Reports related to this article:
Project(s): View 1 related project in PECWeb
Plant(s): View 1 related plant in PECWeb
Released October 07, 2019 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--There was much rejoicing in the Heartland on Friday after the Trump administration announced a plan to ramp up U.S. biofuel consumption in a bid to boost support among Midwest corn farmers and the ethanol industry. On the other hand, U.S. petroleum refiners signaled their strong opposition to the plan, saying their industry is already hurting from the biofuel mandates. Industrial Info is tracking more than $1.7 billion in ethanol fuel project activity in the U.S.
Click on the image at right for a graph showing ethanol fuel project activity by state.
The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Agriculture (USDA) announced the agreement to promote biofuels, which was largely seen as a win for the biofuel industry and a loss for petroleum refiners. The EPA said it will take actions "to ensure that more than 15 billion gallons of conventional ethanol be blended into the nation's fuel supply beginning in 2020, and that the volume obligation for biomass-based diesel is met. This will include accounting for relief expected to be provided for small refineries."
Also, "Building on the president's earlier decision to allow year-round sales of E15 (a motor fuel blend with 15% ethanol), EPA will initiate a rulemaking process to streamline labeling and remove other barriers to the sale of E15," the agency said.
The move was seen as an effort by the Trump administration to regain the support of the corn and ethanol industries, which were angered when the administration granted waivers to 31 small refineries so they were not required to meet the biofuel blending mandates under the Renewable Fuel Standard (RFS). The administration had granted the waivers after refiners complained the RFS mandate was too onerous.
The Renewable Fuels Association praised the Trump administration on Friday for "taking action to begin reversing the damage done to rural America by refinery exemptions from the ... RFS."
The new plan "requires the EPA to keep the statutory RFS volumes whole by prospectively redistributing exempted renewable fuel blending requirements to non-exempt refiners," the Renewable Fuels Association said.
On the other side, the American Petroleum Institute (API) and the American Fuel & Petrochemical Manufacturers (AFPM) issued a joint statement signaling their dismay.
"We are deeply concerned about the administration's decision to, once again, play politics with our fuel system by increasing an already onerous biofuel mandate, placing greater strain on the U.S. manufacturers he promised to protect and threatening higher costs for consumers," the refinery groups said. "The misguided reallocation of volumes punishes companies working to comply with the RFS and is an empty attempt to force more E15 into the fuel supply -- a fuel nearly 70% of vehicles on the road were not designed to use."
The refinery groups vowed to "vigorously challenge this new policy in the weeks to come and continue advocating for Congress to reform the RFS."
Among the fuel ethanol plants being tracked by Industrial Info is POET LLC's (Sioux Falls, South Dakota) $160 million biorefining facility in Shelbyville, Indiana. Construction on the 80 million-gallon-per-year corn ethanol plant began in late 2018 and is expected to reach completion in second-quarter 2020. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Agriculture (USDA) announced the agreement to promote biofuels, which was largely seen as a win for the biofuel industry and a loss for petroleum refiners. The EPA said it will take actions "to ensure that more than 15 billion gallons of conventional ethanol be blended into the nation's fuel supply beginning in 2020, and that the volume obligation for biomass-based diesel is met. This will include accounting for relief expected to be provided for small refineries."
Also, "Building on the president's earlier decision to allow year-round sales of E15 (a motor fuel blend with 15% ethanol), EPA will initiate a rulemaking process to streamline labeling and remove other barriers to the sale of E15," the agency said.
The move was seen as an effort by the Trump administration to regain the support of the corn and ethanol industries, which were angered when the administration granted waivers to 31 small refineries so they were not required to meet the biofuel blending mandates under the Renewable Fuel Standard (RFS). The administration had granted the waivers after refiners complained the RFS mandate was too onerous.
The Renewable Fuels Association praised the Trump administration on Friday for "taking action to begin reversing the damage done to rural America by refinery exemptions from the ... RFS."
The new plan "requires the EPA to keep the statutory RFS volumes whole by prospectively redistributing exempted renewable fuel blending requirements to non-exempt refiners," the Renewable Fuels Association said.
On the other side, the American Petroleum Institute (API) and the American Fuel & Petrochemical Manufacturers (AFPM) issued a joint statement signaling their dismay.
"We are deeply concerned about the administration's decision to, once again, play politics with our fuel system by increasing an already onerous biofuel mandate, placing greater strain on the U.S. manufacturers he promised to protect and threatening higher costs for consumers," the refinery groups said. "The misguided reallocation of volumes punishes companies working to comply with the RFS and is an empty attempt to force more E15 into the fuel supply -- a fuel nearly 70% of vehicles on the road were not designed to use."
The refinery groups vowed to "vigorously challenge this new policy in the weeks to come and continue advocating for Congress to reform the RFS."
Among the fuel ethanol plants being tracked by Industrial Info is POET LLC's (Sioux Falls, South Dakota) $160 million biorefining facility in Shelbyville, Indiana. Construction on the 80 million-gallon-per-year corn ethanol plant began in late 2018 and is expected to reach completion in second-quarter 2020. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
