Vilsack Announces Renewable Energy Investments

Cindy Zimmerman

Agriculture Secretary Tom Vilsack announced Thursday that USDA is investing $464 million to build or improve renewable energy infrastructure and to help rural communities, agricultural producers and businesses lower energy costs in 48 states and Puerto Rico. USDA is financing $129 million of these investments through the Rural Energy for America Program and $335 million through the Electric Loan Program.

Among the investments announced, Red Trail Energy in North Dakota will use a $25 million loan to build a carbon-capture processing and storage facility at an ethanol manufacturing facility. The project will provide a 40 to 50 percent reduction in the carbon intensity score of ethanol the company produces. It also will enable the company to distribute ethanol to low-carbon fuel standard markets.

Secretary Vilsack was asked about aid for biofuel producers affected by the pandemic last year. “We are in the process of finalizing plans to provide $700 million assistance to the biofuel industry because they didn’t receive benefits under previous COVID packages,” said Vilsack. However, he explained, these things take time and he can’t commit to when it might happen because he is not in control of the whole process.

“The first thing you have to do is write the rules,” he said. “Once you make that decision…then you have to go to OMB, the Office of Management and Budget. We don’t have the capacity to spend a single dime unless OMB signs off on it.”

Listen to Vilsack’s remarks here:

USDA Announces Renewable Energy Investments (14:55)

Audio, Biodiesel, biofuels, Ethanol, Ethanol News, Renewable Energy, USDA

Billion for Biofuels in Build Back Better Bill

Cindy Zimmerman

The initial draft of the U.S. House Build Back Better Act includes a billion dollars for biofuels infrastructure to support expanded availability and use of renewable fuels, according to Rep. Cindy Axne (D-IA) who worked to secure the funding.

“This is a great day for our rural communities, our agricultural economy, our planet, and for hundreds of thousands of Americans whose jobs will be supported by the investments I’ve helped secure in the Build Back Better Act,” said Rep. Axne. “Make no mistake, this was no easy fight. For months, I have been helping members of the administration, the Senate, and my own colleagues in the House understand the key advantages of biofuels – from the fact that it’s been proven to be more than twice as clean as fossil fuels to how much it can help the economies of states like Iowa. But I wouldn’t let up, because it was clear from other infrastructure negotiations that this was not as much of a priority for others in Washington.

“While I will still withhold my final decision on this package until I see the full bill, seeing these investments included will be a critical part of my choice,” Rep. Axne added.

House committees are working on a draft of the comprehensive legislative package ranging from infrastructure to health care, education, and climate. The $1 billion in funding would be for the U.S. Department of Agriculture to provide grants over the next eight years to expand biofuel pump infrastructure, upgrade existing tanks and pumps, and increase usage of higher blends of ethanol and biodiesel.

That investment is double the amount originally proposed in the Renewable Fuels Infrastructure Investment and Market Expansion Act, introduced by Axne in March.

Rep. Axne was one of a number of Democrat members of the House and Senate who sent a letter last week to Senate Majority Leader Chuck Schumer (D-NY) and Speaker of the House Nancy Pelosi (D-CA) urging them to include support for renewable fuels in the reconciliation package.

“Providing additional market access for higher blends of low carbon fuels in the budget reconciliation process will create jobs in rural communities, lower the price of fuel for consumers at the pump, reduce our dependence on fossil fuels, and, most importantly, decrease carbon emissions,” the legislators wrote.

In addition to Axne, the letter was signed by U.S. Senators Amy Klobuchar (D-MN), Tammy Duckworth (D-IL), Tammy Baldwin (D-WI), Tina Smith (D-MN), and Dick Durbin (D-IL) and Representatives Angie Craig (D-MN), Cheri Bustos (D-IL), and Mark Pocan (D-WI).

ACE, Biodiesel, Ethanol, Ethanol News

State Corn Checkoffs Helping Build E85 in California

Cindy Zimmerman

Corn growers in Missouri, Kansas, and Nebraska are helping to build E85 infrastructure in the top U.S. market for ethanol.

The corn checkoff programs in the three states are leveraging resources to provide California fuel retailers up to $1.25 million over the next year to increase availability of E85 (85% ethanol). Fuel will be supplied by Pearson Fuels, the largest E85 distributor in California with nearly 250 retail stations located throughout the state.

Growers from the three corn checkoff organizations met with representatives from Pearson Fuels in San Diego in July to discuss potential opportunities to grow E85 demand. California is by far the strongest E85 market in the country, accounting for more than 40 million gallons in 2020, and is on track to reach 50 million gallons in 2021.

