Iowa Senator Concerned About RVO Proposal

Cindy Zimmerman

Senator Chuck Grassley (R-IA) is concerned about rumors the Renewable Volume Obligations the Biden administration is reportedly set to release on Friday.

“You know what happens if something is unpopular it always happens at five o’clock on Friday,” said Grassley during his weekly press call with farm reporters Tuesday. “If we get a bad RVO out of EPA, the farmers aren’t going to forget it and they’re going to blame Biden.”

Sen. Chuck Grassley, proposed RVO release comments (1:19)

Concerns within the industry about media reports suggesting the Biden administration was planning to retroactively reduce 2020 volumes have been expressed during meetings with the Office of Management and Budget (OMB) over the past two weeks. “It is our sincere hope that these news reports are mistaken,” said the Renewable Fuels Association in written comments to OMB. “Retrospective revisions to the 2020 RVO would further destabilize the renewable fuels industry and farm sector, both of which are still struggling to recover from COVID-related market disruptions.”

RFA notified reporters Wednesday that an email with false 2020-2022 RVO numbers that “were supposedly shared by RFA with its members” was being circulated. “We want you to know that this is a complete fabrication and a shameful ‘spoofing’ attempt,” said RFA Communications Director Ken Colombini in a statement. “RFA never sent any such email or circulated any potential RVO numbers to our member companies. RFA does not have any information regarding the 2021-2022 RVO numbers or possible revisions to the 2020 RVO. Like everyone else, we are anxiously awaiting the public release of the RVO proposals and will have more information and comment at that time.”

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

Court Decision Maintains Duties on Argentine Biodiesel

Cindy Zimmerman

The U.S. Court of International Trade made the decision this week to uphold the U.S. Department of Commerce’s final determination in its changed circumstances review (CCR) of duties on imports of Argentine biodiesel.

The National Biodiesel Board (NBB) welcomed the decision. “NBB’s Fair Trade Coalition and members are grateful that the Department of Commerce stood by U.S. biodiesel producers and made the right decisions to maintain fair trade conditions,” said Kurt Kovarik, NBB’s VP of Federal Affairs. “NBB participated throughout the review to ensure the evidentiary record was current and complete. We are pleased that the court’s review supports the outcome of that process.”

The Commerce Department determined in May 2020 that there were no “changed circumstances” in Argentina’s subsidies for its biodiesel producers that would warrant changes in U.S. duty rates first imposed in early 2018 and the Court found that determination was “reasonably determined and supported by substantial evidence.”

Biodiesel, Exports, NBB, Trade

E Energy Adams Celebrates One Billion Gallons of Ethanol

Cindy Zimmerman

Over the weekend, E Energy Adams in Nebraska achieved a major milestone, producing its one billionth gallon of ethanol.

The Fagen/ICM designed plant was constructed in 2006 and began operation on October 27, 2007. “It took us nearly 14 years to make a billion gallons of ethanol, and we’re very proud of what we have achieved for our community and investors,” said Carl Sitzmann, who has been the CEO of E Energy from the start of operations. Sitzmann is a member of the Renewable Fuels Association (RFA) board of directors, serving on its executive committee for the past four years.

“With the achievement of this milestone, E Energy Adams joins an elite group of ethanol biorefineries that have reached one billion gallons of production,” said RFA President and CEO Geoff Cooper. “We congratulate Carl, his excellent staff, and all of the E Energy investors who made this accomplishment possible. Day in and day out for the last 14 years, they have worked tirelessly to support the local economy and provide American consumers with cleaner, greener, and more affordable fuel options.”

While the original plant capacity was 50 million gallons per year, various expansion efforts and projects to remove bottlenecks over the years brought the current capacity to 100 million gallons. In addition to doubling ethanol capacity, the plant also increased corn storage, added various new technologies, and gained unit-train capability to ship to California.

“We have a huge impact on the surrounding community. In addition to the significant tax revenue we provide to the county and local village, we’re boosting corn prices for the local producers, providing a protein-rich distillers grains to livestock feeders, and our distillers corn oil is used as either livestock feed or as feedstock for renewable diesel production,” said Sitzmann.

The company is celebrating their billion-gallon milestone throughout the month of September.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Vilsack Discusses Sustainable Aviation Fuel

Cindy Zimmerman

During an appearance before the Agricultural Business Council of Kansas City and Agri-Pulse Ag Outlook Forum Monday, Secretary of Agriculture Tom Vilsack addressed concerns about the proposed tax credit for sustainable aviation fuel that it might leave out corn and soybean feedstocks.

Agri-Pulse editor and president Sara Wyant asked the secretary if we can expect the administration to “weigh in for inclusion of corn and soybeans” in the SAF tax credit language.

“The fact that the (Sustainable Aviation Fuels) Grand Challenge focused on the work that USDA is doing in terms of feedstocks, I would hope would indicate to people that is the administration’s position,” said Vilsack. “You want to make sure when you create a new industry that you provide opportunities in every part of the country to participate. Is it going to be corn and soybeans only? No, it’s not.”

