Trump Remarks Seem to Contradict EPA Plan

Cindy Zimmerman

Since the October 4 announcement, President Donald Trump mentioned the plan negotiated by the administration to address small refinery exemptions under the Renewable Fuel Standard at least twice while addressing farmers and ranchers. Those comments appear to contradict the EPA proposal released Tuesday which industry representatives say will likely not even result in maintaining the 15 billion gallons required under the RFS.

During the October 7 press conference to celebrate the Japanese trade agreement, President Trump said “we’ve come to an agreement and it’s going to be, I guess, getting close to 16 billion gallons.”

On October 10, President Trump recorded a message to farmers and ranchers from the Oval office that was distributed through the National Association of Farm Broadcasting (NAFB) where he talked about what his administration has done for agriculture.

“Only days ago, my administration announced an agreement on the Renewable Fuel Standard,” said Trump. “We will increase the volume of ethanol we blend into our fuel above 15 billion gallons, ensuring certainty for American producers.

Listen to the comments below:

President Trump ethanol comment during Japan press conference

President Trump ethanol comments from NAFB
Audio, Ethanol, Ethanol News

ACE Reacts to EPA RFS Proposal

Cindy Zimmerman

Because the Trump Administration announcement made on October 4 was “short on details and the final outcome is dependent upon a new rulemaking process” American Coalition for Ethanol (ACE) CEO Brian Jennings chose to reserve final judgement on the plan until he saw the details.

Jennings says the details released on Tuesday failed to live up to the hype generated by the announcement. “The White House made it very clear on October 4 that in 2020 there would be at least 15 billion gallons of ethanol blending,” said Jennings. “This proposal and the approach they are taking to account for small refinery exemptions would absolutely NOT ensure that 15 billion gallons of ethanol gets blended in 2020.”

In this interview, Jennings explains the confusing plan EPA is proposing to ‘consider the exempt volumes of gasoline (and diesel) in previous years had EPA followed the Department of Energy (DoE) recommendations without deviation’ in determining the 2020 RVO. He also talks about how devastating the proposal is for farmers as they are harvesting this season during a year with more than its share of challenges.

10-15-19 Brian Jennings, American Coalition for Ethanol
ACE, Audio, EPA, Ethanol

Growth Energy Announces New Chairman

Cindy Zimmerman

Growth Energy has announced the election of Dan Sanders as new chairman of the board of directors, succeeding POET CEO Jeff Broin, who held the position since the association was formed in 2008.

Sanders is vice president of Front Range Energy, a 48 million gallon ethanol production facility located in Windsor, Colorado.

“I’m honored to serve our members and staff as the next chairman of the Growth Energy Board of Directors,” said Sanders. “I look forward to working with our dedicated board to lead our association’s strategies to deliver strong demand for our products and supportive policy.”

Broin announced in September he would step down as chairman, but plans to remain an active member of the Growth Energy board.

Ethanol, Growth Energy

Global Ethanol Summit Kicks Off in DC

Cindy Zimmerman

The first Global Ethanol Summit gets underway this morning in Washington D.C. with industry and government officials from 60 countries are meeting with U.S. officials to learn about prospects for expanded global ethanol use.

This week’s Summit, sponsored by the Council, Growth Energy and the Renewable Fuels Association (RFA), features high-level government and industry officials from Algeria to Vietnam, who are working together to expand the global use of ethanol by developing policies with a role for trade.

Building on the success and momentum of 2017’s Ethanol Summit of the Americas and 2018’s Ethanol Summit of the Asia Pacific events, the Global Summit seeks to capitalize on potential markets around the world as demand increases for higher-level biofuels policies – including decreasing greenhouse gas (GHG) emissions and improving clean air quality. The Council and its partners are working in all of these countries to highlight ethanol’s benefits and address constraints to expanding ethanol’s use.

The two-day conference will feature remarks from both the U.S. Department of Agriculture’s (USDA’s) Deputy Secretary Stephen Censky and Foreign Agricultural Service’s Associate Administrator Daniel Whitley, who will speak on collaboration and trade and the U.S. energy renaissance, respectively.

