Farm Bill Poised for Passage

The Senate voted 87-13 yesterday to pass the 2018 Farm Bill approved by the conference committee this week and the House is expected to do so soon.

“We think the farm bill’s in very good shape,” said President Trump as he sat down with Rep. Nancy Pelosi (D-CA) and Sen. Chuck Schumer (D-NY), just before getting into a spat with them over border wall funding. “That will be quite bipartisan and it will happen pretty soon.”

Audio – President Trump comments on farm bill

House Agriculture Committee Chairman Mike Conaway (TX-11) released a video yesterday highlighting the wins in the 2018 Farm Bill conference report for rural America and calling on his colleagues to pass the legislation.

“Over five months of negotiations—now is the time to do it, and I hope to persuade my Republican colleagues that that’s the case,” says Conaway. “Once this is all said and done, I will be one happy camper.”

AgWired Animal, AgWired Energy, AgWired Precision, Audio, farm bill, Government, Video

Ethanol Interests Testify on Proposed Fuels Act

Cindy Zimmerman

Ethanol stakeholder groups were among those testifying Tuesday at a House Energy and Commerce Environment Subcommittee hearing to review a discussion draft of the 21st Century Transportation Fuels Act, which would effectively repeal the Renewable Fuel Standard (RFS).

Renewable Fuels Association president and CEO Geoff Cooper said that while the draft legislation is “an important first step in the debate about future fuels policy and the role of high octane fuels,” they cannot support the proposal because it “does not provide the long-term certainty and growth path” that America’s ethanol producers need.

By eliminating the RFS for conventional biofuels, “…the draft bill would destabilize the considerable progress our nation has made toward greater energy security, economic vitality, and environmental health,” Cooper testified. “We simply cannot support eliminating the RFS program, as the draft envisions, without a much stronger signal to the market that ethanol’s role in our fuel supply will continue to grow.”

Listen here – House committee hearing testimony of RFA CEO Geoff Cooper

Growth Energy CEO Emily Skor testified on the success of the RFS in creating ethanol demand over the past decade. “Only by coupling a stable RFS with a significant boost in octane from a mid-level ethanol blend, can consumers realize significant cost savings, increased engine efficiency, and substantial environmental benefits,” Skor said in her testimony. “Unfortunately, this draft as proposed will lead to reduced blending of cleaner biofuel and it will raise costs significantly for American drivers.”

Listen here – House committee hearing testimony of Growth Energy CEO Emily Skor

Texas farmer and National Corn Growers Association past president and chairman Wesley Spurlock noted farmers’ increased productivity since 2007, as well as the benefits of value-added co-products like distillers grains for feed and corn oil for biodiesel.

“As use of homegrown renewable fuels has grown and as farmers have become more productive using fewer resources, the benefits of the RFS have exceeded those Congress projected,” Spurlock said. “NCGA believes we should build on the success of the RFS when moving a future fuel policy forward.”

Listen here – House committee hearing testimony of NCGA past president Wesley Spurlock

Audio, corn, Ethanol, Ethanol News, Government, Growth Energy, NCGA

Congress Urged to Extend Biodiesel Tax Incentive

Cindy Zimmerman

The National Biodiesel Board (NBB) and more than 50 industry stakeholders delivered a letter to Congressional leaders Monday, urging them to enact a multiyear extension of the biodiesel and renewable diesel tax incentive before Congress adjourns for the year.

In February 2018, Congress retroactively extended the tax incentive for 2017, leaving it expired for this year and beyond. The letter welcomes a recent proposal for a seven-year extension of the tax incentive.

In the letter, the biodiesel industry stakeholders state, “We believe that a multiyear extension of the tax incentive would help the biodiesel industry achieve substantial growth over the next several years, creating significant new employment opportunities, an important market for agricultural products and renewable feedstocks, as well as opportunities for rural economic growth.”