Secretary Vilsack also talked about other ways the administration is helping the biofuels industry during the forum.

KC Ag Outlook Forum - Vilsack on biofuels (9:10)

Agri-Pulse, Audio, aviation biofuels, biojet fuel, Ethanol, Ethanol News, feedstocks, Soybeans, USDA

NBB Renews Request to Meet with EPA Administrator

Cindy Zimmerman

The National Biodiesel Board sent a second request to EPA Administrator Michael Regan last week asking for a meeting to discuss the findings of a new study on the potential health benefits of using biodiesel as a transportation fuel. NBB previously requested a meeting with Regan in May.

The study from Trinity Consultants quantifies at a community level the public health benefits and resulting economic savings of using higher blends of biodiesel. The findings complement those of a new EPA report, “Climate Change and Social Vulnerability in the United States,” that details the unequal impacts of carbon and associated emissions on socially disadvantaged communities.

“We believe that our industry’s goals are consistent with your agency’s plans to address carbon and focus on environmental health,” writes Kurt Kovarik, NBB Vice President of Federal Affairs. “Replacing petroleum with drop-in alternatives like biodiesel and renewable diesel immediately reduces carbon. Additionally, biodiesel and renewable diesel reduce particulate matter and hydrocarbon emissions that contribute to cancer, lung, and heart disease rates.”

The Trinity Consultants study provides insight on one potential solution to the challenge EPA identifies in its new report. EPA’s report first identifies U.S. areas projected to experience the highest impacts of climate change, including air quality impacts on asthma rates and premature deaths. It then estimates the likelihood that socially vulnerable populations live in these areas.

“EPA’s new report highlights an important issue but does not go further to discuss solutions,” Kovarik adds. “We would like an opportunity to show Administrator Regan how biodiesel and renewable diesel can support EPA’s goals to address climate change and environmental justice issues.”

Biodiesel, EPA, NBB

Ethanol Report RFA 40th Anniversary – Randy Doyal

Cindy Zimmerman

The Renewable Fuels Association was born in 1981 and RFA is celebrating its 40th anniversary this year by spotlighting some of the pioneers in the ethanol industry who were there at the beginning, like Randy Doyal.

Doyal is CEO of Al-Corn Clean Fuel in Claremont, Minnesota and has been an RFA board member since 1995, serving as board chairman in 2015-2016. Last year, Al-Corn celebrated its billionth gallon of ethanol production.

But Doyal actually got his start in the ethanol business over 40 years ago about a thousand miles southwest of Minnesota in Portales, New Mexico.

Listen to his story in this edition of The Ethanol Report.

Ethanol Report 9-17-21 (13:15)

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

POET Pledges Carbon Neutrality by 2050

Cindy Zimmerman

Biofuel producer POET this week released its inaugural sustainability report and pledged to reduce its greenhouse gas (GHG) emissions by at least 70 percent compared to gasoline by 2030.

POET established several environmental, social and governance (ESG) goals, including investing in the latest biotechnology, advancing operational efficiencies and promoting a sustainable society through both POET’s business ventures and its philanthropic endeavors. According to a recent study, today’s bioethanol reduces carbon emissions by 46 percent compared to gasoline.

In July, members of the Renewable Fuels Association (RFA) made a commitment to ensuring ethanol achieves a net-zero carbon footprint, on average, by 2050 or sooner.

In a letter to President Biden, RFA’s board of directors wrote that today’s grain-based ethanol is already a low-carbon fuel that is helping to clean up our nation’s transportation fuels. But with smart policy measures, ethanol can do even more. It can serve as an affordable zero-emissions fuel for light-duty cars and trucks, while also helping to decarbonize medium- and heavy-duty vehicles, aviation, marine, and stationary power generation.”

To support the achievement of its goals, RFA encouraged the administration to move forward with several key policy initiatives: development of a national Clean Fuel Standard, support for carbon capture, utilization and sequestration (CCUS) technologies, and deployment of more flex-fuel vehicles.

Ethanol, Ethanol News, POET, Sustainability

RFA Analysis: RINS Have No Impact on Gas Prices

Cindy Zimmerman

A new analysis from the Renewable Fuels Association finds the Renewable Fuel Standard’s compliance credit market mechanism, known as Renewable Identification Numbers (RINs), has no impact on retail gasoline prices. The analysis finds that while RINs are a factor in wholesale gasoline prices, there is no evidence that RIN costs have any measurable effect on the retail prices paid by consumers.

RFA Chief Economist Scott Richman found that, not surprisingly, the main driver of recent higher retail gas prices is higher crude oil prices. He calculates that retail gasoline prices have had a correlation of 0.96 with West Texas Intermediate crude oil prices on a monthly basis from January 2013 to July 2021 (with 1.00 representing a perfect correlation and 0.00 representing no correlation whatsoever). Meanwhile, there has been essentially zero correlation (-0.05) between gasoline prices and the prices of RINs. The new analysis is consistent with similar studies conducted by Informa in 2015 and 2017.

