NCGA and USGC Leaders Visit Vietnam and Myanmar

Cindy Zimmerman

Leaders of the U.S. Grains Council (USGC) and National Corn Growers Association (NCGA) learned firsthand about the Southeast Asian market for U.S. corn and co-products last week during a joint officers mission to Vietnam and Myanmar.

Vietnam is one of the fastest growing feed markets in the world – thanks to population and economic growth – and a major buyer of corn and dried distiller’s grains with solubles (DDGS). Ranking as the second largest buyer of U.S. DDGS, Vietnam set a new record for DDGS imports in 2018/2019, increasing purchases by 24 percent year-over-year to nearly 1.3 million metric tons, valued at $278 million.

Vietnam also shows great promise for ethanol exports. The country currently allows up to an E5 blend and is working toward a goal of adopting an E10 mandate by 2020, but ethanol import duties prevent the United States from capturing additional market share.

During meetings with government officials and fuel retailers, the delegation reiterated the need for Vietnam to reduce this import tariff to stimulate demand and improve the affordability of ethanol-blended fuels for Vietnamese customers.

Myanmar has become a priority emerging market for the Council’s work in the last five years. Statistically resembling Vietnam in the early 2000s and China in the 1990s, Myanmar is expected to steadily increase feed consumption and production over the next decade.
Read more.

corn, Distillers Grains, Ethanol, Ethanol News, Exports

Comments Submitted for USDA Infrastructure Program

Cindy Zimmerman

Biofuels organizations submitted comments this week on USDA’s proposed Higher Blends Infrastructure Incentive Program (HBIIP) to expand the availability of domestic ethanol and biodiesel by incentivizing the expansion of sales of renewable fuels and facilitating increased sales of higher biofuel blends (E15 or higher).

The American Coalition for Ethanol (ACE) made a number of recommendations that USDA should consider in the final HBIIP. Among them, incentivize the highest number of locations available over the widest geography possible, and provide incentives to wholesale blending facilities, make any equipment used to store, blend, and dispense higher blends of ethanol eligible under the program, and provide a combination of grants and high percentage direct cost share to help smaller operators.

The Renewable Fuels Association in its response to USDA recommended that available funding be primarily directed at offsetting the costs to install and/or upgrade retail and wholesale infrastructure compatible with higher biofuel blends. In addition, RFA stated that funding assistance should be accessible to retailers of all sizes and on a nationwide basis. This should include everything from small, single-store owners to mid-size retailers and large chains.

The National Biodiesel Board (NBB) expressed the biodiesel industry’s gratitude for inclusion in the program, since the infrastructure needs for biodiesel, renewable diesel, Bioheat®, and sustainable aviation fuel are different from those of other biofuels. NBB asked USDA to focus the program on investments in strategic terminals, pipeline storage and rail expansion to create broader downstream capacity to sell more gallons.

ACE, Biodiesel, biofuels, Ethanol, Ethanol News, NBB, RFA, USDA

Ethanol Report 1-31-20

Cindy Zimmerman

In this episode of The Ethanol Report, we hear about a new court ruling that could be a game changer for Small Refinery Exemptions, get a preview of the 25th annual National Ethanol Conference, learn about LCFS for the Midwest, and kick off the 4th year of ethanol sponsorship of the Crappie Masters Tournament Trail.

The report includes interviews with Renewable Fuels Association president and CEO Geoff Cooper, Dakota farmer Ron Alverson, and RFA VP of Industry Relations Robert White.

Ethanol Report 1-31-20 (23:59)

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, RFA

Ethanol and Corn Back on Crappie Masters Tournament Trail

Cindy Zimmerman

The Renewable Fuels Association and the National Corn Growers Association have signed on for the fourth year as co-title sponsors of the Crappie Masters Tournament Trail. The first tournament begins Friday, Jan. 31 at St. Johns River in Deland, Fla.

This year, the competition is bigger than ever and includes state-level tournament trails in Oklahoma, Kentucky, Missouri, Kansas, Iowa, Florida, Arkansas, Alabama, West Tennessee and North and South Louisiana.

“We are looking forward to another great year on the water with an expanded schedule of tournaments,” said RFA Vice President of Industry Relations Robert White. “This national partnership with Crappie Masters helps more anglers and boaters learn about the benefits of high-octane, low-carbon ethanol—a fuel that’s cleaner and cheaper, and that has proven its value on the tournament trail for years.”

