USDA Secretary Clarifies E15 Comments

Cindy Zimmerman

Two days before he appeared at the Commodity Classic last week, Agriculture Secretary Sonny Perdue told the House Agriculture Committee that rules allowing the use of E15 year round “probably will not be out for the driving season,” but he says newly confirmed EPA Administrator Andrew Wheeler has “figured out” how to get it done by June 1.

Perdue says that while Wheeler had told him recently that they would not be able to get the rule done in time because of the government shut down, in the face of final confirmation votes last week, “his people found a way to do that.”

Listen to Perdue’s E15 comments during his remarks and at a subsequent press conference.

Classic19 Agriculture Secretary Sonny Perdue E15 comments

2019 Commodity Classic Photo Album

Audio, Commodity Classic, E15, Ethanol, Ethanol News, USDA

Where’s the Content?

ZimmComm had a crazy week of content creation – from Destin, Florida and the BASF Stoneville Legacy Club, to the Bayer AgVocacy Forum, the BASF Science Behind, and Commodity Classic in Orlando, and the Mid-South Farm and Gin Show in Memphis. If you are looking for it all, it’s being posted on the virtual newsroom for agriculture AgNewsWire.

Sometimes we gather content faster than we can get edited and posted, and that has definitely been the case this week. Add to that the fact that the Orlando Convention Center where Commodity Classic was held could not seem to provide the media room with decent internet access and we are running a little behind. All I can say is that I am glad it was Chuck at Classic this year and not me!

Here are direct links to the AgNewsWire newsrooms for each event where links to photo albums, audio and video are being posted:

2019 BASF Legacy Club Events

2019 Bayer AgVocacy Forum

2019 BASF Science Behind

2019 Commodity Classic

FMC at 2019 Commodity Classic

AMVAC at 2019 Commodity Classic

2019 Mid-South Farm and Gin Show

AgWired Animal, AgWired Energy, AgWired Precision, BASF, Bayer, Commodity Classic

Secretary Sonny Shines at Commodity Classic

Agriculture Secretary Sonny Perdue visited the 2019 Commodity Classic Friday and addressed most of the major issues being discussed at the big annual meeting of corn, soybean, wheat and sorghum farmers.

Perdue talked about the farm economy, farm bill implementation, ethanol, and a lot about trade. He also addressed many of the same issues during a press conference with the many members of the farm media in attendance. Here are both for listening and downloading.

Classic19 Agriculture Secretary Sonny Perdue remarks

Classic19 Agriculture Secretary Sonny Perdue press conference

2019 Commodity Classic Photo Album

AgWired Animal, AgWired Energy, AgWired Precision, Audio, Commodity Classic, USDA

Ethanol Analyst: Long Term Market Outlook is Strong

Carrie Muehling

Although record ethanol production and political trade wars have presented challenges for the U.S. ethanol industry in recent months, an ethanol analyst speaking to participants at the National Ethanol Conference said the long term future for the industry looks strong.

“The good news – and this really transcends politics – is that all over the world, there is more and more implementation of what in this country we have been accustomed to for the last 14 years, which is a Renewable Fuels Standard,” said Pavel Molchanov, Sr. VP and Equity Research Analyst, Raymond James & Associates.

While China will continue to be a big player in this space, new markets are emerging in places like Mexico and Ukraine that could represent important opportunities for U.S. ethanol producers. Carbon emissions is another area where ethanol will continue to important, as transport is now the number one source of emissions globally.

“To get US carbon emissions to continue to fall on a sustainable basis, transport has to play a role,” said Molchanov. “There is undeniably a role for renewable fuels, both Gen 1 and advanced Gen 2 to play a role in decarbonizing in the U.S., and this will be just as relevant in other countries which is among the reasons why in the context of the Paris agreement, we see more and more jurisdictions implementing various biofuel blending mandates, even if they’re not nearly as high profile as the one that comes out of Washington.”

Even with electric vehicles growing market share, Molchanov believes ethanol demand will remain strong for at least the next decade, if not longer.

Listen to Pavel’s complete presentation here: NEC19 Ethanol Market Outlook, Pavel Molchanov

2019 National Ethanol Conference Photo Album

Audio, Ethanol, National Ethanol Conference

Nebraska Ethanol Emerging Issues Forum Next Week

Cindy Zimmerman

Biofuel stakeholders from across the country will be in Omaha next week for the 14th annual Nebraska Ethanol: Emerging Issues Forum on March 7-8, kicking off with a welcome from Governor Pete Ricketts.

