NBB Challenges Argentina Biodiesel Duty Rate Change

Cindy Zimmerman

The National Biodiesel Board‘s (NBB) Fair Trade Coalition is criticizing a preliminary decision from the Department of Commerce in a “changed circumstances” review of countervailing duties on biodiesel imports from Argentina. According to NBB, the department determined that “Argentina’s recent changes to its export tax regime eliminated certain government subsidies provided to Argentina’s biodiesel producers” which, if finalized, would reduce the existing countervailing duty rates on Argentine biodiesel from 72% to 10%.

In a companion review of the antidumping duty order, Commerce did not propose to change the antidumping duty rates that are currently in effect, which average 75%. The reduced countervailing duty rates would be applied in addition to the existing antidumping rates, resulting in a total average rate of 85%.

Kurt Kovarik, NBB’s Vice President of Federal Affairs, stated, “NBB and the Fair Trade Coalition strongly disagree with Commerce’s proposal to virtually eliminate countervailing duty rates on Argentine biodiesel. This appears to be an unprecedented and unjustified accommodation to Argentinian producers that threatens to harm U.S. biodiesel producers and soybean farmers. Throughout this review, NBB has made the case that Argentina continues to massively subsidize its domestic biodiesel producers. Commerce’s proposal to eliminate trade protections for U.S. biodiesel producers and soybean farmers is difficult to understand at a time when the Trump administration is asking them to bear huge economic costs from trade disruptions.”

Learn more from NBB.

Biodiesel, Exports, NBB, Trade

Global Ethanol Summit Announced

Cindy Zimmerman

Three global ethanol export organizations are teaming up this year to host the first-ever Global Ethanol Summit (GES), scheduled for Oct. 13-15, 2019, in Washington, D.C.

The U.S. Grains Council (USGC), Growth Energy and the Renewable Fuels Association (RFA) are working together with the goal of engaging a broad array of global ethanol leaders about the benefits of expanding global ethanol use.

The GES follows two previous regional ethanol summits – the Ethanol Summit of the Americas held in October 2017 and the Ethanol Summit of the Asia-Pacific held in May 2018. Additional funding from the U.S. Department of Agriculture’s Agricultural Trade Promotion (ATP) program and other sponsors will support the expanded focus of the GES.

With informative general sessions, networking and dedicated business-to-business meetings over two days, the GES will provide attendees direct access to thought leaders on the future of global ethanol use and the opportunity to build partnerships with industry leaders.

More than 250 ministerial-level officials and senior-level industry leaders, ethanol producers and refiners from more than 40 countries have been invited to attend the summit and interested domestic ethanol industry leaders and other members of the ethanol value chain can register for the event at www.grains.org/event/ges.

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

REG Updates Website with Cleaner Fuels Resources

Cindy Zimmerman

The new and improved Renewable Energy Group website features resources about cleaner fuels like biodiesel and renewable diesel.

The website is intended to serve a wide variety of visitors, including the general public, customers, investors and potential employees. They can learn the basics of different fuels, get technical information about REG products, make purchase inquiries, search for jobs and more.

The website also features a resource center that is full of white papers, case studies, tips, articles and information for the news media. This library serves as a centralized location for visitors to learn about the environmental, performance, and financial benefits of biodiesel, renewable diesel, and other fuels from an authoritative source in the industry.

Renewable Energy Group, based in Ames, Iowa, is North America’s largest producer of biodiesel.

Biodiesel, renewable diesel, Renewable Electricty Standard (RES)

USDA Corn Acreage Report Surprises

With all the weather-related planting delays we’ve had, USDA’s Acreage report out Friday was a big surprise to the trade with corn acres estimated to be three percent higher than last year. At the same time, soybean acres are estimated to be the lowest in six years.

Corn planted area for all purposes in 2019 is estimated at 91.7 million acres, up 3 percent from last year. Compared with last year, planted acres are up or unchanged in 40 of the 48 estimating States. Area harvested for grain, at 83.6 million acres, is up 2 percent from last year.

Soybean planted area for 2019 is estimated at 80.0 million acres, down 10 percent from last year. This represents the lowest soybean planted acreage in the United States since 2013. Compared with last year, planted acreage is down in all 29 estimating States.

USDA also estimates all wheat planted area for 2019 at 45.6 million acres, down five percent from last year and the lowest all wheat planted area on record since records began in 1919. All cotton planted area for 2019 is estimated at 13.7 million acres, three percent below last year.

