Biodiesel Ads Urge President to Reject “Gap” SRE Petitions

Cindy Zimmerman

The National Biodiesel Board has launched a radio advertising campaign in six Midwestern states, urging President Donald Trump to keep his promise on the Renewable Fuel Standard. The ads will run for two weeks in Iowa, Illinois, Kansas, Minnesota, Nebraska, and Wisconsin.

The 30-second ads say, “EPA is threatening to grant more big oil handouts this year that reduce biodiesel demand and take away another market for soybean farmers. Tell President Trump and Administrator Wheeler to reject oil refiner exemptions and keep their promise to farmers.”

Kurt Kovarik, NBB’s VP of Federal Affairs, states, “Over the past three years, EPA has handed out 85 small refinery exemptions that destroyed demand for more than a half-billion gallons of biodiesel and hundreds of millions of bushels of soybeans. Now, EPA is considering nearly 100 new exemption petitions, threatening to double the damage to the biodiesel industry and farmers. Last week, President Trump promised to speak directly to EPA about the pending exemption petitions. Biodiesel producers and soybean farmers are counting on him to keep that promise.”

The ads urge farmers, biodiesel producers, and others to visit NBB’s Fueling Action Center and send email messages directly to President Trump and EPA Administrator Andrew Wheeler, asking them to limit small refinery exemptions.

Listen to one of the ads here:
NBB RFS ad

Audio, Biodiesel, biofuels, EPA, NBB, RFS

Farmers and Ethanol Producers Defend Year Round E15

Cindy Zimmerman

Ethanol producers and corn growers have provided support against the oil industry’s latest effort to undermine the expansion of E15 (gasoline containing 15% ethanol).

The Renewable Fuels Association, Growth Energy and National Corn Growers Association on Friday filed a brief in the U.S. Court of Appeals for the D.C. Circuit supporting and defending EPA’s 2019 regulation allowing year-round availability of E15.

As intervenors in the oil industry’s lawsuit against EPA’s regulation allowing year-round E15, RFA, Growth Energy and NCGA are vigorously protecting the agency’s final rule, which finally extended the Reid Vapor Pressure (RVP) volatility waiver for E10 blends to E15 as well. The intervenors’ brief provides strong support for EPA’s position that parity in RVP regulations for E10 and E15 is consistent with the provisions of the Clean Air Act and the congressional intent behind those provisions. The organizations further point out that extending the volatility waiver from E10 to E15 is appropriate because the volatility of the fuel actually decreases as more ethanol is added into gasoline beyond E10.

“This disparate treatment of E10 and E15 made little sense,” the intervenors argue. “The volatility restrictions are intended to limit evaporative emissions, and the 1-psi allowance promotes the sale of ethanol-blended fuels. Yet adding 5% more ethanol to E10 uses more ethanol and lowers volatility and evaporative emissions. … The Final Rule removes a volatility restriction for E15 that EPA long ago removed for E10—enhancing consumer choice while reducing volatility and evaporative emissions. This Court should not allow the petroleum industry and its allies to stymie competition in this comparatively small but important portion of the U.S. transportation fuel supply.”

Read complete intervenor filing.

corn, EPA, Ethanol, Ethanol News, NCGA, RFA

Iowa Governor Allocates $100 Million for Agriculture Relief

Cindy Zimmerman

Iowa Gov. Kim Reynolds has allocated approximately $100 million of federal CARES Act relief funds for a range of agricultural programs to offset the impact of COVID-19 on farmers, producers and agricultural industries.

“Iowa is at the foundation of our global food supply chain and the epicenter of the renewable fuels industry,” said Gov. Reynolds. “COVID-19 and a devastating derecho dealt a major blow to everything from the demand for ethanol to the supply of meat on grocery store shelves. But just as important are the livelihoods of thousands of Iowa farm families, agricultural industries and the communities they support. Today’s investment reflects the critical role Iowa’s ag industry has in our state’s overall economic recovery.”

For renewable fuel producers, $15.5 million will go to the State Biofuel Grant Program. Since biofuels producers were excluded from receiving aid under other parts of the CARES Act, this program will provide relief to those Iowa ethanol and biodiesel producers based on gallons produced. Grants will also be awarded through an existing small business relief program and are capped at a maximum grant of $750,000 per producer.

In addition, $7 million is being allocated to the Renewable Fuel Retail Recovery Program. Announced previously, this funding supports a program that helps expand retail fueling infrastructure for higher blend renewable fuels, including E15 or higher & B11 or higher.

“Governor Reynolds has provided a much-needed lifeline for Iowa’s renewable fuels producers,” said Iowa Renewable Fuels Association Executive Director Monte Shaw. “At its peak, the COVID-19 pandemic led to the idling of roughly 50 percent of Iowa’s biofuels production capacity. Even today fuel use has not returned to normal and biofuels producers are struggling to simply breakeven. IRFA members from across the state are deeply grateful for Governor Reynold’s leadership as they work to recover from the financial blow wrought by the pandemic.”

