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Special Report: Refiner Valero's behind the scenes campaign to change U.S. biofuels mandates

By Chris Prentice, Reuters.

(Reuters) - U.S. biofuels regulations, which mandate mixing corn-based ethanol into gasoline, have lately drawn together a diverse cast of political opponents. 

They include an upstart gas station owners' trade group, a former Obama administration environmental adviser and billionaire activist investor Carl Icahn, who owns a refiner and served as U.S. President Donald Trump's special advisor on business regulation - until he resigned Friday amid allegations of a conflict of interest. 

By Chris Prentice, Reuters.

(Reuters) - U.S. biofuels regulations, which mandate mixing corn-based ethanol into gasoline, have lately drawn together a diverse cast of political opponents. 

They include an upstart gas station owners' trade group, a former Obama administration environmental adviser and billionaire activist investor Carl Icahn, who owns a refiner and served as U.S. President Donald Trump's special advisor on business regulation - until he resigned Friday amid allegations of a conflict of interest. 

Even the Renewable Fuels Association (RFA), a leading biofuels industry group, recently dropped its opposition to policy changes sought by this ad hoc coalition. 

These players would seem to have few shared interests, but they share one key connection – close ties to Valero Energy Corp. (VLO.N), America's largest oil refiner. 

As part of an extensive behind-the-scenes lobbying campaign, Valero played a key role in bringing these people and groups together around a policy proposal that could save the refiner hundreds of millions of dollars each year in regulatory costs, according to two former Valero executives with knowledge of the firms' lobbying strategy.

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Roeslein Alternative Energy Project Advancing in Missouri

"Officials touted the endeavor’s ability to reach goals that covered the creation of renewable energy, economic expansion and restoration of adjacent prairie."

By Ray Scherer, News-Press Now.

A new biogas production plant based out of northern Missouri continues to make steady progress.

It’s been slightly more than a year since the first volumes of biogas processed from hog manure were injected into a pipeline. Roeslein Alternative Energy, based in St. Louis, built a $120 million anaerobic digestion plant just north of Albany.

"Officials touted the endeavor’s ability to reach goals that covered the creation of renewable energy, economic expansion and restoration of adjacent prairie."

By Ray Scherer, News-Press Now.

A new biogas production plant based out of northern Missouri continues to make steady progress.

It’s been slightly more than a year since the first volumes of biogas processed from hog manure were injected into a pipeline. Roeslein Alternative Energy, based in St. Louis, built a $120 million anaerobic digestion plant just north of Albany.

Officials touted the endeavor’s ability to reach goals that covered the creation of renewable energy, economic expansion and restoration of adjacent prairie.

Owner Rudi Roeslein had said earlier the effort also presents an opportunity to return the area to its former prairie status, growing native grasses that can be transformed into alternative fuel. He said the outcome also would carry improvements for the environment and a broader habitat for wildlife. Renewed prairie grass would enrich the soil and clean local water resources.

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Pacific Standard: How Cuts to DOE's Biofuels Research Would Hurt the Planet and Our Economy

By Michael White, Pacific Standard.

Biofuels can reduce emissions, benefit American corporations, and create jobs. But slashing the budget of the Bioenergy Technologies Office effectively eliminates those possibilities.

With each new report that describes the ballooning effects of human-caused climate change it becomes harder to deny that we urgently need to decarbonize our society. This task is daunting, but achievable. However, as Congress and the Trump administration take deliberate steps to slow our transition to renewable, non-fossil fuel energy, this task is about to become much more difficult. In its budget request for 2018, the Trump administration has proposed a crippling 70 percent cut to the Department of Energy's $2 billion budget for energy efficiency and renewable energy programs. Congressional appropriators in the House of Representatives have proposed a slightly less crippling 53 percent cut.

By Michael White, Pacific Standard.

Biofuels can reduce emissions, benefit American corporations, and create jobs. But slashing the budget of the Bioenergy Technologies Office effectively eliminates those possibilities.

With each new report that describes the ballooning effects of human-caused climate change it becomes harder to deny that we urgently need to decarbonize our society. This task is daunting, but achievable. However, as Congress and the Trump administration take deliberate steps to slow our transition to renewable, non-fossil fuel energy, this task is about to become much more difficult. In its budget request for 2018, the Trump administration has proposed a crippling 70 percent cut to the Department of Energy's $2 billion budget for energy efficiency and renewable energy programs. Congressional appropriators in the House of Representatives have proposed a slightly less crippling 53 percent cut.