NASS will be doing a recount in July to collect updated information on 2019 acres planted to corn, cotton, sorghum, and soybeans in 14 states. The planted acreage information released Friday was collected during the first two weeks of June. Excessive rainfall had prevented planting at the time of the survey, leaving a portion of acres still to be planted for corn in Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, New York, North Dakota, Ohio, South Dakota, and Wisconsin; cotton in Arkansas; sorghum in Kansas; and soybeans in Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, New York, North Dakota, Ohio, South Dakota, and Wisconsin. If the newly collected data justify any changes, NASS will publish updated acreage estimates in the Crop Production report to be released at noon ET on Monday, Aug. 12.

The MGEX Crop Report conference call featured commentary from Brian Hoops of Midwest Market Solutions.
MGEX call commentary, Brian Hoops, Midwest Market Solutions

AgWired Animal, AgWired Energy, AgWired Precision, Audio, corn, Soybean, USDA

Senators Urge EPA To Update Ethanol Science To Improve Trade

Cindy Zimmerman

Sens. Chuck Grassley (R-IA) and Dick Durbin (D-IL), with a bipartisan group of senators sent a letter this week urging the EPA to update an outdated environmental analysis on ethanol in order to improve foreign sales opportunities.

Peer-reviewed science conducted by the U.S. Department of Agriculture (USDA) has affirmed U.S. ethanol lowers greenhouse gas emissions between 39 to 43 percent better than gasoline. EPA has rejected all calls to update these calculations, instead using data that is nearly 10 years old, which ignores the technological advancements in ethanol production.

Along with Durbin and Grassley, the letter was also signed by Sens. Joni Ernst (R-IA), Tina Smith (D-MN), John Thune (R-SD), Tammy Baldwin (D-WI), Roy Blunt (R-MO), Amy Klobuchar (D-MN), Tammy Duckworth (D-IL), Deb Fischer (R-NE) and Josh Hawley (R-MO).

The senators urged EPA to adopt the scientific model, “Greenhouse gas and Regulated Emissions and Energy Use in Transportation,” or GREET, developed by Argonne National Laboratory. American Coalition for Ethanol (ACE) CEO Brian Jennings says current data from the GREET model indicate that corn ethanol’s carbon intensity is almost 50 percent less than petroleum gasoline providing significantly more GHG reduction benefits than when the RFS was enacted a decade ago.

“Last year, ACE published “The Case for Properly Valuing the Low Carbon Benefits of Corn Ethanol” recommending, as is stated in the Senators’ letter, that EPA refer to the latest U.S. Department of Energy GREET model for life cycle analysis of corn ethanol,” said Jennings. “One of the most direct ways to capitalize on agriculture’s ability to mitigate GHG emissions is to properly acknowledge the role U.S. farmers and ethanol producers are playing to dramatically reduce life cycle GHG emissions from corn ethanol by improving efficiencies, investing in technologies, and adopting sustainable agricultural practices.”

Read the ACE White Paper and learn more about it in this interview with former ACE President Ron Alverson, Dakota Ethanol, one of the primary authors of the report –
Interview with Ron Alverson, Dakota Ethanol

ACE, Audio, corn, Energy, Ethanol, Ethanol News

Ethanol Report on 2019 Crappie Masters

Cindy Zimmerman

With retail sales of E15, or 15% ethanol, now approved in the summer months, some oil industry-backed organizations are issuing dire warnings about damage to boat engines – but E15 is clearly labeled as NOT approved for marine use. However – 10 percent ethanol is perfectly fine and the Crappie Masters Tournament Trail has been educating boaters about ethanol use for several years now. The Renewable Fuels Association (RFA) and the National Corn Growers Association (NCGA) are co-title sponsors of the tournament for the third consecutive year to help fuel the knowledge of participants.

In this edition of the Ethanol Report, we hear from Crappie Masters President Mike Vallentine and Crappie Masters TV host Brian Sowers about the role ethanol plays in the tournament trail and how they educate participants on using E10 on the water and E15 on the road.

Ethanol Report on 2019 Crappie Masters

Subscribe to the podcast via iTunes

Audio, Boats, corn, crappie masters, E15, Ethanol, Ethanol News, Ethanol Report, RFA

Western Dubuque Biodiesel Adding Monarch Fueling Station

Cindy Zimmerman

Western Dubuque Biodiesel is establishing a Monarch Fueling Station at its plant near Farley. The plant will start the process by spraying to eradicate non-native grasses this summer and again this fall. A dormant seeding of native plants and milkweed will occur this November.

“Part of our mission at Western Dubuque Biodiesel is to create fuel that is environmentally friendly,” said Western Dubuque Biodiesel General Manager Tom Brooks. “The Monarch Fueling Station Project is a unique way we can continue to do that. With this project we are helping fuel a brighter future for the monarch butterfly and other important pollinators.”

