Senate Bill Would Allow Ethanol Hand Sanitizer for 2 Years

Cindy Zimmerman

Sen. Thune meets with ACE ethanol supporters in 2019

Senator John Thune (R-SD) this week introduced legislation that would extend for two years The Food and Drug Administration’s (FDA) “Temporary Policy for Preparation of Certain Alcohol-Based Hand Sanitizer Products During the Public Health Emergency.”

The purpose of the bill is to grant additional certainty for ethanol plants that have made investments or changes in operations to serve the need for hand sanitizer to help them recoup those costs and will serve to support continued production of ethanol for hand sanitizer at a time of high demand and reported shortages.

“The COVID-19 health pandemic has hit a wide spectrum of industries in our economy – including biofuels, as the demand for fuel has gone down,” said Thune. “While I recognize the amount of ethanol required for hand sanitizer will be a drop in the bucket for our ethanol producers, every bit helps, and American ethanol producers stand ready to help America get through these tough times.”

“ACE thanks Senator Thune for introducing legislation to provide greater certainty to ethanol producers about the investments they have made to respond to the ongoing coronavirus pandemic by supplying alcohol for sanitizer,” said Brian Jennings, CEO of the American Coalition for Ethanol. “Sanitizer production has helped keep some plants open and their workers employed during this downturn, all the while keeping their communities safer. Producers need some level of certainty that they won’t be inflicted with more regulatory whiplash after spending precious capital to retool their plants to provide sanitizer as Americans begin to slowly return to their normal activities.”

The bill is co-sponsored by Sens. Mike Braun (R-IN), Chuck Grassley (R-IA), and Mike Rounds (R-SD).

ACE, Ethanol, Ethanol News

RFA Calls on President to Reject Refinery Waivers

Cindy Zimmerman

Renewable Fuels Association president and CEO Geoff Cooper penned a letter to President Donald Trump yesterday on the anniversary of his appearance at an Iowa ethanol plant calling on him to reject attempts to grant the oil industry more waivers from renewable fuel obligations.

“One year ago today, you visited Southwest Iowa Renewable Energy in Council Bluffs to join us in celebrating a monumental achievement,” wrote RFA President and CEO Geoff Cooper. “At your direction, EPA had just completed regulatory changes finally allowing year-round sales of gasoline containing 15% ethanol—called E15. But E15 growth would have been exponentially larger if not for your EPA continuing to excuse oil refiners from their legal obligations to blend renewable fuels. As we told you a year ago, EPA’s refinery waivers have caused devastating demand losses for ethanol and corn, and they undermine the expansion of E15.”

Cooper also described the impact of more recent crises, such as the Saudi-Russia oil price war that decimated fuel costs and the COVID-19 pandemic.

Cooper commented on the letter during a media call on Thursday.

RFA CEO Geoff Cooper comments on letter to president 1:26

Audio, Ethanol, Ethanol News, RFA

COVID Cuts Revenue Prospects for Corn Crop

Cindy Zimmerman

A new analysis from the National Corn Growers Association (NCGA) is projecting a drastic drop in 2020 revenues as a result of the COVID-19 pandemic with impacts persisting into 2021.

NCGA President Kevin Ross says the latest analysis projects a $59 per acre average revenue decline for the 2019 corn crop and an $89 per acre average revenue decline for 2020, compared to pre-COVID-19 projections. “It equates to the lowest crop revenues since 2006 for corn farmers,” said Ross.

The analysis was conducted by Dr. Gary Schnitkey of the University of Illinois using projections for 2019, 2020, and 2021 for pre-COVID and post-COVID scenarios. It follows previous analysis built on market numbers to date, along with estimates of state-level impacts, conducted as part of NCGA’s efforts to better understand the economic impact of the global pandemic on the corn industry and work to create solutions to help corn farmers and their customers recover from the financial impacts of this crisis.

The analysis was shared with Congressional leaders this week to help them in the development of future legislative efforts to mitigate the pandemic’s impact and help farmers and their customers recover.

Ross commented on the analysis during a press call with the Renewable Fuels Association about the one year anniversary of President Trump’s visit to an Iowa ethanol plant.

NCGA president Kevin Ross on revenue loss analysis for corn crop 1:33

Audio, corn, Ethanol, Ethanol News, NCGA

Ethanol Report 6-11-20

Cindy Zimmerman

One year after President Trump visited Southwest Iowa Renewable Energy (SIRE) to celebrate allowing E15 to be sold in the summer months, the ethanol industry is facing its toughest year ever, despite the fact that sales of E15 have indeed increased significantly.