Ethanol, Ethanol News, Events, Exports, Grains, Growth Energy, RFA, USGC

Ethanol Production Rate Continues to Slow

Cindy Zimmerman

Ethanol production started this month below one million barrels per day for the third week in a row.

According to EIA data analyzed by the Renewable Fuels Association for the week ending Oct. 4, ethanol production expanded 5,000 b/d or 0.5% to 963,000 barrels per day (b/d)—equivalent to 40.45 million gallons daily. This was the third straight week in which production was below 1 million b/d, and output was 7.4% lower than a year ago. The four-week average ethanol production rate slowed for the sixth week, declining 1.5% to 967,000 b/d, equivalent to an annualized rate of 14.82 billion gallons and the lowest average since June 2016.

In addition, ethanol stocks plummeted 8.6% to 21.2 million barrels, the largest weekly draw on record, and inventories were the smallest since Sept. 2017.

Ethanol, Ethanol News, RFA

USDA Lowers Corn Use for Ethanol Outlook Again

Cindy Zimmerman

The October World Agricultural Supply and Demand Estimates out today from USDA once again lowered its 2019-20 outlook for U.S. corn production, exports, use for ethanol, and ending stocks.

Corn production is forecast at 13.779 billion bushels, down 20 million as a decline in harvested area more than offsets an increased yield forecast. Corn supplies are forecast down sharply from last month on a reduced crop and lower beginning stocks based on the September 30 Grain Stocks report. Exports are reduced 150 million bushels reflecting smaller supplies and U.S. price competitiveness. Corn used for ethanol is down 50 million bushels based on weekly production data as reported by the Energy Information Administration during September.

Projected feed and residual use is up 125 million bushels based on indicated disappearance during 2018/19. Corn ending stocks for 2019/20 are lowered 261 million bushels. The season-average corn price received by producers is raised 20 cents to $3.80 per bushel.

corn, Ethanol, Ethanol News, USDA

Ethanol Report on RFS Moving Forward

Cindy Zimmerman

It was a year ago this week that President Trump announced he was instructing the Environmental Protection Agency (EPA) to initiate a rulemaking process that would allow E15 to be sold year round. This year, it was proposed relief from small refinery exemptions announced last week to restore integrity to the RFS that is giving the ethanol industry renewed energy going forward.

In this edition of the Ethanol Report, Geoff Cooper comments on the administration plan and reflects on his first year as President and CEO of the Renewable Fuels Association (RFA).

Ethanol Report on RFS Moving Forward

Subscribe to the podcast via iTunes

Audio, Ethanol, Ethanol News, Ethanol Report, RFA, RFS

Poll Shows Strong Support for RFS and Biodiesel

Cindy Zimmerman

An annual national poll of registered voters released by the National Biodiesel Board (NBB) indicates that a candidate’s support for policies to promote clean energy, including biodiesel and renewable diesel use, can influence voters.

The annual poll, which is designed to measure awareness of and attitudes toward biodiesel and federal policies that support the industry, found a strong majority of the polled registered voters (81%) indicated that a candidate’s position on renewable fuels is important, 86% of respondents said a candidate’s position on clean energy is important or very important to their voting preferences, and 85% agreed that it is important that President Donald Trump keep his promises on the RFS.

Among the respondents, nearly three-quarters (73%) had previously heard some information about biodiesel. More than half (57%) of all respondents agreed that federal policy should encourage use of biodiesel and renewable diesel. When asked if federal policy should support petroleum, 45% said “no,” while only 34% said “yes.”

Nearly four of every five respondents expressed support for existing federal programs that encourage increased production and use of advanced biofuels. Seventy-eight percent (78%) of respondents support the federal tax incentive for biodiesel, and 79% support the Renewable Fuel Standard. Additionally, 79% of respondents would encourage local communities and governments to promote use of biodiesel.

