Ethanol Case Groups Disappointed in Appeal Extension

Cindy Zimmerman

The four organizations involved in the case against the Environmental Protection Agency over granting of small refinery exemptions under the Renewable Fuel Standard (RFS) are disappointed the Trump Administration has been granted more time to consider an appeal of the court decision siding with the plaintiffs.

The petitioners in the case—the Renewable Fuels Association, National Corn Growers Association, American Coalition for Ethanol, and National Farmers Union—offered the following statement:

On March 9, the U.S. Court of Appeals for the Tenth Circuit approved requests by the U.S. Department of Justice, HollyFrontier, and CVR Energy for an extension of the deadline to file motions asking for a rehearing en banc of Renewable Fuels Association et al. v. EPA, in which the Court found EPA vastly exceeded its authority in granting compliance exemptions to three refineries from 2016 and 2018 Renewable Fuel Standard obligations. The new deadline for requesting a rehearing in the Tenth Circuit is March 24.

Read more.

ACE, corn, Ethanol, Ethanol News, NCGA, NFU, RFA, RFS

President Trump May Appeal Court Decision

Cindy Zimmerman

Biofuel and agricultural organizations are up in arms over news reports out late Thursday saying President Trump is now planning to appeal the 10th Circuit Court decision regarding EPA’s granting of Small Refinery Exemptions (SREs). Oil state interests, led by Sen. Ted Cruz (R-TX), have been pressuring the White House to fight the unanimous court ruling that threatens to completely change the waiver program under the Renewable Fuel Standard.

The National Corn Growers Association, Renewable Fuels Association, American Soybean Association, National Farmers Union, Growth Energy, American Coalition for Ethanol, National Biodiesel Board, Iowa Renewable Fuels Association, and Fuels America issued a joint statement regarding the news reports:

“The president needs to understand that Ted Cruz doesn’t care about this administration or families across the heartland who are counting on the White House to keep its promises. Just days ago, thousands of farmers rallied behind Secretary Perdue, who expressed his confidence that we had finally reached the end of a long and painful fight against EPA demand destruction. Tearing open that wound, against the advice of rural champions and the president’s own advisors, would be viewed as a stunning betrayal of America’s rural workers and farmers. We cannot stress enough how important this decision is to the future of the rural economy and to President Trump’s relationship with leaders and voters across the heartland. Ted Cruz comes back year after year with the same lies about refinery profits, disproven over and over by economists, the EPA, and even by Big Oil. We urge the president to stand up now against this misguided effort to torpedo the rural recovery.”

Earlier this week, Agriculture Secretary Sonny Perdue said USDA legal counsel believes the case is solid and he doesn’t “think it would be worthwhile for the U.S. government to appeal that and I hope we won’t.”

Ag group, Biodiesel, Ethanol, Ethanol News

Still Waiting on EPA Response to 10th Circuit Court Ruling

Cindy Zimmerman

No announcement yet from EPA on how the agency will address the recent 10th Circuit Court ruling regarding small refinery exemptions (SREs), but officials continue to promise it will be soon.

“We are working through the issues on the court decision, trying to decide the right path forward,” said EPA Administrator Andrew Wheeler during a House Appropriations subcommittee hearing Wednesday. “A decision has to be made by next week so we will be announcing something shortly.”

Wheeler was responding to questioning from Rep. Chris Stewart (R-UT) about the recent spike in Renewable Identification Number (RIN) prices.
EPA Admin Wheeler and Rep. Stewart 1:12

Earlier this week, Agriculture Secretary Sonny Perdue told reporters at the National Farmers Union annual convention and that he expected an announcement sooner rather than later.

“Our legal counsel indicates he does not think it’d be wise to appeal that decision. He thinks it’s pretty solid,” said Perdue. “EPA and the White House just want to take another look and make sure we’re on the right track.”

Secy. Perdue at NFU on SREs :49

Audio, EPA, Ethanol, Ethanol News, NFU, USDA

Propane Farm Incentive Program Expands

Cindy Zimmerman

The Propane Education & Research Council (PERC) recently announced the addition of an agronomic heat treatment systems equipment category for its 2020 Propane Farm Incentive Program, which offers up to $5,000 off of qualifying propane-powered equipment. This year’s list of equipment includes irrigation engines, generators, water heating systems, building heating systems, flame weed control systems, and agronomic heat treatment systems.

