POET Partners with FBN on Sustainability Initiative

Cindy Zimmerman

Farmers Business Network (FBN) has announced a new initiative called GRO Network, which matches farmers who use environmentally friendly practices with buyers who pay a premium for low-carbon corn. POET, the world’s largest producer of biofuels, has joined GRO Network as a key customer in the market for verifiable Low-Carbon Grain.

“At POET we know that agriculture is the key to combating climate change, and we want to support farmers who share our mission to be good stewards of the Earth by using environmentally friendly practices. We are excited about the potential of the GRO Network to promote sustainable agriculture and utilize the resulting low-carbon corn to produce even greener bioethanol and bioproducts,” said POET Founder and CEO Jeff Broin.

The GRO Network connects farmers who utilize measurable sustainable practices with buyers who are willing to pay for verifiable low-carbon grain. The program is groundbreaking in its focus on abatement and using proven science to measure the benefits of conservation practices used by farmers on their land. These measurements result in a farm-level carbon-intensity score that can be used by policymakers to more accurately assess the greenhouse gas (GHG) reduction for low-carbon fuel policies and make smart decisions to meet their sustainability goals.

FBN began development of GRO Network close to two years ago in order to allow fuel, food and feed companies to work alongside farmers to accelerate the adoption of regenerative agricultural practices that deliver the biggest impact.

corn, Ethanol, Ethanol News, Sustainability

RFA Helps Retailers Apply for Infrastructure Grants

Cindy Zimmerman

The Renewable Fuels Association has been able to assist retailers in 21 states this year apply for infrastructure project grants totaling over $52 million.

The grants are part of USDA’s Higher Blends Infrastructure Incentive Program (HBIIP), which has $86 million available to transportation fueling facilities to expand the availability and sale of higher blends of ethanol like E15 and E85/Flex Fuel. USDA is now reviewing the applications and expects to announce grant awards next month.

With support from the National Corn Growers Association, RFA worked with Christianson PLLP and others to assist three dozen retailer companies in the grant process prior to the Aug. 13 application deadline. Submitted applications assisted by RFA cover more than 1,100 fuel dispensers and 128 storage tanks at 222 locations across 21 states. Combined, these locations sell more than 250 million gallons of gasoline annually. RFA provided services and assistance for $21 million in grant requests, which would be matched with another $31 million in private funding for a total investment in higher blends infrastructure of more than $52 million.

“We sincerely appreciate all the assistance RFA and the team at Christianson provided in order to get our HBIIP grant processed in a timely fashion,” said Jill Curtorillo, Corporate Controller at Snappy’s convenience stores in Pennsylvania. “Thank you for including us in your mission to support retailers with this grant program.”

“We’re proud to see so many retailers take part in this program, and to have been able to help so many of them work through the complications of the federal grant application process,” said RFA Director of Market Development Cassie Mullen.

RFA’s work included outreach to retailers via paid and earned media and educating hundreds of them in a series of webinars. The association also created a password-protected website for sharing documents and other digital tools for them to use in the grant application process. Technical reports were prepared for each company, each covering 35 to 50 pages in length, and site-specific environmental reports were submitted covering more than 2,200 pages.

Ethanol, Ethanol News, Retailers, RFA, USDA

CHS to Market for California Ethanol + Power

Cindy Zimmerman

California Ethanol + Power is entering into a 15-year marketing arrangement for global agribusiness leader CHS Inc. to be the exclusive marketer and distributor of ethanol from Sugar Valley Energy, currently being constructed in Imperial County, California. Sugar Valley Energy is expected to complete financing this fall and break ground before the end of 2020 with production set to begin in 2023 at an annual capacity of 68 million gallons of low-carbon fuel-grade sugarcane ethanol.

CHS, the nation’s leading agribusiness cooperative owned by farmers, ranchers and cooperatives, produces 260 million gallons of fuel-grade ethanol and markets 900 million gallons of ethanol each year, making CHS one of the nation’s largest suppliers of ethanol-enhanced gasoline and the largest U.S. retailer of E85 ethanol.

“As an energy provider for rural America, CHS continues to identify new technologies and new partners to help enhance reliable energy supply for our owners from diverse sources, while minimizing environmental impact,” said Brian Schouvieller, senior vice president, CHS Global Grain Marketing. “We look forward to collaborating with California Ethanol + Power and Imperial Valley sugarcane growers on this initiative.”

Ethanol, Ethanol News, sugarcane

Ethanol Report 8-28-20

Cindy Zimmerman

As the presidential election nears, the ethanol industry is watching closely to see which candidate will be more supportive of the Renewable Fuel Standard.

As Democratic candidate Joe Biden released a strong statement of support for the industry this week, the Trump Administration’s Environmental Protection Agency continues to drag its feet on important decisions like the 2021 Renewable Volume Obligations and so-called gap year refinery waiver requests.

In this edition of the Ethanol Report, Renewable Fuels Association (RFA) president and CEO Geoff Cooper comments on what they would like to see EPA do before the election, as well as Brazilian ethanol tariffs, if Congress will pass another coronavirus relief package this year, and derecho damage.