The location and size of the plot was decided in consultation with Kevin Reynolds, the Iowa Renewable Fuels Association’s (IRFA) Habitat Establishment Coordinator.

“Traveling around the state and working with biofuel plants like Western Dubuque Biodiesel, I’ve been privileged to see how passionate they are about what they do and how proud they are of what they produce,” Reynolds said. “As these Monarch Fueling Stations grow, that same passion and community-oriented work ethic will help these projects flourish and make a lasting impact for the monarch butterfly population.”

The Monarch Fueling Station Project was established by IRFA in partnership with the Iowa Monarch Conservation Consortium in December 2017.

Biodiesel, Iowa RFA, pollinators

Biofuel Interests Increase Pressure to End Waivers

Cindy Zimmerman

As biofuel interests stepped up the pressure on the administration to end Small Refinery Exemptions this week, news reports say President Donald Trump has ordered a review of the policy that has resulted in dozens of waivers in the last two years causing the loss of more than two billion gallons of ethanol demand.

The National Corn Growers Association is airing an advertisement calling on the Environmental Protection Agency (EPA) to follow President Trump’s commitment to farmers and stop giving Renewable Fuel Standard (RFS) waivers to big oil companies.

The ad features NCGA First Vice President and Iowa farmer Kevin Ross who recently appeared at an ethanol plant with President Trump in recognition of the Administration’s support of year-round E15. During the event, Ross thanked the President for delivering on this promise but cautioned, “The EPA’s oil refinery waivers threaten to undo your good works.”

Watch the ad below.


Meanwhile, the National Biodiesel Board (NBB) sent a letter this week to EPA Administrator Andrew Wheeler, highlighting the economic damage to the biodiesel and renewable diesel industry caused by the waivers and taking issue with the Administrator’s recent comment that the approval of year-round E15 sales will make up for the damage from the exemptions.

“The E15 waiver will not provide market growth for biodiesel and renewable diesel, but small refinery exemptions have had a detrimental impact on demand for those fuels,” the letter states. “EPA is required to repair the demand destruction for biodiesel and renewable diesel resulting from the agency’s flood of unwarranted, retroactive small refinery exemptions.”

Ethanol, Ethanol News, NCGA

Proposed Legislation Would Extend Biodiesel Tax Incentive

Cindy Zimmerman

House Ways and Means Select Revenue Measures Subcommittee Chairman Mike Thompson (D-CA) has introduced legislation to extend expired tax incentives, including the biodiesel tax incentive, which is scheduled for mark up Thursday June 20. The proposal would provide U.S. biodiesel producers certainty through 2020 and incentivize investment and growth in domestic production capacity.

“Biodiesel and renewable diesel producers across the United States thank Subcommittee Chairman Thompson for proposing a multiyear, forward-looking renewal of the tax incentive,” said National Biodiesel Board Vice President of Federal Affairs Kurt Kovarik. “The industry has been very vocal in asking for policy certainty that has proven successful in supporting industry growth over the years.”

NBB continues to work with Congressional champions of the biodiesel industry to highlight the urgency for renewing the tax incentive. The U.S. biodiesel market grew from about 100 million gallons in 2005, when the tax incentive was first implemented, to more than 2.6 billion gallons in 2018. The biodiesel tax incentive was last renewed in February 2018, but retroactively only for 2017; the credit lapsed as soon as it was renewed. While the biodiesel blenders tax credit has applied in each year from 2010–2016, it has only been in effect at the start of the calendar year in 2011, 2013 and 2016, while other years it has been applied retroactively.

Biodiesel, NBB

Coalition Kicks Off Gasoline Public Education Campaign

Cindy Zimmerman

The Clean Fuels Development Coalition has launched the nation’s first Gasoline Public Education and Consumer Awareness Campaign, focusing on the health threat of consumer gasoline.

The campaign is the outcome of a year-long research project and the recently released publication What’s in Our Gasoline Is Killing Us: Mobile Source Air Toxics and The Threat to Public Health released last month.

“Just as we were able to get lead out of gasoline, and limit exposure to secondhand smoke, this needs to be a consumer driven campaign to demand safer gasoline,” said CFDC Executive Director Douglas Durante. “As we all gain a better understanding of just how dangerous gasoline is with its carcinogenic compounds, there are actions we can take to drive change.”

To initiate the campaign the coalition has created a series of public service announcements based on consumer’s lack of education about the negative health effects from gasoline emissions. “You don’t Know Jack About Gasoline”. In addition, CFDC has created a citizen’s petition to EPA to make gasoline safer as part of the Campaign’s first calls to action.

Learn more here.

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