“This year’s program is similar to those of the past, but we’re excited to introduce a new category of qualifying equipment with agronomic heat treatment systems—which use heat to reduce pesticide use, improving crop quality and offering a new organic, sustainable solution for farmers,” said Mike Newland, Director of Ag Business Development at PERC. “We hope these incentives will help more producers take advantage of the many benefits of new propane-powered equipment, and we appreciate the valuable feedback they provide to help us continue to make improvements. We have a limited amount of funds available for this program, so we encourage producers to apply as soon as possible to take advantage of these savings.”

Newland was at the Commodity Classic last week in San Antonio talking to farmers about how they can make propane power work for them.
Interview with Michael Newland, PERC 6:14

2020 Commodity Classic Photo Album

Audio, Commodity Classic, PERC, Propane

Ethanol Industry Anxiously Awaits EPA Decision on SREs

Cindy Zimmerman

Agri-Pulse reporter Spencer Chase interviews RFA CEO Geoff Cooper at #Classic20

Ethanol stakeholders were hopeful that an announcement would be made on Friday about how EPA will deal with the recent court ruling on small refinery exemptions, but Renewable Fuels Association (RFA) president and CEO Geoff Cooper says they are anxiously awaiting that decision.

“We don’t know what exactly what EPA is going to do, but we know what they should do, and that is take that 10th Circuit Court opinion and apply it nationally and that it would essentially put an end to the small refinery exemption program,” said Cooper in one of many interviews he did at the Commodity Classic last week in San Antonio.

In this interview, Cooper also discusses USDA’s Ag Innovation Initiative and ethanol’s role in low carbon fuel standards going forward.

Interview with Geoff Cooper, Renewable Fuels Association

2020 Commodity Classic Photo Album

Audio, Commodity Classic, Ethanol, Ethanol News, RFA

Senators Claim Court Decision Jeopardizes Refineries

Cindy Zimmerman

A group of senators from oil-friendly states sent a letter to President Trump last week claiming that if the recent 10th Circuit Court decision on small refinery exemptions is allowed to stand it “will jeopardize nearly all small refineries” in the country.

Senate Committee on Environment and Public Works (EPW) Chairman Senator John Barrasso (R-WY) spearheaded the letter urging the president “to act regarding the decision and if necessary, seek review by the U.S. Supreme Court.”

The senators wrote:
Since the decision, the price of RFS compliance credits (or RINs) has already tripled. If your administration does not appeal the decision, RIN prices will increase exponentially.

Renewable Fuels Association (RFA) chief economist Scott Richman refutes the senators claims in a blog post noting that the “impact of RINs on refiners has been specifically refuted by both the court and the EPA” mainly because they pass those costs on to their customers at the terminal.

Richman writes:
While RIN prices have increased since the court’s ruling, this is reflective of prices having been artificially suppressed by the massive number of RINs reinstated by the EPA in connection with exemptions over the last few years (Exhibit 1). Notably, a significant portion of the increase occurred on Wednesday, when ethanol (D6) RIN prices were curiously bid up an unusual 17% on the day before the senators’ letter was released and a reported White House meeting was to be held. However, it is important to take a longer-term view: RIN prices remain nearly two-thirds below the levels experienced in late 2017, just prior to the start of the large-scale granting of exemptions.

Read more from RFA.

Ethanol, Ethanol News, Oil, RFA

USDA Secretary Talks Biofuels at #Classic20

Cindy Zimmerman

U.S. Secretary of Agriculture Sonny Perdue had a lot to say about biofuels during his address at the 2020 Commodity Classic in San Antonio Friday.

While no announcement has been made by EPA yet, Secretary Perdue confidently told the audience that the recent 10th Circuit Court decision will mean less small refinery waivers. “I think you will see those waivers significantly reduced this year, which will also help the demand going forward,” Perdue said to applause.

