#SubEnvironment Holds Hearing on RINs

Cindy Zimmerman

The House Energy & Commerce Subcommittee on Environment took a deep dive into the complex world of Renewable Identification Numbers (RINs) during a hearing on Wednesday.

The committee, chaired by Rep. John Shimkus (R-IL), heard from a panel of independent witnesses to provide background on RINs and how the market for them works. The panel included:

Brent Yacobucci – Energy and Minerals Manager, Congressional Research Service
Sandra Dunphy – Director, Energy Compliance Services, Weaver and Tidwell, LLP
Paul Niznik – Senior Consultant, Argus Media Incorporated
Dr. Gabriel E. Lade – Assistant Professor of Economics, Iowa State University
Corey Lavinsky – Director of Global Biofuels, S&P Global Platts Analytics

Listen to the opening statements of the hearing and some questioning here:
RINs hearing Rep. Shimkus and members' statements
RINs hearing witness testimony and first questions

The Renewable Fuels Association (RFA) sent a letter today to the subcommittee leadership urging them to let RINs “do the job they were intended to do by stimulating increased ethanol production and blending.”

“RIN credits are the engine that drives the RFS. Not only are RINs used to demonstrate compliance with annual RFS blending obligations, but they also serve as a critical economic incentive to expand the production and use of renewable fuels,” RFA explained to the lawmakers. “Studies show that higher RIN prices facilitate deeper discounting of ethanol-blended fuels (such as E15 and E85) relative to gasoline, and that wider discounts lead to greater consumption of these blends. In turn, greater demand for E15 and E85 stimulates increased production of ethanol, which leads to increased RIN generation and larger supplies,” the letter noted.

Click to read the letter.

Audio, Biodiesel, biofuels, Ethanol, Ethanol News, RFS, RINS

EPA Approves Sorghum Oil as Biofuels Pathway

Cindy Zimmerman

Environmental Protection Agency Administrator Andrew Wheeler yesterday announced the approval of sorghum oil as an eligible feedstock under the Renewable Fuel Standard during a signing event at EPA headquarters in Washington, D.C., with sorghum farmers and other stakeholders.

In December 2017, the EPA released a notice of proposed rulemaking (NPRM) concerning renewable fuels produced from sorghum oil under the RFS program followed by a 30-day comment period. EPA’s analysis showed biodiesel produced from sorghum oil has greenhouse gas (GHG) emissions savings of 82 percent. This will give ethanol plants extracting oil from sorghum access to sell into the biodiesel market.

In addition to the nine ethanol producers already extracting oil from sorghum, several other facilities will now be able to purchase and use sorghum.

Among those present for the signing who made comments were Sen. Deb Fischer (R-NE), National Sorghum Producers CEO Tim Lust, American Farm Bureau Federation president Zippy Duvall, and sorghum farmers Dan Atkisson of Kansas, Bobby Nedbalek of Texas, and Kody Carson of Texas.

Sorghum farmers comment on biofuels pathway

Sen. Fischer comments on biofuels pathway

NSP CEO Tim Lust comments on biofuels pathway

AFBF president Zippy Duvall comments on biofuels pathway
AFBF, Audio, biofuels, EPA, Ethanol, Ethanol News, sorghum

USDA Announces Trade Disruption Relief for Farmers

The U.S. Department of Agriculture (USDA) will take several actions to assist farmers negatively impacted by recent trade actions.

President Trump directed Secretary Perdue to craft a short-term relief strategy to protect agricultural producers while the Administration works on free, fair, and reciprocal trade deals to open more markets in the long run to help American farmers compete globally. Specifically, USDA will authorize up to $12 billion in programs, which is in line with the estimated $11 billion impact of the unjustified retaliatory tariffs on U.S. agricultural goods. These programs will assist agricultural producers to meet the costs of disrupted markets.

Secretary Perdue held a press conference with USDA Chief Economist Robert Johansson to announce the aid.

USDA announces trade disruption relief for farmers

Ethanol group leaders thanked the president for the aid, but noted that approving year-round access to 15% ethanol (E15) would be more helpful to farmers in the long run.

“We hope as the administration explores trade mitigation options, they will also recognize the benefit of providing RVP relief,” said Renewable Fuels Association (RFA) president and CEO Bob Dinneen. This would increase demand for higher level ethanol blends, stimulating more growth in rural America, and helping to counteract the prohibitive tariff and non-tariff trade barriers that China and other countries have placed on American agricultural products.