NBB Vice President of Federal Affairs Kurt Kovarik says President Trump’s commitment to expand use of biofuels and uphold the Renewable Fuel Standard is clearly important to voters. Listen to an interview with Kovarik about the biodiesel industry’s reaction to the biofuels plan released by the administration last week.

Interview with NBB VP Kurt Kovarik on administration biofuels plan (6:48)

Audio, Biodiesel, NBB, RFS

Registration Open for 25th National Ethanol Conference

Cindy Zimmerman

Registration is now open for the Renewable Fuels Association’s (RFA) 25th annual National Ethanol Conference (NEC), to be held Feb. 10-12, 2020, in Houston.

RFA Board Chairman Neil Koehler, co-founder and CEO of Pacific Ethanol, says the theme “Focus Forward” will look ahead to what the next quarter-century will bring for the U.S. ethanol industry.

“For the past 25 years, this conference has been bringing the industry and its allies together to learn, share, network and celebrate our hard work,” Koehler said. “There will be so much to talk about in 2020, from presidential politics to increased calls for action on climate concerns. At the same time we’re talking about politics and policy, we’re also moving forward when it comes to building new markets, driving efficiency and advancing sustainability.”

The NEC is the nation’s most widely attended executive-level conference for the ethanol industry. At the 2019 NEC, about 1,000 industry leaders and professionals attended, representing 38 states and the District of Columbia. A strong international presence was also felt, with attendees from 16 countries.

Visit NationalEthanolConference.com for more information and registration.

Ethanol, Ethanol News, National Ethanol Conference, RFA

Biofuels Industry Reacts to Administration Plan

Cindy Zimmerman

Under the biofuels plan announced Friday, the Environmental Protection Agency will propose and request public comment on expanding biofuel requirements beginning in 2020 and will seek comment on actions to ensure that more than 15 billion gallons of conventional ethanol be blended into the nation’s fuel supply beginning in 2020, and that the volume obligation for biomass-based diesel is met. This will include accounting for relief expected to be provided for small refineries.

Industry organizations have reacted positively to the plan but there are concerns that it does not account for the millions of gallons already lost under the SREs that have already been granted.

Renewable Fuels Association President and CEO Geoff Cooper says the plan is “a crucial step toward repairing the damage done by EPA’s small refinery waivers and re-establishes the RFS as a driver of growth in the production and use of low carbon renewable fuels.”

“It is important to remember that today’s announcement marks the beginning—not the end—of an EPA regulatory process, and much work remains to be done. We will continue to diligently work with EPA and the administration to ensure this action is finalized in a way that guarantees a 15-billion-gallon requirement in 2020 truly is a 15-billion-gallon requirement.”

Interview with RFA CEO Geoff Cooper on administration biofuels plan

American Coalition for Ethanol (ACE) CEO Brian Jennings says it’s good EPA will account for waivers beginning in 2020 but bad that they are “doing nothing to reallocate the more than 4 billion gallons of RFS blending obligations waived for refineries from the 2016, 2017 and 2018 compliance years.”

“Because this plan is short on details and the final outcome is dependent upon a new rulemaking process, it’s unrealistic and premature for me to conclusively praise it at this stage.”

Interview with ACE CEO Brian Jennings on administration biofuels plan

National Biodiesel Board Vice President of Federal Affairs Kurt Kovarik says, “Proper accounting of the exemptions is vital to ensure that the annual RFS volumes send a reliable signal to biodiesel producers, who are making investments and plans for the future.”

“The biodiesel industry relies on the RFS program to support continued growth and market development. While today’s proposal addresses the lost gallons from future exemptions, it does not provide for additional volumes of biomass-based diesel in 2021. We will continue to press EPA to send signals for future growth for biodiesel producers and soybean farmers.
Interview with NBB VP Kurt Kovarik on administration biofuels plan (6:48)

ACE, Audio, Biodiesel, biofuels, Ethanol, Ethanol News, NBB, RFA, RFS