Ethanol Report 8-28-20 (20:37)

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, RFS

Senate Democrats’ Climate Plan Includes Renewable Fuels

Cindy Zimmerman

The Senate Democrats’ Special Committee on the Climate Crisis released a plan this week to achieve 100 percent global net-zero emissions no later than 2050, which includes proper implementation of the Renewable Fuel Standard (RFS).

According to the report, “If implemented properly, the RFS gives farmers revenue stability, allowing U.S. agriculture to play an important role in reducing U.S. oil usage and further supporting rural economies.”

In addition, the report suggests the potential for a federal Low Carbon Fuel Standard which “sets a maximum carbon intensity level for fuels that must be met each year, with the goal of increasing the range of commercially available low-carbon and renewable fuel alternatives.” Groundwork for that has already been set with a report released in January of this year “A Clean Fuels Policy for the Midwest,” developed by a broad coalition of biofuels and rural stakeholders.

“We are glad to see Senate Democrats recognize that renewable fuels like ethanol have an important part to play in our nation’s low-carbon future,” said Renewable Fuels Association President and CEO Geoff Cooper. “We are pleased to see the Committee acknowledge the role the Renewable Fuel Standard has already played in reducing emissions and we welcome the report’s discussion of a potential national Low Carbon Fuel Standard (LCFS). This report complements the House Select Committee’s recommendations in June, and it is clear that consensus is building around the need to further reduce GHG emissions from the transportation sector.”

“ACE has been laying the strategic groundwork necessary to leverage ethanol’s low carbon value in the market through new clean fuel policy solutions at the state and federal level,” said American Coalition for Ethanol (ACE) CEO Brian Jennings. “Our engagement with Congress led the House Select Committee on the Climate Crisis to include a page from our Midwest Clean Fuel Policy blueprint in its June 30 report by recommending Congress develop a technology-neutral LCFS that would provide meaningful economic benefits to farmers and biofuel producers.”

The senate report also endorses the value of carbon sequestration, noting that it can help sustainable farmers survive and thrive, and cites the important growth of bio-based products as smarter and healthier alternatives to those derived from fossil fuels – using corn ethanol as a prime example.

Read the full report

ACE, Ethanol, Ethanol News, RFA

EPA Working on 2021 RVO, Waiver Requests

Cindy Zimmerman

Environmental Protection Agency Administrator Andrew Wheeler says they are working to get the 2021 Renewable Volume Obligations “done as quickly as possible” and promises they will not be as late as the previous administration.

“I remember there in the Obama-Biden administration they were actually two years late on setting the RVOs,” said Wheeler during a press call on Wednesday. “So we certainly aren’t going to break their record.”

The current administration has met the deadline on time for the past three years but since EPA is supposed to release the final RVOs for the coming year at the end of November and they have yet to be proposed, that will not happen this year. Wheeler says they have a lot more data points to consider this year with the impact COVID restrictions have had on all parts of the industry.

In addition, Wheeler says EPA is also being very diligent in its review of retroactive small refinery waiver petitions, which now total 67 with some going back to 2011. “We have to weigh all the issues very carefully because there’s a lot of litigation around this issue,” said Wheeler. “So any decision we make will be litigated so we have to be very thorough in our reviews.”

Listen to Wheeler’s answers to reporters’ questions:
EPA Admin Andrew Wheeler (2:48)

The Renewable Fuels Association sent a letter to Wheeler this week asking him to immediately address a number of unresolved issues related to the Renewable Fuel Standard.

“By disregarding statutory deadlines, flouting court decisions, and failing to make timely decisions, the Environmental Protection Agency is undermining predictability and confidence in the renewable fuels market and abetting longtime opponents of the RFS who perpetually seek the destabilize the program,” wrote RFA President and CEO Geoff Cooper. “Consequently, I write today imploring EPA to swiftly resolve a litany of unsettled RFS matters in a manner that is consistent with both the purpose of the Clean Air Act and the spirit of President Trump’s commitments.”

RFA called on Wheeler to adopt the Tenth Circuit Court decision on small refinery exemptions nationwide and decide all 2019-20 SREs accordingly, deny all 67 pending retroactive refinery waiver petitions, publish the proposed rule for 2021 renewable volume obligations, and comply with the court order to restore gallons illegally waived from the 2016 RFS requirements.

Read the letter here.

Audio, EPA, Ethanol, Ethanol News, RFA, RFS

New Research Tool to Improve Ethanol Testing Data

Cindy Zimmerman

Future Fuel Strategies has published a new Fuel Blending Guide for Ethanol for researchers conducting fuel and emission testing.

“This guide presents a step by step approach to designing a comparative market fuel emission study. This should matter greatly to the affected industries, auto, oil, ethanol- because it is these studies that are being used to design fuel/emissions regulations that directly impact the industry,” said Future Fuel Strategies Principal Consultant Tammy Klein.

The guide on Identifying Sound Practices for Acquiring or Blending Fuels for Studies of Emissions Changes was commissioned by the Urban Air Initiative (UAI) due to the fact that the way test fuels are blended dictate emission results.