Jay Schutte, Missouri Corn Merchandising Council chairman and corn grower from Benton City, took part in discussions in San Diego and was impressed with the potential expanded partnership. “Our infrastructure grant dollars, teamed with Pearson Fuels’ marketing and local expertise, will allow us to increase ethanol sales faster in California compared to anywhere else in the country.”

corn, E85, Ethanol, Ethanol News

Groups Oppose Motion to Remand SREs without Vacatur

Cindy Zimmerman

Six biofuel-supporting organizations filed a motion this week opposing the Environmental Protection Agency (EPA) motion to “remand but not vacate the 31 small refinery exemptions (SREs) the Trump Administration granted in August 2019.”

The Renewable Fuels Association, Growth Energy, National Corn Growers Association, National Biodiesel Board, American Coalition for Ethanol, and National Farmers Union as a coalition are currently challenging the 31 SREs in the D.C. Circuit, arguing that EPA’s issuance of the exemptions was arbitrary and capricious and exceeded the Agency’s authority under the Clean Air Act.

Together, these leaders provided the following statement in opposition to this motion:

“While it is encouraging that EPA intends to reconsider the 31 SREs granted for the 2018 compliance year, we must oppose EPA’s motion to remand without a deadline and without addressing the SREs’ ongoing damage to the biofuel industry. In addition to seeking a remand of the SREs, the Biden Administration EPA should ask that they be vacated; or at the very least, EPA should ask the court to set a deadline by which the reconsideration of these petitions must be completed. This would allow the Biden Administration EPA to hit the reset button and conduct a new evaluation of each 2018 SRE request in light of the 10th Circuit Court decision in Renewable Fuels Association et al. v. EPA and the recent Supreme Court decision overturning one piece of the 10th Circuit decision. We are looking to the Biden Administration to renew the bond with farmers and rural economies by restoring certainty and integrity to the RFS.”

ACE, Biodiesel, biofuels, Ethanol, Ethanol News, NBB, NCGA, NFU, Renewable Fuels Association, RFA

Chevron and Bunge Partner for Renewable Fuel Feedstocks

Cindy Zimmerman

Chevron U.S.A. and Bunge North America, Inc. have announced a proposed 50/50 joint venture to help meet the demand for renewable fuels and to develop lower carbon intensity feedstocks.

Upon finalization of the joint venture, Chevron and Bunge’s partnership would establish a reliable supply chain from farmer to fueling station for both companies. Bunge is expected to contribute its soybean processing facilities in Destrehan, Louisiana, and Cairo, Illinois, and Chevron is expected to contribute approximately $600 million in cash to the joint venture. Through the joint venture, the two companies anticipate approximately doubling the combined capacity of the facilities from 7,000 tons per day by the end of 2024. The joint venture would also pursue new growth opportunities in lower carbon intensity feedstocks, as well as consider feedstock pretreatment investments.

Under the proposed arrangement, Bunge will continue to operate the facilities to manage origination and marketing of meal and plant-based oil while Chevron would have offtake rights to the oil to use as renewable feedstock to manufacture diesel and jet fuel with lower lifecycle carbon intensity, in addition to providing market knowledge and downstream retail and commercial distribution channels.

feedstocks, renewable diesel

USDA COVID Aid and Infrastructure for Biofuels Coming Soon

Cindy Zimmerman

During a town hall style webinar with Farm Journal Editor Clinton Griffiths last week, USDA Secretary of Agriculture Tom Vilsack said payments for biofuels producers impacted by the pandemic could come in the very near future.

“We made the decision to put resources into the biofuel industry and I would expect and anticipate we’re going to be seeing announcements on that within the next couple of weeks,” said Vilsack on Thursday. “I think you’ll see those payments very soon.”

Vilsack also indicated more funds coming for the Higher Blends Infrastructure Incentive Program (HBIIP). “I think you”ll see additional support for infrastructure to make higher blends more available,” he said.

When it comes to biofuels competing with electric vehicles, Vilsack said, “This drives me crazy…the reality is we’re not going to stop building cars that use gas.”

Listen:
Farm Journal webinar Sec. Vilsack - biofuels (6:00)

The secretary is scheduled to make two announcements this week. Tuesday afternoon he will announce a “new grant program that will provide assistance for farm and food workers impacted by the Covid-19 pandemic.” Wednesday, September 8, Vilsack is scheduled to announce “investments in renewable energy infrastructure in rural communities across the country”

Audio, biofuels, Ethanol, Ethanol News, USDA

ACE Urges Hearing on Next Generation Fuels Act

Cindy Zimmerman

The American Coalition for Ethanol (ACE) is asking for a hearing to be held on the “Next Generation Fuels Act of 2021” (H.R. 5089) to address some concerns they have about the bill which was introduced by Rep. Cheri Bustos (D-IL).

