House Ag Committee Chair Says Ethanol is Priority

Cindy Zimmerman

House Agriculture Committee Chairman Collin Peterson puts ethanol second only to the hog industry in priority to get some kind of assistance to mitigate losses this year due to coronavirus restrictions.

“Because of the price of oil collapsing and people not driving…and also these waivers that have been given out by the administration, which should have never been considered,” Peterson said during the Agri-Pulse Ag and Food Policy Summit on Monday. “If we had 15 billion gallons we wouldn’t be having the kind of problems we’re having in the ethanol industry.”

Peterson would like to see producers receive 45 cents a gallon based on their January to April production, or from 2019 if they were shut down. “And that needs to happen too or we’re going to lose some of these plants.” he said.

However, the chairman from Minnesota expressed concern that getting back into the habit of ad hoc disaster aid for agriculture could be detrimental to farm policy going forward.

Listen to Rep. Peterson’s comments in this interview with Agri-Pulse reporter Phillip Brasher.
AgriPulse Summit Rep. Collin Peterson (D-MN) (27:18)

Agri-Pulse, Audio, Ethanol, Ethanol News

Ethanol Report 9-21-20

Cindy Zimmerman

Last week brought a flurry of good news for the ethanol industry in three major areas – exports, expansion of higher blends, and protecting the renewable fuel standard.

In this edition of the Ethanol Report, we hear ethanol industry leaders comment on EPA denial of retroactive refinery waivers, Brazil’s 90 day extension of its ethanol tariff rate quota, and the potential regular E10 fuel pumps could be used to dispense E15.

The podcast includes comments from Renewable Fuels Association president and CEO Geoff Cooper, RFA Board Chairman Neil Koehler of Pacific Ethanol, and RFA Board member Dave Sovereign of Golden Grain Energy.

Ethanol Report 9-21-20 (15:50)

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, EPA, Ethanol, Ethanol News, Ethanol Report, RFA

Ethanol Leaders Receive Well-Deserved Awards

Cindy Zimmerman

The American Coalition for Ethanol (ACE) honored two exceptional ethanol advocates for their contributions to the industry with an awards video during the 33rd annual ACE conference held virtually in conjunction with the Fuel Ethanol Workshop (FEW) and Expo this week.

Bob Scott, who served as the ACE Board President from 1999 to 2009 representing Poet Ethanol Products, was recognized with ACE’s most prestigious honor, the Merle Anderson Award, named after the organization’s founder. ACE CEO Brian Jennings and Senior Vice President Ron Lamberty presented Scott with the award.

“For me, it was a labor of love,” Scott said. “When I look back at my time on the ACE board and the enactment of the RFS, it’s one of my favorite times in my life; we challenged ourselves and everyone else. Merle Anderson convinced me that ethanol was the right thing to do and the ACE Board was truly the best board I’ve ever been a part of.”

Jan tenBensel, Nebraska farmer and chair of the Nebraska Ethanol Board, received this year’s Grassroots Award for his unyielding and humble advocacy, notably his work with the University of Nebraska-Lincoln to produce thousands of gallons of hand sanitizer for donation to help address the shortage during the health pandemic. ACE Board members Roger Berry, NEB Administrator, and Scott McPheeters of KAAPA Ethanol presented tenBensel with the award.

“Jan truly is the definition of grassroots activism when it comes to ethanol,” Berry said. “Within one week, he helped pull together a production and distribution facility to provide hand sanitizer to the state of Nebraska and beyond.”

“He loves to learn and he’s generous with his time,” McPheeters added. “He’s the type of guy you want on your team.”

Congratulations to two very deserving ethanol advocates and listen to their awards presentations and remarks here:

ACE 2020 Merle Anderson Award presentation to Bob Scott (7:59)

ACE 2020 Grassroots Award presentation to Jan tenBensel (6:38)

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USDA Undersecretary Censky to Return to ASA

Cindy Zimmerman

USDA Undersecretary Steve Censky gave one of his last addresses in his current role to the American Coalition for Ethanol virtual annual conference this week. It was announced this morning that Censky will be returning to his former job as CEO of the American Soybean Association in November as after serving with USDA since October 2017.

In his prerecorded remarks at the ACE conference this week, Censky accepted the organization’s Paul Dana Marketing Vision Award for his leadership on the Higher Blends Infrastructure Incentive Program (HBIIP).

