House Members Urge Direct Aid For Biofuels Producers

Cindy Zimmerman

Members of the Congressional Biofuels Caucus spearheaded a letter Friday to House leadership requesting additional resources for the biofuels sector in the next piece of coronavirus relief legislation.

Representatives Collin C. Peterson (D-MN), Roger Marshall (R-KS), Dave Loebsack, (D-IA) and Rodney Davis (R-IL), co-chairs of the Congressional Biofuels Caucus, led the letter with 31 members of Congress to Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, Speaker of the House Nancy Pelosi, and Republican Leader Kevin McCarthy.

“Biofuels production is a major piece of the rural economy in our districts, and we urge you to explicitly include much-needed assistance for the sector in the next piece of coronavirus relief legislation. For example, language requiring the Secretary to provide a per-gallon payment to producers for renewable fuels produced during the COVID-19 pandemic. This mandate from Congress is necessary to ensure that the United States Department of Agriculture has the statutory authority they deem necessary to provide aid to the biofuels sector, and to guarantee assistance for the farmers and plant workers.”

The House passed Heroes Act includes language to provide a per-gallon payment to biofuels producers for fuel produced during the COVID-19 emergency. The bipartisan Biofuels Caucus supports the inclusion of this language in the next Coronavirus relief bill. After the Senate failed to find a way forward last week on the next coronavirus economic relief package, President Trump signed an executive order over the weekend taking action on economic relief and it is not clear yet what steps Senate leadership will take this week.

Read the letter here.

Biodiesel, biofuels, corn, Ethanol, Ethanol News

Senator Introduces Adopt GREET Act

Cindy Zimmerman

Senate John Thune (R-SD) this week introduced the Adopt GREET Act, which would require the Environmental Protection Agency (EPA) to update its greenhouse gas (GHG) modeling for ethanol and biodiesel.

Specifically, the bill would require EPA to adopt either the Argonne National Lab’s Greenhouse Gas and Regulated Emissions and Energy Use in Transportation (GREET) Model or the 2019 U.S. Department of Agriculture (USDA) methodology within 90 days of enactment. For biodiesel, EPA would be required adopt the GREET Model. EPA would then be required to update its modeling every five years or report to Congress to affirm its modeling is current or otherwise explain why no updates were made.

American Coalition for Ethanol (ACE) CEO Brian Jennings said they have long urged EPA to adopt the GREET model. “Current data from the GREET model indicate that corn ethanol’s carbon intensity is approximately 50 percent less than petroleum gasoline providing significantly more greenhouse gas reduction benefits than when the RFS was enacted over a decade ago. Senator Thune’s legislation is another pointed reminder that EPA must do better in its treatment of ethanol’s greenhouse gas benefits compared to gasoline. Updating EPA’s antiquated modeling would be a step in the right direction to underpin the scientific and economic opportunity for ethanol use to increase via low carbon fuel markets.”

The Adopt GREET Act is co-sponsored by Sens. Mike Rounds (R-SD), Chuck Grassley (R-IA), and Joni Ernst (R-IA).

ACE, Ethanol, Ethanol News

RFA Promoting Ethanol at 80th Sturgis Rally

Cindy Zimmerman

The 80th annual Sturgis Motorcycle Rally gets underway in South Dakota this weekend, and the Renewable Fuels Association will be setting up once again at the legendary Buffalo Chip Campground to spread the good news about ethanol and motorcycles.

“We know things will look a little different at Sturgis this year, thanks to COVID, but one thing that remains the same is the fact that ethanol is a great fuel choice,” said RFA Vice President of Industry Relations Robert White. Despite COVID, the annual event is still expected to draw at least 250,000 bikers this year, about half its normal attendance.

RFA will again sponsor the 13th annual Legends Ride on Aug. 10 starting in downtown Deadwood, with White participating and actor Tom Berenger as the ride captain. On display will be the custom E-85 bike featured on an episode of “American Chopper,” as well as the RFA flex-fuel Jeep Wrangler, designed and built by Kenny Hauk and featured on the Amazon Prime series Hauk Machines.

As a special benefit for bikers, RFA will again host Free Fuel Happy Hours at the rally, providing a free tank of 93 octane E10 (10% ethanol) for motorcycles, a ceremonial t-shirt and ethanol-based hand sanitizer. The free tank giveaway will be held from 10 a.m. to 1 p.m. Tuesday through Thursday, Aug. 11-13, at the CrossRoads area of the Buffalo Chip Campground. The fuel station that will feature the Free Fuel Happy Hours was donated by the RFA in 2017. RFA will also have a presence throughout the campground with banners, videos on the jumbotrons, and addressing the concert crowd each night.