In this edition of the Ethanol Report podcast, we take a look back at President Trump’s visit and what has happened in the past 12 months – and how the president can help the industry recover. Comments from President Trump, National Corn Growers Association president Kevin Ross, SIRE plant CEO Mike Jerke, Renewable Fuels Association chief economist Scott Richman, and RFA president and CEO Geoff Cooper.

Ethanol Report 6-11-20 (13:36)

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

President Trump at Iowa Ethanol Plant – One Year Later

Cindy Zimmerman

SIRE CEO Mike Jerke, President Trump and RFA CEO Geoff Cooper on June 11, 2019

It was one year ago today that President Donald Trump made a victorious visit to Southwest Iowa Renewable Energy (SIRE) ethanol plant in Council Bluffs, Iowa, to celebrate regulatory changes that would finally allow year-round retail sales of 15% ethanol (E15). At the event, the President also heard from farmers and ethanol industry leaders about the devastating impact of RFS compliance exemptions being granted to small refineries.

In an open letter to President Trump on today’s anniversary, the Renewable Fuels Association called on him to reject attempts to grant the oil industry more waivers from renewable fuel obligations.

“Mr. President, we need your help,” wrote RFA CEO Geoff Cooper. “We ask that you stand up for the Renewable Fuel Standard. Please direct your EPA to abide by the January court ruling and end the abuse of the refinery waiver loophole. You stood by us, farmers, and consumers when you directed EPA to allow year-round E15. Now, we humbly ask that you stand with us again and ensure ethanol demand is not eroded by illegal refinery waivers.”

In a press call today, Cooper was joined by SIRE CEO Mike Jerke, and National Corn Growers Association president and Iowa farmer Kevin Ross to reflect on the past 12 months and where the industry is now.

Along with RFA economist Scott Richman, they discuss the successful increase in sales of the E15 blend, along with the continuing demand destruction from small refinery waivers despite successful court challenges, continued attacks against the Renewable Fuel Standard and the impact of the COVID-19 pandemic on the ethanol industry.

Trump ethanol plant visit anniversary press call 37:26

President Trump at Iowa Ethanol Plant 6-11-19 photos

Audio, Ethanol, Ethanol News, NCGA, RFA

Export Exchange 2020 Postponed to 2021

Cindy Zimmerman

The biennial Export Exchange is being postponed until 2021.

The Exchange is co-sponsored by the Renewable Fuels Association, U.S. Grains Council, and Growth Energy and held every other year to bring together buyers and sellers of U.S. coarse grains and co-products, including the distiller’s dried grains with solubles (DDGS). The three organizations issued a joint statement on the postponement.

“As a result of the coronavirus and our concern for the safety of our attendees who travel from around the globe to come to this event, we’ve decided to postpone Export Exchange until the same time next year. Doing so will ensure we will have an event on par with the caliber of the meetings our guests have come to expect—without the specter of COVID-19.”

Export Exchange 2021 is scheduled for October 6-8, 2021 at the Loews Kansas City.

Distillers Grains, Ethanol, Ethanol News, Export Exchange, Exports, Grains, RFA, USGC

Missouri Corn Providing More Dollars For Ethanol Infrastructure

Cindy Zimmerman

The Missouri Corn Merchandising Council (MCMC), in conjunction with recently announced federal and state programs, has announced it will provide matching funds to increase the availability of higher ethanol blends in the state.

To qualify, fuel retailers must first be approved for the USDA Rural Development’s Higher Blends Infrastructure Incentive Program (HBIIP), followed by approval of the MASBDA BIP program. The state BIP program has dedicated up to $2 million in grant funds that may be used to fulfill up to 25 percent of the cash match obligation required for the HBIIP. The maximum MASBDA grant award is $200,000 for each business entity selected for funding by HBIIP. MCMC will then match the grant funds up to a total of $500,000 statewide to increase access to ethanol blends above 10 percent.

“The Missouri Corn board of directors enthusiastically voted to match existing resources with the goal of increasing statewide demand for locally produced corn-based ethanol,” said MCMC Chairman Greg Schneider, a corn grower from Warrenton. “This creates a three-step process for fuel retailers to upgrade their pumps by first utilizing federal grant dollars through HBIIP, then at the state level through the MASBDA BIP program, and finally additional funding through MCMC. However, applications must be received by July 1, 2020, so we are encouraging station owners to act quickly.”

