Vilsack Expects RVOs and COVID Payments Soon

Cindy Zimmerman

USDA Secretary Tom Vilsack was in Pennsylvania Friday to announce $633 million in investments to reduce the impacts of climate change on rural communities.

Vilsack highlighted 791 investments that USDA is making in five programs specifically designed to help people and businesses in rural areas, including the Higher Blends Infrastructure Incentive Program.

Vilsack also answered questions from reporters, several focused on the biofuels sector and delayed action from the Environmental Protection Agency on Renewable Fuel Standard obligations, as well as COVID aid for producers. “I fully expect in the very near future EPA will announce those standards,” said Vilsack. Regarding the COVID assistance, Vilsack indicated that was tied to the RFS obligations. “We look forward, when those announcements are made, to also be able to provide more details on the distribution of 700 million dollars of assistance and help that we have already identified for the biofuel industry.”

While Vilsack made much the same prediction for COVID aid back in September, he reiterated that the holdup is coming from the Office of Management and Budget, which must approve the payments. “Sometimes it can be a bit frustrating to negotiate with our friends at OMB but that is the process and we have to follow that process,” he said.

USDA Sec. Vilsack presser 12-3-21 (19:27)

Audio, Biodiesel, biofuels, Ethanol, Ethanol News, USDA

ACE Participates in OPIS LCFS and Carbon Markets Workshop

Cindy Zimmerman

American Coalition for Ethanol (ACE) consultant Jonathon Lehman was on a panel entitled “Reducing Carbon Intensity in Renewable Fuels with Climate Smart Farming Practices” with representatives from Gevo and the American Society of Agronomy at the OPIS LCFS and Carbon Markets Workshop this week in California.

“USDA estimates U.S. farmers currently store 20 million metric tons of carbon per year and could store an additional 180 million metric tons annually, representing 12 to 14 percent of U.S. carbon emissions through the adoption of conservation practices,” Lehman said. “Despite this potential, state and federal low carbon fuel programs do not count on-farm carbon benefits toward greenhouse gas emissions reduction targets.”

“Regulators, such as those in California’s LCFS program, do not yet credit GHG reductions achieved through carbon sequestering conservation practices in ethanol feedstock production, in part, because they want better, localized quantification, verification and modeling protocols to grant access to these markets,” Lehman added. “The ACE-led RCPP project will provide a prototype for how clean fuel policies can reward farmers for climate-smart practices that reduce the overall carbon intensity of corn ethanol, while also serving as a practical application to gain regulators’ acceptance and build farmer interest by demonstrating the economic value of clean fuel policies.”

Lehman’s company Cultivating Conservation helps leverage USDA conservation programs to address critical environmental challenges to benefit farmers and natural resources and is an expert in the ACE-led Regional Conservation Partnership Program (RCPP) project.

ACE, Carbon, Ethanol, Ethanol News

Membership News from RFA

Cindy Zimmerman

The Renewable Fuels Association has announced the selection of Mark Gouthro to lead the association’s Technical Committee. Gouthro has worked as lab manager at E Energy Adams in Nebraska since 2016.

The Technical Committee is one of RFA’s four member committees on important ethanol industry topics, and focuses heavily on fuel specifications and standards such as ASTM International, National Conference of Weights and Measures, ISO, Canadian General Standards Board, and other international fuel requirements. RFA’s three other committees focus on Co-Products, New Uses, and Environmental Health & Safety. Participation in committees is an exclusive RFA member benefit.

Speaking of RFA members, the organization gained two new ones this week.

Heron Lake BioEnergy has joined RFA as its newest producer member. The Minnesota-based biorefinery produces approximately 59 million gallons annually, using about 21 million bushels of corn. The facility was recently acquired by Granite Falls Energy, and CEO Jeff Oestmann will represent both plants on the RFA Board of Directors.

RFA also welcomed StepOne Tech America as its newest associate member. Founded 10 years ago in Finland, the company develops and sells eFlexFuel E85 flex fuel conversion kits for the US market.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

MN Ag Commissioner Visits Granite Falls Energy

Cindy Zimmerman

Minnesota Agriculture Commissioner Thom Petersen, front left, visits Granite Falls Energy

Minnesota Department of Agriculture Commissioner Thom Petersen visited the Granite Falls Energy plant last week to gain a better understanding of the ethanol industry’s efforts in lowering its carbon footprint and its role in helping the state achieve its emission reduction goals.

