Celebrate Biodiesel Day

Cindy Zimmerman

Wear that St. Patrick’s Day green another day today and celebrate the green fuel that is biodiesel.

National Biodiesel Day is celebrated on March 18 because it is the birthday of Rudolf Diesel, inventor of the Diesel engine, which he originally ran using peanut oil.

Biodiesel today is made from a diverse mix of feedstocks including recycled cooking oil, soybean oil, and animal fats – and it can be used in diesel engines without any modifications. It is the first and only EPA-designated Advanced Biofuel in commercial-scale production across the country and the first to reach 1 billion gallons of annual production, according to the National Biodiesel Board.

So happy 161st birthday, Rudolf – and Happy Biodiesel Day to all!

Biodiesel

Ethanol – A Conversation That Matters

Cindy Zimmerman

Marc Rauch of The Auto Channel recently had the opportunity to have a conversation that matters about ethanol in Vancouver, British Columbia on a television talk show called “Conversations That Matter.”

Each episode of “Conversations That Matter” explores one significant subject, and features notable professors, corporate executives, scientists, and philosophers in one-on-one conversations. “I believe that the show presents a very respectable presentation of ethanol facts and that I was able to shed needed light on the importance of ethanol fuels to accomplish many worthwhile goals,” said Rauch.

Watch the episode in its entirety.

Ethanol, Ethanol News

National Ag Day Honors Youth

The Agriculture Council of America (ACA) honored the winners of the 2019 National Ag Day video and written essay contest during the celebration in Washington DC this week, and also featured a youth panel discussion moderated by USDA Deputy Secretary Stephen Censky.

The theme for the video and essay contest this year was Agriculture: Food for Life. How does our nation lead the way? The theme presented an opportunity for students to address how American agriculture feeds the growing population. The national written essay winner was Grace Brose from Box Elder, South Dakota, who received a $1,000 prize and travel to Washington, D.C. to read her essay at the National Press Club event and take part in the panel discussion on issues and challenges in agriculture. The national video essay winner for 2019 is Jacob Kandell from Mason, Ohio who also received a $1,000 prize for his video.

Listen to Grace read her essay:
Grace Brose Reads Her Essay

ACA chair Isabella Chism, American Farm Bureau Federation, presented Brose with her award. In this interview, she talks about the National Ag Day activities this week in D.C. and why ACA sponsors the event.
Interview with Isabella Chism

Find more content from National Ag Day on AgNewsWire:
National Ag Day Virtual Newsroom

2019 National Ag Day Photo Album

AFBF, AgWired Animal, AgWired Energy, AgWired Precision

Biofuels Groups Rip EPA for More Small Refinery Waivers

Cindy Zimmerman

Much to the dismay of biofuels organizations, yesterday the Environmental Protection Agency approved five more 2017 Small Refinery Exemptions to the Renewable Fuel Standard (RFS) and noted that two more petitions have been received for 2018 exemptions, bringing the total to 39.

“It’s extremely disappointing and outrageous to see EPA once again allow oil refiners to undermine the RFS and hurt family farms, ethanol producers and our environment by exploiting and abusing a statutory provision that exempts them from their obligations to blend renewable fuels,” said Renewable Fuels Association (RFA) President and CEO Geoff Cooper. “RFA will continue to fight these exemptions through the courts and urge EPA to adopt a more judicious and restrained decision-making process on refiner exemptions, as well as restore lost volume obligations from previous years.”

American Coalition for Ethanol (ACE) CEO Brian Jennings pointed out the irony of EPA approving the SREs on National Agriculture Day “as farmers are long-suffering from lost market opportunities and low prices, and many farmer-owned ethanol plants across rural America are considering whether to suspend operations or sell out to a bigger company because of limited demand here at home, EPA has further depressed demand for ethanol by rubber stamping five more small Refinery Exemptions for 2017, and done so without reallocating the blending obligations to other refiners.”

National Biodiesel Board (NBB) Vice President of Federal Affairs Kurt Kovarik noted that the exemptions hurt biodiesel producers as well. “The 2017 volumes for biomass-based diesel were set at 2 billion gallons, well below the industry’s proven ability to produce fuels. Now, the retroactive small refinery exemptions for 2017 have cut the obligation by a total of 240 million gallons or 12 percent. Because they’re retroactive exemptions, the reduced demand for biomass-based diesel will hit our industry throughout 2019.”

