RFS Battles Continue on Ethanol and E15

Posted by Ed Burke on Apr 21, 2015 3:59:45 PM

Container of corn kernels with a Biofuel sticker affixed

This week, Ethanol activists in Chicago used the 20th anniversary of the BP Oil Spill in the Gulf to push for approval of a pending mandate that would require self-serve stations with over 850,000 gallons in annual sales volumes to carry E15, given they had the proper infrastructure for the blend. They argued that companies will "keep on spilling" and that made it imperative that the push continue towards higher blended, "cleaner" ethanol.

On the flip side, on April 21st, major petroleum groups API and AFPM requested the EPA ban the sale of E15 as a flex fuel. E10 Ethanol has a 1 psi volatility waiver that allows it to be RVP compliant in summer months. E15 is not compliant, however. The argument then is that stations, etc, are using E15 as a flex fuel in the summer months to avoid having to comply with RVP regulations.

The EPA is expected to formally announce the RFS volume requirements any day now, but even prior to the announcement there is action on the RFS in the legislature. House Bill HR 701 would cap ethanol at 10% blends, and rescind the EPA's approval of E15 blends. 

Another part of the bill states that target numbers for cellulosic ethanol goals need to be production based, which obviously makes sense, since one of the major issues with the RFS has been the cellulosic mandate in the face of a complete lack of cellulosic production.

I wrote an article for this months Oil & Energy Magazine detailing the growing dissension between RFS involved groups, impacted industries, the EPA and the Government - you can read that article here:

"Dissension Grows over Biofuels Rules"

 

 

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Topics: Ethanol, EPA Mandate, Cellulosic Ethanol, RFS

Energy Issues Top the Political Agenda for 2014

Posted by Ed Burke on Feb 25, 2014 12:52:00 PM

Main energy topics in the headlines for 2014 include the Crude Export Ban, the Keystone Pipeline, the Climate Change Action Task Force, RFS Volumes, and an expected final ruling on the Tier III mandate from the EPA. 

State of the Union 2014
(Photo Credit: Amanda Lucidon, WhiteHouse.gov Official Photo)

There is a lot of work to be done on energy infrastructure in the US - something that became especially clear with record breaking spikes in Natural Gas pricing to the New England and New York markets on the heels of the Polar Vortex. This topic is supposed to be the highlight of the Administrations Quadrennial Energy Review. However, the most obvious energy infrastructure and transport improvement - the Keystone XL pipeline is still bogged down in its 5+ years of paperwork, with no decision in sight, even following the most recent Environmental Study which found there would be no major negative impact environmentally from the project. The State Department review was expected after the President's State of the Union Speech, with a Presidential decision to follow but so far as of late February we haven't seen any movement on the issue. 

Renewables are also on the table - The EPA's expected final RFS volume reductions should be out this month (the first time the EPA will have used waiver power to decrease, not increase, volumes). The tax credits for Biodiesel and Cellulosic Biofuels also expired at the end of 2013, but if you recall, last time these were reinstated retroactively. The EPA is also expected to release its final ruling on Tier 3 Gasoline Standards, which would affect the sulfur content of gasoline vehicle emissions.

I wrote a more comprehensive article for the February issue of Oil & Energy Magazine on the topics on the Energy Agenda for 2014, you can read that article by clicking here 

What do you think the priority items on the Energy Agenda should be?    

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Topics: Energy Independence, Biodiesel Tax Credit, President Obama Address, RFS 2, EPA Mandate, US Crude Exports, Cellulosic Ethanol, Keystone XL

API Sues EPA on Cellulosic Ethanol portion of 2011 RFS

Posted by Ed Burke on Jul 27, 2012 12:19:00 PM

Interesting timing - yesterday I linked to my article in Oil & Energy Magazine giving an overview of the state of the Cellulosic Ethanol Industry and the EPA's mandate that 2012 production hits 8.65 million gallons per the 2011 Renewable Fuels Standard (RFS). I mentioned that critics argued that commercial production of Cellulosic remains at low enough levels that many argue they cannot possibly hit the target set by the EPA, despite steps forward that have been made in production.

The American Petroleum Institute (API) filed a lawsuit against the EPA on July 24th 2012 in D.C. Circuit Court arguing the Cellulosic portion of the Renewable Fuels Standard mandates the use of “nonexistent cellulosic biofuels”. API’s Director of Downstream and Industry Operations, Bob Greco stated that the “EPA’s unattainable and absurd mandate forces refiners to pay a penalty for failing to use biofuels that don’t even exist. The mandate is effectively an added tax on gasoline manufacturers that could ultimately burden consumers.”  

You can read API’s news statement describing the lawsuit on their website using the following link: http://www.api.org/news-and-media/news/newsitems/2012/jul-2012/api-files-lawsuit-against-epa-for-mandating-use-nonexistent-biofuels.aspx

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Topics: Biofuels, Cellulosic Ethanol, EPA, API

Cellulosic Ethanol Production: Benefits, Progress, and Challenges

Posted by Ed Burke on Jul 26, 2012 1:56:00 PM

 The EPA has mandated that in 2012 Cellulosic Ethanol production hits 8.65 million gallons

What is Cellulosic Ethanol anyways? Cellulosic, unlike Corn Ethanol, is a second generation Biofuel (corn ethanol is a first generation) which means it comes from cellulose contained in non food plant material, either remnant products of food crops, or entirely non food crops.

A drawback of first generation Biofuels is that since they come from food crops, they potentially stand to impact food prices due to increased demand.  Today there are headlines on the news regarding the drought in the Midwest, and other natural events driving up the cost of food – the impact of events like this could become much more pronounced when there is a competing demand for the same commodities like soybeans, corn, and so on. Second generation Biofuels, being from non-food crops or remnants, take the food price issue out of the equation.  Additionally, from an environmental standpoint, although Corn Ethanol stands to reduce emissions up to 52% over gasoline, Cellulosic Ethanol could drop greenhouse gas emissions by up to an impressive 86%.

I wrote a piece this past month for Oil & Energy Magazine discussing the positive moves the Cellulosic Industry has made towards production, the science behind production, and obstacles in the way of moving forward.  You can read the article in Oil & Energy HERE or read it as a PDF HERE

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Topics: Commodities, E85, Oil & Energy Magazine, Biofuels, Cellulosic Ethanol

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