Biodiesel, biofuels, Ethanol, Ethanol News, Iowa RFA

Nebraska Ethanol Industry to Benefit from Tax Reform

Cindy Zimmerman

Gov. Ricketts and Nebraska Renewable Fuels Executive Director Troy Bredenkamp

The Nebraska Ethanol Board and Renewable Fuels Nebraska were pleased last week to take part in Governor Pete Ricketts’ final approval of state legislation that will provide benefits for the struggling industry.

Dubbed the great compromise, LB 1107 combined many of the business incentives of LB 720, otherwise known as the ImagiNE Act, with elements of property tax reform for all property owners including ethanol facilities. Critical to the ethanol industry were business tax incentives targeted toward renewable chemical operations which utilize ethanol and byproducts of the ethanol production process to create chemicals that are renewable-based.

Other elements of LB 1107 will allow for tax credits based on future investments and job creation and potentially substantial property tax relief for ethanol facilities, according to Troy Bredenkamp, Executive Director for Renewable Fuels Nebraska. “Ethanol producers have been through some challenging times lately,” said Bredenkamp. “As ethanol producers look to retool and reinvest in their plants, business incentives and property tax relief will influence future investments and upgrades in the Nebraska plant fleet.”

Both the Nebraska Ethanol Board and Renewable Fuels Nebraska now turn their attention to LR 373, which will be the first comprehensive study of state policy impacting Nebraska’s ethanol in many years. Several policy-related issues will be researched and assessed with potential legislation during next year’s session to address policy impediments to Nebraska’s ethanol industry. “As the state agency representing the ethanol industry, we look forward to assisting the Nebraska Legislation with this study process,” said Roger Berry, Administrator of the Nebraska Ethanol Board. “Ethanol and biofuel production is as important as ever as we take a serious look at air pollution and its harrowing effects on public health, especially those experiencing respiratory issues.”

Ethanol, Ethanol News

EPA Small Refinery Waiver Requests Nearing 100

Cindy Zimmerman

The Environmental Protection Agency now has 98 requests for RFS Small Refinery Exemptions parked in its online dashboard for consideration.

The agency has received another nine new small refinery exemption requests for previous years, along with three new current waiver petitions for 2019-2020. The prior year petitions include one each for 2011 and 2012, two each for the years 2013 through 2015, and a new one for 2016. That brings the total requests for so-called “gap year” waivers to 67 – all of which have been filed since the 10th Circuit Court decision in January which struck down a set of waivers granted because they were not direct extensions of ones previously granted, as required by law.

Renewable Fuels Association (RFA) president and CEO Geoff Cooper says it is past time for President Trump to intervene. “As more and more waiver requests pile up, we are again asking the President to ensure EPA immediately adopts the recent Tenth Circuit court decision nationwide and rejects these nonsensical gap-year petitions, Cooper said. “The Saudi-Russia oil price war, COVID pandemic, ongoing trade war, and now a historic derecho have already taken a devastating toll on our markets, and faithful enforcement of the Renewable Fuel Standard is more important now than ever before.”

“This week in Iowa, President Trump promised to personally speak with EPA about these absurd gap-year waivers and the impact they are having on ethanol producers and the farm economy. That conversation can’t happen soon enough, as pending petitions are now closing in on the century mark,” said Cooper.

It was during a briefing in Iowa on Tuesday that Sen. Joni Ernst asked President Trump to talk with EPA about the issue and request they follow the intent of the law with the Renewable Fuel Standard. “We’ll speak to them,” said the president. “I’ll do it myself.”

EPA, Ethanol, Ethanol News, RFA, RFS

Lawmakers Urge USTR to Prioritize Brazil Ethanol Tariffs

Cindy Zimmerman

U.S. Representatives Darin LaHood (IL-18) and Adrian Smith (NE-03) spearheaded a bipartisan letter urging U.S. Trade Representative (USTR) Robert Lighthizer to prioritize Brazilian trade barriers to U.S. ethanol during ongoing US-Brazil trade negotiations. Reps. LaHood and Smith both serve on the House Ways and Means Committee, and Rep. LaHood is co-chair of the U.S.-Brazil Caucus.

The letter calls for a “level playing field for U.S. ethanol,” which faces prohibitive 20 percent tariff on imports beyond a specified quota.

“Specifically, we request that you urge your Brazilian counterparts to terminate the ethanol tariff rate quota (TRQ) and prohibitive 20% tariff on out-of-quota imports, and instead reinstate the zero-duty exemption for U.S. ethanol from Brazil’s Common External Tariff that was in effect from 2012 to 2017,” wrote the lawmakers. “Brazil’s inequitable treatment of U.S. ethanol creates economic strain throughout the U.S. ethanol industry, especially during a year in which COVID-19 is devastating fuel demand in our country. The United States, however, continues to provide ethanol imports from Brazil virtually tariff-free access to the U.S. market. Last year, the U.S. imported 250 million gallons worth $596 million. Brazil must end this unfairness by eliminating its TRQ.”

