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.

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Ethanol Supporters Hopeful Waivers Will Be Denied

Cindy Zimmerman

Ethanol supporters are encouraged by news this morning that President Donald Trump has directed EPA to deny retroactive refinery exemptions, as he promised Sen. Joni Ernst of Iowa that he would.

The Renewable Fuels Association (RFA), National Corn Growers Association (NCGA), National Farmers Union (NFU) and American Coalition for Ethanol (ACE) released a statement welcoming the news that petitions intended to circumvent the Tenth Circuit Court’s decision on waivers might be denied.

“We are encouraged by reports that President Trump has called upon EPA to reject these absurd gap-year waiver petitions out of hand. If the reports are accurate, it is our hope that EPA swiftly acts upon the President’s directive and closes the door once and for all on the refiners’ brazen attempt to rewrite history.”

During a briefing on storm damage in Iowa last month, Sen. Ernst (R-IA) specifically asked the president about retroactive small refinery exemptions for previous years and the need for EPA to follow the intent of the Renewable Fuel Standard (RFS). President Trump replied, “We’ll speak to them. I’ll do it myself.”

At the same time, the four petitioners in the successful Tenth Circuit Court case are disappointed that CVR Refining and HollyFrontier Corporation filed a last minute request for the U.S. Supreme Court to review the Tenth Circuit Court’s ruling. The decision in question overturned three improperly granted small refinery exemptions under the Renewable Fuel Standard (RFS).

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U.S. Ethanol Exports to Brazil Already Falling

Cindy Zimmerman

Despite no official announcement, technically once the August 31 deadline passed, all U.S. ethanol shipped to Brazil became subject to a 20 percent tariff. However, U.S. exports to Brazil have already been declining this year, according to the Renewable Fuels Association (RFA).

The latest government data shows U.S. ethanol exports down to 74 million gallons in July, a decrease of 38 percent compared to the same month last year and the lowest total for July in six years. The escalation of trade barriers and the impacts of COVID-19 have caused year-to-date ethanol exports to drop nine percent compared to the same period last year and 22 percent compared to the same period in 2018.

In addition to Brazil, RFA notes that virtually no U.S. ethanol was shipped to China or Colombia in July due to the existence of unjustified trade barriers in those countries. Combined export volumes to all three countries hit a peak of 129 million gallons in March 2018, but dropped to a trickle of just 34,000 gallons in July 2020. Prior to August 31, the Brazilian tariff rate quota had allowed 198 million gallons of U.S. ethanol imports before the 20% tariff kicked in.

“As the July export numbers show, the spread of protectionist trade barriers around the globe is having a very real impact on demand for U.S. ethanol,” said RFA President and CEO Geoff Cooper. “These tariff and non-tariff barriers must be addressed and countered with measures that ensure a fair and level playing field for ethanol trade. The persistent ethanol trade disputes involving key markets like Brazil, China, and Colombia are taking a serious toll on U.S. ethanol producers who are already contending with the economic fallout from COVID-19. More needs to be done to restore open and healthy ethanol trading relationships with our customers around the globe.”

House Agriculture Committee Chairman Collin Peterson says Brazil’s move is just more bad news for producers already struggling because of the coronavirus and the “Environmental Protection Agency’s reckless implementation” of the Renewable Fuel Standard. “The Trump Administration should continue working with Brazilian officials to restore the duty-free access that was in place from 2012 to 2017,” Peterson said in a statement. “Tariff wars have consequences, and our biofuels producers are seeing that first hand.”

Meanwhile, Iowa Renewable Fuels Association Executive Director Monte Shaw points out that Brazilian ethanol imports continue to enjoy tariff free status coming into the U.S. “President Trump stated his Administration would pursue an equalization of tariffs if Brazil took this step. We look forward to quick action on this front as Brazil continues to flood the California market with duty-free ethanol while at the same time penalizing U.S. producers,” said Shaw.

U.S. ethanol production continues to run below year ago levels. For the week of August 28, production remained nine percent 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 declined 0.2% to 924,000 b/d, equivalent to an annualized rate of 14.16 billion gallons. At the same time, ethanol stocks grew 2.3% to 20.9 million barrels, which was 12.3% below year-ago volumes.

Brazil, Ethanol, Ethanol News, RFA, Trade

Heating Oil Groups Launch Joint Bioheat Promotional Campaign

Cindy Zimmerman

Five of the most prominent northeast heating oil trade associations recently launched a collaborative effort to promote clean, renewable Bioheat to consumers and get more heating oil companies to begin offering Bioheat to their customers.

The campaign One Industry – One Choice includes the Energy Marketers Association of Rhode Island, the Empire State Energy Association, the Connecticut Energy Marketers Association, the Massachusetts Energy Marketers Association and the New York State Energy Coalition. The effort is also being supported by the National Oilheat Research Alliance and the National Biodiesel Board.