This will be the 12th rally for RFA’s White, who will be on hand during the Free Fuel Happy Hours to answer any questions as motorcycle riders fill up on the high-octane fuel. Several RFA members will also be in attendance to help educate riders about the numerous benefits of ethanol.

In this interview, White talks about why this promotion has been so successful for RFA, and what to expect this year.
Sturgis promotion interview with Robert White, RFA

RFA at 80th Sturgis Motorcycle Rally Photos

Audio, Ethanol, Ethanol News, Motorcycle, RFA, Sturgis

Ethanol Celebrates 15th Anniversary of the RFS

Cindy Zimmerman

The Renewable Fuels Association (RFA) commemorated the 15th anniversary of President George W. Bush’s signing of the Energy Policy Act of 2005, which created the Renewable Fuel Standard, by releasing a new report detailing how the policy has driven innovation in the ethanol industry to benefit the nation. President Bush signed the act August 8, 2005.

“As you’ll see in this report, the RFS has been a smashing success,” said RFA President and CEO Geoff Cooper. “In addition to decreasing reliance on imported petroleum, the RFS has reduced emissions of harmful tailpipe pollutants and greenhouse gases, lowered consumer fuel prices, supported hundreds of thousands of jobs in rural America, and boosted the agricultural economy by adding value to the crops produced by our nation’s farmers.”

The report details how ethanol and co-product output has quadrupled in 15 years as ethanol consumption has more than tripled, enhancing U.S. energy security while saving consumers money at the pump. According to the report, the use of ethanol has reduced greenhouse gas emissions and cleaned up air pollution, the number of jobs supported by the industry has more than doubled, and ethanol has contributed substantially to the agriculture sector, supporting corn prices and farm incomes.

The report also includes historical perspective from RFA Senior Strategic Advisor Bob Dinneen, who led RFA through this important policy change. “We’ve probably all seen the Schoolhouse Rock version of ‘How a Bill Becomes a Law’,” Dinneen writes. “It does a great job of explaining the legislative process. But it cannot capture the circuitous adventure and machinations that occur before an idea materializes into legislative language. That is particularly true when it comes to the 2005 Energy Bill and the Renewable Fuel Standard.”

Link to report

RFA’s Cooper held a press call to discuss the success of the RFS, including comments from RFA Chairman Neil Koehler, Pacific Ethanol; Randy Doyal, Al-Corn Clean Fuel; and RFA Economist Scott Richman.
RFA 15th anniversary of the RFS media call

Q & A portion
RFA RFS anniversary call Q&A

Audio, Ethanol, Ethanol News, RFA, RFS

Ethanol Production Up and Down in July

Cindy Zimmerman

U.S. ethanol production took a step back last week, after taking two steps forward the week before.

According to EIA data analyzed by the Renewable Fuels Association for the week ending July 31, ethanol production moderated by 2.8%, or 27,000 barrels per day (b/d), to 931,000 b/d—equivalent to 39.10 million gallons daily. Production remained 10.5% below the same week in 2019 as a result of the continuing effects of the COVID-19 pandemic. The four-week average ethanol production rate increased 0.4% to 932,000 b/d, equivalent to an annualized rate of 14.29 billion gallons.

Production dropped the week ending July 17, after steadily increasing since an historic low was hit April 24 when more than half of the ethanol industry’s production capacity was shut down. The week ending July 24, ethanol production recovered and increased by 5.5%, or 49,000 barrels per day (b/d).

The COVID-19 pandemic has already resulted in $3.4 billion in lost revenues for the U.S. ethanol industry this year, according to an economic analysis by RFA, and damages could reach nearly $9 billion into 2021.

Ethanol, Ethanol News, RFA

Ethanol Industry Comments on IRS Carbon Credit Proposal

Cindy Zimmerman

Comments on proposed Internal Revenue Service regulations regarding the credit for carbon oxide sequestration under section 45Q of the Internal Revenue Code closed this week and ethanol supporters have provided input.

The ethanol industry generally supports the Carbon Capture Coalition, which was convened by the Great Plains Institute (GPI) and formed to help realize carbon capture’s full potential as a national energy, economic, and environmental strategy.

Comments from the Renewable Fuels Association additionally noted concerns that the minimum 100,000-metric-ton threshold may be difficult for ethanol plants to attain during economic challenges like the current pandemic which has cut ethanol production dramatically this year. RFA cautions that even short-term events that the industry may go through can lead to carbon sequestration below this threshold for a given year.

