Congress Urged to Extend Biodiesel Tax Credit

Cindy Zimmerman

Clean Fuels America CEO Donnell Rehagen

Clean Fuels Alliance America joined soybean growers and oilseed processors in a letter sent last week to House and Senate leaders requesting a one-year extension of the current Biodiesel and Renewable Diesel Tax Incentive, which was supposed to be replaced by the new §45Z Clean Fuel Production Credit by the end of this year.

Lacking guidance from the U.S. Treasury, the one-year extension of existing policy is needed to provide certainty and stability to stakeholders in the biodiesel and renewable diesel industry.

“Due to the significant uncertainty created by this lack of guidance, American clean fuel producers and their partners in agriculture and fuel marketing are facing tremendous confusion in the marketplace,” the groups write. “It is therefore critical that Congress provide a temporary, short-term extension of the existing 40A blenders credit to allow the necessary transition and a smooth integration of the new credit into business plans.”

The future of the 45Z tax credit and the continuation in general of the Inflation Reduction Act will largely be in hands of the new Trump administration. Clean Fuels American CEO Donnell Rehagen says they are looking forward to working with them.

“We’ve experienced a Trump administration before,” said Rehagen. “We saw considerable growth in our industry during those times but it wasn’t without its challenges. Obviously there’s a lot of competing interests in any administration. But that’s been a long time ago. And I think there’s been a lot of developments in the country. Consumers are much more focused on cleaner fuels in the climate and certainly than they were eight or ten years ago.”

During an interview at the NAFB Convention last week, Rehagen also commented on President-elect Trump’s pick for EPA Administrator Lee Zeldin of New York. “I mean, he’s not been a huge fan of the Renewable Fuel Standard, but as I said, it’s been a long time ago that those efforts to reform the RFS were taking place,” said Rehagen. “So we’re gonna go into this with our eyes wide open, our ears wide open as well, and have a great conversation with him and we’ll kick things off well.”

NAFB24 Donnell Rehagen, Clean Fuels

2024 NAFB Convention Trade Talk photos

Audio, Biodiesel, Clean Fuels Alliance, Soybeans

RFA Watching Trump Administration Choices

Cindy Zimmerman

RFA president and CEO Geoff Cooper

President-elect Donald Trump continues to announce choices for administration positions at record speed and the Renewable Fuels Association is generally pleased so far.

“We’re excited about the opportunity to sit down with the new leadership in the incoming Trump administration, to make our case and remind them of why ethanol should be part of their energy strategy and and energy policy moving forward,” said Cooper during the NAFB Convention last week in Kansas City.

RFA welcomed the news that North Dakota Gov. Doug Burgum, in addition to being named as Interior Secretary, will chair the new National Energy Council, believing he understands the importance of an all-of-the-above energy strategy that includes renewable fuels, carbon capture and sequestration, and other innovative approaches.

Cooper expressed little concern about EPA Administrator choice Lee Zeldin’s previous opposition to the Renewable Fuel Standard as a congressman from New York. “Not a real deep track record on on ethanol and renewable fuels issues,” said Cooper. “He did sign his name onto some legislation that would have repealed the RFS, but that was a different time…And so we’re looking forward to sitting down with Mr. Zeldin and getting him up to speed on what’s happening in the ethanol industry.”

RFA has yet to comment on the latest Trump announcement Saturday tapping oil executive Chris Wright for Energy Secretary, but Cooper says they are anxious to see who will be nominated for Agriculture Secretary since current Secretary Tom Vilsack has been a strong proponent for biofuels.

Meanwhile, RFA is extremely excited about the election of Sen. John Thune (R-SD) as Senate Majority Leader.

“Having Senator Thune as the Majority Leader in the Senate is a huge deal for us,” said Cooper. “He’s been a tremendous supporter. Over the last 20 years, he’s kind of been at the forefront of every ethanol-related policy issue that’s gone through the Senate, so that’s good news.”

NAFB24 Geoff Cooper, RFA (5:29)

2024 NAFB Convention Trade Talk photos

Audio, biofuels, Ethanol, Ethanol News, NAFB, Renewable Fuels Association, RFA

EPA Adds to Farm, Ranch and Rural Advisory Committee

Cindy Zimmerman

Environmental Protection Agency Administrator Michael Regan this week announced the appointment of 18 new members and reappointment of six members to the agency’s Farm, Ranch, and Rural Communities Federal Advisory Committee, which provides independent policy advice and recommendations on issues affecting agriculture and rural communities.

Among the new members from the biofuels sector are Alan Weber, Biodiesel Coalition of Missouri, and Erik Huschitt, Badger State Ethanol, in Monroe, Wisconsin. Weber is a long-time consultant for the Clean Fuels Alliance America, formally the National Biodiesel Board, and Huschitt is immediate past chairman of the Renewable Fuels Association. Returning to the committee is Bill Couser, cattleman and founder of Lincolnway Energy in Iowa.

