Commerce Maintains Duties on Argentine Biodiesel

Cindy Zimmerman

The U.S. Department of Commerce announced today a final determination in its “changed circumstances review” of antidumping duty (AD) and countervailing duty (CVD) orders on imports of Argentine biodiesel. As a result, the rates on biodiesel imports from Argentina will remain at their current levels.

National Biodiesel Board (NBB) is pleased with the decision.

Kurt Kovarik, NBB’s VP of Federal Affairs, said, “NBB’s Fair Trade Coalition fought hard for this outcome, and we certainly appreciate Secretary Wilbur Ross and the Trump administration for supporting U.S. biodiesel producers at a critical moment. We are grateful for their consistent willingness to listen to the U.S. biodiesel industry. The Department of Commerce took the time necessary to fully evaluate the status of Argentina’s export tax regime and make the right decision.

“Also critical to this outcome is the support and leadership of Senators Chuck Grassley and Maria Cantwell along with Representative Darren LaHood. We greatly appreciate their steadfast support for the U.S. biodiesel industry and America’s soybean farmers. U.S. biodiesel producers appreciate their help in amplifying the industry’s push for fair trade conditions.”

It was determined back in January 2018 that U.S. biodiesel producers were harmed by unfair trade practices and Commerce finalized antidumping and countervailing duty rates on Argentine biodiesel imports, ranging from 132.72% to 157.86%. In July 2019, Commerce issued a preliminary decision on Argentina’s request for a “changed circumstances” review that would have virtually eliminated CVD rates for Argentina’s biodiesel producers, while maintaining AD rates.

Today’s final determination maintains both AD and CVD rates and will be published in the Federal Register at a later date.

Biodiesel, NBB

Ethanol Production Gains a Little

Cindy Zimmerman

Ethanol plants showed signs of new life last week, as production increased 11.4% from the previous week, according to EIA data analyzed by the Renewable Fuels Association for the week ending May 1.

However, production remains tempered due to COVID-19 disruptions, coming in 42.3% below the same week in 2019. The four-week average ethanol production rate declined 3.1% to 567,000 b/d, equivalent to an annualized rate of 8.69 billion gallons.

Ethanol stocks thinned by 2.8% to 25.6 million barrels, diminishing across all PADDs. However, reserves remain 14.0% higher than year-ago volumes.

The volume of gasoline supplied to the U.S. market, a measure of implied demand, leapt 13.7% to 6.664 million b/d (102.16 bg annualized) yet was 32.5% lower than a year ago.

Refiner/blender net inputs of ethanol lifted modestly, up 2.1% to 595,000 b/d, equivalent to 9.12 bg annualized and 35.3% below the year-earlier level. Over the last four weeks, implied gasoline demand rebounded by 31.6% while refiner and blender net inputs of ethanol recovered by 18.5% – a differential mostly attributable to last week’s surge in gasoline volume.

Ethanol, Ethanol News, RFA

Biofuels Industry Welcomes USDA Infrastructure Funds

Cindy Zimmerman

The U.S. Department of Agriculture is making up to $100 million in competitive grants available to help expand the availability and sale of renewable fuels.

The Higher Blends Infrastructure Incentive Program (HBIIP) consist of up to $100 million in funding for competitive grants or sales incentives to eligible entities for activities designed to expand the sales and use of ethanol and biodiesel fuels. Funds will be made directly available to assist transportation fueling and biodiesel distribution facilities with converting to higher ethanol and biodiesel blends by sharing the costs related to and/or offering sales incentives for the installation of fuel pumps, related equipment, and infrastructure.

“Once the pandemic is over and fuel markets are showing signs of recovery, expanding infrastructure via the Higher Blends Infrastructure Incentive Program will be important to the long-term future of the ethanol industry and rural America. We thank the USDA for its efforts to support the future of renewable fuels,” said Renewable Fuels Association (RFA) President and CEO Geoff Cooper.

The American Coalition for Ethanol (ACE) is focusing its market development efforts, including the fuel-marketer-focused website flexfuelforward.com, on ensuring fuel marketers know about the funding and receive any assistance they need to participate. ACE Senior Vice President and Market Development Director Ron Lamberty said, “ACE is gratified to see many policies we recommended to USDA to make the program more accessible to single store and small chain operators were included in the final program. In particular, we appreciate the Targeted Assistance Goal (TAG) which makes approximately 40 percent of funds available specifically for applicants owning 10 fueling stations/locations or fewer.”

The National Biodiesel Board (NBB) also welcomed the news. “The Higher Blends Infrastructure Incentive Program will help the industry expand consumers’ access to cleaner, better transportation and heating fuels in the future,” said Kurt Kovarik, NBB’s VP of Federal Affairs.

Of the $100 million USDA is making available, $14 million will be available to support infrastructure for biodiesel blends above 5%. The grants will match up to 50% of eligible costs or $5 million, whichever is lower. USDA anticipates making approximately 150 awards and providing assistance to 1,500 locations with the available funds.