“Our industry plays a vital role in strengthening Minnesota’s economy and reducing harmful greenhouse gas emissions. During the commissioners tour of our plant, we briefed him on our efforts to achieving a net-zero carbon footprint, providing high-tech jobs and continuing our commitment to Minnesota’s agriculture industry,” said Jeff Oestmann, CEO of Granite Falls Energy.

He said Peterson was briefed on measures that can be taken to increase ethanol usage in Minnesota such as utilizing federal funding to increase biofuel infrastructure, require state fleet vehicles to use E15 or E85 (in the case of flex-fuel vehicles) and advance a clean fuel standard that would provide ethanol with a proper carbon credit using the GREET model.

Additionally, Oestmann said the commissioner was briefed on some of the challenges facing Minnesota’s ethanol industry such as a potential reid vapor pressure (RVP) ban on E15 in the summer months of 2022.

Granite Falls Energy began operations in 2005 and currently produces 70 million gallons of ethanol a year.

Ethanol, Ethanol News

Sen. Grassley Sounds Off on RFS Deadline

Cindy Zimmerman

Yesterday, November 30th, was the deadline for the Environmental Protection Agency to release blending obligations for the coming year under the Renewable Fuel Standard (RFS) and Sen. Chuck Grassley (R-IA) says missing it is bad news for the biofuels industry.

“The fact that this deadline is being missed is very unfortunate for farmers and biofuel producers because they’re facing uncertainty at the volume levels that have not even been proposed,” said Grassley during opening remarks of his regular weekly press call with agricultural reporters on Tuesday. “Even worse are the reports that EPA is planning to lower these RFS requirements, which would very much weaken the incentive to produce and blend biofuels.”

Last week, Sen. Grassley sent a letter urging President Biden to support his bipartisan No Oil Producing and Exporting Cartels (NOPEC) Act to hold the foreign oil producing cartel accountable for its anticompetitive behavior that elevates global oil prices.

Listen to some of Sen. Grassley’s comments here:
Sen. Grassley comments on late RVOs (7:11)

Audio, Biodiesel, biofuels, Ethanol, Ethanol News

Green Plains to Establish Monarch Fueling Stations

Cindy Zimmerman

Green Plains has announced monarch butterfly habitats will be established at its Shenandoah and Superior, Iowa biofuel facilities. The projects are part of the Monarch Fueling Station Project by Iowa Renewable Fuels Association and the Iowa Monarch Conservation Consortium to create patches of native grasses and other pollinator-friendly plants for the monarchs as they migrate through the state. The initiative has established 19 fueling stations covering 48 acres since it kicked off in 2017.

The site in Shenandoah is 1.75 acres and seeding is expected to take place in the spring of 2022. “We’re happy to contribute to this statewide project,” said Cory Scamman, general manager, Green Plains Shenandoah LLC. “This initiative is doing great work to preserve an important species and we look forward to establishing a habitat on our property.”

At Superior they plan to establish the habitat on a field currently being used to grow hay. The plant will start by converting one or two acres but there is potential to expand the habitat by several acres. “I think it’s important to promote habitat for endangered pollinators like the monarch,” said Tod Smith, plant manager, Green Plains Superior LLC. “I’m looking forward to having a fueling station for them in the Superior area.”

The location and size of both habitats was decided in consultation with Habitat Establishment Coordinator Kevin Reynolds.

Ethanol, Ethanol News, pollinators

Thanksgiving Harvest Powers Biodiesel and Renewable Diesel

Cindy Zimmerman

As many of us are finishing up the turkey leftovers this week, some biodiesel producers are reaping a harvest of used cooking oil from the holiday.

National Biodiesel Board (NBB) members — such as Newport Biodiesel in Rhode Island, New Leaf Biofuel in San Diego and American GreenFuels in Connecticut — harvest and recycle used cooking oil into biodiesel and renewable diesel, helping to keep food costs down while lowering carbon emissions.

Many people will dine out on Thanksgiving while others choose to fry their turkey. Either of those options can support the clean fuels industry. NBB members are leaders in the circular economy, many of whom rely on local restaurants for their feedstock supply. These companies collect used cooking oil from area restaurants and recycle it to produce to high-quality biodiesel, which they sell to local businesses, governments, fleets and even use themselves. They’re keeping a waste product out of landfills and helping restaurants keep prices down by finding a second use for their waste product.

