RFA Pleased Gap Year Petitions Being Denied

Cindy Zimmerman

The ethanol industry was pleased to hear Monday that the Environmental Protection Agency (EPA) is denying petitions for retroactive small refinery waivers for the 2011-18 compliance years.

The Renewable Fuels Association welcomed the news that EPA is denying 54 “gap-year” small refinery exemption petitions and will deny the remaining 14 petitions once they are received from the Department of Energy. In announcing its decision, EPA acknowledged that it would be completely inappropriate to grant a waiver to a refinery for a compliance obligation from many years ago, especially when the refinery had already fully complied with the obligation.

EPA also cited the Tenth Circuit Court’s decision from January as an important consideration in rejecting the waiver petitions. Importantly, EPA is applying these petition denials nationally. RFA led the litigation in the Tenth Circuit, while the National Corn Growers Association, National Farmers Union, and American Coalition for Ethanol were co-petitioners.

“The petitions were never anything more than an absurd and bizarre attempt by the refineries to circumvent the Tenth Circuit Court’s decision in the Renewable Fuels Association v. EPA case,” said RFA President and CEO Geoff Cooper. “This should serve as the final nail in the coffin of these gap-year petitions, and we are eager to put this dark and sordid chapter in the history of the RFS behind us once and for all.”

Cooper also thanked President Trump for taking an active role in helping to restore integrity to the Renewable Fuel Standard (RFS).
RFA CEO statement on gap year waiver denials (1:20)

Audio, EPA, Ethanol, Ethanol News, RFA

EPA to Deny Gap-Year Refinery Waivers

Cindy Zimmerman

The U.S. Environmental Protection Agency (EPA) has announced it is denying petitions for small refinery exemptions for past compliance years, the so-called “gap-filling” petitions for the 2011-18 compliance years.

“This decision follows President Trump’s promise to promote domestic biofuel production, support our nation’s farmers, and in turn strengthen our energy independence,” said EPA Administrator Andrew Wheeler. “At the EPA, we are delivering on that promise by following the rule-of-law and ensuring 15 billion gallons are blended into the nation’s fuel supply.”

The EPA announcement also noted that the agency is “moving to update E15 labels to ensure consumers have informed choices at the pump and clarify the ability of existing fuel infrastructure to support expanded E15 use.”

However, much of the responsibility regarding labels falls to state agencies, EPA encourages they update them as well and stands ready to support them. EPA continues to actively engage with stakeholders to expand the number of approved fuel pathways, adding diversity to the biofuel mix in the United States.

EPA also cited the Tenth Circuit Court’s decision from January as an important consideration in rejecting the waiver petitions. Importantly, EPA is applying these petition denials nationally. The Renewable Fuels Association (RFA) led the litigation in the Tenth Circuit, while the National Corn Growers Association, National Farmers Union, and American Coalition for Ethanol were co-petitioners.

“The petitions were never anything more than an absurd and bizarre attempt by the refineries to circumvent the Tenth Circuit Court’s decision in the Renewable Fuels Association v. EPA case,” said RFA President and CEO Geoff Cooper. “This should serve as the final nail in the coffin of these gap-year petitions, and we are eager to put this dark and sordid chapter in the history of the RFS behind us once and for all.”

“Asking for waivers for nearly ten years ago was a new low by the oil industry to undermine the RFS and rewrite history,” said NCGA President Kevin Ross. “While denial of these past-year waivers is obviously positive news for farmers and biofuel producers, we’re never going to have the certainty we need until the underlying waiver issue is fully resolved.”

ACE CEO Brian Jennings added, “Simply put, these retroactive waivers ignored the RFS statute and the Tenth Circuit Court decision, so rejection of the gap-year requests is what the law and court precedent required of EPA…The next logical step is for EPA to once and for all nationally apply the precedent set by the Tenth Circuit Court, which likely means denying most of the pending refinery waivers for 2019 and 2020.”

EPA currently has 31 waivers under consideration for 2019 and 2020 Renewable Fuel Standard (RFS) compliance years.

NFU President Rob Larew also urged the administration to follow up by releasing the overdue Renewable Volume Obligations (RVOs) for 2021.

ACE, Biodiesel, biofuels, corn, EPA, Ethanol, Ethanol News, NCGA, NFU, RFA

Ethanol Industry Hopeful for US-Brazil Trade

Cindy Zimmerman

U.S. ethanol stakeholder organizations are less than thrilled that Brazil’s tariff-rate quota (TRQ) has been extended now for another 90 days, but they are hopeful continued discussions will lead to a resumed free trade situation with that country.

“The Renewable Fuels Association, U.S. Grains Council, Growth Energy, and the National Corn Growers Association believe the 90-day extension of the TRQ serves neither Brazil’s consumers nor the Brazilian government’s own decarbonization goals, especially while Brazil’s ethanol producers continue to be afforded virtually tariff-free access to the U.S. market. The extension falls during Brazil’s annual inter-harvest period when U.S. ethanol exports to Brazil are traditionally low, causing greater uncertainty for U.S. exporters looking to make selling decisions now for the traditionally higher Brazilian demand in the winter months. While the Brazilian ethanol market has not been fully reopened to imports, we appreciate the continued support and efforts of the U.S. government as we use this 90-day period to aggressively pursue an open and mutually beneficial ethanol trading relationship with Brazil.

