Wisconsin Governor Pledges Aid for Ethanol Plants

Cindy Zimmerman

Wisconsin Gov. Tony Evers last week announced that up to $3.25 million of federal Coronavirus, Aid, Relief, and Economic Security (CARES) Act funding will be made available to Wisconsin’s nine ethanol producers to help offset some of the significant losses experienced by the industry earlier in the COVID-19 pandemic.

“I appreciate the efforts of Wisconsin’s ethanol industry to pivot and respond to the challenges presented by COVID-19,” said Gov. Evers. “Ethanol production is extremely important to a number of supply chains in our state and will be especially critical as we finalize and implement our vaccine distribution plans. I’m proud to support our state’s ethanol producers and continue our commitment to innovation in biofuels.”

In addition to producing a renewable source of fuel, ethanol plants in Wisconsin help drive demand for high-value corn crops, which provide the raw material for ethanol production. Additionally, carbon dioxide (CO2), one of the byproducts of ethanol production, is a critical component of food and beverage packaging and the creation of dry ice.

“Wisconsin’s ethanol producers greatly appreciate Governor Evers’ support. We commend the Governor for his leadership and support for Wisconsin’s farmers and our industry,” added President of the Wisconsin BioFuels Association Erik Huschitt. “We are proud of the ways our state’s ethanol plants have adapted in order to keep running during COVID-19. These grants will be extremely helpful as we continue our important work.”

Ethanol, Ethanol News

California Ethanol + Power Finalizes Deal With CHS

Cindy Zimmerman

California Ethanol + Power last week awarded a 15-year contract to CHS Inc. to market and sell the 68 million gallons of Essential Ethanol to be produced annually by the Sugar Valley Energy campus located in California’s Imperial Valley. Minnesota-based CHS is the number one farmer cooperative in the country and one of the nation’s largest suppliers of ethanol-enhanced gasoline and retailers of E85 ethanol.

Sugar Valley Energy will be a 160-acre multi-plant campus consisting of sugarcane-to-ethanol, sugarcane to low-carbon power plus biomethane and wastewater treatment facilities. Once production reaches full capacity, Sugar Valley Energy is designed to produce 68 million gallons of ultra-low carbon, fuel-grade sugarcane ethanol each year. This Essential Ethanol will be mixed with gasoline for cleaner burning fuel.

Construction financing for Sugar Valley Energy is expected to be in place in the new year, with groundbreaking getting underway soon. Ethanol production is set to begin in 2023.

Ethanol, Ethanol News

Ethanol Industry Needs Support as COVID Losses Rise

Cindy Zimmerman

As COVID-19 cases rise and travel is being limited again, the consumption of ethanol-blended gasoline is on the decline again. In the first week of December, consumption of both gasoline and ethanol fell to their lowest points since May, according to data from the Energy Information Administration.

According to a new analysis by the Renewable Fuels Association, ethanol industry losses this year due to the pandemic hit $3.8 billion by the end of November. As a result of reduced travel and lower fuel demand, ethanol producers cut production by 2 billion gallons between March and November, and cuts are expected to continue into 2021.

“As Congress debates another COVID-19 relief package, we implore policymakers to consider the devastating economic impact the pandemic has had on renewable fuel producers,” said RFA President and CEO Geoff Cooper. “Our new analysis provides an in-depth look at how rural communities have suffered. The decrease in ethanol production has idled or permanently closed plants across the heartland and caused job losses in rural communities where good employment is often hard to find. As an industry deemed critical and essential to America, we call on Congress to act swiftly to provide some targeted relief to our nation’s renewable fuels industry.”

Whether Congress will get a bill passed before the end of the year remains in question. Lawmakers in both the Senate and the House were negotiating a number of possible deals last week, but have not come to an agreement.

Ethanol, Ethanol News, RFA

Biofuels Groups Pleased with Vilsack Nomination

Cindy Zimmerman

Tom Vilsack has officially been nominated to serve as Secretary of Agriculture in the Biden Administration, reprising the role he held under President Obama for eight years, and the biofuels industry is quite happy with that decision.

Renewable Fuels Association President and CEO Geoff Cooper says Vilsack is an excellent choice. “We are especially happy to have someone in the Biden administration who intimately understands the crucial role renewable fuels and agriculture can play in confronting climate change. We thank the president-elect and look forward to working once again with the new secretary once he takes office.”

During his time as Secretary, Vilsack frequently attended the major agricultural and biofuels events, including the National Ethanol Conference, National Biodiesel Conference, Commodity Classic, ACE Annual Meeting, and the Iowa Renewable Fuels Summit.

American Coalition for Ethanol (ACE) CEO Brian Jennings says Vilsack will be able to hit the ground running. “Secretary Vilsack was the most effective advocate the biofuels industry had in the Obama administration and we are excited about working with him again, particularly with helping get the RFS back on track, continued infrastructure support for higher ethanol blends, and making sure farmers and biofuel producers are part of the solution to future policies designed to tackle climate change.”