“We must do everything in our power to secure a stable future for the heating oil industry by educating heating oil retailers on the benefits of Bioheat blends; providing support to retailers transitioning to providing Bioheat to their customers; and making heating oil customers more aware of the value of clean, renewable Bioheat.”

To reach consumers, the One Industry – One Choice campaign will utilize social media and web-based display advertising that will lead consumers to a vast amount of information on www.mybioheat.com and the association websites. For retailers, five virtual education sessions will be offered in September covering Bioheat Supply & Infrastructure, Bioheat Operational Performance, Bioheat Retail Success Stories, Bioheat Marketing, and Bioheat:The Electrification Solution.

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Corn Growers Help Grow Higher Ethanol Blends

Cindy Zimmerman

Building out the infrastructure needed for future mid-level blends of ethanol continues to be a priority of the National Corn Growers Association (NCGA), which is why they have worked with Wayne Fueling Systems over the last three years to produce and sell pumps certified for fuel containing up to 25 percent ethanol.

Thanks to this key partnership, NCGA has supported the sale of more than 50,000 new fuel pumps across the U.S., building out the infrastructure needed to support future mid-level blends of ethanol.

“This lays the groundwork for growing ethanol demand and moving the industry forward,” said NCGA Market Development Vice President Jim Bauman. “Corn farmers’ support of NCGA’s multi-year fuel pump infrastructure program supports the introduction of higher octane fuels delivered by low-carbon, affordable, corn-based ethanol.”

NCGA also recently partnered with the Renewable Fuels Association (RFA), assisting fuel retailers in applying for the United States Department of Agriculture (USDA) Higher Blends Infrastructure Incentive Program (HBIIP). The $100 million program included $86 million to expand the availability of higher blends of ethanol, like E15 and E85.

Corn farmer support for this program helped deliver program awareness and technical assistance for applications representing more than 1,100 fuel dispensers across 21 states and 222 locations. Combined, these locations sell more than 250 million gallons of gasoline annually.

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POET Partners with FBN on Sustainability Initiative

Cindy Zimmerman

Farmers Business Network (FBN) has announced a new initiative called GRO Network, which matches farmers who use environmentally friendly practices with buyers who pay a premium for low-carbon corn. POET, the world’s largest producer of biofuels, has joined GRO Network as a key customer in the market for verifiable Low-Carbon Grain.

“At POET we know that agriculture is the key to combating climate change, and we want to support farmers who share our mission to be good stewards of the Earth by using environmentally friendly practices. We are excited about the potential of the GRO Network to promote sustainable agriculture and utilize the resulting low-carbon corn to produce even greener bioethanol and bioproducts,” said POET Founder and CEO Jeff Broin.

The GRO Network connects farmers who utilize measurable sustainable practices with buyers who are willing to pay for verifiable low-carbon grain. The program is groundbreaking in its focus on abatement and using proven science to measure the benefits of conservation practices used by farmers on their land. These measurements result in a farm-level carbon-intensity score that can be used by policymakers to more accurately assess the greenhouse gas (GHG) reduction for low-carbon fuel policies and make smart decisions to meet their sustainability goals.

FBN began development of GRO Network close to two years ago in order to allow fuel, food and feed companies to work alongside farmers to accelerate the adoption of regenerative agricultural practices that deliver the biggest impact.

corn, Ethanol, Ethanol News, Sustainability

RFA Helps Retailers Apply for Infrastructure Grants

Cindy Zimmerman

The Renewable Fuels Association has been able to assist retailers in 21 states this year apply for infrastructure project grants totaling over $52 million.

The grants are part of USDA’s Higher Blends Infrastructure Incentive Program (HBIIP), which has $86 million available to transportation fueling facilities to expand the availability and sale of higher blends of ethanol like E15 and E85/Flex Fuel. USDA is now reviewing the applications and expects to announce grant awards next month.

With support from the National Corn Growers Association, RFA worked with Christianson PLLP and others to assist three dozen retailer companies in the grant process prior to the Aug. 13 application deadline. Submitted applications assisted by RFA cover more than 1,100 fuel dispensers and 128 storage tanks at 222 locations across 21 states. Combined, these locations sell more than 250 million gallons of gasoline annually. RFA provided services and assistance for $21 million in grant requests, which would be matched with another $31 million in private funding for a total investment in higher blends infrastructure of more than $52 million.

“We sincerely appreciate all the assistance RFA and the team at Christianson provided in order to get our HBIIP grant processed in a timely fashion,” said Jill Curtorillo, Corporate Controller at Snappy’s convenience stores in Pennsylvania. “Thank you for including us in your mission to support retailers with this grant program.”