“The biodiesel industry has long advocated for a multiyear extension of the tax incentive,” said NBB Vice President of Federal Affairs Kurt Kovarik. “Congress can provide the certainty and predictability for producers and feedstock providers that will help us achieve our potential. Because the incentive is currently expired, it is urgent that Congress act before the end of the year.”

The U.S. biodiesel and renewable diesel market has grown from about 100 million gallons in 2005, when the incentive was first implemented, to nearly 2.9 billion gallons in 2016.

Biodiesel, NBB

Ethanol Exports Exceeding Expectations

Cindy Zimmerman

U.S. ethanol exports are on a roll.

For the third time this year, American ethanol exports have reached record numbers, with the total hitting 1.69 billion gallons (bg) on a rolling 12-month basis, according to Growth Energy. As of October this calendar year, exports totaled 1.41 billion gallons, already more than the total for 2017 with an additional two months yet to report.

U.S. ethanol exports totaled 175.4 million gallons (mg) in October, according to the latest government data released last week and analyzed by the Renewable Fuels Association (RFA). This is nearly double (up 95%) September exports and the third highest monthly total on record, only surpassed by February (218.7 mg) and March (215.1 mg) of this year. Shipments were bolstered by the strongest demand for American ethanol in six months by Brazil.

A widespread shuffling of customers occurred in October with Brazil bumping Canada to capture the position of top U.S. customer. Brazil imported 54.5 mg—up 49.1 mg and representing 31% of U.S. export sales—as the sugarcane harvest began to wind down. Canada decreased its offtake by 12%, importing 30.7 mg or 18% of U.S. ethanol shipments in October. India boosted its purchases of U.S. ethanol to a record 29.1 mg for a 17% hold on American ethanol exports. Sales to these three countries represent two-thirds of all shipments in October.

Growth Energy notes that Canada is likely to increase exports in the coming years with the recent announcement by Ontario to move to a 15 percent ethanol-blended fuel mandate by 2025. “Developments such as Canada’s commitment to higher blends of ethanol and the growing popularity of ethanol in Brazil should give optimism for the future of the global ethanol outlook in the coming years. President Trump recently signaled there could be a possible resolution to the current trade tensions with China soon, meaning a market for potentially hundreds of millions of gallons could reopen to American producers, which closed in March of this year.”

Ethanol, Ethanol News, Exports, Growth Energy, RFA

RFA Releases Latest FFV Guide

Cindy Zimmerman

The 2019 Ford F-250 SuperDuty is just one of the many models of flex fuel vehicles (FFV) available today that are capable of running on fuel blends containing up to 85 percent ethanol (E85), according to the Renewable Fuels Association’s latest FFV brochure.

More than 24 million vehicles on U.S. roads today are E85 compatible and the brochure compiles the FFV models available in the current model year (MY2019), as well as previous years going back as far as MY1998.

According to the brochure, for MY2019, Ford/Lincoln/Mercury led the pack with 12 FFV models available, followed by General Motors with 11 FFV models available and FCA (Chrysler/Dodge/Jeep) with five models. Additionally, automakers Mercedes-Benz offers two, while Nissan and Toyota each offer one. All of the data used in the brochure was collected directly from the automakers.

“There are now approximately 4,500 retail stations throughout the country that offer E85 or other ethanol flex fuel blends, at least 500 more than last year and growing every week,” said RFA Vice President of Industry Relations Robert White. “This new brochure will help educate consumers about FFV availability, putting them in the driver’s seat when it comes to fuel choice. E85 is a cleaner, higher octane fuel and more consumers are gaining access to the fuel every year,” he added.

Click here to see the new brochure on-line.

E85, Ethanol, Ethanol News, Flex Fuel Vehicles, RFA

Register for 2019 Iowa Renewable Fuels Summit

Cindy Zimmerman

Expert speakers and panelists will explore potential markets for ethanol and biodiesel at home and abroad as well as how the industry can overcome hurdles to growth at the 2019 Iowa Renewable Fuels Summit January 29 in Altoona, Iowa.

