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Dateline Breaking News PMAA Calls on EPA to Reduce Corn-based Ethanol Mandate Concerns about E15 were the focus of testimony to the Environmental Protection Agency by Dan Gilligan, president of the Petroleum Marketers Association of America. Gilligan testified in response to the EPA's 2014 proposed renewable fuel standard, according to the association's Weekly Review. Given underground storage tank system infrastructure legal and regulatory uncertainties, Gilligan argued in his Dec. 5 testimony that E15 is unlikely to solve the corn-based ethanol blendwall, and therefore lowering the corn-based ethanol mandate to a level achievable up to an E10 blend with reasonable growth in E85 sales will avoid unintended consequences. "Another reason to lower the ethanol mandate is to prevent the loss of neat premium in some markets," Gilligan said. "We are already seeing some refiner-suppliers blending E10 premium, eliminating consumer choice to purchase fuel without ethanol. Currently, those customers are paying extra for premium because they need ethanol-free gasoline. If RIN values are exorbitant, ethanol-free gasoline could become totally unavailable in some markets, a very negative unintended consequence," Gilligan warned. EPA proposed a modest reduction to the 2014 RFS blending volumes, calling for 15.21 billion gallons of biofuels — including up to 13.01 billion gallons of corn-based ethanol — to be blended with gasoline. If EPA were to require 14.4 billion gallons of corn-based ethanol required under The Energy Independence and Security Act of 2007 for 2014, refiners would likely hit the ethanol "blend wall" next year given the U.S. is expected to consume approximately 133 billion gallons of gasoline. PMAA supports lowering the corn-based ethanol mandate to approximately 13 billion gallons and maintaining it at this level for the foreseeable future to prevent higher levels of ethanol blended into the nation's fuel supply. PMAA said it will submit detailed com- Featured News ments on the agency's proposed 2014 RFS blending volumes. The public comment period closes on Jan. 28, 2014. "The advanced biofuels industry is at a critical stage of development. The industry has made great strides in reducing the cost of production and developing first-of-kind technologies and bio-refining operations to deploy the most innovative fuel in the world. In a difficult financial market, we are now operating commercial plants all across the country and continue to make progress on dozens of additional projects in the final stages of development. As was the case with the conventional biofuels industry, these groundbreaking production processes can be replicated rather quickly once the technology is proven at commercial scale," the organizations and companies wrote. Because these credits are vital to the ongoing development of the domestic advanced biofuels industry, the groups further urged the members of Congress to extend current tax provisions for multiple years to ensure stability in the marketplace. The letter continued, "Accelerated depreciation allowances, technology specific deductions and production-related tax credits are currently offered to incumbent fossil energy industries on a permanent basis. As such, similar tax provisions made available to the advanced and cellulosic biofuels industry level the playing field with fossil fuels and are critical to our efforts to compete for project capital given that these types of incentives are available to our primary competitors." Biofuel Companies, Trade Groups Emphasize Need to Extend Current Tax Policies Renewable Energy Group Leaders Testify at EPA Hearing on 2014 RFS Proposal More than 60 advanced biofuel companies and four leading trade organizations wrote to leaders of the House Ways and Means and Senate Finance Committees, encouraging Congress to extend critical tax provisions set to expire at the end of December. The Advanced Ethanol Council, Advanced Biofuel Association, Algae Biomass Organization and Biotechnology Industry Organization delivered the letter to Reps. Dave Camp (R-Mich.) and Sander Levin (D-Mich.) and Sens. Max Baucus (D-Mont.) and Orrin Hatch (R-Utah) on behalf of 63 member companies, whose logos are included on the letter. Leaders from Renewable Energy Group® joined more than two dozen biodiesel advocates in providing testimony at an Environmental Protection Agency hearing on the proposed 2014 Renewable Fuel Standard volumes. Gary Haer, REG Vice President, Sales and Marketing and Bruce Lutes, general manager of the company's biodiesel refineries in Danville, Illinois and Newton, Iowa shared their perspectives on why the EPA should increase the biomass-based diesel Renewable Volume Obligation (RVO) for 2014 to at least 1.7 billion gallons. Haer focused on this year's record Dateline • PMAA Calls on EPA to Reduce Corn-based Ethanol Mandate • Biofuel Companies, Trade Groups Emphasize Need to Extend Current Tax Policies Fuels - pg 11 • API welcomes federal report showing U.S. energy revolution driving exports • Charity Oil Warms Hearts and Homes in New York and Pennsylvania • Renewable Energy Group Expands Presence in Northeast with another New Jersey Terminal Business OPERATIONS - pg 22 • New Survey Reveals Employees are More Active in Managing Their Health after Enrolling in a Health Savings Account HVAC/Hydronics - pg 25 • John Beckett Celebrates 50th Anniversary • INstalled Capacity of Geothermal Heat Pumps Will Grow by Nearly 150 Percent by 2020 • OnForce Solar President Dav id Sandbank . Elected Vice President of NYSEIA www.fueloilnews.com | FUEL OIL NEWS | JANUARY 2014 3