Specifically, ACE is requesting testimony on how the bill would remove market barriers to ethanol and improvements that should be made to the legislation to reward farmers for climate-smart practices and ethanol producers for investments to reduce the carbon intensity of their fuel.

In a letter to House Committee on Energy and Commerce Chairman Frank Pallone, Jr., ACE CEO Brian Jennings says they would like to see improvements in the “low carbon octane” provision of the legislation.

“ACE strongly supports the fact that H.R. 5089 would remove many ethanol market barriers and requires the latest GREET model for lifecycle assessment but believes lifecycle analysis should be conducted at the facility level and specifically include GHG reductions made in the production of biofuel crops to ensure federal policies incent further reductions in carbon intensity and reward companies taking these steps,” according to the letter from Jennings.

During a Biofuels Summit at the Farm Progress Show last week in Decatur, Illinois, House Biofuells Caucus Co-Chair Rodney Davis (R-IL) acknowledged there were concerns with the bill. “There are some concerns that some of our fellow biofuels supporters have with the legislation as written,” said Davis. “We’re going to find out what their concerns are and then we’re going to be able to build that coalition to get this legislation moving forward.”

Rep. Davis said it’s important that everyone be on the same page. “My concern is, I don’t necessarily know if Energy and Commerce Chair Pallone is in favor of this,” he said.

Listen to Davis’ comments here:
FPS21 Rep. Rodney Davis (R-IL) - Next Gen Fuels Act (1:15)

ACE, Audio, Ethanol, Ethanol News

Ethanol Report from Farm Progress Show

Cindy Zimmerman

The Renewable Fuels Association had a very visible presence at the 2021 Farm Progress Show, held August 31-September 2 in Decatur, Illinois. RFA Vice President of Industry Relations Robert White said it was a great opportunity to see and talk with farmers, but it also proved to be a time to meet with members of Congress who are working to help the industry deal with some recent challenges.

In this Ethanol Report, we hear from RFA President and CEO Geoff Cooper, Reps. Cheri Bustos (D-IL), Mike Bost (R-IL), Darin LaHood (R-IL) and Rodney Davis (R-IL) with a special emphasis on the Next Generation Fuels Act introduced recently in the U.S. House by Rep. Bustos.

Ethanol Report 9-3-21 (15:46)

More audio and photos from the Farm Progress Show can be found in on AgNewsWire.

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.

Choose an option to subscribe

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

Rep. Bustos Talks Next Gen Fuels at #FPS21

Cindy Zimmerman

Rep. Cheri Bustos (D-IL) paid a visit to the Renewable Fuels Association exhibit at the Farm Progress Show on Wednesday and talked about her Next Generation Fuels Act introduced last week in the U.S. House. “It would require manufacturers of vehicles to make sure it could burn to start, E20, and go all the way up to E25 and E30 over the coming decade,” she said.

Bustos says the bipartisan legislation first goes to the Energy and Commerce Committee and she hopes to get it passed as either a stand-alone or as part of another environmental bill.

RFA President and CEO Geoff Cooper, pictured here with Rep. Bustos at the RFA exhibit, says they are very supportive of the legislation. “If we are able to get her bill passed, it would really open a new chapter of growth for the renewable fuels industry. It has virtually every regulatory fix that we need in there, it’s got an octane standard, it’s got a low carbon requirement…it would really benefit our industry in many ways.”

Interview with Rep. Cheri Bustos (D-IL) about Next Generation Fuels Act
FPS21 Interview with Rep. Cheri Bustos (D-IL) (3:37)

Interview with Geoff Cooper, President and CEO, Renewable Fuels Association
FPS21 Interview with RFA CEO Geoff Cooper (11:12)

2021 Farm Progress Show Photo Album

Audio, Ethanol, Ethanol News, Farm Progress Show, Renewable Fuels Association, RFA

#FPS21 Features Congressional Biofuels Summit

Cindy Zimmerman

Six Republican members of Congress from Illinois, Iowa and Indiana held a Biofuels Summit at the Farm Progress Show on Wednesday to discuss the importance of ethanol and biodiesel to the region and the challenges being faced by the biofuels industry.

House Biofuels Caucus Co-chair Congressman Rodney Davis (R-IL) was joined by Mike Bost (R-IL), Darin LaHood (R-IL), Randy Feenstra (R-IA), Mariannette Miller-Meeks (R-IA), and Jim Baird (R-IN) to hear from farmers and others at the show about a number of issues, including maintaining the Renewable Fuel Standard (RFS), keeping E15 year round, and tax issues, just to name a few.

Listen to the entire summit here:
FPS21 Congressional Biofuels Summit (1:19:42)

Biodiesel, biofuels, corn, Ethanol, Ethanol News, Farm Progress Show