The Nebraska Ethanol Board organizes the forum, which brings together ethanol producers and others involved in production, technology, policymaking and marketing of biofuels and its co-products. Topics include an overview and discussion of the most pressing federal policies, regulatory and legal actions, and markets affecting ethanol demand. Speakers will also discuss navigating the introduction and expansion of E15, as well as opportunities in emerging renewable chemical and co-product markets. The federal policy panel includes industry leaders from the Biotechnology Innovation Organization, Growth Energy, National Corn Growers Association, Novozymes and the Renewable Fuels Association.

More than 150 ethanol industry stakeholders are expected to attend the forum. Online registration and a detailed agenda are available on the Nebraska Ethanol Board website.

Ethanol, Ethanol News

Bioleap, Inc. Supports Ethanol Industry

Carrie Muehling

Bioleap, Inc. CEO Wayne Mitchell (far left) with other members of the Bioleap team at the NEC golf tournament.

The 2019 National Ethanol Conference had a new golf tournament sponsor in Bioleap, Inc. CEO Wayne Mitchell said the full-service engineering company is currently focused on reducing the carbon footprint and energy use of ethanol plants, making them more efficient and helping them to be lower cost producers. Mitchell sees a strong future for the ethanol industry.

“The ethanol industry started out with kind of one vision as to where it was headed with energy security,” he said. “That’s changed with the U.S. becoming the largest exporter of energy now, but now there is a new role for ethanol in terms of octane. And that’s something that’s going to be a need and it’s going to keep this industry in business for a long time and continue to grow.”

Listen to Chuck’s interview with Wayne here: NEC19 Interview with Bioleap CEO Wayne Mitchell

2019 National Ethanol Conference Golf Tournament Photo Album

Audio, Ethanol, National Ethanol Conference

Perdue Doubts E15 Rule will be Ready by Summer

Cindy Zimmerman

Secretary of Agriculture Sonny Perdue appeared before the House Agriculture Committee on Wednesday to update members on the current state of the farm economy and what USDA is doing about it.

Among the many topics Secretary Perdue addressed was whether EPA would get a rule allowing the year-round use of E15 ethanol-blended fuel in time for the summer driving season.

“Unfortunately, those rules probably will not be out for the driving season,” Perdue said in answer to a question from Rep. Don Baker (R-NE), adding that they are expecting EPA to commit to “discretionary enforcement” come summertime for those who want to continue to sell E15.

Answering a later question from new Rep. Cindy Axne (D-IA), Perdue added, “Had the shutdown not occurred I think we’d been able to see the E15 rules before driving season, now it won’t happen.”

Shortly after Perdue made those comments, EPA released the following statement:
“EPA is planning on releasing its RVP/RIN market reform proposal in March, and working expeditiously to propose and finalize the rule consistent with the President’s direction before the start of the summer driving season.”

Listen to Perdue’s comments here:
House Ag hearing exchange between Rep. Bacon and Sonny Perdue

House Ag hearing exchange between Rep. Axne and Sonny Perdue

Renewable Fuels Association President and CEO Geoff Cooper says they believe the so-called ‘RIN reforms’ sought by oil refiners are slowing down the rulemaking process. “Thus, I reiterate the request we formally made last month to split RIN reform and year-round E15 into two separate rulemakings and expedite the E15 rule,” said Cooper. “The year-round E15 provisions are straightforward, and there is no reason they could not be promulgated by this summer, particularly as President Trump made the commitment to resolve this red-tape regulatory barrier nearly five months ago.”

Ethanol and the E15 rule are already big topics of discussion at Commodity Classic this week, where Secretary Perdue is scheduled to speak on Friday.

Audio, E15, EPA, Ethanol, Ethanol News, Government, RFA, RFS, USDA

Rock House Advisors Announces Expansion

Cindy Zimmerman

Rock House founder Joe Jobe

Rock House Advisors, the business consulting firm founded by former National Biodiesel Board CEO Joe Jobe, has announced the addition of Mike Marsch as Senior Vice President.

