ACE to Co-Locate Annual Meeting with Fuel Ethanol Workshop

Cindy Zimmerman

The American Coalition for Ethanol (ACE) will be co-locating its 33rd annual conference this year in conjunction with the rescheduled International Fuel Ethanol Workshop (FEW) & Expo on August 25, in Omaha, Nebraska.

Due to the outbreak of COVID-19 and the economic hardship it’s brought to bear on the ethanol industry, ACE believes hosting this year’s gathering in association with another industry event is in the best interest of its members. The conference theme of “Rising Up” embodies the resilience demonstrated by the ethanol industry in response to the pandemic and the grit to recover stronger than before.

“ACE is looking forward to returning to Omaha and offering our conference attendees the opportunity to expand upon the content and connections they’re able to obtain in one place through this year’s partnership with BBI,” said Brian Jennings, ACE CEO. “While 2020 may go down as a historic low point for the ethanol industry, ACE members are showing their grit and resilience by continuing to power the economic engine that is the ethanol industry. Join us in ‘rising up’ and moving forward August 25 in Omaha.”

ACE conference attendees will be able to freely attend sessions at the FEW and Biodiesel Production Technology Summit. In an unprecedented move, event owner and operator BBI International is providing unlimited free passes for producers of ethanol and biomass-based diesel to attend the FEW. Registration details are available via the fuelethanolworkshop.com. Stay tuned for more agenda details in the upcoming weeks.

ACE, ACE Ethanol Conference, Ethanol, Ethanol News, FEW

RFA Hosting Webinars on USDA Retailer Infrastructure Grants

Cindy Zimmerman

USDA began accepting applications Friday for grants from the new Higher Ethanol Blends Infrastructure Program, or HBIIP, and the Renewable Fuels Association is hosting two webinars this month to guide fuel retailers and others in the process.

“U.S. ethanol producers today are facing the worst economic conditions in the industry’s 40-year history due to COVID-19; 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,” said RFA President and CEO Geoff Cooper. “We want to do all we can to make sure retailers and other have the information they need to participate in this important program, and we thank the USDA for its efforts to support the future of renewable fuels.”

The RFA-USDA webinars will be held at 2 p.m. CDT on Friday, May 22, and Thursday, May 28, and cover the same information. They will last for approximately 45 minutes.

WEBINAR 1: Friday, May 22. Register for Webinar 1 here

WEBINAR 2: Thursday, May 28. Register for Webinar 2 here.

For additional information about HBIIP, visit EthanolRFA.org/HBIIP.

USDA’s Higher Ethanol Blends Infrastructure Program is a $100 million grant program designed to expand the availability and sale of higher blends of ethanol like E15 and E85, as well as other renewable fuel blends. Approximately $86 million of the $100 million will be made available to transportation fueling facilities including fueling stations, convenience stores, hypermarket fueling stations, fleet facilities, and similar entities. USDA began accepting applications for funding for the HBIIP program on May 15, and electronic applications must be submitted by 11:59 p.m. EDT Aug. 13, 2020. USDA expects to announce awards mid-September 2020.

Ethanol, Ethanol News, Retailers, RFA, USDA

Ethanol Report 5-15-20

Cindy Zimmerman

The COVID-19 pandemic continues to have a devastating impact on the U.S. ethanol industry, slashing production by half and leading to the idling of scores of plants across rural America. But there are positive signs that demand is starting to increase again. Meanwhile, Congress is considering a new aid package with help for biofuels, the Renewable Fuel Standard is facing new threats, and the ethanol industry is becoming an important supplier of alcohol for hand sanitizer, even as FDA makes understanding the rules a challenge.

In this edition of “The Ethanol Report” podcast, Renewable Fuels Association (RFA) President and CEO Geoff Cooper provides an update on these issues, framed by new national polling results that indicate continued strong support for renewable fuels. We also hear from RFA Chairman and Pacific Ethanol CEO Neil Koehler, and Western New York Energy CEO Tim Winters about how they are surviving during the crisis.

Ethanol Report 5-15-20 (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

Ethanol, Ethanol News, Ethanol Report, Renewable Fuels Association, RFA

Higher Blends Infrastructure Program Grant Applications Open

Cindy Zimmerman

The U.S. Department of Agriculture has launched an online portal to accept applications for Higher Blends Infrastructure Incentive Program (HBIIP) grants.

USDA has up to $100 million in competitive grants available to help expand the sale and availability of ethanol and biodiesel fuels with approximately $86 million allocated for higher blends of fuel ethanol, and approximately $14 million for implementation activities related to higher blends of biodiesel.

Those eligible for the grant program include vehicle fueling facilities, such as local stations, convenience stores, hypermarket fueling stations, fleet facilities, fuel terminal operations, midstream partners and/or distribution facilities.

The grants are available for up to 50 percent of total eligible project costs, but not more than $5 million.