Urban Air’s Technical Director Steve Vander Griend found that if there was a standardized way test fuels were blended, a lot of studies would have very different outcomes. “Having a uniform approach to blending test fuels will mean we will get accurate results. This fuel blending guide encourages using test fuels that represent real-world fuels. By doing this, emissions testing will show that ethanol reduces toxic aromatics in gasoline, reducing tailpipe emissions and improving air quality,” said Vander Griend.

The Fuel Blending Guide is intended for researchers to use as an educational tool and for third party organizations like the Society of Automotive Engineers to consider when conducting peer review on fuel studies. It also provides the opportunity to look back at past studies and identify flaws within the fuel testing to ensure more accurate results in the future.

Ethanol, Ethanol News, Urban Air Initiative

Biden Attacks Trump on RFS Support

Cindy Zimmerman

Democratic president candidate Joe Biden released a statement this week attacking President Donald Trump over his record on renewable fuels.

“Instead of standing with those who till our land and sow our fields, we have a president who has sold out our farmers by undercutting the Renewable Fuel Standard with the granting of waivers to Big Oil,” said Biden in the statement. “Those waivers severely cut ethanol production, costing farmers income and ethanol plant workers their jobs. Now, President Trump refuses to announce the 2021 renewable fuel production levels until after the election, leaving farmers concerned of further cuts to production. The Renewable Fuel Standard marks our bond with our farmers and our commitment to a thriving rural economy.”

Biden added that his Administration “will promote and advance renewable energy, ethanol, and other biofuels to help rural America and our nation’s farmers, and will honor the critical role the renewable fuel industry plays in supporting the rural economy and the leadership role American agriculture will play in our fight against climate change.”

Biodiesel, biofuels, Ethanol, Ethanol News, politics, RFS

Biodiesel Ads Urge President to Reject “Gap” SRE Petitions

Cindy Zimmerman

The National Biodiesel Board has launched a radio advertising campaign in six Midwestern states, urging President Donald Trump to keep his promise on the Renewable Fuel Standard. The ads will run for two weeks in Iowa, Illinois, Kansas, Minnesota, Nebraska, and Wisconsin.

The 30-second ads say, “EPA is threatening to grant more big oil handouts this year that reduce biodiesel demand and take away another market for soybean farmers. Tell President Trump and Administrator Wheeler to reject oil refiner exemptions and keep their promise to farmers.”

Kurt Kovarik, NBB’s VP of Federal Affairs, states, “Over the past three years, EPA has handed out 85 small refinery exemptions that destroyed demand for more than a half-billion gallons of biodiesel and hundreds of millions of bushels of soybeans. Now, EPA is considering nearly 100 new exemption petitions, threatening to double the damage to the biodiesel industry and farmers. Last week, President Trump promised to speak directly to EPA about the pending exemption petitions. Biodiesel producers and soybean farmers are counting on him to keep that promise.”

The ads urge farmers, biodiesel producers, and others to visit NBB’s Fueling Action Center and send email messages directly to President Trump and EPA Administrator Andrew Wheeler, asking them to limit small refinery exemptions.

Listen to one of the ads here:
NBB RFS ad

Audio, Biodiesel, biofuels, EPA, NBB, RFS

Farmers and Ethanol Producers Defend Year Round E15

Cindy Zimmerman

Ethanol producers and corn growers have provided support against the oil industry’s latest effort to undermine the expansion of E15 (gasoline containing 15% ethanol).

The Renewable Fuels Association, Growth Energy and National Corn Growers Association on Friday filed a brief in the U.S. Court of Appeals for the D.C. Circuit supporting and defending EPA’s 2019 regulation allowing year-round availability of E15.

As intervenors in the oil industry’s lawsuit against EPA’s regulation allowing year-round E15, RFA, Growth Energy and NCGA are vigorously protecting the agency’s final rule, which finally extended the Reid Vapor Pressure (RVP) volatility waiver for E10 blends to E15 as well. The intervenors’ brief provides strong support for EPA’s position that parity in RVP regulations for E10 and E15 is consistent with the provisions of the Clean Air Act and the congressional intent behind those provisions. The organizations further point out that extending the volatility waiver from E10 to E15 is appropriate because the volatility of the fuel actually decreases as more ethanol is added into gasoline beyond E10.

“This disparate treatment of E10 and E15 made little sense,” the intervenors argue. “The volatility restrictions are intended to limit evaporative emissions, and the 1-psi allowance promotes the sale of ethanol-blended fuels. Yet adding 5% more ethanol to E10 uses more ethanol and lowers volatility and evaporative emissions. … The Final Rule removes a volatility restriction for E15 that EPA long ago removed for E10—enhancing consumer choice while reducing volatility and evaporative emissions. This Court should not allow the petroleum industry and its allies to stymie competition in this comparatively small but important portion of the U.S. transportation fuel supply.”

Read complete intervenor filing.

corn, EPA, Ethanol, Ethanol News, NCGA, RFA