“Higher gasoline prices this summer were caused primarily by OPEC+ oil production cutbacks and an increase in gasoline demand,” writes Richman. “Additionally, supply issues such as the Colonial Pipeline shutdown and refinery closures due to Hurricane Ida accentuated price pressures at times. RINs are a convenient target for accusations since they are not widely understood, but as the analysis confirms, RINs do not contribute to higher retail gasoline prices.”

Read more about the analysis from RFA.

Ethanol, Ethanol News, Renewable Fuels Association, RFA, RFS, RINS

Biofuels Offer Benefits for California’s Carbon-Neutral Future

Cindy Zimmerman

In comments submitted last week to the California Air Resources Board (CARB), a group of ag and biofuel organizations and companies highlighted how renewable fuels like ethanol can help the state achieve its goal of reaching carbon neutrality by 2045 or sooner. CARB is seeking input as part of updating its Scoping Plan which lays out the path toward achieving the state’s carbon reduction targets.

The comments were signed by leadership of the Renewable Fuels Association, Growth Energy, National Corn Growers Association, Aemetis Inc., Alto Ingredients Inc., Calgren Renewable Fuels, Pearson Fuels, Propel, POET and RPMG. Their comments spotlight recent state-funded research that indicates pathways to carbon neutrality through greater reliance on renewable fuels like low-carbon ethanol.

Reminding CARB that ethanol has already cut more than 26 million metric tons of carbon in California with a weighted average carbon intensity 46% lower than gasoline, the group recommended first that the board expedite the approval of E15 as a legal fuel in California. This action alone has the potential for an immediate 50% increase in GHG reductions from ethanol in the existing light-duty fleet.

Second, the group recommended the state consider requiring internal combustion engine light-duty vehicles sold in California be flex-fuel vehicles beginning in model year 2024. This requirement would put more vehicles on the road capable of maximizing GHG reductions comparable to battery electric vehicles through use of higher biofuel blends, which emit fewer toxic tailpipe emissions.

Finally, they urged that the Low Carbon Fuel Standard program be extended beyond 2030 in a form that is consistent with the state’s carbon neutrality goals. Specifically, the program should incorporate crediting for agricultural soil carbon sequestration, given the significant opportunity for GHG reductions with appropriate incentives and accounting.

“Ethanol in a wide range of blend levels above today’s typical 10% blend represents an immediate, mid-term and long-term opportunity for California to maximize GHG reductions, while providing affordable fuel to consumers and encouraging new economic development and job growth in the state.”

E85, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Sustainable Aviation Fuels Plan Flaw Could Hurt Farmers

Cindy Zimmerman

In the rush to get as much spending in the massive Build Back Better bill as possible, Congressional Democrats created a new tax credit for sustainable aviation fuel (SAF) starting at $1.25 a gallon and increasing based on the carbon content of the biofuel, but the plan could favor foreign imports over American farmers and biofuel producers in its current form.

America’s top biofuel and farm advocates are asking Democratic leaders to fix a “major flaw” in the House Ways & Means Committee text released Friday night for tax provisions of the budget reconciliation, which is set for consideration Tuesday.

Despite farm-friendly promises as recently as Thursday from White House leaders, the legislation under consideration would rely on foreign standards based on decade-old models, rather than updated lifecycling modeling by scientists at the Department of Energy who study the U.S. agricultural supply chain, including both direct and indirect land use.

“Without a change in these three bills before the House of Representatives, U.S. biofuel producers will not be able to participate in the SAF market, rural communities will be locked out from contributing to a cleaner climate, and our nation’s ability to decarbonize the airline fleet will suffer,” said the Renewable Fuels Association, Advanced Biofuels Business Council, American Farm Bureau Federation, American Soybean Association, Growth Energy, National Biodiesel Board, National Corn Growers Association, National Farmers Union, and the National Sorghum Producers in a letter Sunday.

USDA joined the government-wide Sustainable Aviation Fuels (SAF) Grand Challenge to meet 100% of U.S. aviation fuel demand by 2050 announced during a White House roundtable on Thursday.

Under the plan, USDA will “support U.S. farmers with climate-smart agriculture practices and research, including biomass feedstock genetic development, sustainable crop and forest management at scale, and post-harvest supply chain logistics. USDA will also support fuel producers with carbon modeling components of aviation biofuel feedstocks.”

USDA will work to ensure farmers, foresters, small businesses and rural economies benefit from these opportunities with attention to cost, quality and quantity of agricultural-based feedstock for producing SAF. The Department will conduct research to support biomass feedstock genetic development, sustainable crop and forest management, and post-harvest supply chain logistics such as through transportation, storage, preprocessing and regional supply chain integration, optimization and greenhouse gas reductions.

advanced biofuels, AFBF, Biodiesel, biofuels, corn, Ethanol, Ethanol News, NFU, Renewable Fuels Association, RFA, USDA