Interview with Robert White, RFA, on 2020 Crappie Masters (4:06)

Crappie Masters Television will also highlight each tournament. The weekly show can be found on the Pursuit Channel, which is on DIRECTV 604, Dish Network 393, Verizon, CenturyLink and Roku.

The next Crappie Masters Tournament Trail event is Feb. 28-29 at Lake D’Arbonne in Gadsden County, Fla. The 2020 Crappie Masters Tournament Trail season runs through Sept. 26. A full schedule is available here.

Audio, corn, crappie masters, Education, Ethanol, Ethanol News, NCGA, RFA

ACE Announces 2020 DC Fly-in

Cindy Zimmerman

The American Coalition for Ethanol (ACE) 12th annual Washington, D.C. Fly-in and Government Affairs Summit will take place April 2-3.

“Our priorities will include defending the Renewable Fuel Standard (RFS) from refinery waivers, influencing proposals from EPA and USDA to support the sale of E15 and higher blends, and encouraging Congress to introduce legislation to increase ethanol use through a Low Carbon Octane Standard (LCOS), which capitalizes on the ability for higher blends of ethanol to reduce greenhouse gas (GHG) emissions and helps automakers comply with fuel economy standards,” said Brian Jennings, ACE CEO.

For more than a decade, ethanol supporters representing 30 states have participated in ACE fly-ins, including ethanol company investors and management; corn farmers; scientists; and fuel marketers and gas station owners.

“The ACE fly-in strikes a balance between Hill visits with ethanol champions and with Members of Congress who live outside the Corn Belt,” said Shannon Gustafson, ACE Senior Director of Operations and Programming. “Our event is designed to provide each participant with a valuable experience; from those who have never been to D.C., to those who’ve joined us for every fly-in. We strategically develop Hill visit teams to leverage each attendee’s strengths and arrange meetings in a way to make sure their voice is heard.”

The meetings will take place at the Hyatt Regency Washington on Capitol Hill. Event registration and sponsorship opportunities are available at ethanol.org/events/fly-in.

ACE, Ethanol, Ethanol News

Cooperative Producers adds E15 at Two More Fuel Sites

Cindy Zimmerman

Cooperative Producers, Inc. (CPI) has added E15 at two more fuel sites in Nebraska, making a total of six locations now in the state, according to the Nebraska Ethanol Board (NEB)

The new sites are in Axtell and Red Cloud, Nebraska, added to locations in Clay Center, Funk, Giltner, and Juniata.

“As a farmer-owned cooperative we need to support the folks who do business with us,” said Gary Brandt, vice president of energy with CPI. “CPI uses 500,000 bushels of corn in the ethanol we sell every year, so adding more ethanol to the pumps in Axtell and Red Cloud really brings a sense of ownership to our growers who work hard throughout the year to feed and fuel our country.”

“These locations don’t have a flex fuel pump, but we’re still able to offer E15 by blending it at the pipeline terminal,” Brandt added.

Learn more from NEB.

Cooperatives, corn, E15, Ethanol, Ethanol News

First Iowa County Requires B20 for New Diesel Vehicles

Cindy Zimmerman

Dickinson County has become the first in Iowa to follow the lead of Iowa Governor Kim Reynolds by declaring all new diesel vehicles procured by the county must be explicitly approved for the use of B20, 20% biodiesel.

On December 3, 2019 Governor Reynolds signed an executive order declaring that new diesel vehicles procured by the state’s executive branch must be approved for the use of B20. Following the suggestion from Iowa Renewable Fuels Association (IRFA) Board Member Al Giese, County Supervisor Tim Fairchild championed the effort to enact a similar policy in Dickinson County.

“We thank Al Giese and Supervisor Tim Fairchild for leading the effort in their county to support biodiesel,” said IRFA Executive Director Monte Shaw. “With her executive order, Governor Reynolds laid out a great roadmap for counties and other local governments across Iowa to support biodiesel and encourage more diesel engine manufacturers to approve B20 for use in their engines. We hope Dickinson County is first of many to follow this roadmap.”

Iowa is the country’s leading producer of biodiesel, producing 365 million gallons in 2018. The state’s 11 plants have the capacity to produce nearly 400 million gallons annually.