“The U.S. ethanol industry actively sought, through repeated dialogue with local industry and government, to illustrate the negative impacts of tariffs on Brazilian consumers and the Brazilian government’s own decarbonization goals. However, it seems Brazil’s government has left its own consumers to pay the price through higher fuel costs once again. While we would have preferred Brazil abandon its ethanol import tariffs entirely and resume its free trade posture on ethanol, which it held for several years before the TRQ, we view its decision to temporarily extend the TRQ on ethanol at the current level as an opportunity to continue discussions toward that end.”

American Coalition for Ethanol (ACE) CEO Brian Jennings agrees. “While an extension is better than the flat 20 percent tariff on all U.S. exports, this merely kicks the can down the road past the election and can be added to the list of piling uncertainties facing our industry. We have been trying to restore demand at home and around the world and in a year like 2020, finding growth opportunities are of the utmost importance.” said Jennings. “The TRQ unnecessarily limits our export potential and we hope further negotiations will ultimately make it easier for producers to pursue free and fair trade for ethanol in the future.”

ACE, corn, Ethanol, Ethanol News, Exports, Growth Energy, NCGA, RFA, USGC

Corn Use for Ethanol Estimate Lowered

Cindy Zimmerman

The August derecho that charged across the Midwest has taken its toll on the latest crop estimates in USDA’s September World Agricultural Supply and Demand report.

Corn production is forecast at 14.9 billion bushels, down 378 million from last month on a lower yield forecast and reduction in harvested area. Corn supplies are reduced from last month, as a smaller crop more than offsets greater beginning stocks mostly due to lower estimated exports for 2019/20. Corn used for ethanol for 2020/21 is lowered 100 million bushels based on the continued slow recovery in motor gasoline demand as a result of COVID-19. Exports are raised 100 million bushels reflecting reduced supplies in competitor countries.

Despite the decline, the 2020 corn crop would still be nine percent higher than last year and the second highest in history, with a record yield of 178.5 bushels per acre.

corn, Ethanol, Ethanol News, USDA

Brazil and US Agree to Extend Quota for 90 Days

Cindy Zimmerman

Trade representatives from Brazil and the United States have agreed to a 90 day extension of the tariff-rate quota (TRQ) for ethanol as both sides continue to discuss ways they can improve market access to “achieve reciprocal and proportional outcomes that generate trade and open markets to the benefit of both countries.”

According to a joint statement released by the U.S. Trade Representatives office, they will discuss an arrangement to improve market access for ethanol and sugar and will also consider an increase in market access for corn in both countries.

The two countries will also discuss ways to ensure there is fair market access along with any increase in the consumption of ethanol, as well as to coordinate and ensure that the ethanol industries in both countries will be treated fairly and benefit from future regulatory changes on biofuel products in Brazil and the United States.

Brazil and the United States agreed to proceed in this manner in the spirit of the economic partnership created under the leadership of Presidents Trump and Bolsonaro, acknowledging the need to continue to constructively address the effects of the crises generated by the COVID-19 pandemic on their bilateral trade and domestic production.

Brazil, Ethanol, Ethanol News, Exports

President Trump Order to Help Grow E15

Cindy Zimmerman

President Donald Trump tweeted an announcement out over the weekend directed at increasing availability and sales of 15% ethanol blended fuel.

“Subject only to State approval, our important Ethanol Industry will be allowed to use the 10% Pumps for the 15% BLEND,” the president tweeted on Saturday morning, thanking several ethanol state senators including Joni Ernst of Iowa. He called Sen. Ernst to share the news with her personally.

“That saves tremendous amounts of money for the people in the ethanol industry,” President Trump said over the phone as Sen. Ernst shared the call on Twitter. “Like hundreds of millions of dollars I hear for the conversion (of pumps for E15) and there’s no reason to do it.”

“We thank President Trump for his commitment to removing obstacles to E15 and for again highlighting the importance of the ethanol industry to our nation’s economy and energy security,” said Renewable Fuels Association President and CEO Geoff Cooper. “We look forward to learning more about the President’s plans to expand the nationwide use of E15, as well as EPA’s intentions with the 98 pending small refinery exemption petitions under the Renewable Fuel Standard.”

Listen to President Trump announce the E15 decision to Sen. Ernst.
Pres. Trump announces E15 policy (1:05)

Audio, E15, EPA, Ethanol, Ethanol News, RFA

RFA Provides Testimony to EPA Advisory Committee

Cindy Zimmerman

EPA’s Farm, Ranch and Rural Communities Advisory Committee is meeting virtually this week to provide policy advice, information, and recommendations on a range of environmental issues and policies important to agriculture and rural communities. Renewable Fuels Association President and CEO Geoff Cooper provided testimony on steps the EPA needs to take immediately to support U.S. ethanol producers and rural America.

