleled experience, judgment, and excellence in bringing innovative products to market.
|
|
Enter keywords: 
Add this blog to your feeds
|
By Lynn L. Bergeson and Ligia Duarte Botelho, M.A.
Several Senators co-sponsored the bill, including Tammy Baldwin (D-WI), Tammy Duckworth (D-IL), Deb Fischer (R-NE), Chuck Grassley (R-IA), and Roger Marshall (R-KS0. Senator Klobuchar stated that this bill will help to hold Vladmir Putin accountable for Russia’s invasion of Ukraine, while also investing in affordable, readily available biofuels produce in the United States. By Lynn L. Bergeson and Ligia Duarte Botelho, M.A. On March 3, 2021, the co-chairs of the House Biofuels Caucus, U.S. Representatives Cindy Axne (D-IA) and Rodney Davis (R-IL), introduced the Renewable Fuels Infrastructure Investment and Market Expansion Act, which would expand access to higher biofuel blends. Building off the U.S. Department of Agriculture’s (USDA) Higher Blends Infrastructure Inventive Program, this bill intends to provide consistent federal investment ($500 million over five years) on biofuels infrastructure, while also removing barriers to 15 percent ethanol and 85 percent gasoline (E15) fuel blends and allowing Underground Storage Tanks (UST) to store higher blends of ethanol. On the same day, with the support of Representatives Axne and Davis, among others, U.S. Representative Dusty Johnson (R-SD) introduced the Adopt GREET Act. The Adopt GREET Act would require that EPA update its greenhouse gas (GHG) models for ethanol and biodiesel to reflect better the environmental benefits of agriculture and biofuels. Specifically, EPA would be obligated, under this Act, to adopt the Argonne National Laboratory’s Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) Model for both biodiesel and ethanol fuels and update its model as needed every five years. Both pieces of legislation are being supported by several industry stakeholders, including the National Corn Growers Association, the Renewable Fuels Association, and Growth Energy. Recently, the North Dakota Corn Utilization Council (NDCUC) announced the implementation of its new program, the North Dakota Unleaded88 Expansion Program, in partnership with the North Dakota Ethanol Council (NDEC). The goal of the program is to partner with fuel retailers to provide drivers with Unleaded 88, which consists of a higher octane fuel containing 15 percent ethanol blend with 85 percent gasoline. Through June 30, 2020, NDCUC will grant funds to fuel retailers for infrastructure needs to offer Unleaded88. Claiming that Unleaded88 provides a safe, economical, and cleaner fuel option to consumers, NDCUC’s Chairman, Terry Wehlander states that 40 to 60 percent of North Dakota’s corn crop is purchased by its five ethanol plants. Therefore, Wehlander and the Chairman of NDEC both argue that increasing the availability of Unleaded88 will create more market stability for consumers and agricultural producers. Retailers interested in applying for the program can find the application and guidelines on NDCUC’s website and submit the application via e-mail. On August 30, 2019, the National Chicken Council submitted a letter to the U.S. Environmental Protection Agency (EPA) expressing concerns with the proposed required volume obligations (RVO) for 2020 combined with the recent waiver that will increase the use of ethanol-15 (E15) under the Renewable Fuel Standard (RFS). Representing companies that produce and process over 95 percent of the chicken in the United States, the National Chicken Council’s concerns are related to its broiler production, which comprises the largest single user of corn not operating under RFS. In its letter, the National Chicken Council claims that under RFS since 2007, broiler producers have faced $68.5 billion in higher feed costs for the production of broiler meat. Calling for greater efforts to create a more sustainable approach under RFS, Mike Brown’s, National Chicken Council President, concluding statements express the view that both the proposed RVOs for 2020 and the waiver allowing for E15 sales year-round are overly aggressive. These measures, according to the letter, are also overly reliant on corn-based ethanol, stating that it is likely to cause disruptions to the feed supply in the U.S. 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. On May 30, 2019, the U.S. Environmental Protection Agency (EPA) released in final the regulatory changes allowing gasoline blended with up to 15 percent ethanol (E15) to take advantage of the 1-psi Reid Vapor Pressure (RVP) waiver that applies to E10 during the summer months. This means that E15 can now be sold year-round in the U.S. without additional RVP control rather than just eight months of the year. EPA also released in final the rulemaking regulatory changes to modify certain elements of the renewable identification number (RIN) compliance system under the Renewable Fuel Standard (RFS) program. Aiming to increase transparency to the market and deter price manipulation, the reforms to RIN markets include a requirement for public disclosure when RIN holdings exceed specified thresholds, and the collection of additional data to improve EPA oversight. On April 29, 2019, the National Chicken Council submitted a letter to EPA’s Office of Transportation and Air Quality outlining the potentially negative impact of the changes to the biofuels policy on the poultry industry. In his letter to EPA, Mike Brown, President of the National Chicken Council, reported concern with EPA’s proposal on year-round ethanol-15 (E15) use under the Renewable Fuels Standard (RFS) Program. The National Chicken Council believes that EPA has failed to consider the impact of such volume waivers on the boiler industry, and for poultry and livestock feeders generally. Brown assures EPA that a year-round E15 use waiver “will result in a rapid expansion of corn use under the RFS adding the potential for price and supply volatility in the corn market.” Instead of the aforementioned proposed modifications, the National Chicken Council is suggesting that EPA consider a predictable, transparent off-ramp based on the U.S. Department of Agriculture (USDA) stocks-to-use-ratio in the June World Agricultural Supply and Demand Estimates (WASDE) report. Partial waivers would then be structured for the remainder of the year. The structure of the partial waivers is further detailed in the letter. On February 27, 2019, Senators Rand Paul (R-KY) and Chuck Grassley (R-IA) introduced the Fuel Choice and Deregulation Act of 2019 (S. 581). The legislation would remove “burdensome” regulations on domestic energy production. The bill “provides new economic opportunity for Kentucky farmers by allowing fuel producers and automobile manufacturers to innovate and bring new products to market that will lower costs for consumers, increase domestic energy production, and protect the environment,” said Senator Paul. The Fuel Choice and Deregulation Act would remove regulations blocking higher ethanol blends, such as gasoline blended with up to fifteen percent ethanol (E15), from entering the marketplace. It also removes the requirement for EPA certifications on aftermarket vehicle conversions. The bill specifically would reform Reid Vapor Pressure (RVP) requirements by allowing higher blend levels of ethanol to exceed the current 9.0 pounds per square inch (psi) standard, and it prevents EPA from regulating biomass fuel. RVP is a measure of how quickly fuel evaporates into the atmosphere. EPA regulates RVP in conjunction with ozone emissions in the summer months. Congress previously directed EPA to issue a “one pound waiver” for ethanol blends of ten percent, allowing E10 to be sold at 10.0 psi. Last year, President Trump signed an executive order directing EPA to look into the possibility of allowing year-round sales of E15. This bill extends the Congressional waiver to higher blends of ethanol, including E15. On May 8, 2018, President Trump met with a group of Republican Senators and told them that he is considering allowing exported ethanol to count toward the volumes mandated by the Renewable Fuel Standard (RFS). During this meeting, Mr. Trump also reiterated support for expanding sales of E15, and withdrew his verbal proposal to cap the price of RINs, which had been widely criticized by the ethanol industry. These announcements came after increasing concern about the future stability of the RFS after the U.S. Environmental Protection Agency (EPA) recently granted over two dozen hardship waivers to small refineries for 2017, a drastic increase from EPA’s prior practice of granting between six to eight hardship waivers annually. |
|
Subscribe
Add this blog to your feeds |