Eligible entities for the BIP grants and MCMC funding mirror federal HBIIP requirements and include fueling stations, convenience stores, hypermarket retailer fueling stations, fleet facilities, and similar entities with capital investments.
Learn more from MO Corn.

corn, Ethanol, Ethanol News

Farm & Biofuel Groups Challenge Retroactive RFS Waivers

Cindy Zimmerman

Nine leading biofuel and farm organizations sent a letter to Environmental Protection Agency (EPA) Administrator Andrew Wheeler Tuesday asking him for answers on what is seen as a new effort to undermine the Renewable Fuel Standard (RFS).

During a Senate hearing last month, administration officials confirmed their consideration of retroactive small refinery exemptions (SREs) covering previous years. The “gap-filings” are designed to reconstitute a continuous string of exemptions for select oil companies “to be consistent with the Tenth Circuit decision,” thus circumventing court limits on new oil industry handouts at the expense of farmers and biofuel producers.

“These ‘gap filings’ appear to be little more than the latest in a string of oil industry tactics designed to subvert the law and sidestep a court order to uphold the RFS,” wrote the Renewable Fuels Association, Growth Energy, the National Biodiesel Board, the National Corn Growers Association, the American Farm Bureau Federation, the American Soybean Association, the National Farmers Union, the American Coalition for Ethanol, and Fuels America.

The letter notes the devastating impact coronavirus restrictions have had on both the biofuels industry and farmers. “Backfilling SREs to circumvent a court decision would exacerbate market uncertainty at a time when rural communities already face unprecedented economic challenges.”

Read the letter.

ACE, AFBF, Ag group, ASA, Biodiesel, biofuels, corn, Ethanol, Ethanol News, Fuels America, Growth Energy, NBB, NCGA, NFU

Farm Journal Hosting Ethanol Future Webinar

Cindy Zimmerman

Farm Journal will be hosting a panel of industry experts June 11 for a live Farm Country Update webinar discussion about the current state and future of America’s ethanol industry.

AgriTalk host Chip Flory will moderate the discussion with Dan Basse, AgResource Company; Doug Berven, POET; and Renewable Fuels Association president and CEO Geoff Cooper.

Click here to register for the live webinar to be held Thursday, June 11 at 3:00 pm Central time.

Ethanol, Ethanol News, RFA, Webinar

Members of Congress Defend RFS

Cindy Zimmerman

A bipartisan list of Congressional representatives sent a letter to President Trump today in support of the Renewable Fuel Standard (RFS).

“We urge you to stand with our farmers and rural economies during this challenging time and deny any request for blanket statewide or nationwide waivers from the 2020 RFS blending requirements under the Clean Air Act,” the letter from 44 representatives stated, in response to governors asking the Environmental Protection Agency (EPA) to grant waivers from the RFS. “In addition to the economic harm waiving the RFS would cause rural America, these requests are unjustified and run contrary to the EPA’s well-established precedents.”

The letter was spearheaded by Reps. Abby Finkenauer (D-IA), Dave Loebsack (D-IA), Roger Marshall, MD (R-KS), Collin Peterson (D-MN), and Rodney Davis (R-IL).

The National Biodiesel Board offered thanks to the lawmakers. “On behalf of biodiesel producers across the country, I’d like to thank Representatives Finkenauer, Loebsack, Marshall, Peterson and Davis and many others who are standing up on behalf of the industry and the RFS,” said Kurt Kovarik, NBB VP of Federal Affairs. “As they’ve noted, an RFS waiver would be unjustified and simply compound the economic challenges that biodiesel producers and farmers face. Further, it would undercut a successful environmental policy that is transitioning the United States to better, cleaner fuels.”

Renewable Fuels Association (RFA) President and CEO Geoff Cooper says biofuel producers are hurting just as badly as some refiners. “While refiners are appealing to governors in a callous effort to evade the RFS under the guise of COVID-19 relief, the law requires—and EPA has previously concluded—that waivers can only be granted when any potential hardship is being caused by the RFS, not any other factor. However, in this case, the governors correctly state the harm is caused by plummeting oil prices attributable to an international oil glut and falling demand caused by COVID-19. Those factors are also hurting ethanol. In fact, half of the nation’s ethanol production capacity was shut down over the past several months.”

Biodiesel, biofuels, EPA, Ethanol, Ethanol News, RFA, RFS