National Corn Growers Association President John Linder says corn farmers always appreciated Vilsack’s “willingness to listen to the input from growers across the country and his steadfast commitment to agriculture, renewable fuels, our environment and USDA’s food and nutrition programs.”

Iowa RFA Executive Director Monte Shaw says, as an Iowan, Vilsack knows first-hand the importance of a strong biofuels industry. “He has stood up for the RFS and expanded exports. And Secretary Vilsack has created innovative solutions like the Biofuels Infrastructure Program that really began the growth of E15 availability.”

National Biodiesel Board VP of Federal Affairs Kurt Kovarik says Tom Vilsack has a long and distinguished record of advocating for America’s farmers and biofuel producers and they look forward to “continuing a strong, productive relationship with USDA to expand markets and infrastructure for biodiesel.” Iowa Biodiesel Board Executive Director Grant Kimberley adds, “In particular, we look forward to Vilsack’s steady voice as he interacts with new leadership at the Environmental Protection Agency. We know we can count on him to help get the RFS back on track, and reinforce the benefits of growing biodiesel demand.”

ACE, Biodiesel, corn, Ethanol, Ethanol News, Iowa RFA, NBB, NCGA, RFA, USDA

Sen. Pat Roberts Bids Farewell

Cindy Zimmerman

Sen. Pat Roberts, the Republican from Kansas who has served as a leader in both the House and Senate Agriculture Committees over his four decade career in Congress, said goodbye to his Senate colleagues Thursday in a farewell floor speech.

The outspoken senator who helped to write the past eight farm bills spoke about his background, how he went from journalist to politician, the importance of agriculture, the turbulence of the ’60s, and working together for the good of the country. “Let us once again become a body of respect, humility, cooperation, achievement, and yes, friendship. That can and should be our new normal,” said Roberts. “The entire country could use a little bit of what we say in Kansas – to the stars through difficulty.”

Listen to his farewell here:
Sen. Pat Roberts farewell floor speech 24:11

Government, politics

DOJ Opposes Supreme Court Review of RFS Waivers Decision

Cindy Zimmerman

The Department of Justice has recommended against a Supreme Court review of the Tenth Circuit Court’s ruling earlier this year that invalidated several small refinery exemptions issued by EPA under the Renewable Fuel Standard. The DOJ filed its response Wednesday to a petition submitted in September by oil refineries HollyFrontier Corporation and CVR Energy asking the Supreme Court to review the Tenth Circuit’s January decision.

The petitioners in the original Tenth Circuit Court challenge – the Renewable Fuels Association, National Corn Growers Association, National Farmers Union, and American Coalition for Ethanol – welcomed the government’s brief opposing Supreme Court review of the appeals court decision. RFA, NCGA, NFU and ACE plan to file their own brief with the Supreme Court today echoing the points raised by DOJ and adding others in opposing review of the Tenth Circuit’s decision.

DOJ told the Court in its brief that this issue did not warrant the high court’s review and stated that the refiners’ petition asking for review “should be denied.” Citing the standards established by the Supreme Court, the government conceded that the Tenth Circuit’s decision did “not meet this Court’s ordinary criteria for granting certiorari.”

A coalition of the original petitioners, with two additional biofuel organizations, filed a brief Tuesday challenging the Environmental Protection Agency’s August 2019 decision to exempt 31 small refineries from their obligations to comply with the Renewable Fuel Standard in 2018.

ACE, biofuels, Ethanol, Ethanol News, RFA

SIRE Announces Resignation of Longtime Board Member

Cindy Zimmerman

Southwest Iowa Renewable Energy today announced the resignation of former Iowa State Senator and farmer Hubert M. Houser as a member of SIRE’s board of directors and chair of the Board’s Nominating Committee, effective immediately.

Houser has been a member of the Board since 2005 as the owner of farm, cow-calf and poultry operation located near Carson, Iowa. He served in the Iowa Legislature from 1992 to 2015, first in the House of Representatives and then in the Senate (from 2002 to 2015).

Karol King, Chairman of SIRE’s Board of Directors said: “Hubert Houser is one of the key founders of SIRE, having worked for years to attract additional industry, in particular value-added ag business, to Pottawattamie County and southwest Iowa. Hubert’s leadership and vision included strategic steps to assemble sufficient real estate for SIRE, in advance of the Company’s formation. The respect for Hubert’s long history of public service and his experience with public entities and private business were key to SIRE over and over through the years.”

Mike Jerke, SIRE’s Chief Executive Officer, said: “Since joining SIRE, I have valued Senator Houser’s unique perspective, thoughtfulness and wisdom, I appreciated his consistent challenging of management to carefully evaluate short term and long term aspects of significant actions. Everyone at SIRE wishes Hubert the best as he continues expansion of his farming operations, with many new and innovative projects.”