ACE, advanced biofuels, Biodiesel, EPA, Ethanol, Ethanol News, NBB, Renewable Fuels Association, RFA

RFA Addresses Current Ethanol Issues

Cindy Zimmerman

There’s been a lot going on in the world of ethanol recently – EPA just released its E15 RVP/RIN reform proposal, EPA Administrator Andrew Wheeler is expected to announce pending petitions for more small refiner exemptions, and EIA just released final 2018 data confirming ethanol demand destruction – just to mention a few.

The Renewable Fuels Association held a media conference call today to discuss all of these developments, as well as a new analysis showing a year-over-year decrease in domestic ethanol usage for the first time since 1998. At the same time, the average content of ethanol in gasoline – referred to as the blend rate – similarly fell for the first time since comparable statistics became available in 2009.

Taking part in the conference call were RFA President and CEO Geoff Cooper, RFA Chief Economist Scott Richman, RFA Chairman Neil Koehler, CEO of Pacific Ethanol, and Steve Walk, COO of Protec Fuel.

“We’re moving into a pivotal period for the ethanol industry and we are expecting EPA to make several decisions in the next few months that will really chart the course of the industry for the next 3-5 years,” said Cooper.

Audio of full media call –
RFA media call 3-14-19

Opening remarks from each participant:

RFA media call - RFA CEO Geoff Cooper

RFA media call - RFA Economist Scott Richman

RFA media call - RFA chairman Neil Koehler, Pacific Ethanol

RFA media call - Steve Walk, Protec

RFA media call - questions
Audio, E15, Ethanol, Ethanol News, RFA, RFS, RINS

Happy National Ag Day!

President Donald J. Trump has proclaimed today as National Ag Day, the third year that the administration has publicly recognized National Ag Day as a salute to the contributions of America’s farmers, ranchers and agribusinesses.

USDA officials and the chairman of the Senate Agriculture Committee joined members of the agricultural community gathered in Washington DC yesterday evening to kick off the official Ag Day celebration with a reception at the Capitol Visitors Center. Sen. Pat Roberts, Deputy Secretary of Agriculture Steve Censky and California Representative Doug LaMalfa all made remarks at the event, which you can hear in the audio file below.

Today, Censky along with Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs Ted McKinney will take part in the National Ag Day event at the National Press Club. Photo album is started and will include photos from all of the National Ag Day activities. National Ag Day is organized by the Agriculture Council of America (ACA), a nonprofit organization composed of leaders in the agricultural, food and fiber community, dedicating its efforts to increasing the public’s awareness of agriculture’s role in modern society.

National Ag Day Reception remarks from Sen. Roberts, Steve Censky, and Doug LaMalfa

2019 National Ag Day Photo Album

AgWired Animal, AgWired Energy, AgWired Precision, Audio

Washington State Clean Fuels Standard Moves Forward

Cindy Zimmerman

The Washington State House has passed a Clean Fuels Standard (H.B. 1110) that would institute a low carbon fuel program by 2020, similar to those already successfully underway in British Columbia, California, and Oregon. The program is designed to reduce greenhouse gas (GHG) emissions from transportation fuels 10 percent below 2017 levels by 2028 and 20 percent below those same levels by 2035.

“It is long past time for Washington to join our neighbors to the north and south in adopting a strong program to reduce pollution from transportation fuels,” said Rep. Joe Fitzgibbon, who sponsored the legislation into the Washington House of Representatives. “Washington is poised to become a national leader in production of clean, renewable fuels like biodiesel once this bill is signed into law.”

According to the National Biodiesel Board (NBB), biodiesel consumption in Washington State has historically been relatively low compared to the rest of the nation. With implementation of a Clean Fuels Standard, however, that would change quickly.

“Implementation of this program would bring Washington in line with other renewable fuels champions on the West Coast creating a unified market for clean fuels,” said NBB Director of State Governmental Affairs Shelby Neal. “This is a great step forward for the environment, consumers, and green industry in Washington State.”

The bill now goes to the Senate for consideration.

Biodiesel, Low Carbon Fuel Standard, NBB

NBB Urges Lawmakers to Extend Biodiesel Tax Credit

Cindy Zimmerman

“Temporary Policy in the Internal Revenue Code” was the title of a House Ways and Means Select Revenue Measures Subcommittee hearing this week where the National Biodiesel Board (NBB) submitted written testimony urging lawmakers to immediately extend the biodiesel and renewable diesel tax incentive to end uncertainty.