USDA plans to make funds directly available to help transportation fueling and biodiesel distribution facilities convert to higher ethanol and biodiesel blends by sharing the costs related to the installation of fuel pumps, related equipment and infrastructure.

Electronic applications must be submitted by Aug. 13, 2020, at 11:59 p.m. Eastern Daylight Time. Paper applications will not be accepted.

For details, visit the Higher Blends Infrastructure Incentive Program web page.

Biodiesel, biofuels, Ethanol, Ethanol News, USDA

RFA CEO Says Worst May be Over for Ethanol Industry

Cindy Zimmerman

The COVID-19 pandemic has continued to have a devastating impact on the U.S. ethanol industry, slashing production by half and leading to the idling of scores of plants across rural America. However, the industry may be finally turning the corner, according to Renewable Fuels Association (RFA) President and CEO Geoff Cooper.

“We are starting to see some ethanol plants come back on line…last week we saw the highest rate of output that we’ve seen in five weeks,” said Cooper during a media call Friday. “So it does seem like we are starting to see a light at the end of the tunnel, but we still have a very long way to go to climb out of the hole that COVID-19 put us in.”

Meanwhile, Congress is considering its newest aid package which includes help for ethanol producers, the Renewable Fuel Standard is facing new threats, and the ethanol industry is becoming an important supplier of alcohol for hand sanitizer. Cooper comments on all of that and also shares some new national polling results that indicate continued strong support for renewable fuels.

Cooper was joined on the call by two ethanol producers:
Neil Koehler, Chairman, RFA; Co-Founder and CEO of Pacific Ethanol
Tim Winters, President and CEO of Western New York Energy

Opening remarks –
RFA 5-15 update on COVID-19 impact remarks

Q and A –
RFA 5-15 update on COVID-19 impact questions

Audio, Ethanol, Ethanol News, RFA

Ethanol Production Continues Slow Recovery

Cindy Zimmerman

Gasoline use is increasing as more cars gradually get back on the road with coronavirus restrictions easing in many states, which is helping ethanol production slowly increase.

According to the latest EIA data analyzed by the Renewable Fuels Association for the week ending May 8, ethanol production expanded by 3.2%, to 617,000 barrels per day — equivalent to 25.91 million gallons daily and a five-week high. However, production remains tempered due to COVID-19 disruptions, so that is still 41.3% below the same week in 2019. The four-week average ethanol production rate bounced 2.1% higher to 579,000 b/d, equivalent to an annualized rate of 8.88 billion gallons.

Ethanol stocks tightened by 5.6% to 24.2 million barrels, the lowest volume since March 20.

The volume of gasoline supplied to the U.S. market, a measure of implied demand, jumped 11.0% to 7.398 million b/d (113.41 bg annualized) yet was 19.1% lower than a year ago.

Refiner/blender net inputs of ethanol followed, up 11.9% to 666,000 b/d, equivalent to 10.21 bg annualized but 30.1% below the year-earlier level. While implied gasoline demand has rebounded by 46.1% from the low experienced during the week ended April 3, refiner and blender net inputs of ethanol have been slower to recover, up 32.7%.

Ethanol, Ethanol News, RFA

Brief Filed in Case Over EPA Limits on Higher Blends

Cindy Zimmerman

An alliance of ethanol, agriculture and clean fuel organizations led by the Urban Air Initiative is challenging the EPA over regulatory barriers to higher blends of ethanol they say are illegal. An opening brief in the case was filed this week in the D.C. Circuit Court of Appeals and oral arguments are expected this fall.

Specifically, the brief argues that EPA’s interpretation of the “substantially similar” provision of the Clean Air Act is obsolete and that EPA’s ruling last year permitting year-round sales of E15 should include the sale of fuel blends containing more than 15% ethanol, consistent with prior guidance allowing retailers to sell E20 and E30 under the Clean Air Act.

Today automakers use test fuels with 10% and 15% ethanol to certify most vehicles. The brief argues that since ethanol is now used in the certification of motor vehicles, the sub-sim law no longer limits the addition of ethanol to gasoline. Therefore, the court should reject EPA’s limit on the sale of gasoline with more than 15% ethanol. In the alternative, the brief argues that EPA’s only rationale for limiting the rule to E15 was refuted by the scientific evidence submitted during the notice-and-comment period, science that EPA simply chose to illegally ignore. As a remedy, the brief asks the Court to order EPA to allow ethanol to compete for greater market share against harmful petroleum-based fuel additives, but without disturbing the rule allowing the year-round sale of E15.

Co-petitioners in the case include National Farmers Union, South Dakota Farmers Union, Farmers Union Enterprises, Jackson Express, Jump Start, Clean Fuels Development Coalition, Big River Resources LLC, Fagen Inc., Glacial Lakes Energy LLC, and Little Sioux Corn Processors.