ACE, Biodiesel, biofuels, Bioheat, Ethanol, Ethanol News, RFA, USDA

Coalition Opposes API Petition on 2020 RFS Obligations

Cindy Zimmerman

A coalition of ethanol and farm groups sent a letter to the Environmental Protection Agency on Friday opposing the American Petroleum Institute’s (API) recent petition requesting reconsideration of the 2020 Renewable Fuel Standard (RFS) final rule.

API claims reconsideration of the 2020 RFS rule is necessary in light of the coalition’s recent Tenth Circuit court victory that overturned small refinery exemptions illegally granted by EPA. The successful Tenth Circuit court challenge was brought against EPA by the Renewable Fuels Association, National Corn Growers Association, National Farmers Union, and American Coalition for Ethanol.

Specifically, API argues that the 2020 RFS rule should be revised to eliminate measures that prospectively “reallocate” RFS blending obligations expected to be lost to refinery waivers. API claims reallocation of expected waivers is no longer needed because the Tenth Circuit decision should significantly curtail the number of waivers granted. However, EPA has not yet confirmed that it will implement the tenets of the Tenth Circuit court decision nationwide, meaning reconsideration of the 2020 RFS rule would be woefully premature.

“There is no basis for revisiting or modifying EPA’s current approach until EPA acknowledges that the central tenets of the Tenth Circuit’s decision are appropriately applied throughout the country,” the groups wrote.

In fact, the 2020 RFS volumes should not be adjusted downward to remove reallocated volumes even after EPA applies the Tenth Circuit court decision nationally, according to the coalition’s letter.

“As noted by the Court, EPA’s recent abuse of its small refinery exemption authority has significantly harmed the U.S. ethanol industry. Indeed, nationally, more than four billion gallons of 2016-2018 renewable fuel volume requirements were lost due to EPA’s illegally issued small refinery waivers. Applying the Tenth Circuit decision nationally while leaving the 2020 RFS rule intact would begin to restore a small amount of the renewable fuel volume requirements lost to past small refinery exemptions; still, doing so would come nowhere near fully redressing the demand destruction wrought by the exemptions.”

Read the letter.

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

Ethanol Report 4-30-20

Cindy Zimmerman

Ethanol producers are literally in the battle of their lives for the survival of the industry, as losses continue to mount from restrictions on travel put in place due to COVID-19.

The latest production data analyzed by the Renewable Fuels Association for the week ending April 24, ethanol production dropped another 4.6%, or 26,000 barrels per day (b/d), to 537,000 b/d—the lowest level since the EIA began reporting ethanol production statistics in 2010. Production was 48% below the same week in 2019. The four-week average ethanol production rate dropped 11.5% to 585,000 b/d, equivalent to an annualized rate of 8.97 billion gallons, compared to nearly 16 billion gallons in 2019.

As ethanol producers continue to lose money, they are coping and hoping the future will be brighter. In this edition of the Ethanol Report podcast, three ethanol producers in California, Kentucky and Iowa, talk about how they are handling the crisis, including helping with the production of hand sanitizer. We also hear about RFA’s projection of losses for the industry and how the federal government could help.

Neil Koehler, Chairman, RFA; Co-Founder and CEO of Pacific Ethanol
Mick Henderson, General Manager, Commonwealth Agri-Energy
Mike Jerke, CEO of Southwest Iowa Renewable Energy (SIRE)
Scott Richman, Chief Economist, Renewable Fuels Association
Geoff Cooper, President and CEO, Renewable Fuels Association

Ethanol Report 4-30-20 (21:39)

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, Renewable Fuels Association, RFA

Bipartisan Bill to Expand Biofuels Infrastructure Introduced

Cindy Zimmerman

Congresswoman Abby Finkenauer (D-IA) on Tuesday introduced bipartisan legislation, co-sponsored by Reps. Angie Craig (D-MN), Don Bacon (R-NE), and Roger Marshall (R-KS), that would provide funding for installing and converting fuel pump infrastructure to deliver higher blends of ethanol and biodiesel.

The Clean Fuels Deployment Act of 2020 “authorizes $600 million over six years to help retailers offer higher ethanol blends, expand the geographic area selling ethanol blends, support biodiesel, bioheat, and sustainable aviation fuel markets, and accelerate the deployment of fueling infrastructure.”

National Corn Growers Association (NCGA) President Kevin Ross says, “Expanding infrastructure for higher blends will help to increase future demand for farmers and ensure biofuels will continue to be included in federal efforts to provide consumers with cleaner, affordable fuels.”

A vital market for corn farmers, ethanol producers have idled nearly half of their production capacity due to the fallout from COVID-19. Spurring new demand for higher ethanol blends will be an important part of an economic recovery for the ethanol industry and farmers, and this infrastructure deployment will help support that growth.