The Renewable Fuels Association congratulated Huschitt and Couser on their appointments. “Erik and Bill bring a lot of practical experience to the table when it comes to agriculture, renewable fuels, and the environment,” said RFA President and CEO Geoff Cooper. “We are proud to see their knowledge and expertise being put to use, and we appreciate Administrator Regan’s continued willingness to bring all voices to the table. I am sure they will make a terrific addition to this committee, and have a lot to offer.”

Biodiesel, biofuels, Clean Fuels Alliance, EPA, Ethanol, Ethanol News, Renewable Fuels Association, RFS

NAFB Panel Explores Renewable Fuels Future

Cindy Zimmerman

Renewable Fuels Future panel at NAFB Convention

Leaders from the renewable fuels industry took questions at the National Association of Farm Broadcasting Convention in Kansas City on Wednesday about what the future looks like for them now with a new administration and a new Congress.

Moderator Mark Dorenkamp of Brownfield led the panel with Renewable Fuels Association President and CEO Geoff Cooper, National Corn Growers Association CEO Neil Caskey, National Oilseed Processors Association CEO Kailee Tkacz Buller, and Clean Fuels America CEO Donnell Rehagen. One of the first questions they were asked was what they thought about President-elect Trump’s pick for EPA Administrator, former Congressman Lee Zeldin of New York, who was not friendly to the RFS when he was in office.

“We’ve been through this before with Trump 1.0 and Administrator Pruitt, not a particular fan of renewable fuels, so we’ve got our work cut out for us, there’s an education process that’s going to be happening,” said Cooper.

“I’m looking at it as an opportunity,” said NOPA’s Buller, who served in the Trump 1.0 administration USDA. “The more we can align on our messaging as a holistic biofuels industry, the better that is for all of us coming into the Trump administration.”

Caskey noted that much of what they are working for right now will require legislative solution like the Next Generation Fuels Act and permanent E15. “So we got some good news with Senator Thune being elected majority leader, he’s a good friend of agriculture and someone who’s going to champion our issues in Congress.”

Rehagen said whatever opposition Zeldin had to the RFS in Congress was years ago and things are different now. “One of the biggest changes has been the investment that the oil and gas refiners have made in our industry and that changes the dynamics,” said Rehagen.

A big topic was what will happen now with the Inflation Reduction Act and the 45Z tax credit, sustainable aviation fuel, tailpipe emissions standards, and lots more.

NAFB Renewable Fuels newsmakers panel (47:40)

Audio, aviation biofuels, Biodiesel, Clean Fuels Alliance, EPA, Ethanol, Ethanol News, NAFB, Renewable Fuels Association, RFA, SAF

Veterans for Renewable Fuels Invite VP Vance to Visit

Cindy Zimmerman

On Veterans Day, the Veterans for Renewable Fuels (VRF) congratulated Marine Corps vet and Vice President-elect JD Vance on his victory and invited him to pay them a visit to learn more about the ethanol industry’s policy priorities that support the goal of U.S. energy security.

In a letter to the newly-elected vice president, VRF Co-Chairs Jeff Oestmann and Tony Leiding and Renewable Fuels Association President and CEO Geoff Cooper noted that veterans make up 16 percent of the ethanol industry workforce. “According to the Department of Energy … the ethanol workforce has a higher concentration of veterans than any other segment of the U.S. energy industry, and our veteran density is three times that of the national labor force,” they wrote. “We take enormous pride in the fact that we work in an industry that simultaneously improves America’s energy security, economic vitality, and environmental quality. In addition, the ethanol industry has created tens of thousands of good jobs in rural communities across the country, allowing us to share with our families the small-town way of life that is central to American values and our cultural identity.”

“We would like to extend an open invitation to you and your team to visit one of the many ethanol biorefineries affiliated with our organization to learn more about our industry, its impact on veterans, and its contributions to our nation’s energy security and economic vitality,” they concluded.

Like Vance, Oestmann also served in the Marine Corps, while Leiding and Cooper are U.S. Army veterans.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

CARB Passes Amendments to California LCFS

Cindy Zimmerman

Most of the rest of the country was asleep Friday night when the California Air Resources Board (CARB) wrapped up a 12 hour public meeting at midnight local time on amendments to the state’s Low Carbon Fuel Standard (LCFS).

The updates include increasing the target to reduce carbon emissions of transportation fuels 30%, instead of 20, by the year 2030, and a 20% limit on renewable diesel produced from vegetable oils.

Clean Fuels Alliance America commended the CARB action, calling it a move that marks another step forward in California’s decarbonization leadership. “Clean Fuels acknowledges CARB’s continued commitment to a cleaner future, while recognizing there is more work ahead to ensure crop-based renewable fuels are recognized as a long-term solution.”

biofuels, Carbon, Clean Fuels Alliance

Biofuel Tax Credit Extension Introduced

Cindy Zimmerman

Rep. Miller-Meeks with RFA CEO Cooper at 2024 DC Auto Show

Ethanol champion Rep. Mariannette Miller-Meeks (R-IA) held on to her seat in Congress in a close race last week, and after declaring victory she immediately joined Sharice Davids (D-KS) in introducing legislation to extend the Second Generation Biofuel Producer Tax Credit for an additional year.