RFA proposed two remedies for such situations:
To prevent or help avoid a situation where an arguably eligible ethanol facility could lose 45Q eligibility in a particular year, we would suggest implementing a carbon capture measurement process that would allow an industrial facility, like an ethanol plant, to either: (1) carry over excess carbon capture tonnage from the previous year (only for the purposes of determining whether the threshold is met), or (2) have the ability to rely on a three- or five-year trailing average to determine how much carbon oxide is being captured annually at the facility.

Environment, Ethanol, Ethanol News, RFA

RFA Offers USDA Renewable Fuels Innovation Agenda

Cindy Zimmerman

The Renewable Fuels Association provided USDA with a roadmap to renewable fuel growth in comments on its Agriculture Innovation Agenda (AIA). The agenda calls for “increased biofuel feedstock production and biofuel production efficiency and competitiveness to achieve market-driven blend rates of E15 in 2030 and E30 in 2050.”

RFA’s response identified the following five opportunities for the industry:

Increasing productivity in crops and ethanol to meet volume requirements sustainably
Stimulating more demand and reducing more emissions from the current RFS policy
Facilitating greater demand from future policy
Continuing USDA infrastructure investments to expand biofuel deployment and sell higher blends
Adopting carbon capture, sequestration and utilization technologies

In addition, the association identified several roadblocks that need to be addressed by the federal government. This includes providing RVP (Reid Vapor Pressure) parity for all ethanol blends, removing or significantly revising E15 fuel survey requirements and labeling requirements, revising EPA’s outdated lifecycle greenhouse gas analysis of corn ethanol, and eliminating unnecessary registration and pathway certification barriers to cellulosic ethanol production from corn kernel fiber.

Ethanol, Ethanol News, RFA, USDA

REG to Supply Ultra Clean® Diesel in California

Cindy Zimmerman

Renewable Energy Group, Inc. (REG) recently entered into an agreement with Hunt & Sons, Inc. to supply REG Ultra Clean® at 12 locations in Northern California.

REG Ultra Clean blends biodiesel and renewable diesel to create one of the lowest carbon intensity liquid fuels available approved by the California Air Resources Board (CARB). Hunt & Sons is a leading California-based petroleum products distributor and operates from its headquarters in Sacramento, California. This relationship is a first for the business.

REG Ultra Clean will be offered at 12 locations and is currently available at two Hunt & Sons locations: Rancho Cordova and Sacramento.

Biodiesel, REG, renewable diesel

Ethanol Report 7-31-20

Cindy Zimmerman

Ethanol exports have taken a hit this year due to the pandemic, but there are still reasons to be optimistic about this important market for the industry. In this episode of The Ethanol Report, we hear from Renewable Fuels Association (RFA) General Counsel Ed Hubbard, who doubles as the organizations international trade expert.

We also learn about a new program geared toward young professionals in the ethanol industry 39 years old and younger from RFA Manager of Member Relations Jackie Pohlman.

Finally, we get an update from RFA CEO Geoff Cooper on where the Senate is on getting a coronavirus relief package that includes ethanol producers.

Ethanol Report 7-31-20 (24:06)

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, Exports, RFA

RFA Launches Young Professionals Network

Cindy Zimmerman

To meet the needs of an evolving workforce in the ethanol industry, the Renewable Fuels Association (RFA) has launched the Young Professionals Network (YPN), a new program geared toward members of the ethanol industry and stakeholder industries who are 39 years old and younger.

The YPN is designed to bring together innovative and dedicated young professionals to build new relationships and work with one another to identify new opportunities that grow and strengthen the renewable fuels industry. In order to foster this new approach, the RFA YPN will host events year-round that focus on networking, leadership, improving operations, and finding new and innovative approaches to building the market for ethanol.

“As we visited plants across the country and hosted industry meetings, we’ve met many smart and innovative young people with a deep interest in renewable fuels,” said RFA President and CEO Geoff Cooper. “Our association wants to help the industry cultivate, develop, and retain the best and brightest young leaders in the business. Providing a forum for them to come together and collaborate on personal, professional and industry development will help them, their employers, and our industry succeed.”

Those who wish to learn more about the Young Professionals Network can go to EthanolRFA.org/YPN for more information.

Listen to an interview with RFA’s Manager of Member Relations, Jackie Pohlman, who is leading the initiative.
Interview with Jackie Pohlman, RFA

Audio, Ethanol, Ethanol News, RFA