Ethanol Report 9-30-20

Cindy Zimmerman

The coalition of farm and ethanol groups behind the case against Small Refinery Exemptions under the Renewable Fuel Standard (RFS) that was decided in January is still waiting for EPA to implement the court decision after eight months.

Meanwhile, ethanol producers and farmers are still waiting on the administration to make good on promises made a year ago. And at the same time, the impact of the COVID-19 pandemic this year could cost the industry as much as $8 billion, while Congress has yet to approve aid for producers.

This edition of the Ethanol Report podcast includes comments from Renewable Fuels Association president and CEO Geoff Cooper; National Corn Growers Association president Kevin Ross; National Farmers Union Biofuels Advisor Anne Steckel; American Coalition for Ethanol CEO Brian Jennings; Rep. Collin Peterson (D-MN); and U.S. Secretary of Agriculture Sonny Perdue.

Ethanol Report 9-30-20 (16:58)

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.

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ACE, Audio, corn, Ethanol, Ethanol News, Ethanol Report, NCGA, NFU, RFA, RFS

Ethanol Again Fuels Crappie Masters National Champion

Cindy Zimmerman

Crappie Masters voice Brian Sowers with champion Eric Cagle

The Crappie Masters National Tournament Trail Championship was held this past weekend near Monroe, Louisiana where more than one hundred teams competed in the two-day tournament.

Eric Cagle was crowned the National Champion for his haul of fourteen fish weighing a total of 28.81 pounds. For his efforts, Cagle took home a grand prize of $30,000, along with a $2,000 bonus from the Missouri Corn Merchandising Council for using E10 in his boat.

The Renewable Fuels Association co-sponsors the Crappie Masters Tournament Trail to spread the message that 10% ethanol is safe to use in marine engines, has performance and environmental benefits, while higher blends beyond E10 are great for light duty and tow vehicles. Every National Tournament Champion in the past six years fueled their boats with E10, as well as dozens of state and national tournament winners over the years.

While the COVID pandemic did impact the Crappie Masters and tournaments were halted for a period of time, several states started loosening COVID restrictions and lockdowns in late April and early May, allowing many state chapters to resume hosting tournaments with appropriate protocols in place to keep folks safe.

Watch Crappie Masters host Brian Sowers interview the winner here.


Boats, Ethanol, Ethanol News, RFA, Video

Study Pegs Ethanol Industry COVID Impact at $8 Million

Cindy Zimmerman

A new study published in the Journal of Agricultural & Food Industrial Organization finds that ethanol producers will experience roughly $8 billion in losses this year due to the impact of the COVID-19 pandemic on world fuel markets.

The study, conducted by agricultural economists from the University of Florida and Arizona State University, estimates ethanol producer losses due to COVID-19 at $7 billion, with the economic loss growing to between $7.9 to $8.6 billion when unemployment effects are included. However, the authors say their estimates likely “understate the cost of COVID-19” to the ethanol industry because the impact of the pandemic on co-product output, demand and prices is not included.

Renewable Fuels Association President and CEO Geoff Cooper said the new study corroborates the findings of an RFA analysis published in July, which found pandemic-related losses could be $7 billion or more, and it underscores the need for emergency relief for the industry.

“While market conditions have improved since the spring, the ethanol industry is still struggling to fully recover from the pandemic, and ethanol producers across the country remain under financial stress,” Cooper said. “There is strong bipartisan support for providing assistance to renewable fuel producers in both the House and Senate. We remain hopeful that a fourth COVID-19 aid package, with emergency relief for ethanol producers, will finally be pushed over the goal line in the weeks ahead.”

Ethanol, Ethanol News, RFA

Secretary Perdue Says Congress Must Approve Ethanol Aid

Cindy Zimmerman

Despite estimates that ethanol producers could lose up to $8 billion this year, U.S. Secretary of Agriculture Sonny Perdue says he has no authority to make payments to plants through the Commodity Credit Corporation under the latest round of the Coronavirus Food Assistance Program (CFAP 2).

The secretary confirmed that he believes Congress has to approve any aid for ethanol producers, meat processors, or any industry that provides further processing for agricultural commodities. “Collin Peterson is chairman of the House Agriculture Committee and it’s up to him,” said Perdue. “Congress through a majority vote could change it at any time.”