Biodiesel

Soybean Growers Show Biodiesel Support

Cindy Zimmerman

American Soybean Association (ASA) CEO Ryan Findlay was on the program at the 2020 National Biodiesel Conference in Tampa last week, sharing his policy views for the new decade. A number of ASA directors were also in attendance showing their support for the biodiesel industry, which increases the value of U.S. soybean oil by 11 cents per pound and 63 cents per every bushel of soybeans.

In this interview, Findlay discusses policy priorities, trade issues, the upcoming Commodity Classic, and more.
NBB2020 Interview with Ryan Findlay, American Soybean Association CEO (7:52)

In addition to serving on the ASA Board of Directors, Illinois farmer Rob Shaffer is on the executive committee of the National Biodiesel Board as second vice chairman. He talks soybeans and biodiesel in this interview, and how ASA is celebrating its “First Soy Century” 100th anniversary this year.

NBB2020 Interview with NBB board member Rob Shaffer, Illinois farmer (5:46)

2020 National Biodiesel Conference photo album

ASA, Audio, Biodiesel, Biodiesel Conference, NBB

Court Strikes Down EPA Small Refinery Exemptions

Cindy Zimmerman

On Friday, the U.S. Court of Appeals for the Tenth Circuit struck down three small refinery exemptions (SREs) that were improperly issued by Environmental Protection Agency under a May 2018 case brought against EPA by the Renewable Fuels Association (RFA), the National Corn Growers Association, the American Coalition for Ethanol and National Farmers Union. The three refineries are owned by CVR Energy and HollyFrontier.

Among other findings, the Court held that EPA cannot “extend” exemptions to any small refineries whose earlier, temporary exemptions had lapsed. According to the Court opinion, “the statute limits exemptions to situations involving ‘extensions,’ with the goal of forcing the market to accept escalating amounts of renewable fuels over time. None of the three small refineries here consistently received an exemption in the years preceding its petition. The EPA exceeded its statutory authority in granting those petitions because there was nothing for the agency to ‘extend.’” EPA’s own data show that a maximum of only seven small refineries could have received continuous extensions of their previously existing exemptions. Yet, recently EPA has granted as many as 35 exemptions in a single year.

RFA President and CEO Geoff Cooper said, “The Court has affirmed our long-held position that EPA’s recent practices and policies regarding small refinery exemption extensions were completely unlawful. And while the decision addresses three specific exemptions, the statutory interpretation issues resolved by the court apply much more broadly.”

NCGA President Kevin Ross says the decision is welcome news for corn growers. “Ethanol is an incredibly important value-added market for corn farmers, and EPA’s waivers have reduced RFS volume requirements by more than 4 billion gallons over the past three years, impacting corn demand.”

The Court also found that EPA abused its discretion in failing to explain how the Agency could conclude that a small refinery might suffer a disproportionate economic hardship when the Agency has simultaneously consistently maintained that costs for RFS compliance credits, or RINs, are passed through and recovered by those same refineries.

ACE, biofuels, corn, Ethanol, Ethanol News, NCGA, NFU

Industry Celebrates Biodiesel Tax Credit Extension

Cindy Zimmerman

Without question, the multi year biodiesel tax credit extension achieved at the end of 2019 was a tremendous victory for the industry.

“No one is more relieved, excited and enthused to say we got it done – five years certainty through 2022!” said National Biodiesel Board Vice President of Federal Affairs Kurt Kovarik. “No other tax extender as large as us received anywhere near the duration.”

The reinstatement of the biodiesel tax credit provides much-needed retroactivity for 2018 and 2019 and a forward-looking credit through 2022. Three years forward is the longest time period the industry has been able to count on the credit since it was first introduced in 2005.

Kovarik, a longtime aide to Sen. Chuck Grassley of Iowa prior to joining NBB in 2017, gave his former boss a lot of the credit for finally getting the extension to the finish line. “Our industry owes a huge debt of gratitude to Chuck Grassley,” said Kovarik. “If you see him, say thank you, give him a bear hug if you like, say it’s from me.”

NBB2020 Opening session - NBB VP of Federal Affairs Kurt Kovarik (11:50)

Audio, Biodiesel, Biodiesel Conference, National Biodiesel Conference, NBB