“We’re proud to see so many retailers take part in this program, and to have been able to help so many of them work through the complications of the federal grant application process,” said RFA Director of Market Development Cassie Mullen.

RFA’s work included outreach to retailers via paid and earned media and educating hundreds of them in a series of webinars. The association also created a password-protected website for sharing documents and other digital tools for them to use in the grant application process. Technical reports were prepared for each company, each covering 35 to 50 pages in length, and site-specific environmental reports were submitted covering more than 2,200 pages.

Ethanol, Ethanol News, Retailers, RFA, USDA

CHS to Market for California Ethanol + Power

Cindy Zimmerman

California Ethanol + Power is entering into a 15-year marketing arrangement for global agribusiness leader CHS Inc. to be the exclusive marketer and distributor of ethanol from Sugar Valley Energy, currently being constructed in Imperial County, California. Sugar Valley Energy is expected to complete financing this fall and break ground before the end of 2020 with production set to begin in 2023 at an annual capacity of 68 million gallons of low-carbon fuel-grade sugarcane ethanol.

CHS, the nation’s leading agribusiness cooperative owned by farmers, ranchers and cooperatives, produces 260 million gallons of fuel-grade ethanol and markets 900 million gallons of ethanol each year, making CHS one of the nation’s largest suppliers of ethanol-enhanced gasoline and the largest U.S. retailer of E85 ethanol.

“As an energy provider for rural America, CHS continues to identify new technologies and new partners to help enhance reliable energy supply for our owners from diverse sources, while minimizing environmental impact,” said Brian Schouvieller, senior vice president, CHS Global Grain Marketing. “We look forward to collaborating with California Ethanol + Power and Imperial Valley sugarcane growers on this initiative.”

Ethanol, Ethanol News, sugarcane

Ethanol Report 8-28-20

Cindy Zimmerman

As the presidential election nears, the ethanol industry is watching closely to see which candidate will be more supportive of the Renewable Fuel Standard.

As Democratic candidate Joe Biden released a strong statement of support for the industry this week, the Trump Administration’s Environmental Protection Agency continues to drag its feet on important decisions like the 2021 Renewable Volume Obligations and so-called gap year refinery waiver requests.

In this edition of the Ethanol Report, Renewable Fuels Association (RFA) president and CEO Geoff Cooper comments on what they would like to see EPA do before the election, as well as Brazilian ethanol tariffs, if Congress will pass another coronavirus relief package this year, and derecho damage.

Ethanol Report 8-28-20 (20:37)

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

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Senate Democrats’ Climate Plan Includes Renewable Fuels

Cindy Zimmerman

The Senate Democrats’ Special Committee on the Climate Crisis released a plan this week to achieve 100 percent global net-zero emissions no later than 2050, which includes proper implementation of the Renewable Fuel Standard (RFS).

According to the report, “If implemented properly, the RFS gives farmers revenue stability, allowing U.S. agriculture to play an important role in reducing U.S. oil usage and further supporting rural economies.”

In addition, the report suggests the potential for a federal Low Carbon Fuel Standard which “sets a maximum carbon intensity level for fuels that must be met each year, with the goal of increasing the range of commercially available low-carbon and renewable fuel alternatives.” Groundwork for that has already been set with a report released in January of this year “A Clean Fuels Policy for the Midwest,” developed by a broad coalition of biofuels and rural stakeholders.

“We are glad to see Senate Democrats recognize that renewable fuels like ethanol have an important part to play in our nation’s low-carbon future,” said Renewable Fuels Association President and CEO Geoff Cooper. “We are pleased to see the Committee acknowledge the role the Renewable Fuel Standard has already played in reducing emissions and we welcome the report’s discussion of a potential national Low Carbon Fuel Standard (LCFS). This report complements the House Select Committee’s recommendations in June, and it is clear that consensus is building around the need to further reduce GHG emissions from the transportation sector.”

“ACE has been laying the strategic groundwork necessary to leverage ethanol’s low carbon value in the market through new clean fuel policy solutions at the state and federal level,” said American Coalition for Ethanol (ACE) CEO Brian Jennings. “Our engagement with Congress led the House Select Committee on the Climate Crisis to include a page from our Midwest Clean Fuel Policy blueprint in its June 30 report by recommending Congress develop a technology-neutral LCFS that would provide meaningful economic benefits to farmers and biofuel producers.”

The senate report also endorses the value of carbon sequestration, noting that it can help sustainable farmers survive and thrive, and cites the important growth of bio-based products as smarter and healthier alternatives to those derived from fossil fuels – using corn ethanol as a prime example.

Read the full report

ACE, Ethanol, Ethanol News, RFA