Growth Energy CEO Emily Skor said, “Once again, this administration has missed an opportunity to provide long-term relief to farmers by increasing domestic demand through RVP relief. Allowing year-round sales of higher blend fuels such as E15 is one way to address sales lost because of new tariffs and provide increased certainty for farmers and producers. We will continue encouraging the President and his administration to uphold his promise of supporting farmers and rural Americans by following through on allowing the year-round sale of higher blend fuels.”

AgWired Animal, AgWired Energy, AgWired Precision, Audio, E15, Ethanol, Ethanol News, Growth Energy, RFA, Trade, USDA

ACE Conference Breakouts to Explore Key Issues

Cindy Zimmerman

The American Coalition for Ethanol (ACE) 31st annual conference coming up August 15-17 in Minneapolis offers a variety of breakout sessions covering the latest in technology updates, strategic planning advice, and ways to make ethanol plants more profitable. The breakout sessions will be held concurrently in three rounds on the afternoon of Thursday, August 16, following the morning general session panels.

The sessions include information tailored to ethanol plant boards of directors, with Christianson PLLP and K·Coe Isom offering one on strategic thinking techniques and guidance on how to use those methods to steer their company’s future. Other sessions will provide workforce management insight to achieve a plant’s productivity and profitability goals, and some of the key provisions that will impact the ethanol industry in the comprehensive tax reform package.

In sessions on increasing profitability, two new ACE members, Whitefox and Solenis, will introduce producers to their unique technologies, and TotalGEN Services will cover the revenue boosting factors of a CHP system installation at an ethanol plant. Diversification will be explored in Saola Energy LLC’s session on how to enhance corn oil to create renewable diesel and Fluid Quip Process Technologies’ presentation focusing on the global market demand for protein. And EcoEngineers will share insights into developing a successful low carbon strategy to maximize the opportunity created by these markets.

A new breakout session added to this year’s lineup will provide attendees with a list of innovative ideas to try at their plant, workplace or community to build support for ethanol.

Click here for registration and other information about the conference.

ACE, ACE Ethanol Conference, Ethanol

FAPRI Report Considers World Biofuels Trends

Cindy Zimmerman

The Food and Agricultural Policy Research Institute (FAPRI) recently released its 2018 International Biofuels Baseline Briefing Book which provides economic and policy perspective and projections for both ethanol and biodiesel.

“If we continue current policies, which is a big if, we would expect that the U.S. would continue to be an exporter of ethanol and an importer of biodiesel,” said FAPRI director Dr. Pat Westhoff. “The biggest uncertainty in the market is the RFS in the future.”

According to the report, biofuel markets continue to be sensitive to changes in farm commodity markets, petroleum markets, and biofuel policies. Stronger ethanol prices are expected in the coming years, while the biodiesel price is expected to follow vegetable oil prices and remain flatter over the projection period. U.S. ethanol net exports are projected to surpass 5 billion liters by 2027.

Listen to my interview with Dr. Westhoff here: Interview with Dr. Pat Westhoff, FAPRI

Audio, Ethanol, Ethanol News, Exports, International

Growth Energy Ad Urges E15 Approval

Cindy Zimmerman

Growth Energy has a new television ad running that casts a spotlight on the repeated calls from rural America for pro-biofuel policies from President Trump and the Environmental Protection Agency (EPA).

“Rural America is hurting, and these communities are counting on President Trump and his administration to uphold his promise to support biofuels,” said Growth Energy CEO Emily Skor. “The EPA could immediately restore hundreds of millions of bushels of demand to the agricultural market by unleashing more homegrown biofuels. American farmers are ready to compete, and the biofuels produced from their crops will revitalize rural growth, increase American energy security, and provide much-needed relief from rising gasoline prices.”

The ad is airing on Fox News and gives voice to many Midwest farmers who have been hardest hit by the ongoing agricultural crisis and attacks on crop-based biofuels. They ask President Trump to ensure that new EPA Acting Administrator Andrew Wheeler reverse the demand destruction caused by federal waivers, restore integrity to the Renewable Fuel Standard (RFS), and lift outdated restrictions on the sale of ethanol blends, namely E15 – regulations that President Trump called “unnecessary and ridiculous.”

Watch the ad here:


Ethanol, Growth Energy, Video

Ethanol Report on RFA Leadership Succession

Cindy Zimmerman

The Renewable Fuels Association (RFA) has announced a change in leadership for the ethanol industry’s leading trade association. Executive Vice President Geoff Cooper will assume the position of president and CEO in October 2018, while current President and CEO Bob Dinneen will transition into the role of RFA’s Senior Strategic Advisor.