Ethanol, Ethanol News

Biofuels Coalition Challenging Small Refinery Waivers in 2018

Cindy Zimmerman

A coalition of six biofuel and farm organizations filed a brief Tuesday challenging the Environmental Protection Agency’s August 2019 decision to exempt 31 small refineries from their obligations to comply with the Renewable Fuel Standard in 2018.

The Renewable Fuels Association, Growth Energy, National Corn Growers Association, National Biodiesel Board, American Coalition for Ethanol, and National Farmers Union, collectively known as the Biofuels Coalition for this case, submitted its filing to the D.C. Circuit Court of Appeals, arguing that EPA lacked the authority to issue such exemptions and that it acted in an arbitrary and capricious manner in attempting to do so.

“Among all of EPA’s indefensible actions surrounding small refinery exemptions in recent years, the Agency’s two-page decision to grant 31 waivers from 2018 RFS compliance really takes the cake. Enough is enough,” Coalition representatives said. “The EPA had absolutely no legal basis for continuing to destroy demand for renewable fuels, which is contrary to the intent of Congress for the RFS program. When it adopted the RFS in 2005, Congress clearly intended for small refinery exemptions to be temporary in nature. Yet, 15 years later, some refiners—most of whom have readily complied with RFS obligations in the past—are trying to claim they need more time to prepare for compliance with RFS requirements. If these exemptions were meant to be a ‘bridge to compliance’, as concluded by the courts, it should be obvious that we all crossed that bridge many years ago.”

ACE, Ag group, Biodiesel, corn, EPA, Ethanol, Ethanol News, Growth Energy, NBB, NCGA, NFU

Basse Expects China to Purchase Ethanol Soon

Cindy Zimmerman

Dan Basse of AgResource Company presented his 8th annual agricultural outlook American Seed Trade Association (ASTA) virtual CSS and Seed Expo this week.

While 2020 was rough on the ethanol industry, Basse believes renewable fuels will benefit under a Biden administration. “I think initially they’ll try to lean green so I think it’s favorable for the U.S. ethanol industry,” he said, forecasting about 5.3 billion bushels of corn to go into ethanol production next year.

Basse also expects demand for ethanol in China to increase and purchases to be made soon. “They’re now kicking tires to buy U.S. ethanol and some of those high value products which they can buy before the end of the year,” he said.

ASTA ethanol questions for Dan Basse, AgResource (3:06)

Basse is bullish on agriculture for the year ahead. “In my 40 years I’ve never seen a change as dramatic as we had in August and September in which we lost crops from a flash drought in the central U.S. and then we had this demonstrative Chinese demand that was pent up because of years of trade war,” he said. “We’re optimistic, we think the Chinese need to put on a happy face for the Biden administration.”

In this interview, Basse summarizes some of his main points in the agricultural outlook. His full presentation at the virtual ASTA CSS and Seed Expo is available on-demand for registered attendees.
ASTA Interview with Dan Basse, AgResource (11:45)

Find more content from ASTA CSS here:
2020 ASTA CSS & Seed Expo Virtual Newsroom

Audio, Ethanol, Ethanol News

Registration Open for 2021 National Ethanol Conference

Cindy Zimmerman

Registration is now open for the Renewable Fuels Association 26th annual National Ethanol Conference to be held in a fully digital format February 16-18.

Early bird registration is being offered before January 19 for significant savings on a packed program that already comes at a lower rate compared to 2020’s event.

“These rates for the National Ethanol Conference, along with a convenient schedule spread over three days, will allow more people to take part in what has been the most visionary policy and marketing event for the renewable fuels industry,” said RFA President and CEO Geoff Cooper. “Attendees will hear from leaders across the value chain and dive deep into topics such as ethanol’s place in a low-carbon future, federal energy policy in transition, and new research on how consumers view renewable fuels. As RFA celebrates its 40th anniversary next year, we’ve got a landmark event planned to match the milestone.”

In addition to enabling broader participation, the digital format will provide attendees the flexibility to view content live in real-time or on-demand and offer unique networking and business development opportunities.

The NEC is the nation’s most widely attended executive-level conference for the ethanol industry, providing an unequaled opportunity to engage key decision makers and industry executives about the latest opportunities and challenges affecting the industry today. Last year’s conference, which featured President George W. Bush as a special guest, attracted approximately 1,000 industry professionals representing 39 states, the District of Columbia, and 18 countries.

Director of Special Projects and Events Mary Giglio is the meeting planner for the digital event, which will be the 25th NEC she has planned and definitely the most unusual. In this interview, she talks about what they are planning for attendees.

Interview with RFA's Mary Giglio on the 2021 NEC (8:43)

Audio, Ethanol, Ethanol News, National Ethanol Conference