Perdue made those comments during a stop in Jay, Florida on Monday on a tour of crop damage from Hurricane Sally.

Secretary Perdue visits Florida panhandle photo album

Press availability with Secretary Perdue – comments on storm damage, disaster aid, CFAP2 and more
Secretary Perdue press avail (5:34)

Audio, Ethanol, Ethanol News, USDA

Energy Bites 9/28

Cindy Zimmerman


Chief Ethanol Now Producing USP Grade Ethanol – Chief Ethanol is now producing USP Grade Ethanol at its plant in Hastings, Nebraska. Chief Ethanol has modified its current process operations to produce higher grades of ethanol for use as the active ingredient in hand sanitizer and is able to provide long-term supply of higher grades of ethanol into industrial alcohol markets.
RFA Welcomes Orion Oil as Newest Associate Member – Based in Miami, Fla., Orion Oil is a fuel distributor that also operates gas stations and convenience stores in South Florida. RFA recently assisted the company on a grant application for the USDA Higher Blends Infrastructure Incentive Program (HBIIP).
Equipment Companies Continue March Toward Increasing Biodiesel in Heating Industry – The National Biodiesel Board notes advancements in the home heating industry as it continues its march toward a low carbon liquid future during the 2020 Heating & Energizing America Trade Show (HEAT Show). Key advancements in research and development continue to bring increased Bioheat® use industry wide.
Fuel Retailers and Consumers Fuel Up for Cancer Research – Starting October 1, drivers can help Fuel the Cure for breast cancer by filling up with higher blends of ethanol at participating locations. More than 35 Nebraska gas stations will donate 3 cents for every gallon of higher ethanol blends sold in October to support cancer research at the Fred & Pamela Buffett Cancer Center in Omaha. The Nebraska Corn Board and Nebraska Ethanol Board, along with Renewable Fuels Nebraska, sponsor Fuel the Cure in conjunction with retail stations.
RFA’s Ed Hubbard Joins Green Seal Board of Directors – Green Seal® recently announced that Jim Jones, previously Assistant Administrator at the U.S. Environmental Protection Agency (EPA), and Edward Hubbard Jr., General Counsel for the Renewable Fuels Association, have been elected to Green Seal’s Board of Directors. Edward Hubbard has been General Counsel for the Renewable Fuels Association since 2011, where he steers the international public policy agenda for America’s leading ethanol industry trade association.
Biodiesel: Better, Cleaner, Now is Booming Across Airwaves – The National Biodiesel Board’s latest national advertising campaign hit airwaves this month with biodiesel and renewable diesel education aimed at key decision makers on the benefits of these advanced fuels. The campaign is supported by the United Soybean Board, U.S. Canola Association, and a dozen Qualified State Soybean Boards. A major component also includes targeted advertising in the Washington D.C., mid-Atlantic, and California markets.
Weekly Ethanol Production for 9/18/2020 – According to EIA data analyzed by the Renewable Fuels Association for the week ending September 18, ethanol production slowed, shifting 2.2% lower, or 21,000 barrels per day (b/d), to 906,000 b/d—equivalent to 38.05 million gallons daily and the smallest output since June. The four-week average ethanol production rate declined 0.6%.
PERC Resource Highlights Maintenance Advantages of Propane Autogas – To highlight the ease of propane autogas vehicle maintenance, the Propane Education & Research Council released a new online resource for fleet owners. The free guide, available on Propane.com, outlines the main benefits of propane autogas vehicle maintenance, including its cost benefits, reduced downtime, and simplified winter maintenance.
Student Scientist Wins $2000 Grant from National Biodiesel Foundation – The National Biodiesel Foundation awarded this year’s $2,000 Beth Calabotta Sustainable Education Grant to Kayla Kittrick, who is currently working towards her Master of Science in Public Health at National University in Maine and her Associates in Science in Biotechnology at Southern Maine Community College all while working at a biorefinery. Kittrick is also a co-chair of the Next Generation Scientists for Biodiesel.

autogas, Biodiesel, Ethanol, Ethanol News, NBB, Propane, RFA

House Legislation Includes RFS Integrity ACT

Cindy Zimmerman

The Clean Economy Jobs and Innovation Act passed by the U.S. House includes provisions of the Renewable Fuel Standard Integrity Act put forth by Rep. Collin Peterson (D-MN).