These cuts would scale back federal efforts to foster the development of wind and solar energy, in line with President Donald Trump's campaign promise to bring back coal industry jobs. This would slow, but not stop our transition to wind and solar power—because their cost is at last low enough to out-compete fossil fuel energy in many states. But another type of renewable energy—one that is absolutely essential to ending our reliance on fossil fuels—is much more vulnerable to budget cuts: biofuels. The Trump administration's proposed cuts to biofuels research and development would stifle the country's participation in a nascent industry that's crucial to the future of our planet.

Even if we all switched to driving Teslas tomorrow, liquid fuels would still be necessary to power our planes, ships, and trucks—modes of transport that aren't going electric any time soon. To completely end our need to draw oil from the ground and burn it, we must develop renewable, low-carbon, and economically competitive alternatives to diesel and jet fuel. The Department of Energy plays a critical role in this, by supporting the development of the technology and infrastructure needed to build a truly green biofuels industry. Much of that support comes from the department's Bioenergy Technologies Office. The Trump administration proposes to cut the office's budget by 75 percent.

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California cap-and-trade program gets a shot in the arm with strong permit auction results

By Chris Megerian, Los Angeles Times.

month after a bruising political battle to extend California’s cap-and-trade program, the state received a big vote of confidence in the policy’s future.

Cap and trade requires oil refineries, food processors and other facilities to buy permits to release greenhouse gas emissions into the atmosphere, and state regulators auction off the permits several times a year.

By Chris Megerian, Los Angeles Times.

A month after a bruising political battle to extend California’s cap-and-trade program, the state received a big vote of confidence in the policy’s future.

Cap and trade requires oil refineries, food processors and other facilities to buy permits to release greenhouse gas emissions into the atmosphere, and state regulators auction off the permits several times a year.

During August’s auction, every emission permit offered by the state was sold, and prices reached their highest level since the program launched five years ago.

The auction results, announced Tuesday, were the first since Gov. Jerry Brown signed legislation continuing cap and trade until 2030, erasing some of the political and legal uncertainty that had dogged the program.

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Biofuel and Biogas Innovators Unite for Stronger Cellulosic Targets

In a display of unity, the nation’s leading advocates for advanced liquid and gasified biofuels urged the U.S. Environmental Protection Agency (EPA) to stand by the president’s commitment to driving investment in the next generation of homegrown fuels under the Renewable Fuel Standard (RFS).

The letter was signed by leaders of the Coalition for Renewable National Gas, Advanced Biofuels Business Council, American Biogas Council, and Biotechnology Innovation Organization. They urged EPA Administrator Pruitt to reverse course on a proposal that would undercut “the next American manufacturing wave” by “looking backwards” in setting 2018 goals and issuing waiver credits that suppress demand for cellulosic fuels.

The leaders noted that, “The RFS is a proven tool for promoting growth. And notwithstanding volatile global oil prices and RFS policy uncertainty, the United States remains poised to lead the world in the development and commercial deployment of the most innovative fuels in the world. These cutting-edge projects are being developed in many of the same rural areas that produce clean, American-made biofuels today.”

View the Full Letter HERE.

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SoCalGas Streamlines Processes to Support Renewable Gas Projects

By SoCalGas. 

LOS ANGELES, Aug. 22, 2017 /PRNewswire/ -- Southern California Gas Co. (SoCalGas) today announced new initiatives that will make it easier for renewable gas production facilities to connect to the company's natural gas pipeline system. First is the creation of a downloadable toolkit to assist renewable gas producers and developers who are interested in interconnecting their projects with the SoCalGas pipeline network.  In addition, new provisions will enable SoCalGas and renewable gas producers to accelerate the interconnection process by procuring the necessary material much earlier than previously allowed. 

Like electricity, natural gas can be made from renewable sources.  About 80 percent of all methane emissions in California come from the state's dairy and farm operations, landfills and wastewater treatment plants. That methane can be harnessed and cleaned to produce renewable natural gas for use in transportation as well as in homes and businesses. 

By SoCalGas. 

LOS ANGELES, Aug. 22, 2017 /PRNewswire/ -- Southern California Gas Co. (SoCalGas) today announced new initiatives that will make it easier for renewable gas production facilities to connect to the company's natural gas pipeline system. First is the creation of a downloadable toolkit to assist renewable gas producers and developers who are interested in interconnecting their projects with the SoCalGas pipeline network.  In addition, new provisions will enable SoCalGas and renewable gas producers to accelerate the interconnection process by procuring the necessary material much earlier than previously allowed. 