Marsch will help lead an expanded national and international network of strategic partners who serve as Rock House Associates. This network of experts collaborates on projects to expand the scope of business services and the level of expertise to Rock House clients in North America and globally.

Mike Marsch, Rock House Senior VP

Marsch has decades of experience in the electric utility industry which will round out Rock House’s focus on the energy, transportation and technology sectors. The company expansion brings with it an expansion of the company’s client base which includes renewable fuel clients, petroleum refiners, electric utilities, agricultural commodity groups, private equity funds and autonomous technology companies.

This new corporate alliance marks the 45th year of successful collaborations between Jobe and Marsch. They met on their first day of kindergarten in 1974 in their small hometown of Russellville, Missouri, home of Rock House Bridge the namesake of the company they now lead.

Biodiesel, bioenergy

NEC Retailers Panel Talks Marketing Higher Blends

Carrie Muehling

(L to R) Moderator: Robert White, VP of Industry Relations, Renewable Fuels Association; Bryan Goforth, EVP, Home Service Oil Company; Sam Odeh, President, Power Energy Corp.; Steve Walk, COO, Protec Fuel Management, LLC

Retail representatives on a panel at the National Ethanol Conference discussed how market drivers, federal policies and state program are driving the increased availability of E15 and flexible fuels. They also shared some personal experiences when it comes to offering higher blends of ethanol at their locations. Education was the biggest factor for Bryan Goforth with Home Service Oil Company.

“That really made a big difference for us, just beginning that educational process. Because we had some of those same thoughts and maybe myths or stereotypes that might have been out there because I just wasn’t educated and I didn’t know,” said Goforth. “I’ve never been part of that message. So, the education process was what really allowed us to understand the product and bring it to retail.”

Steve Walk with Protec Fuel Management said he believes blender pumps are key to the future of selling higher ethanol blends.

“[We’re] looking at E85 as not only a fuel but also as a feedstock. Let that station have the ability to blend the fuel at a level that makes sense for them,” said Walk, who talked about the process of upgrading infrastructure that is necessary in order to offer higher blends.

Power Energy Corporation President Sam Odeh agreed that infrastructure can present challenges. He also agreed with the idea that educating the consumer is vital, and achievable.

“What we found out is there is a whole homegrown pride. It was easy to engage with the customer to talk about the product and to talk about giving back to the community,” said Odeh, who noted that adding renewable fuels to their locations did help the company to grow overall sales.

Listen to the entire panel discussion here: NEC19 Retailer panel

2019 National Ethanol Conference Photo Album

Audio, Ethanol, Ethanol News, National Ethanol Conference, Retailers

New Review of Argentina Biodiesel Policy Concerns Senators

Cindy Zimmerman

A bipartisan group of 14 Senators, led by Sens. Chuck Grassley (R-IA) and Maria Cantwell (D-WA), sent a letter to Secretary of Commerce Wilbur Ross this week regarding his agency’s recently launched “changed circumstances” review of U.S. duties on biodiesel imports from Argentina. The Senators are asking for the department to develop a complete record of Argentina’s biodiesel trade actions before determining whether revisiting the U.S. duties is warranted.

Early last year, the Commerce department issued countervailing duty and antidumping orders on imports of certain biodiesel products from Argentina after an extensive trade investigation. Then in December 2018, Commerce initiated “changed circumstances” reviews to assess Argentina’s most recent modification to its export tax regime and whether it warrants changing the antidumping and countervailing duty orders issued only months before.

“In the short period since the antidumping and countervailing duty orders were imposed, U.S. biodiesel producers have been able to compete on a more level playing field and the U.S. biodiesel industry has begun to recover from the injury caused by the unfair trade practices of the Argentine government and industry,” they continue.

Domestic biodiesel production increased by 17 percent or more in 2018 compared to 2017.

The National Biodiesel Board (NBB) praised the senators for raising concerns with Secretary Ross. “Over the past two years, Argentina has made more than a dozen changes to its export tax rates and has continued to massively subsidize its biodiesel industry,” said Kurt Kovarik, NBB Vice President of Federal Affairs. “Given this history, Commerce should understand that Argentina is very likely to continue subsidizing its domestic biodiesel industry in the future. Commerce’s changed circumstances reviews must take into account a full record of Argentina’s actions since the closing of Commerce’s prior investigation.”

Biodiesel