The provisions set an annual deadline for refiners to request exemptions from the Renewable Fuel Standard and requires EPA to publicly release the name of refiners requesting a waiver, the number of gallons requested to be waived, and the number of gallons of biofuel that will not be blended as a result of the waiver.

“The House passage of H.R. 4447 moves us closer to holding EPA accountable for its reckless use of small refinery waivers,” Peterson said. “EPA has granted dozens of waivers in recent years and has refused to share details of their justification with Congress and the public. The waivers undermine the blending requirements required by law and harms rural communities that produce biofuels.”

National Biodiesel Board VP of Federal Affairs Kurt Kovarik said, “This is a commonsense step to ensure that RFS biomass-based diesel volumes are fully met and to prevent a recurrence of the demand destruction for biodiesel that we’ve seen over the past several years. Biodiesel and renewable diesel producers have a right to know how many gallons of their product may be lost from RFS volumes when major refiners like Exxon ask for special treatment.”

Biodiesel, Ethanol, Ethanol News, RFS

Next Generation Fuels Act Introduced in House

Cindy Zimmerman

U.S. Representative Cheri Bustos (D-IL) yesterday introduced the Next Generation Fuels Act, legislation that “leverages greater fuel octane to reduce carbon emissions from transportation, improve air quality by reducing the use of harmful aromatics and increase demand for biofuels.”

Fuels with greater levels of octane are more stable and have the potential to make engines more fuel-efficient. This legislation establishes a minimum octane standard for gasoline and requires sources of the added octane value to reduce carbon emissions by at least 30 percent compared to baseline gasoline. Furthermore, the legislation limits the use of harmful aromatics in meeting this new higher octane standard, as well as in current-market gasoline.

Renewable Fuels Association President and CEO Geoff Cooper said, “By establishing the roadmap for an orderly transition to high-octane, low-carbon fuels, this landmark legislation begins an exciting new era in transportation fuels policy. As the world’s top supplier of clean, affordable, low-carbon octane, the U.S. ethanol industry proudly and enthusiastically supports this legislation.”

RFA notes the bill would establish a certification test fuel with a research octane number (RON) of 98, along with a requirement that the source of the octane boost reduces lifecycle greenhouse gas emissions by an average of at least 30% compared to a 2018 gasoline baseline. The legislation also includes a restriction on the aromatics content of gasoline, ensures parity in the regulation of gasoline volatility (Reid vapor pressure), corrects the “R-factor” used in fuel economy testing, provides for an E30 fuel waiver, replaces EPA’s flawed MOVES model, and restores meaningful credit toward compliance with fuel economy (CAFE) and emissions standards for the production of flex fuel vehicles (FFVs).

The American Coalition for Ethanol (ACE) was one of many organizations that worked on the legislation with the congresswoman’s office but CEO Brian Jennings expressed reservations.

“We appreciate Congresswoman Bustos has introduced legislation designed to remove barriers to higher blends of ethanol and which acknowledges future policy needs to be considered in the framework of GHG emissions,” said Jennings. “While this legislation contains many of our top priorities, its approach to carbon accounting is flawed and undermines the investment many ACE members have made to reduce their carbon intensity.”

“ACE prefers a low carbon fuel policy which assigns each fuel producer an individual carbon intensity score and measures lifecycle GHG emissions to provide credit for farming practices that reduce emissions from fertilizer use and sequester carbon in the soil. Policy with these two components would reward farmers for climate-smart practices and ethanol facilities for making investments to reduce GHG emissions.”

ACE, Ethanol, Ethanol News, RFA

Policy Makers Get Virtual Ethanol Tour

Cindy Zimmerman

Congressional staff and other federal and state decision makers were able to go on a virtual tour of the U.S. ethanol industry last week, courtesy of the Renewable Fuels Association. The event included a series of educational videos and discussions with farmers, ethanol producers and one of the country’s top fuel retailers.

Since 2009, RFA has co-sponsored the Iowa RFA Science & Sustainability Tour, which brings Washington, DC policymakers to Iowa for a hands-on experience with today’s renewable fuels industry. Unfortunately, due to COVID-19, this year’s tour was canceled.