EPA, Ethanol, Ethanol News, NFU, Urban Air Initiative

USDA Report Calls for Increased Ethanol Output

Cindy Zimmerman

The May World Agricultural Supply and Demand Estimate out from USDA this week is forecasting record high production and domestic use, greater exports, and larger ending stocks for corn.

The corn crop is projected at a record 16.0 billion bushels, up from last year on increased area and a return to trend yield. The yield projection of 178.5 bushels per acre is based on a weather-adjusted trend assuming normal planting progress and summer growing season weather, estimated using the 1988-2019 time period. Despite beginning stocks that are down slightly from a year ago, total corn supplies are forecast record high at 18.1 billion bushels. Total U.S. corn use in 2020/21 is forecast to rise relative to a year ago with increases for domestic use and exports. Food, seed, and industrial (FSI) use is projected to rise 245 million bushels to 6.6 billion.

Corn used for ethanol is projected to increase from the 2019/20 COVID-19 reduced levels, based on expectations of a rebound in U.S. motor gasoline consumption. Corn feed and residual use is projected higher mostly reflecting a larger crop and lower expected prices.

The report also says corn exports are forecast to rise 375 million bushels to 2,150 million, driven by growth in world corn trade. With total U.S. corn supply rising more than use, 2020/21 U.S. ending stocks are up 1.2 billion bushels from last year and if realized would be the highest since 1987/88. Stocks relative to use at 22.4 percent would be the highest since 1992/93.

corn, Ethanol, Ethanol News, USDA

House Includes Aid for Biofuels in Relief Act

Cindy Zimmerman

Help for struggling ethanol producers is included in the new COVID-19 legislative relief package, thanks to the efforts of Democratic Reps. Cindy Axne (IA-01), Cheri Bustos (IL-17), Abby Finkenauer (IA-01), and Angie Craig (MN-02).

The Renewable Fuel Reimbursement Program included in the Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act) would authorize USDA to provide assistance of 45 cents per gallon of qualifying ethanol produced from January 1 through May 1, 2020. Producers forced offline for one or more calendar months during this time would qualify for the same credit, based on half the volume produced during the corresponding month or months in 2019.

Renewable Fuels Association President and CEO Geoff Cooper says the aid represents a potential lifeline for the 350,000 men and women whose jobs depend on a healthy and vibrant ethanol industry. “This program would lend a crucial helping hand and ensure that ethanol producers are able to participate in the economic recovery from COVID-19,” said Cooper, who notes that roughly half of the industry’s capacity offline today. “When an ethanol plant shuts down or reduces production, it destabilizes the entire rural economy. Jobs are lost, farm commodity demand and prices plummet, supplies of vital co-products like distillers grains and captured CO2 evaporate, and the nation’s drivers are denied lower-cost, cleaner-burning fuel options at the pump.”

“This is the first time Congress has introduced a stimulus bill that would provide aid directly to biofuel producers and for that we are extremely appreciative,” said American Coalition for Ethanol (ACE) CEO Brian Jennings. “It’s important that securing aid for the biofuel sector continues to be a bipartisan goal. This is one important step in the process but until a bill is signed into law by the President that contains direct aid, we need to stay in constant contact with Members of Congress.”

Senators are expected to consider similar legislation.

ACE, Ethanol, Ethanol News, RFA

Electric Cooperatives Urge Relief for Rural America

Cindy Zimmerman

Over 30 rural electric cooperatives serving members across the Upper Midwest have signed on to a letter urging members of Congress to provide economic relief for rural America. The letter was addressed to members of Congress from Minnesota, South Dakota, North Dakota, Iowa and Nebraska.

Specifically, the letter calls for Congress to support additional stimulus package relief for food and ethanol processing plants, and the farmers and ranchers who serve them, most of whom are also electric cooperative members. The electric cooperatives represented on the letter combined serve over 3 million consumers across the region.

“We are respectfully requesting much-needed economic relief for rural America, which continues to suffer from the impacts of the coronavirus pandemic,” the letter said. “Rural electric cooperatives were created to provide electricity to farms and rural communities and have continued to expand this essential service as rural America has grown and prospered. Our member-owners have invested in not only the electric infrastructure through their cooperative to serve these areas, but also in helping to develop the rural economy in which they live. These investments have allowed for diversification into biofuels, food processing, and other business development opportunities.”

The letter was driven by Basin and East River Electric Power Cooperatives who provide power to 30 U.S. ethanol plants. East River is a founding member of the American Coalition for Ethanol (ACE).

Estimates show as much as half of U.S. ethanol production has been idled due to efforts to slow spread of COVID-19. In addition, the pandemic has forced several food processing facilities to either idle or shut down. These events have left producers of several agricultural commodities without a market for their product, forcing some to euthanize animals or destroy their products. The pandemic has compounded the impacts of low commodity prices and extreme weather events that had already created a struggling farm and rural economy.

ACE, Ethanol, Ethanol News