“USDA received 121 applications from 27 different states for HBIIP,” said Censky. “We are reviewing those applications now and will be getting the money out the door starting (this month).”

Listen to his remarks here:
ACE 2020 USDA Deputy Secretary Steve Censky (7:42)

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Energy Bill Includes Renewable Fuel Standard Provisions

Cindy Zimmerman

The House Committee on Energy and Commerce this week introduced the Clean Economy Jobs and Innovation Act, which contains provisions requiring more transparency and accountability in EPA’s process for evaluating small refinery exemption requests under the Renewable Fuel Standard. The provisions are based on the Renewable Fuel Standard Integrity Act, introduced last year by House Agriculture Committee Chairman Collin Peterson.

“In recent years, the Environmental Protection Agency has granted dozens of small refinery exemptions, waiving billions of gallons of biofuel from RFS blending requirements,” said Rep. Peterson. “The provisions of my bill will require EPA to pull back the curtain and show the American people how they justify granting these waivers that have greatly impacted profitability for biofuels producers and farmers across the country.”

The provisions included in H.R. 4447, Clean Economy Jobs and Innovation Act would set an annual deadline for refiners to request exemptions from the Renewable Fuel Standard and require EPA to publicly release the name of refiners requesting a waiver, the number of gallons requested to be waived and the number of gallons of biofuel that will not be blended as a result of the waiver. These provisions mirror the provisions of H.R. 3006, the Renewable Fuel Standard Integrity Act, with adjustments to address business confidentiality concerns that were raised by members of the House Committee on Energy and Commerce.

“This provision would finally pull back the curtain on EPA’s secretive and obscure small refinery waiver program, and we are pleased to see its inclusion in the House energy package,” said Renewable Fuels Association President and CEO Geoff Cooper. “By setting a deadline for waiver petitions and requiring small refineries to publicly disclose their identities, this language brings badly needed transparency and structure to the program. This would prevent companies like ExxonMobil, Chevron, HollyFrontier, and CVR from hiding behind phony claims of confidentiality and stop them from further gaming the system.”

The House is expected to consider H.R. 4447 the week of September 21st.

Ethanol, Ethanol News, RFA

ACE Launches “Flex Check” Tool for E15 Compatibility

Cindy Zimmerman

During its virtual annual conference this week, the American Coalition for Ethanol (ACE) launched a tool on its fuel-marketer focused flexfuelforward.com website to provide retailers with a free way to check if their equipment is already E15 compatible. Available 24/7, the “Flex Check” E15 compatibility tool will arm retailers with the confidence and information they need to make a conversion all in one place.

With USDA set to announce Higher Blend Infrastructure Incentive Program (HBIIP) grant recipients any day now, Ron Lamberty, Senior Vice President of ACE, says their focus is now on marketers who may already have the right fueling equipment for E15.

“Adding new E15 and flex fuel locations with programs like HBIIP makes ethanol blended fuel more available and visible, but to move significant gallons, we need widespread conversions on top of new construction,” said Lamberty. “A huge number of retailers have E15 compatible equipment and could sell it tomorrow without a big investment. But they don’t know, because they’ve been told by their petroleum suppliers it’s impossible for most stations to offer E15, and very expensive for others. We just want them to check, because we know a lot of them will be very surprised.”

The Flex Check compatibility tool uses National Renewable Energy Lab (NREL) studies and ACE’s research with equipment companies to give retailers a place to enter the manufacturer or model of tanks, piping, and other equipment they have on site, and find out if they are already E15 compatible.

Listen as Lamberty explains Flex Check.
ACE 2020 Ron Lamberty, Flex Check tool (2:35)

ACE, ACE Ethanol Conference, Audio, E15, Ethanol, Ethanol News

Ethanol Producers Provide Perspective on Panel

Cindy Zimmerman

As part of the virtual American Coalition for Ethanol annual conference this week, three ethanol producer members share their perspectives on major issues impacting them this year, including COVID-19 and RFS mismanagement, as well as their optimism for ethanol’s role in a low carbon fuel future.

Participating in the panel:
Duane Kristensen, General Manager, Chief Ethanol Fuels
Dave Sovereign, Chairman, Golden Grain Energy
Neil Koehler, Co-Founder, Director, and Co-CEO, Pacific Ethanol, Inc.

