IRFA Announces Partnership with ISU BioBus

Cindy Zimmerman

The Iowa Renewable Fuels Association is announcing a partnership with Iowa State University’s BioBus program, an on-campus, student-run organization that collects used cooking oil from Iowa State’s campus dining facilities and uses it to make biodiesel to be used in the school’s CyRide buses.

“We are excited to partner with a group of your scientists who recognize the power and potential of biodiesel,” said Iowa Renewable Fuels Association (IRFA) Marketing Director Lisa Coffelt. “BioBus provides students a platform where the next generation of scientists can learn not only about the science behind biodiesel but see its benefits play out in the real world.”

In addition to providing a donation to the program, IRFA intends to work alongside the group and help support their growth, enabling them to achieve their goals to expand production and student participation.

“We are thankful to IRFA for their support,” said John Cramsey, President of the BioBus club. “Our club looks forward to expanding our reach here on campus in terms of both biodiesel production and student awareness of the benefits of biodiesel.”

Biodiesel, Iowa RFA

RFA Calls on Administration as Ethanol Prices Drop

Cindy Zimmerman

As gas prices go, so goes the price of ethanol, and right now the industry is being adversely affected by the economic constraints caused by the coronavirus, the oil price war, ongoing trade disputes and EPA’s small refinery waivers.

“While the policy response to turbulence in the energy markets has so far focused largely on supporting crude oil producers, we urge the Administration to recognize that biofuel and agricultural commodity markets are suffering as well,” said Renewable Fuels Association (RFA) president and CEO Geoff Cooper. “Ethanol futures prices hit a record low in recent days, as the coronavirus is expected to negatively impact domestic and international fuel demand in the near term. With many ethanol plants on the verge of shutting down, we implore the Trump administration to take action that equitably supports all liquid fuel industries, including ethanol producers, during this time of unprecedented market uncertainty and unrest.”

Cooper suggests one important step the President could take immediately would be to announce that EPA will not appeal the recent 10th Circuit court decision on small refinery waivers and will implement the 500 million gallon remand as ordered by the D.C. Circuit Court in 2017. “Given the robust financial assistance the Trump administration is planning to provide to oil producers, immediate actions to ensure EPA abides by these court decisions can help soothe concerns among those whose livelihoods depend on agriculture and renewable fuels,” said Cooper.

Ethanol, Ethanol News, RFA

Ethanol Report 3-16-20

Cindy Zimmerman

What a difference a month can make!

A month ago, the ethanol industry was celebrating the 10th Circuit Court decision that would require EPA to severely limit its small refinery exemptions, and coronavirus was still a problem somewhere else. Last week, just as COVID-19 started to fully hit the fan here in the United States, the Trump Administration snatched defeat from the jaws of victory and decided to ask the court for two weeks to consider an appeal of the unanimous ruling.

This episode of The Ethanol Report features comments from from Badger State Ethanol CEO Erik Huschitt, National Corn Growers Association president Kevin Ross, USDA Secretary Sonny Perdue, and Renewable Fuels Association Senior Strategic Advisor Bob Dinneen.

Ethanol Report 3-16-20 (12:57)

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, Ethanol, Ethanol News, Ethanol Report, NCGA, RFA

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