Cooper outlined five areas where EPA action has been delayed and needs to move forward. Specifically, he called on the agency to:
– adopt the recent Tenth Circuit Court decision (Renewable Fuels Association et al. v. Environmental Protection Agency) nationwide;
– deny all pending so-called “gap year” small refinery exemption (SRE) petitions;
– decide the 31 pending SRE petitions for 2019 and 2020 according to the Tenth Circuit Court criteria;
– publish the proposed rule for 2021 renewable volume obligations (RVOs); and
– as ordered by the U.S. Court of Appeals for the D.C. Circuit in ACEI v. EPA, restore the 500-million-gallon conventional renewable fuel volume that was illegally waived from the 2016 RFS requirements.

Ethanol supporting members of the EPA advisory committee participating in this week’s meeting include RFA Board Member Bill Pracht of East Kansas Agri-Energy; Bill Couser, Couser Cattle Company, Iowa; and Jim Zook, Executive Director, Michigan Corn Growers.

EPA, Ethanol, Ethanol News, RFA

ACE Rises Up to Challenge of Virtual Annual Conference

Cindy Zimmerman

Once upon a time, the American Coalition for Ethanol (ACE) 33rd annual conference was scheduled to be held last month as an in-person event like conferences used to be held back in the pre-COVID world. Instead, producers from all over the country will now be able to attend a virtual event on September 16 and come away more informed on some of the most pressing issues facing the ethanol industry.

The conference theme of “Rising Up” embodies the resilience demonstrated by those in the ethanol industry in response to the pandemic and as part of the agenda for the virtual Fuel Ethanol Workshop this year, more producers will be able to attend than ever before.

The abbreviated 2020 live virtual event will consist of several general sessions, including updates from ACE leadership, a keynote address from USDA Deputy Secretary Stephen Censky, a flex fuel retailer roundtable featuring Casey’s General Stores and Pump & Pantry, a panel discussion with leadership from ethanol companies, as well as a market outlook from Tom Kloza, OPIS Head of Energy Analysis.

Shannon Gustafson, ACE Senior Director of Operations and Programming, provides a preview of the event in this interview.
ACE 2020 preview interview, Shannon Gustafson (8:43)

Annual ACE Conference information and registration

ACE, ACE Ethanol Conference, Audio, Ethanol, Ethanol News

Meet Biodiesel Scientists Making an Impact

Cindy Zimmerman

A virtual event is being held this afternoon (September 10) with the co-chairs of the Next Generation Scientists for Biodiesel to let them show some of the real-world impacts of their biodiesel research and outreach.

In this live Zoom event, meet four students serving as the new co-chairs of the Next Generation Scientists for Biodiesel, improving the world through science.

From an environmentally beneficial cover crop with promising potential as a biodiesel feedstock, to how biodiesel prevails in the economics of decarbonization, to campuses making and using biodiesel in city buses, you won’t want to miss their rapid-fire presentations!

Speakers: John Jansen/United Soybean Board, Floyd Vergara/ National Biodiesel Board, Leo Budy/University of Kansas, Zenith Tandukar/University of Minnesota, Jenny Frank/SUNY ESF, and John Cramsey/Iowa State University.

The event will be held from 4:00-5:00 central time today – register here.

Biodiesel, Education, NBB, Research, Science

Virtual FEW to Recognize Ethanol Industry Award Winners

Cindy Zimmerman

The International Fuel Ethanol Workshop & Expo (FEW) coming up next week will recognize recipients of its annual awards during the event’s virtual general session.

Doug Tiffany is receiving the FEW Award of Excellence and Doug Durante is this year’s High-Octane Award recipient.

Tiffany is the 18th recipient of the Award of Excellence, which recognizes professionals who have made meaningful contributions to the ethanol industry through research or technical advisory. The production economist has dedicated significant portions of his academic life to techno-economic analyses related to ethanol production. As a research fellow within the University of Minnesota’s Department of Bioproducts and Biosystems Engineering, Tiffany has worked on an array of ethanol-related projects ranging from biomass power, cogeneration and coproduct innovation to feedstocks, grain shipping patterns and new products.

The High-Octane Award celebrates passionate ethanol champions, educators and advocates. Durante is the founder and executive director of the Clean Fuels Development Coalition. In addition to producing the Ethanol Across America campaign, The Ethanol Fact Book, The Ethanol Minute radio program and more, he has been involved in almost every federal ethanol policy development over the past 40 years, from the trailblazing work of the National Alcohol Fuels Commission in the early ’80s, to the 1990 Clean Air Act and the Renewable Fuel Standards of both 2005 and 2007.

Both winners will give an acceptance speech during the FEW’s opening session Wednesday, September 16. The 2020 FEW is taking place September 15-17 in conjunction with the American Coalition for Ethanol’s Annual Conference. Both events are happening in a 100% virtual environment and are free for ethanol producers.

ACE, ACE Ethanol Conference, Ethanol, Ethanol News, FEW