Learn more about their conversation and get reaction to the latest news this week about EPA denying retroactive refinery exemptions, potential relaxing barriers to E15 growth, and trade with Brazil in this interviews with Sovereign and Koehler.

ACE 2020 Interview, Neil Koehler, Pacific Ethanol (11:40)

ACE 2020 Interview Dave Sovereign, Golden Grain Energy (4:45)

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ACE Virtual Meeting Underway

Cindy Zimmerman

The virtual American Coalition for Ethanol (ACE) annual conference kicked off without a hitch this afternoon with opening remarks from Board President Duane Kristensen representing Chief Ethanol Fuels, followed by ACE CEO Brian Jennings reflecting on the struggles of the year so far and the opportunities for ethanol in a low carbon future.

“At the federal level, it is a matter of when, not if, Congress takes up sweeping climate legislation which will impact our industry and agriculture,” Jennings stated. “That’s why ACE has been going on offense to make a persuasive case that increasing the use of ethanol should be part of the climate solution, and consequently, there is a growing drumbeat in Congress for a new national Low Carbon Fuel Standard on top of the RFS to spur new ethanol demand.”

Jennings prerecorded his remarks for the virtual event, but ACE issued a written update including comments the EPA denying gap year small refinery waivers, and potential for more restrictions to the expansion of E15 being removed. He also comments on those issues in this interview about the conference.

ACE 2020 Interview, Brian Jennings, CEO (12:52)

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Preview of Virtual #ACECONF20

Cindy Zimmerman

The 33rd Annual American Coalition for Ethanol Conference taking place on Wednesday afternoon of the Fuel Ethanol Workshop will be a lot different from any of the 32 that came before, but the agenda offers the same great content it always does.

The popular retailers panel will kick the meeting into high gear as ACE Senior Vice President & Director of Market Development Ron Lamberty talks with higher blend pioneers Nathaniel Doddridge with Casey’s General Stores and Randy Gard, COO of Pump & Pantry/Bosselman. Gard represented retailers when President Trump visited SIRE ethanol plant in Iowa last year, and he talks about how the past year has been a pretty good one for selling higher blends in this interview.
ACE 2020 Interview with Randy Gard, Bosselman (8:35)

The ACE meeting will also feature a presentation by Tom Kloza, Global Head of Energy Analysis, Oil Price Information Service, on Fuel Marketing in the Time of Corona: A Look at Drastic and Not-So-Drastic Changes to Downstream Markets in the Next 15 Months. Listen to this interview with Kloza for a preview of his remarks.
ACE 2020 Interview with Tom Kloza, OPIS (11:35)

The meeting will wrap up with a Producer Perspectives panel featuring ACE Board President Duane Kristensen, Chief Ethanol Fuels; Dave Sovereign, Golden Grain Energy; and Neil Koehler, Pacific Ethanol. Sovereign says the conversation will include many important issues for producers.

Get a preview of that panel here:


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Biodiesel Producers Welcome Denial of Gap Year SREs

Cindy Zimmerman

Biodiesel producers are just as happy as ethanol producers with the EPA decision to deny retroactive small refinery exemption petitions.

National Biodiesel Board VP of Federal Affairs Kurt Kovarik says the move will restore integrity to the Renewable Fuel Standard and provide much-needed certainty for America’s biodiesel producers and soybean farmers. “The decision to deny these absurd petitions filed by refiners simply to skirt their obligations under the law is the right call. I am hopeful EPA will continue to apply this standard to the remaining gap exemptions and to future petitions. We look forward to working with the administration to restore growth in the biodiesel and renewable diesel industry and ensure that RFS volumes for biomass-based diesel are met.”

Kovarik added that the industry is particularly grateful to those who effectively sought a resolution to these unlawful waivers, including Sens. Joni Ernst (R-IA) and Chuck Grassley (R-IA), and Iowa Governor Kim Reynolds.

Grant Kimberley, executive director of the Iowa Biodiesel Board, said, “With those waivers denied, and assuming EPA applies the recent court ruling nationwide, the exemption issue we have battled for so long should significantly improve. This turnaround would set the RFS on the right track again.”

Biodiesel