Kurt Kovarik, NBB Vice President of Federal Affairs for the National Biodiesel Board (NBB), wrote in his submitted testimony, “While a long-term extension would provide the necessary policy certainty, our industry urgently needs an immediate extension of the biodiesel tax incentive for 2018 and 2019, at least, to end the current climate of uncertainty surrounding the industry.”

“Biodiesel and renewable diesel producers and blenders have been operating for as many as 14 months with the expectation that they will eventually be able to claim credits for 2018 and amend their financial statements. Individual NBB members are already being forced to put projects on hold and reduce investments, due to uncertainty about renewal of the tax incentive. That uncertainty will affect future growth.”

Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is a renewable, clean-burning diesel replacement that can be used in existing diesel engines without modification. It is the nation’s first domestically produced, commercially available advanced biofuel. NBB is the U.S. trade association representing the entire biodiesel value chain, including producers, feedstock suppliers, and fuel distributors, as well as the U.S. renewable diesel industry.

Read the testimony.

Biodiesel, NBB

Ethanol Groups Pleased with EPA Rule Release

Cindy Zimmerman

Ethanol groups are pleased EPA has finally released a proposed rule that would allow sales of 15% ethanol fuel year round, but with just 80 days to go until the start of the summer driving season, getting it done in time would be a record-breaking feat, especially since it is tied to controversial reforms for the Renewable Identification Number (RIN) credit market.

American Coalition for Ethanol (ACE) CEO Brian Jennings says they will urge stakeholders to provide public comment to EPA, so a legally-defensible rule can be in place by June 1. “Without a final rule in place by June 1, this year would mark the eighth time, since EPA originally approved a waiver for E15, that fuel marketers in many parts of the country have had to prohibit their customers from purchasing a lower-cost, higher-quality fuel option at the pump during the busy summer driving months,” said Jennings.

Jennings says if EPA does get the rule done in time, it will set a new “land speed record for the agency.” In this interview, Jennings discusses his reaction to the proposal and how ACE intends to provide input and encourage especially retailers to make comments.
Interview with ACE CEO Brian Jennings on EPA rulemaking proposal

Renewable Fuels Association (RFA) President and CEO Geoff Cooper says the proposed rule means EPA is one step closer to making good on President Trump’s promise to allow year-round sales of E15 but finalizing and implementing the E15 regulatory fix remains a tall order.

“That is why we have urged EPA to separate the year-round E15 provisions from the RIN reform provisions, and move forward as quickly as possible to finalize a practical and defensible year-round E15 solution. With ethanol plants shutting down or idling and farmers experiencing the worst conditions in more than a decade, removing the summertime ban on E15 once and for all would send a desperately needed signal to the marketplace,” said Cooper. “We are carefully reviewing the details of the proposed rule and look forward to providing EPA with extensive technical and legal comments to support an expeditious and legally sound resolution of this decades-old red tape barrier.”

Cooper talks more about RFA’s reaction to the rule in this interview:
Interview with RFA CEO Geoff Cooper on EPA rulemaking proposal

A public hearing is being scheduled for March 29 and comments must be received on or before April 29.

ACE, Audio, E15, EPA, Ethanol, Ethanol News, RFA, RFS

EPA Proposes E15 Waiver and RIN Market Rule

Cindy Zimmerman

The Environmental Protection Agency (EPA) released proposed regulatory changes Tuesday that would allow gasoline blended with up to 15 percent ethanol (E15) to receive a Reid Vapor Pressure (RVP) waiver for the summer months, the same as E10. At the same time, EPA is also proposing regulatory changes to “modify elements of the renewable identification number (RIN) compliance system under the Renewable Fuel Standard (RFS) program to enhance transparency in the market and deter price manipulation.”

Under the proposed expansion, E15 would be allowed to be sold year-round without additional RVP control, rather than just eight months of the year.

Proposed reforms to RIN markets include:

Prohibiting certain parties from being able to purchase separated RINs;
Requiring public disclosure when RIN holdings exceed specified thresholds;
Limiting the length of time a non-obligated party can hold RINs; and
Increasing the compliance frequency of the program from once annually to quarterly.

EPA welcomes public comment on the proposal and intends to hold a public hearing on March 29. Additional details on the comment period and public hearing will be available shortly.

EPA Notice of Proposed Rulemaking

E15, EPA, Ethanol, Ethanol News