Biodiesel, NBB, renewable diesel

Bipartisan Defend the Blend Bill Introduced

Cindy Zimmerman

Representative Ashley Hinson (R-IA), together with Reps. Rodney Davis (R-IL), Angie Craig (D-MN) and Ron Kind (D-WI), introduced bipartisan legislation in the U.S. House this week that would keep blend levels under the Renewable Fuel Standard from being reduced after they are finalized.

The “Defend the Blend” bill would prohibit the Environmental Protection Agency (EPA) from reducing the minimum applicable volume of biofuels into transportation fuel once the Renewable Volume Obligations (RVO) levels are finalized for any given year. This would prevent the EPA from retroactively reducing 2020 RVO levels, which is an action the administration has been rumored to be considering.

“Rumors abound that the EPA is going to retroactively reduce biofuel blending requirements for 2020—before they’ve even set levels for 2021 and 2022; this would be detrimental to Iowa’s biofuel industry. My bipartisan bill will hold the Administration accountable for maintaining the integrity of the Renewable Fuel Standard and give biofuel and ethanol producers the certainty they deserve,” said Rep. Hinson.

Renewable Fuels Association President and CEO Geoff Cooper said they strongly support the bill. “The Renewable Fuel Standard was intended to provide long-term market certainty and predictability for our nation’s ethanol producers, farmers, fuel retailers, and other market participants. Retroactively slashing renewable volume obligations long after they have been set would throw the RFS program into turmoil and reward a small group of defiant oil refiners for their bad behavior.”

American Coalition for Ethanol (ACE) CEO Brian Jennings said, “The way the program has been carried out over the past few years has created uncertainty for not only biofuel producers and farmers, but for fuel retailers and oil refiners. The RFS was a well-written piece of legislation, and this bill would help keep EPA from continuing to play politics when it comes to administering the program.”

Additional co-sponsors of the bill include Reps. Dusty Johnson (R-SD), Adrian Smith (R-NE), Jeff Fortenberry (R-NE), Mariannette Miller-Meeks (R-IA), Mike Bost (R-IL), Randy Feenstra (R-IA), Cindy Axne (D-IA), Jim Baird (R-IN), Michelle Fischbach (R-MN), Jake LaTurner (R-KS), and Darin LaHood (R-IL).

ACE, Ethanol, Ethanol News, RFA

Groups Pleased with Biofuel Provisions in BBB Act

Cindy Zimmerman

Farm and biofuel organizations are grateful this Thanksgiving Day week for key provisions in the Build Back Better (BBB) Act, which passed the House on Friday and was sent to the Senate.

The Renewable Fuels Association, Growth Energy, the National Biodiesel Board, National Corn Growers Association, and National Farmers Union sent a joint letter to the chairs of the House and Senate agriculture committees thanking them for efforts to “build new markets for farmers and biofuel producers and help lower the carbon intensity of agriculture.”

“One of the most pressing challenges facing biofuel producers is ensuring that consumers have consistent access to higher-level ethanol and biodiesel blends, which are lower carbon and lower cost than petroleum fuels. The Biofuel Infrastructure and Agriculture Product Market Expansion provision in the BBB Act helps address this issue and contains much needed funding to ensure consumers have access to these fuels,” they wrote in reference to $1 billion allocated to upgrade refueling and distribution infrastructure meant for higher blends of ethanol.

Advocates also pointed to lifecycle analysis illustrating how improved farm practices continue to drive down the carbon intensity of farming, and therefore the overall carbon intensity of biofuels.

Ag group, Biodiesel, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Muckenhirn Excited About Expanded Role with ACE

Cindy Zimmerman

The American Coalition for Ethanol‘s new Vice President of Public Affairs Katie Muckenhirn is excited about her expanded role with the organization to support the nation’s ethanol producers.

Muckenhirn, whose maiden name is Fletcher, will continue to manage the organization’s media relations, while assuming a larger role in ACE’s public policy efforts and planning of ACE’s Washington, D.C. fly-in and annual conference. She has been with ACE since 2017 after nearly three years of writing and editing for BBI’s Ethanol Producer Magazine, Biomass Magazine and Pellet Mill Magazine and providing event support for the International Fuel Ethanol Workshop & Expo.

Chuck Zimmerman interviewed Katie at last week’s National Association of Farm Broadcasting (NAFB) annual Trade Talk about her new role.
Interview with Katie Muckenhirn, ACE (2:11)

ACE, Audio, Ethanol, Ethanol News