“Each summer, we join IRFA in providing the opportunity for congressional, agency staff and others to get an inside look at the ethanol industry right in our nation’s Heartland,” said RFA President and CEO Geoff Cooper. “Unfortunately, this year we were not able to host the event in ethanol country, so we did the next best thing: We took the experience right to them, virtually. This gave congressional and agency staff the opportunity to hear from important ethanol industry stakeholders not just in the Midwest, but also in places like California and New York. We hope the event helped our audience understand the geographic diversity of our industry—and how we are all working together to bring clean, green, homegrown fuels to consumers everywhere.”
Learn more about what the tour included from RFA.

Ethanol, Ethanol News

Ethanol Coalition Urges EPA to Fully Restore RFS

Cindy Zimmerman

The coalition of farm and ethanol groups behind the case against Small Refinery Exemptions under the Renewable Fuel Standard (RFS) that was decided in January is still waiting for EPA to implement the court decision or even communicate the intention to do so after eight months.

The four associations representing farmers and ethanol producers – the Renewable Fuels Association, American Coalition for Ethanol, National Corn Growers Association and National Farmers Union — held a press call Wednesday to discuss the current situation regarding the court decision and lack of action by the administration.

“While EPA’s recent announcement that it has denied 54 petitions for “gap year” small refinery exemptions under the RFS was indeed a big step forward, there is more work to be done to fully restore integrity to the RFS,” said RFA president and CEO Geoff Cooper. “There are 50 exemption petitions still awaiting a decision, and EPA still has not released the 2021 RVO proposal.”

“On the heels of the gap-year petition denials, it’s time for EPA to implement this decision nationally and move quickly to decide outstanding waiver requests.”

In addition to Cooper, other participants in the press call included:
Kevin Ross — President, National Corn Growers Association
Brian Jennings — CEO, American Coalition for Ethanol
Anne Steckel — Biofuels Advisor, National Farmers Union
Matthew W. Morrison — Partner, Pillsbury Winthrop Shaw Pittman LLP

Listen to the call here.
Coalition press call on EPA action needed (59:33)

ACE, Audio, Ethanol, Ethanol News, NCGA, NFU, RFA

Biodiesel-Powered Vehicles Wrap and Roll

Cindy Zimmerman

New biodiesel-branded vehicles highlighting the renewable fuel’s sustainability and emissions reduction benefits are rolling along city streets and interstate highways from the nation’s capital, to Texas oil country, up the California coast and throughout the Midwest.

According to the National Biodiesel Board (NBB), eight biodiesel users received matching funds to share their biodiesel success stories with wraps, decals or other vehicle branding efforts. Biodiesel cuts carbon and other pollutant emissions substantially, reducing health impacts in many communities.

“NBB’s annual Vehicle Branding Program is a great way to increase awareness of biodiesel’s benefits as these vehicles log thousands of miles throughout the country,” said Kaleb Little, NBB director of communications. “This year’s winners are featuring NBB’s new tagline, “Better, Cleaner, Now” which tells the biodiesel story simply. Biodiesel is better and cleaner than petroleum diesel — with proven environmental, health and economic benefits – and is ready to use now.”

Among the winners is the D.C. Department of Public Works (DPW) which branded 22 refuse trucks highlighting their use of 100 percent biodiesel (B100) in the nation’s capital. DPW installed a biodiesel engine upgrade developed by Optimus Technologies for medium and heavy-duty truck fleets which allows the use of B100. Since installing the system, DPW has reduced emissions by over 75 percent and lowered fuel costs. The rest of the DPW diesel fleet runs on B20.

On the other side of the country, Valley Pacific Petroleum, a California-based fuel marketer, wrapped two tanker trucks that deliver biodiesel throughout the state. Since 1947, Valley Pacific has been supplying high-quality fuels and lubricants in California. Today the family-owned company is one of the state’s largest fuel marketers and powers its own fleet with B20 as well.

Congratulations also to Michigan-based Ag Energy Transport; the City of Fort Wayne, Ind.; G&D Integrated transportation and logistics in Morton, Ill.; the City of Grand Forks, N.D.; Renewable Biofuels in Port Neches, Texas; and Evergreen Grease Services which collects used cooking oil from restaurants in Michigan, Indiana, Kentucky and Ohio.

Biodiesel, NBB