“The Iowa Renewable Fuels Summit has become a can’t-miss industry event and this year promises to be no different,” said Iowa Renewable Fuels Association Managing Director Lucy Norton. “All of the challenges biofuels producers and supporters will face in 2019, from the future of U.S. biofuels policy to trade opportunities and more, will be discussed at the Summit.”

The summit will be held at the Prairie Meadows Conference Center in Altoona, Iowa on January 29, 2019. The event is free and open to the public, but registration is required.

Click here to learn more about the summit.

Biodiesel, biofuels, Ethanol, Ethanol News, Iowa RFA, IRFA Renewable Fuels Summit

Ontario to Adopt E15 by 2025

Cindy Zimmerman

U.S. ethanol stakeholder groups cheered news that Ontario, Canada will be adopting the use of 15% ethanol by 2025, according to its recently released Province of Ontario’s Environment Plan.

Growth Energy, U.S. Grains Council, and Renewable Fuels Association (RFA) issued a joint statement on the news.

“As one of the largest markets for ethanol, this is a huge milestone for Canada and the people of Ontario. Ontario recognizes the important environmental, economic, and health benefits that ethanol provides and we look forward to seeing this plan become a reality by 2025.”

All three organizations are actively involved in increasing markets for U.S. ethanol exports.

Ethanol, Ethanol News, Exports, Growth Energy, RFA

Groups Disappointed in Final RFS Rule

Cindy Zimmerman

Most organizations weighing in on the final rule for required renewable fuel volumes under the Renewable Fuel Standard (RFS) program for 2019, and biomass-based diesel for 2020, released by EPA on Friday are disappointed.

The rule maintains the 2019 conventional biofuels level at 15 billion gallons, in line with statute, while biomass-based diesel, advanced, and cellulosic categories all were increased slightly. However, the main disappointment comes from the rule failing to address demand destruction caused by small-refinery exemptions.

“President Trump’s numerous assurances to American family farmers to support the biofuels industry and increase demand for farm products continue to fall short at the hands of EPA,” said National Farmers Union (NFU) President Roger Johnson. “So long as EPA continues to ignore its own mishandling of the RFS waivers, it will continue to undermine the will of Congress, directly contradict President Trump’s promises, and destroy American family farmers’ ability to expand demand for their products.”

“On paper, this looks like a solid rule that drives the biofuels industry forward,” said Iowa Renewable Fuels Association Executive Director Monte Shaw. “But in reality, small-refinery exemptions erode any potential market growth. Without reallocation of small-refinery exemptions, the numbers released today may look good on the outside, but just like the chocolate bunnies my children open up on Easter morning, they are hollow on the inside.”

Americans for Energy Security and Innovation (AESI) Co-Chairs Jim Talent and Rick Santorum said the targets “represent a modest step forward for U.S. energy security, but that promise will be short-lived unless the EPA puts a lid on abusive waiver practices.”

“While we appreciate the modest growth in biodiesel’s primary RFS category over the previously required 2.1 billion gallons, we are disappointed that the EPA did nothing to address the high number of small refinery exemptions handed out. This undermines the policy, potentially cancelling out any growth, and harms the domestic biodiesel industry,” said Grant Kimberley, executive director of the Iowa Biodiesel Board.

Biodiesel, biofuels, EPA, Ethanol, Ethanol News, Iowa RFA, NFU

Study Shows Biodiesel Benefits in the Billions

Cindy Zimmerman

A new study shows that the Biodiesel Tax Credit helped the industry support $21.6 billion in economy-wide sales, employment for over 60,000 workers with wages and benefits totaling $3.8 billion, and nearly $2 billion in state and federal tax revenues combined in 2017.

The analysis by FTI Consulting – “The Biodiesel Industry: Impacts on the Economy, Environment and Energy Security” – analyzed the financial and socioeconomic impact of the U.S. biodiesel industry and found that the tax credit is essential to the industry’s growth and prosperity.