“Cellulosic biofuel producers have been anxiously awaiting guidance from the Treasury Department on the new 45Z clean fuel producer tax credit that is supposed to take effect just two months from now,” said Renewable Fuels Association President and CEO Geoff Cooper. “But with 2025 just around the corner, Treasury has not yet proposed regulations to implement the 45Z credit and there is no clarity on the timeline or path forward. By extending the existing tax credit for second-generation biofuels by one year, this bipartisan legislation provides marketplace certainty and allows for a smooth transition to the new tax credit regime.”

Other tax credits 45Z is supposed to replace include the $1 per gallon biodiesel and renewable diesel blenders tax credit, which is included in a package of tax credits extensions to be considered by Congress before the end of the year.

In the latest Ethanol Report podcast, Cooper said they were pleased to see so many ethanol champions like Miller-Meeks in Congress win re-election. “It was overall a very good night for ethanol in both chambers,” said Cooper.

RFA CEO Cooper on tax credit extension 3:59

Audio, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Ethanol Report Election Analysis

Cindy Zimmerman

The Renewable Fuels Association was pleased to congratulate Donald Trump on his victory in the 2024 presidential election, and especially happy to see many ethanol champions retain their seats in Congress.

In this edition of the Ethanol Report podcast, RFA President and CEO Geoff Cooper says he is looking forward to working with the Trump 2.0 administration and the new Congress to finally get E15 approved nationwide, moving ahead with low carbon sustainable aviation fuel production, and pushing back on the EPA’s tailpipe emissions standard that mandates electric vehicles.

Cooper also talks about the need for a lame duck Congress to extend some biofuel tax credits that were supposed to be replaced by the 45Z clean fuel producer tax credit by the end of the year.

Ethanol Report 11-8-24 22:48

The Ethanol Report is a podcast about the latest news and information in the ethanol industry that has been sponsored by the Renewable Fuels Association since 2008.

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Audio, Ethanol, Ethanol News, Ethanol Report, Renewable Fuels Association, RFA, Uncategorized

Minnesota Chosen as Site for New SAF Plant

Cindy Zimmerman

DG Fuels recently announced Moorhead, Minnesota as the site for a $5 billion manufacturing facility that will produce 193 million gallons per year of low-carbon aviation fuel (SAF) using agricultural and wood waste as feedstock.

This news is a notable milestone for the MN SAF Hub and is the most significant commitment towards commercial-scale SAF production in the state. The announcement also reflects Minnesota’s compelling value proposition to SAF producers, which includes abundant and diverse feedstocks, clean electricity, mature rail networks, and strong state support. The 193 million gallons projected by DG Fuels would represent nearly half of the fuel used at the MSP International Airport.

The Minnesota SAF Hub is a diverse coalition led by Bank of America, Delta Air Lines, Ecolab, and Xcel Energy committed to scaling the production of sustainable aviation fuel to replace conventional jet fuel.

aviation biofuels, biofuels, Ethanol, SAF

Kip Tom Reflects on Trump Election

Cindy Zimmerman

Indiana farmer Kip Tom is one of several names being floated as possible Secretary of Agriculture in the new Trump Administration. Tom runs a successful international farming operation and served as Ambassador to the United Nations Agencies for Food and Agriculture during President Trump’s previous term.

“When I think about President Trump and comparing 45 to 47, my perception is he’s a lot more prepared this time to lead our nation, to make sure he is able to expedite the employment of good personnel around him and I think he’s working hard to make sure that day one that they’re going to be leading and making sure that he can deliver on the promises he made to our nation,” said Tom in an interview Thursday. “I would tell you I would be honored if asked to serve and I would serve at the pleasure of the President in any role that he would offer to me at that time, but right now I’m a farmer and I just want to help represent agriculture.”

Tom has served as co-chair of Farmers and Ranchers for Trump 47 and he believes the rural vote made the difference in the election. “I think it was a mandate on Tuesday. You look at how Americans voted and especially rural America, nearly 75% of rural America, agriculture and ranchers voted for Donald Trump. That was asking for a change,” said Tom.

Tom expects President Trump to continue to support ethanol. “He’s very supportive of ethanol. I can’t imagine from the comments that I have heard made that he would walk away from that,” said Tom. “I believe that Trump is going to be very supportive of the biofuels industry because he knows that’s a direct linkage to supporting the economies and rural. Across the country.

In this interview, Tom talks about his reaction to the Trump victory, what he sees as priorities for the new administration in farm and energy policy, his thoughts on RFK Jr.’s potential influence in farm policy, and what kind of role he personally would like to play on the new Trump team. In addition, he gives his reflections on what it was like to be in Butler, Pennsylvania the day President Trump was nearly assassinated.

Interview with Kip Tom, Tom Farms 26:01

Audio, Ethanol, Ethanol News, USDA