2018 has been a busy and interesting year for the ethanol industry and the Renewable Fuels Association (RFA).
In this edition of The Ethanol Report podcast, RFA president and CEO Geoff Cooper reviews the top stories of the year in ethanol, including the new leadership at RFA, President Trump’s interest in the industry and E15, small refinery waivers, record exports and more.
Listen here – Ethanol Report on 2018
Eleven years ago today, President George W. Bush signed the expanded Renewable Fuel Standard (RFS2) into law with the Energy Independence and Security Act of 2007.
Since then, Renewable Fuels Association President and CEO Geoff Cooper says the United States has experienced cleaner air, greater energy security, revived economic activity in rural areas, and more affordable choices at the pump. “The RFS has unquestionably lived up to its promise,” said Cooper. “It has lowered consumer fuel prices, decreased reliance on imported petroleum, reduced emissions of harmful tailpipe pollutants and greenhouse gases, supported hundreds of thousands of jobs in rural America, and added value to the crops produced by our nation’s farmers.”
Among the numerous benefits since signed into law, the RFS has:
● Helped clean the air. The greenhouse gas emissions avoided from using ethanol has increased four-fold from 12.7 million tons CO2e in 2007 to 55 million tons CO2e in 2018. Carbon monoxide and particulate matter emissions are down as well, as is the concentration of ground-level ozone.
● Boosted energy security. U.S. dependence on imported crude oil and petroleum products fell from 58% in 2007 to just 14% in 2018, thanks in large part to growth in the use of ethanol and other biofuels.
● Lowered fuel prices. Because ethanol is priced below gasoline and far below competing octane sources, the RFS has led to lower gas prices for consumers. One recent study found ethanol reduces spending on gasoline by $142 per American household.
● Supported jobs and economic activity. Since enacted, the number of jobs supported by the ethanol industry has increased by 53%–from 238,541 jobs in 2007 to 365,491 in 2018. Additionally, the industry generates more than $40 billion in GDP every year.
A research project conducted by the Urban Air Initiative claims the Environmental Protection Agency (EPA) is failing to enforce the Clean Air Act by not taking steps to reduce toxic aromatics in transportation fuel.
The research project titled “Beyond a Reasonable Doubt” walks through the problems that toxic aromatics pose to public health and details the history behind the Clean Air Act and the efforts to improve gasoline quality while working to reduce our nation’s addiction to crude oil.
“The EPA is not fulfilling its mission to protect public health. Whether ignoring Congressional directives under the Clean Air Act or using bad science to discredit cleaner fuel options, it’s time for the public to demand change. With the potential of a national octane standard on the horizon, we cannot allow toxic aromatics to be the solution,” said Urban Air President Dave VanderGriend.
Recently, VanderGriend presented some of the UAI research, along with Trevor Hinz, ICM Industry Relations, and Doug Durante, Executive Director at Clean Fuels Development Coalition, Clean Fuels Foundation. Listen to it here –
Urban Air Initiative research presentation
National Biodiesel Board CEO Donnell Rehagen will highlight the American success story of biodiesel and discuss what is on the horizon for the nation’s leading advanced biofuel on January 29th at the Iowa Renewable Fuels Summit.
“Year after year the biodiesel industry continues to outpace and outproduce expectations,” Rehagen said. “Supporting more than 64,000 jobs and reducing greenhouse gasses by up to 86 percent, biodiesel has been a great success for rural economies and our environment. The future is bright for biodiesel and I’m excited to discuss the opportunities that lay before us and some of the questions we must answer together as an industry.”
The 2019 Iowa Renewable Fuels Summit will take place at the Prairie Meadows Conference Center on January 29, 2019. For registration and more information – IowaRenewableFuelsSummit.org.
A warm and moist growing season resulted in near-record yields and good quality for the 2018 corn crop, according to the U.S. Grain Council’s (USGC) 2018/2019 Corn Harvest Quality Report.
The report revealed the majority of 2018 corn crop conditions were rated as good or excellent during the growing season, leading to strong plant health, good kernel size and a projected crop of 371.52 million metric tons (14.626 billion bushels), the third-largest crop on record. Nearly 94 percent of tested U.S. corn samples rated at U.S. Grade No. 2 or better, thanks to a warm, wet vegetative period and a moderate pollination and grain-filling period. The drier, moderate temperatures during the second half of the growing season promoted healthy plants, good test weights and low kernel damage.
Average test weight of 58.4 pounds per bushel (75.1 kilograms per hectoliter) was higher than the five-year average and indicates good kernel filling and maturation. Average 100-kernel weight of 35.07 grams was lower than 2017, but above the five-year average.