Further analysis revealed that if the BTC were discontinued in 2017, biodiesel producers would have suffered an average loss of $0.25 per gallon produced and, if not extended in 2018, the industry would no longer be able to sustain its prior progress.

“Our analysis found that the BTC helps advance a host of U.S. policy priorities including energy security and self-reliance, rural economic development, job creation, and production of a lower emissions fuel that works with our existing vehicle fleet and infrastructure,” said report author Kenneth Ditzel. “It’s also very clear from our analysis how fundamental the BTC is to ensure a robust biodiesel sector in the U.S. Throughout 2018 industry actors produced biodiesel with the understanding that the BTC would be retroactively extended. Without that policy in place the industry would look much different.”

The study also found the biodiesel industry generated a 14.8 million ton reduction in GHG emissions, the equivalent of taking 3.2 million cars off U.S. roads and equal to approximately $750 million in social benefits.

Read the study here.

Biodiesel, biofuels

EPA Finalizes RFS Renewable Fuel Volumes

Cindy Zimmerman

The Environmental Protection Agency (EPA) has released the finalized rule for required renewable fuel volumes under the Renewable Fuel Standard (RFS) program for 2019, and biomass-based diesel for 2020.

The key elements of the final rule include maintaining the “conventional” renewable fuel volumes, primarily met by corn ethanol, at the current 15-billion gallon level set by Congress for 2019; increasing advanced biofuel volumes for 2019 by 630 million gallons over the 2018 standard; increasing cellulosic biofuel volumes for 2019 by almost 130 million gallons over this year; and increasing biomass-based diesel volumes for 2020 by 330 million gallons over the standard for 2019.

However, the agency declined to take any action on reallocating Renewable Identification Numbers (RINS) to make up for small refinery hardship exemptions granted for RFS compliance in 2016 and 2017.

Growth Energy CEO Emily Skor says they are pleased to see the final numbers were released on time by the November 30 deadline. “But the latest EPA rule is also a missed opportunity to correctly account for billions of gallons of ethanol lost to refinery exemptions,” said Skor. “Until these are addressed properly, we’re still taking two steps back for every step forward.”

Listen to or download Skor’s reaction here: EPA RVO final reaction from Growth Energy CEO Emily Skor

Renewable Fuels Association President and CEO Geoff Cooper is hopeful that means EPA is not intending to issue any small refiner waivers at all in 2019. “We urge Acting Administrator Andrew Wheeler to faithfully and strictly enforce the 15-billion-gallon conventional renewable fuel requirement in 2019, rather than allowing the standard to be eroded through the use of clandestine small refiner waivers as former Administrator Pruitt did,” said Cooper.

Audio with Cooper here: EPA RVO final reaction from RFA CEO Geoff Cooper

American Coalition for Ethanol CEO Brian Jennings says not compensating for the gallons lost is causing real economic hardship for rural communities. “On paper, EPA appears to be resisting refiner demands to reduce conventional biofuel blending in 2019 below the statutory 15-billion-gallon level. However, in reality, as long as EPA fails to reallocate the over 2 billion gallons worth of blending obligations waived for ‘Small Refineries,’ renewable fuel demand will remain flat causing farmers and rural biofuel producers to continue suffering the consequences.”

Listen to Jennings’ comments here: EPA RVO final reaction from ACE CEO Brian Jennings

The National Biodiesel Board (NBB) criticized EPA for continuing to set the advanced biofuel and biomass-based diesel volumes lower than what the agency acknowledges will be produced. “The industry regularly fills 90 percent of the annual advanced biofuel requirement. Nevertheless, the agency continues to use its maximum waiver authority to set advanced biofuel requirements below attainable levels,” said NBB CEO Donnell Rehagen. “The method is inconsistent with the RFS program’s purpose, which is to drive growth in production and use of advanced biofuels such as biodiesel.”

Listen to Donnell’s comments here: EPA RVO final reaction from NBB CEO Donnell Rehagen

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