Like electricity, natural gas can be made from renewable sources.  About 80 percent of all methane emissions in California come from the state's dairy and farm operations, landfills and wastewater treatment plants. That methane can be harnessed and cleaned to produce renewable natural gas for use in transportation as well as in homes and businesses. 

A study conducted by the University of California at Davis estimates that the natural gas needs of around 2.4 million California homes could be fueled with RNG derived from the state's existing organic waste alone.  Already, 60 percent of the fuel used in natural gas vehicles in California is renewable, and SoCalGas expects that to increase to 90 percent by 2018. This can help reduce the need for other fossil-based fuels, and increase our supplies with a local renewable fuel.   

"Renewable natural gas is key to achieving the state's ambitious air quality goals and providing families in California with a clean and reliable source of energy to heat and power their homes for generations to come," said Lisa Alexander, vice president of customer solutions for SoCalGas. "Renewable natural gas will also help transform transportation in the state, which accounts for 80 percent of smog-forming pollution and that disproportionally burdens our most vulnerable communities.  With today's technology, we can harness this otherwise wasted energy to de-carbonize our pipeline system, reduce greenhouse gas emissions, and slow climate change."

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Cornell study demonstrates method to speed up anaerobic digestion

By Cody Boteler, Waste Dive.

  • In a study published by Bioresource Technology, researchers showed that using a technique called hydrothermal liquefaction (HTL) — a process of subjecting a feedstock to high heat and high pressure — could transform food waste into oil and a carbon-rich aqueous phase. Changing the temperature that the feedstock is exposed to during HTL changes the ratio of how much oil and how much aqueous phase is produced.
  • The Cornell University researchers noted that the oil can be refined into biofuel, but the aqueous phase (the non-oil byproduct of the food waste that undergoes HTL) can be used for generating biogas from anaerobic digestion. Roy Posmanik, the lead author of the paper, told Waste Dive in an interview that combining HTL and AD speeds up the overall process. "The HTL takes 20 minutes [to] 60 minutes," he said. "And then you have the aqueous phase, which takes more like three or four days [to digest], rather than three weeks."
  • Posmanik added that the HTL-plus-AD process is not limited to just food waste. Other feedstocks, like sludge or wastewater, could undergo HTL and the byproduct could then undergo AD. Posmanik said he and other researchers he works with are working on studying those other feedstocks.

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Case Studies of Funding Bioeconomy Projects: US vs Around the World, featuring Mark Riedy

By Jim Lane, Biofuels Digest.

Structuring and financing an International Bioeconomy Project is not for the neophyte or the faint of heart — so advises Kilpatrick Townsend’s massively-experienced partner Mark Riedy. Where is it best to build? In this illuminating presentation from ABLC 2017, Riedy looked at regulatory uncertainty, returns, available supply chains and the risk therein, among many other factors that go into the financing decision — all of which are elegantly laid out here.

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EDL makes landfill gas to energy acquisition

By Waste Today.

Australian headquartered global energy business Energy Developments (EDL), has announced that it has completed the acquisition of Granger Energy Services landfill gas to energy (LFGTE) business in the USA. 

Granger Energy comprises 16 operating sites, concentrated in the Great Lakes region of the U.S., with a total installed capacity of 85 megawatts electric (MWe). The Granger Energy business is highly contracted, with strong counterparties, and long term contracts, EDL notes.

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Colorado sets statewide diversion goals

By Cole Rosengren, Waste Dive.

Dive Brief:

  • The Colorado Solid and Hazardous Waste Commission voted on Aug. 15 to adopt a resolution that sets statewide diversion rate goals for the first time. According to the Colorado Department of Public Health and Environment (CDPHE), the state's diversion rate has hovered around 19% for about a decade. 
  • The state will now strive to hit 28% by 2021, 35% by 2026 and 45% by 2036. The resolution also set different local targets, with lower rates for rural counties and higher targets for about a dozen more urban "Front Range" counties. Diversion is defined explicitly as "recycling, composting and anaerobic digestion." 
  • The conversation around statewide goals was accelerated by CDPHE's release of a waste and materials management plan last summer and has continued over multiple public stakeholder meetings. The plan found that an estimated $267 million worth of recyclable material is being sent to landfills each year, with the majority coming from Front Range communities.

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