Read the letter.

Brazil, Ethanol, Ethanol News, Exports

Virtual ACE Conference Offers Full Agenda

Cindy Zimmerman

The American Coalition for Ethanol (ACE) 33rd annual conference offers attendees this year a virtual agenda on the most pressing issues facing the ethanol industry on the afternoon of September 16 from the comfort of your own home or office.

The event agenda complements the broader content attendees will receive having dual access to the Fuel Ethanol Workshop & Expo (FEW) sessions through ACE’s partnership with BBI International this year. ACE’s virtual conference has been rescheduled from its original in-person event which was set to take place August 25 in Omaha, Nebraska.

“Although we always look forward to catching up with ACE members and industry colleagues face to face at our annual conference and the FEW, this year’s online format will allow us to connect safely in order to provide timely updates and insight on a host of topics intended to restore and build ethanol demand,” said Brian Jennings, ACE CEO.

For over three decades, the ACE conference has focused on the people of the ethanol industry and their priorities, and this year is no different. The abbreviated 2020 live virtual event will consist of several general sessions, including updates from ACE leadership, a keynote address from USDA Deputy Secretary Stephen Censky, a flex fuel retailer roundtable featuring Casey’s General Stores and Pump & Pantry, a panel discussion with leadership from ethanol companies, as well as a market outlook from Tom Kloza, OPIS Head of Energy Analysis. The general sessions will be aired live on the afternoon of September 16 and registrants can access a recording of the presentations for a limited time following the event.

ACE, ACE Ethanol Conference, Ethanol, Ethanol News

New Leaders for Next Generation Scientists for Biodiesel

Cindy Zimmerman

Four new co-chairs have been selected to lead the Next Generation Scientists for Biodiesel (NGSB) forward.

The new co-chairs are:
Jenny Frank, State University of New York College of Environmental Science and Forestry
Leo Budy, University of Kansas
Zenith Tandukar, University of Minnesota
John Cramsey, Iowa State University

In a live Zoom event – “Science, Live: Meet Biodiesel Scientists Making an Impact” – on September 10, the NGSB will introduce its new leaders, who will share the real-world impact of their biodiesel-related initiatives.

A program of the National Biodiesel Board and United Soybean Board for college-level science students, NGSB fosters professional relationships between budding and established scientists, shares accurate information and increases collaboration with academia and the biodiesel industry.

“As we strive for our goal of 6 billion gallons of biomass-based diesel by 2030, which would double our industry’s current production, science will play a vital role,” said Donnell Rehagen, NBB CEO. “Our four new co-chairs bring diverse and promising research, as well as exciting outreach experience to NGSB.”

Read more from NBB

Biodiesel, NBB

Sen. Ernst Urges President to Stop Gap Year Waivers

Cindy Zimmerman

During a briefing on storm damage in Iowa Tuesday, President Donald Trump heard from Sen. Joni Ernst (R-IA) about issues facing the ethanol industry, particularly the threat of the Environmental Protection Agency granting retroactive small refinery exemptions for previous years.

“Our farmers would love to know that with these gap year waivers that the oil refineries are submitting to the EPA, that we just dispense of those,” Sen. Ernst told the president. “Obviously with the crop damage that would be a great step forward.”

Sen. Ernst was one of several Iowa officials who met with the president about crop damage from the devastating derecho that torn through the state August 10 with hurricane force winds. Early estimates indicate almost $4 billion in damage from loss of crops and building such as grain bins.

Ernst explained the impact COVID has had on the ethanol industry and said farmers would come back stronger than ever, but they just need the EPA to follow the intent of the law with the Renewable Fuel Standard. “We’ll speak to them,” said Trump. “I’ll do it myself.”

Listen to the conversation here:
Sen. Ernst talks ethanol with Pres. Trump 1:39

Audio, Biodiesel, Ethanol, Ethanol News

RFA Welcomes President Trump to Ethanol Country

Cindy Zimmerman


When President Trump visited Mankato, Minnesota yesterday he was welcomed by a full-page ad in the Mankato Free Press along with a banner on the front page of the local newspaper with the message “Mr. President, welcome to ethanol country. We need your support.”

The front-page banner and full-page ad were sponsored by the Renewable Fuels Association to remind the president that Minnesota, like much of the American Midwest critical to his reelection, is ethanol country. There are nine ethanol plants within a 50-mile radius of Mankato and 50 plants within 150 miles. As the ad points out, “more than one-quarter of the nation’s ethanol is produced within a two-hour drive of Mankato.” Those facilities support close to 100,000 jobs and represent more than a quarter of America’s ethanol production.

The ad urges President Trump to tell EPA to stop handing out waivers to big oil companies that exempt them from the requirements of the Renewable Fuel Standard.

Ethanol, Ethanol News, RFA, RFS