All but one sample, or 99.5 percent of samples, tested below the U.S. Food and Drug Administration (FDA) action level for aflatoxin (20 parts per billion). One-hundred percent of the samples tested below the FDA advisory level for deoxynivalenol (DON), or vomitoxin, for chicken, cattle, hogs and other animals.
The 2018/2019 Corn Harvest Quality Report provides timely information about the quality of the current U.S. corn crop at harvest as it enters international merchandising channels. This information will be supplemented by a second report, the 2018/2019 Corn Export Cargo Quality Report, scheduled for early 2019, that measures corn quality at export terminals at the point of loading for international shipment.
Growth Energy is celebrating ten years of advocating for ethanol since it was created in 2008. This edition of the Driving Ethanol podcast is the final installment of our series on the 10 year anniversary of Growth Energy and how the market for U.S. ethanol has grown in the past decade.
When Growth Energy was first formed in 2008, U.S. ethanol exports totaled just 158 million gallons. Last year, the total was 1.37 billion gallons and this year exports had already surpassed that amount by the end of October. Meanwhile, domestic demand has continued to grow and more retailers are starting to offer E15, with higher blends up to E30 positioned to provide the octane needed for more fuel efficient cars in the future.
This podcast includes comments from Growth Energy CEO Emily Skor, Growth Energy Senior Vice President of Global Markets Craig Willis, and President Donald Trump.
For the 10th consecutive year, the Renewable Fuels Association (RFA) is partnering with the Renewable Fuels Foundation (RFF) to offer scholarships to students who are interested in attending the National Ethanol Conference (NEC), February 11-13 in Orlando.
Two scholarships are available to students in higher education to cover the cost of the conference, as well as airfare and lodging costs associated with attending the conference.
Interested students should submit a 500-word essay explaining how their attendance at the NEC will help them achieve their future goals. They should also submit two letters of recommendation and an up-to-date resume. Scholarships are only available to students who are attending a U.S.institution of higher learning or foreign students who are affiliated with the U.S. ethanol industry.
For full consideration, applications must be received by Jan. 7, 2019. For more information or to apply, visit: http://www.nationalethanolconference.com/scholarships/.
National Biodiesel Foundation directors recently voted to elect Dave Walton, representing the Iowa Soybean Association, to the Board.
The Board also elected officers with Jeff Lynn returning as president, Mark Caspers returning as Vice President, and Lindsay Fitzgerald returning as Treasurer and Secretary. In addition, the Board approved funding to continue several educational projects, including the New York Congressional Tour expected to take place this Spring.
The Foundation’s mission is to accomplish outreach, education, research, and demonstration activities for the advancement of biodiesel.
Just days after the passing of former Secretary of Agriculture Bob Bergland, four former secretaries met with current Secretary Sonny Perdue to discuss the latest agricultural issues.
Those in attendance included former Secretaries John Block (1981-1986), Dan Glickman (1995-2001), Ann Veneman (2001-2005), and Mike Johanns (2005-2008). The Secretaries discussed several issues including trade, wildfires, agriculture research, infrastructure, cell-based meat, and rural prosperity.
Former Agriculture Secretaries Bob Bergland, John Block, and Clayton Yeutter at 2012 NAFB Convention
The last time the four were together at USDA was in 2012 to celebrate the agency’s 150th anniversary. Three other former secretaries still living are Mike Espy (1993-1994), Ed Schafer (2008-2009), and Tom Vilsack (2009-2017). Espy recently lost his bid to replace retiring Mississippi Senator Thad Cochran in a high profile runoff election.
Bergland, a Minnesota farmer who served as secretary under President Jimmy Carter from 1977 to 1981 died December 9 at the age of 90. He also served as vice president and general manager of the National Rural Electric Cooperative Association until he retired in 1992.
In 2012, Bergland joined former secretaries Block and Yeutter at the NAFB Convention. Enjoy his opening comments here – Former ag secretary Bob Bergland at 2012 NAFB
Several organizations are pleased that the new farm bill includes a climate-friendly soil carbon pilot program.
The American Coalition for Ethanol (ACE), Environmental Entrepreneurs (E2), the National Corn Growers Association (NCGA), and the Natural Resources Defense Council (NRDC) thank the Farm Bill conferees for including language in the 2018 Farm Bill to establish an Environmental Quality Incentive Program (EQIP) pilot program to promote and document the benefits of farming practices which improve soil health.
“This new EQIP provision provides the tools to incentivize farmers to adopt smart soil management practices that improve soil health to increase drought resiliency, improve nutrient utilization, and enhance soil carbon sequestration,” said Keith Alverson, South Dakota farmer and NCGA board member.
“The economic value farmers can receive from being properly credited for their ability to sequester carbon and participate in low carbon fuel markets and for other climate policies is significant,” said Brian Jennings, ACE CEO. “ACE is committed to fostering the development of these low carbon market opportunities that also increase income to farmers and rural America.”
