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

Farmer and Ethanol Advocate Provides Perspective

Cindy Zimmerman

Farmer and Nebraska Ethanol Board member Scott McPheeters joined a diverse panel of agricultural producers at the recent Bayer AgVocacy Forum in Orlando, prior to Commodity Classic.

McPheeters shared the stage with California specialty crop producer Don Cameron, Terranova Ranch; South Carolina cotton and diversified crop farmer Jeff Wilson, Cotton Hills Farm; and Michelle Erickson-Jones, aka BigSkyFarmHer on Twitter, a livestock and grain farmer from Montana.

During the panel McPheeters was able to share his perspective with the forum attendees about the need to advocate for ethanol and correct misconceptions, such as that it takes more energy to produce than it creates. “That’s a worn out, tired argument from 30 years ago,” said McPheeters. “Just think what your cell phone technology was 30 years ago…oh wait, we didn’t have them.”

“It’s like that with ethanol. It’s all changed and we are doing more with less every day.”

McPheeters noted that one acre of corn will provide fuel to drive your SUV (20 miles per gallon) 10,000 miles and have 8,000 pounds of livestock feed leftover – and also 160 pounds of oil.

Listen to the Grower Perspective panel –
Grower perspective panel

Listen to an interview from the forum –
Interview with Scott McPheeters, Nebraska farmer

Audio, Bayer, corn, Ethanol, Ethanol News

Senator Angry Over Reported EPA Rule Breaking

Cindy Zimmerman

U.S. Senator Deb Fischer (R-NE), a member of the Senate Agriculture Committee, is upset about news reports last week that former EPA Administrator Scott Pruitt broke the rules to expand the number small refinery exemptions (SREs) granted to oil refiners.

“I am angry by reports that show what we long suspected: former EPA Administrator Scott Pruitt ignored the law to help big refineries at the expense of farmers and ethanol producers,” said Sen. Fischer in a statement. “The EPA gave ‘hardship exemptions’ to profitable refineries, releasing them from their biofuel blending obligations. According to projections, this could cause the ethanol industry to lose billions of gallons in demand.”

Sen. Fischer says she intends to pursue legislative options to address abuse in the small refinery exemption process. “I will also push new leadership at the EPA to make sure the agency is upholding the Renewable Fuel Standard as intended by law,” she added.

During the 17 months that Pruitt was administrator of the EPA, 48 waivers were granted to refineries to release them from their legal blending obligations under the Renewable Fuel Standard (RFS). Reuters reported last week that EPA regulators under Pruitt stopped considering whether compliance with the RFS would prevent a refinery from making money and being competitive, and instead based the decision on whether compliance would cause a “disproportionate” impact on the facility. The report was based on a court filing by the Advanced Biofuels Association (ABFA).

EPA, Ethanol, Ethanol News, RFS

ACE Participates in Nebraska Ethanol Forum Panels

Cindy Zimmerman

American Coalition for Ethanol (ACE) Senior Vice President Ron Lamberty participated in two panels last week at Nebraska Ethanol Board’s 2019 Emerging Issues Forum.

Lamberty was joined by retailers Randy Gard of Bosselman Enterprises and Matt Spackman of Kum & Go to discuss opportunities and practical considerations to increase E15 and higher ethanol blends.

“Many retailers are concerned their equipment isn’t compatible, but that’s not likely,” Lamberty said. “The Department of Energy’s National Renewable Energy Lab published their E15 and Infrastructure report nearly four years ago, and in it they said, ‘the majority of installed tanks can store blends above E10.’ We can put retailers in touch with other marketers, who have increased their volumes and profits selling higher ethanol blends, at flexfuelforward.com.”

Lamberty also moderated a panel about emerging markets for U.S. ethanol with Roger Berry of the Nebraska Corn Board, Kristy Moore of KMoore Consulting LLC, and Craig Willis of Growth Energy. Lamberty discussed what he’s learned speaking at technical ethanol information forums in Mexico over the past year.

