Ethanol and Biodiesel Continue to Power Iowa Economy

Cindy Zimmerman

Despite the challenges of 2019, Iowa biofuel production continued to have a significant impact on Iowa’s economy, supporting over 48,000 jobs and more than $2.4 billion in household income, according to the latest study commissioned by the Iowa Renewable Fuels Association (IRFA).

The study, authored by John Urbanchuk of ABF Economics, also found that biofuels continue to account for over $5 billion of Iowa’s GDP, or about three percent.

The study looked at the many challenges the industry faced in 2019, including the lapsed biodiesel tax credit and the demand destruction caused by excessive Renewable Fuel Standard (RFS) refinery exemptions. The study found Iowa biofuels production could have supported over 4,000 more jobs and $200 million more in household income in 2019 had the exemptions not been granted.

“We are encouraged to see that despite the hard times and policy uncertainty Iowa producers faced in 2019, the economic benefits are still strong. It is, however, disheartening to know how much greater the benefits could have been to Iowa had EPA not granted over a billion gallons worth of demand-destroying RFS exemptions,” said IRFA Executive Director Monte Shaw.

Looking forward, the study concludes that growth of the biofuels sector “through new technologies and feedstocks” will only serve to enhance the economic impact of the industry, but “policy stability is essential to maximize these benefits. Uncertainty surrounding issues like RFS refinery exemptions, tax credit extensions, and trade with China, will impede the ability of the industry to provide these societal benefits.”

Read the study.

Biodiesel, biofuels, Ethanol, Ethanol News, Iowa RFA

ACE Cancels April DC Fly-in

Cindy Zimmerman

The American Coalition for Ethanol (ACE) has canceled its annual Washington, D.C. Fly-in and Government Affairs Summit scheduled for next month due to the number of congressional offices declining meeting requests in response to concerns about the rapid spread of COVID-19. Many congressional offices have notified ACE they are not scheduling “any in-person meetings for the foreseeable future due to precautions surrounding coronavirus.”

“Based on the number of Hill offices that have declined meeting requests due to the coronavirus and our overall concern for the health and well-being of ACE members, we have decided to cancel the April 2-3, 2020 fly-in,” said Brian Jennings, ACE CEO. “Medical experts testifying this week on Capitol Hill warned Americans COVID-19 will continue spreading so we need to prioritize the health and safety of our members.”

“We are grateful to everyone who was willing to invest their time and financial resources to travel to D.C. and discuss our priority issues with Congress and the Trump administration,” Jennings added. “We anticipate that eventually the threat of coronavirus will subside, so we are exploring options to reschedule the fly-in to the fall of 2020.”

ACE, Ethanol, Ethanol News

Farmers, Biofuel Producers Urge Trump to Support RFS

Cindy Zimmerman

Farmer leaders and biofuel producers from the Midwest today expressed their concerns about news that the Trump administration has reversed course and decided to side with oil companies in their court battle against biofuels.

The debate centers around a unanimous court decision that would halt the Environmental Protection Agency’s (EPA) abuse of Small Refinery Exemptions (SREs) under the Renewable Fuel Standard (RFS), which have destroyed demand for billions of gallons of homegrown biofuels. Days ago, more than 20 farm and biofuel groups sent a letter asking President Trump to reject “an appeal of the court decision, given the clarity, unanimity, and strength of the ruling.” In a blow to rural communities, the White House now appears ready to defend those exemptions, ensuring continued uncertainty for farm families and jeopardizing jobs for biofuels workers across the Midwest. An extension granted by the court this week gives the administration until March 24 to file a formal appeal.

Speaking for corn, soybean, ethanol and biodiesel producers, as well as rural communities around the Midwest that have been adversely impacted by EPA’s waiver policy, the presidents of the National Corn Growers Association and American Soybean Association, and two biofuel producers held a press call on Wednesday.

Kevin Ross, a corn farmer near Minden, Iowa
Dave Walton, a soybean farmer in Wilton, Iowa
Erik Huschitt, CEO & general manager of Badger State Ethanol in Monroe, Wisconsin
Mitch Miller, CEO of Carbon Green BioEnergy in Lake Odessa, Michigan

Listen to the call here:
SRE case appeal call 50:32

ASA, Audio, Biodiesel, biofuels, corn, EPA, Ethanol, Ethanol News, NCGA

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