Classic20 Secretary Perdue remarks 31:05

During a press availability, Perdue added, “We were hoping to have an announcement even today but they want to just make sure they get it right and not fast.”
Secretary Perdue SRE comments 1:47

Secretary of Agriculture Sonny Perdue full press conference
Secretary Perdue presser 22:40

In addition, Secretary Perdue issued a memo Friday directing USDA to acquire alternative fueled vehicles (AFV) when replacing conventionally fueled vehicles, and announced that USDA will make $100 million in grants available this year for the newly created Higher Blends Infrastructure Incentive Program (HBIIP).

Audio, Biodiesel, Commodity Classic, Ethanol, Ethanol News

Wheeler Questioned About Decision on SRE Program

Cindy Zimmerman

Environmental Protection Agency (EPA) Administrator Andrew Wheeler told a House subcommittee hearing on Thursday that there is no final decision yet on how they will respond to the recent 10th Circuit Court ruling regarding the Small Refinery Exemption (SRE) program.

“We’re still in discussions with the Department of Justice trying to analyze the 10th Circuit opinion, we have no announcements at this point,” Wheeler said in response to questioning by Rep. Dave Loebsack (D-IA) during a House Energy and Commerce subcommittee hearing on EPA’s Fiscal Year 2021 budget. News reports Thursday said a decision has been made to cut back on waivers granted, but Wheeler did say an announcement was expected “hopefully very shortly.”

Listen to the exchange between Loebsack and Wheeler here:
Rep. Loebsack questions EPA's Wheeler 4:57

Audio, EPA, Ethanol, Ethanol News

Discovering New Uses and Markets for Ethanol

Carrie Muehling

The 2020 National Ethanol Conference included a panel discussion on new uses for ethanol, moderated by Erik Huschitt, CEO and General Manager of Badger State Ethanol, LLC. Panelists included Keegan O’Donnell, Gas Power Systems, New Product Engineering, General Electric; Prabhakar Nair, VP Business Development, LanzaTech; and BJ Johnson, CEO, ClearFlame Engines.

O’Donnell shared some of the reasons GE is so interested in ethanol and the opportunities that may exist in the power industry.

“When you look at what ethanol versus low sulfur diesel buys us, obviously it buys us lower emissions,” said O’Donnell. “The big one for us is water needs. In the U.S., water is relatively cheap, but there are other places in the world where water is actually sometimes more expensive than the fuel.”

O’Donnell said there are several possibilities and just a few manageable drawbacks when it comes to increasing ethanol use by companies like GE.

New Uses for Ethanol Panel Discussion at 2020 National Ethanol Conference
New Uses for Ethanol Panel, 2020 National Ethanol Conference

2020 National Ethanol Conference Photo Album

Audio, Energy, Ethanol, National Ethanol Conference

Legislation Would Target Oil Subsidies

Cindy Zimmerman

Sens. Chuck Grassley (R-IA) and Tom Udall (D-NM) introduced legislation this week to update the nation’s antiquated public lands royalty system and ensure that taxpayers get fair returns on leases of public lands for oil and gas production.

Introducing the bipartisan Fair Returns for Public Lands Act of 2020, Grassley said, “Low royalty rates on oil produced on federal lands has deprived the federal treasury of billions of dollars. Today marks 100 years since Congress passed the Mineral Leasing Act of 1920. Since then, the royalty rate has not been addressed. This is just one example of Big Oil saying it wants a free market, but lobbying for taxpayer-funded corporate welfare. It’s time for my colleagues in Congress to end this oil company loophole, end the corporate welfare and bring oil leasing into the 21st century.”

Renewable Fuels Association President and CEO Geoff Cooper says the bipartisan legislation takes a step toward leveling the playing field for all transportation fuel producers. “Study after study show that the oil and gas industry benefits each year from billions of dollars in hidden subsidies, write-offs, incentives, and other giveaways. If oil producers and refiners truly want a ‘free market’ in the energy sector, they should start by giving up the subsidies and tax preferences that have robbed state and federal coffers for 100 years or more. We hope this bill sets lawmakers on a path toward comprehensive energy tax policy reform, and that the end result is a fair and open market that offers true competition and consumer choice.”

According to studies by the Congressional Budget Office (CBO) and Government Accountability Office (GAO), modernizing public lands royalty rates for oil and gas could increase federal revenues by as much as $200 million over the next decade with little to no impact on overall production.

Ethanol, Ethanol News, Legislation, Oil, RFA