ACE, Ethanol, Ethanol News

New Data Confirms Ethanol Demand Destruction in 2018

Cindy Zimmerman

New data from the Energy Information Administration (EIA) and analyzed by the Renewable Fuels Association (RFA) reveals ethanol demand in 2018 was negatively impacted by EPA granting dozens of small refinery exemptions (SREs).

Former EPA Administrator Scott Pruitt granted 48 refiners waivers from their legal blending obligations under the Renewable Fuel Standard (RFS), resulting in a flood of Renewable Identification Numbers (RIN) into the market and a subsequent collapse in RIN prices. According to RFA, the wave of surplus RINs reduced the incentive to expand ethanol blending beyond the so-called E10 “blend wall,” while low RIN prices pressured ethanol values and margins throughout 2018 and the resulting demand destruction hurt ethanol producers, farmers and consumers.

According to the Renewable Fuels Association’s (RFA) analysis of the new EIA data:

U.S. ethanol consumption declined to 14.42 billion gallons in 2018 from 14.50 billion gallons in 2017. Based on the EIA’s forecast in January 2018 (i.e., before the market became aware of rampant SREs), U.S. ethanol consumption was expected to reach 14.66 billion gallons—237 million gallons more than what actually occurred; and
The U.S. ethanol blend rate fell to 10.07% in 2018 from 10.13% in 2017. The blend rate began to drop in February 2018, as rumors and press reports regarding SREs made their way into the market. This was far below expectations at the start of 2018, when EIA had forecasted an implied ethanol blend rate of 10.26% for 2018. For the February-December period, the blend rate averaged just 10.01%.

“This was the first year-over-year decline in U.S. ethanol consumption since 1998, breaking a 20-year trend of annual increases in domestic ethanol demand. Similarly, the blend rate slid backward for the first time since EIA began offering more robust ethanol blending data in 2010,” said RFA President and CEO Geoff Cooper. “As newly confirmed EPA Administrator Andrew Wheeler considers the 37 petitions now before him for small refiner exemptions from 2018 RFS requirements, we urge him to take a more measured, constrained, and reasonable approach that remains faithful to the spirit and intent of the RFS.”

Read the full RFA analysis here.

EPA, Ethanol, Ethanol News, RFA

Biodiesel Drives the Work Truck Industry

Cindy Zimmerman

New research from NTEA – The Association for the Work Truck Industry confirms that fleets across the country are increasingly relying on the power and performance of biodiesel in their existing and new diesel vehicles. For the third time in four years, surveyed fleets named biodiesel as their top alternative fuel choice both for current use and future interest.

Each year, NTEA conducts a comprehensive Fleet Purchasing Outlook Survey to better understand the commercial vehicle landscape and give the entire work truck industry perspective on anticipated purchasing intent and areas of greatest interest to fleet managers. The new survey results for 2019 were announced last week at The Work Truck Show® held in conjunction with Green Truck Summit and Fleet Technical Congress in Indianapolis.

Specifically, the 2019 NTEA Fleet Purchasing Outlook revealed that the majority of fleet survey respondents – 76 percent – anticipate maintaining or increasing use of diesel engine-powered trucks in their fleets, and more than 33 percent of survey respondents acknowledged currently operating alternative fueled trucks in their fleets. Survey participants named biodiesel as their top alternative fuel choice at 16 percent. Additionally, biodiesel was named as their top choice for future interest at 14 percent.

The National Biodiesel Board credits the nation’s growing interest in reducing carbon and greenhouse gas emissions from the transportation sector as indicators for future growth in the use of biodiesel. NBB featured the Chicago Park District’s biodiesel fleet success story along with many others at the combined events of the 2019 NTEA’s Work Truck Show, Green Truck Summit, and Fleet Technical Congress. Along with presenting an educational session on the Future of Diesel Technology and Biodiesel for Work Trucks, NBB partnered with Isuzu Commercial Truck of America to power its 2019 Isuzu FTR medium-duty truck with B20 biodiesel for The Work Truck Show Ride-and-Drive event. Also on display in the NBB booth was Cummins’ new crated aftermarket diesel engine offering – the R2.8 Turbo Diesel – re-powering a 1972 Jeep Commando that was brought back to new life by NBB.

Biodiesel, Fleet, NBB, Trucks