The legislation would also be a boost for biodiesel, according to Grant Kimberley, executive director of the Iowa Biodiesel Board and Iowa Soybean Association director of market development. “The greatest remaining barriers to widespread biodiesel adoption are at the terminal and pipeline terminal level. We support incentivizing terminals and taking other steps to help increase the market penetration of this greenhouse gas-reducing fuel,” said Kimberly.

Biodiesel, Ethanol, Ethanol News

ACE Asks Administration to Help Ethanol Producers

Cindy Zimmerman

American Coalition for Ethanol (ACE) CEO Brian Jennings is asking President Trump to “provide a much-needed boost to ethanol producers and rural America in response to the mounting economic harm as a result of the sudden and severe drop in ethanol demand” due to the COVID-19 pandemic.

“More than half of U.S. ethanol production capacity is already offline, high-skill jobs are being shed, livestock and food processing customers are facing supply disruptions, and our members’ working capital is vanishing. Ethanol use could fall by more than 3 billion gallons in 2020, eliminating the market for at least a billion bushels of U.S. corn,” Jennings wrote in the letter. “As you did on April 21, when you directed the Secretaries of Energy and Treasury to formulate a plan to provide funds to the oil and gas industry, we urge similar action for our sector.”

Jennings says one action the administration could take would be having EPA use existing statutory authority to ensure the 20.09 billion gallons of renewable fuel required by the Renewable Fuel Standard — and promised by EPA this year — will be consumed.

ACE also encourages industry advocates to join in requesting the Administration quickly establish a plan to aid ethanol producers struggling to survive the catastrophic economic fallout of COVID-19 by utilizing its Action Center.

ACE, Ethanol, Ethanol News

2020 FEW Rescheduled for August

Cindy Zimmerman

The 2020 International Fuel Ethanol Workshop & Expo, has been moved due to the outbreak of COVID-19. Originally scheduled for mid-June in Minneapolis, the FEW is now rescheduled to take place August 24th through August 26th, 2020 in Omaha, Nebraska.

“Based on the most current information available, and with the best interests of our members, exhibitors, attendees and the global community in mind, BBI International’s leadership team has made the difficult but necessary decision to reschedule the 2020 FEW,” said Tom Bryan, president at BBI International. “Recognizing the importance of this event to your organizations, our industry, and all companies connected with producing the FEW, we are now shifting the dates to a more suitable timeframe based on the availability of locations provided to us. The 2020 International Fuel Ethanol Workshop & Expo will now be taking place August 24th through August 26th, 2020 in Omaha, Nebraska.”

BBI International also announced that all biofuels producers will be allowed to attend free of charge. “Previously, free registration was limited to two ethanol producers per facility,” said Joe Bryan, CEO of BBI International. “However, due to the state of events that have taken place this year, we are allowing free registration to all producers who work at ethanol facilities. No longer will we be limiting it to only two per facility.”

Ethanol, Ethanol News, FEW

RFA Earns TRANSCAER Award for 8th Year in a Row

Cindy Zimmerman

The Renewable Fuels Association has received the TRANSCAER National Achievement Award for the eighth year in a row.

In 2019, RFA held 27 ethanol safety seminars in 10 locations, four Train-the-Trainer webinars and an online ethanol safety training initiative, which trained emergency responders on how to properly respond to an ethanol incident. Collectively, these events trained nearly 900 individuals last year.

TRANSCAER stands for Transportation Community Awareness Emergency Response and members include volunteer representatives from the chemical manufacturing, transportation, distribution, hazardous material storage and handling, emergency response and preparedness, and government.

RFA’s Missy Ruff was chosen last year to chair the National TRANSCAER Task Group, the managing body for initiatives undertaken by the organization. For more information on ethanol safety events, visit www.ethanolresponse.com.

Ethanol, Ethanol News, RFA, safety

ADM Idles Plants in Iowa and Nebraska

Cindy Zimmerman

ADM announced Friday that ethanol production is being idled at the company’s corn dry mill facilities in Cedar Rapids, Iowa, and Columbus, Nebraska, which means furloughs for about 90 employees at each facility in the coming weeks.

During the furlough, employees will continue to receive medical benefits and will be eligible to apply for state and federal unemployment benefits. They will also have the option to apply for other open positions at ADM. The anticipated length of the furlough is currently four months, but the time frame is dependent on market conditions and could change.

ADM has also reduced the ethanol grind at its corn wet mill plants and rebalanced grind to produce more industrial alcohol for the sanitizer market and industrial starches for the container board market to better align production with current demand.

The two plants account for over 575 million gallons of ethanol capacity per year. This adds to the 70 plants and 6.2 billion gallons of nation’s ethanol production capacity that was already sidelined according to a Renewable Fuels Association analysis just a week ago.

Ethanol, Ethanol News, RFA