In this edition of The Ethanol Report, Dinneen talks about why he made the decision to step down after 30 years, and Cooper discusses how the organization will transition to new leadership.

Ethanol Report on RFA Changes

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Audio, Ethanol, Ethanol News, Ethanol Report, RFA

ACE Hopeful EPA Will Return to RFS Law

Cindy Zimmerman

American Coalition for Ethanol (ACE) senior vice president Ron Lamberty testified at the public hearing in Ypsilanti, Michigan, on the Environmental Protection Agency’s (EPA) proposed Renewable Volume Obligations (RVOs) for the 2019 Renewable Fuel Standard (RFS).

“With the departure of the previous EPA Administrator, I hope EPA will take this opportunity to return to implementing the RFS as intended by Congress,” Lamberty said. “Pruitt’s seemingly sole focus on helping merchant refiners ignore or skirt their longstanding obligations under the RFS has further shaken the rural farm economy while undermining Congress’ goal of increasing renewable fuel use in the United States.”

“EPA’s misapplication of the small refiner waiver authority has destroyed an estimated 2.25 billion gallons of biofuel demand in 2016 and 2017 alone,” Lamberty added. “The 2019 proposal does nothing to reallocate the gallons of ethanol lost due to RFS waivers, nor does it restore the 500 million gallons of biofuel demand lost because of EPA’s actions in misapplying the economic harm waiver in the 2016 RVO as determined by the courts that ordered EPA to return those gallons as well. This RVO rulemaking is the perfect place for EPA to restore these biofuel volumes under the RFS, allow for E15 and higher blends to be sold year-round, and discard of its refiner win-at-all-costs mentality.”

Lamberty’s testimony highlights points which will be detailed in ACE’s written comments to the proposed rule. The issues include: (1) EPA’s overall approach to enforcing the RFS; (2) conventional biofuels levels; and (3) the effective working of the RIN marketplace. ACE’s full comments will also address our concerns about cellulosic and advanced biofuel targets.

ACE testifies on EPA 2019 RVO proposal
ACE, Audio, EPA, Ethanol, RFS

Dinneen to Step Down as RFA CEO

Cindy Zimmerman

The Renewable Fuels Association (RFA) is marking the beginning of a new era. The Reverend of Renewables is climbing into the backseat of the ethanol organization and allowing Executive Vice President Geoff Cooper to drive. Cooper will assume the position of president and CEO in October 2018, while current President and CEO Bob Dinneen will transition into the role of RFA’s Senior Strategic Advisor.

Dinneen has been with RFA for more than 30 years, including serving as the organization’s president and CEO since 2001. During his tenure, Dinneen led the industry and achieved a number of landmark legislative and regulatory victories for ethanol, including passage of the original Renewable Fuel Standard (RFS) in 2005 and significant expansion and extension of the RFS program in 2007. Dinneen also played a crucial role in the creation of the reformulated gasoline and oxygenated fuels requirements; securing the RVP waiver for E10; working with states to adopt bans on MTBE; and multiple extensions of the ethanol blender’s tax credit and secondary tariff on imported ethanol, among other important victories.

“For more than three decades, I have had the privilege of working for an industry whose mission inspires me, a Board of Directors that supports me, and an organization that exemplifies the highest degree of professionalism, creativity, and competence,” Dinneen stated. “I have borne witness to phenomenal growth, seen rural economies transformed and gotten to know and work side-by-side with the people who made this industry the success it is today. Every day I am thankful for our accomplishments and still enthusiastic to tackle the challenges ahead. Without a doubt, I have been truly blessed.”

“But 30 years is a long time and I believe now is the right time for new leadership, new ideas, and new energy at the helm of the Renewable Fuels Association. I am going to keep working at RFA in a different capacity but with the same goal; to assure RFA and the industry I care about so deeply continue to grow and realize their full potential,” Dinneen continued. “At the very least, I have great confidence that under Geoff’s leadership, the RFA will develop into an even more effective and authoritative voice for the U.S. ethanol industry, and that may be my greatest blessing.”

Audio, Ethanol, Ethanol News, RFA

Growth Energy Urges EPA to Correct RFS Course

Cindy Zimmerman

Growth Energy is calling on the Environmental Protection Agency (EPA) to chart a “major course correction on annual biofuel targets.”

The proposed rule raises the total 2019 Renewable Volume Obligation (RVO) by 3 percent over the 2018 requirement, and maintains a 15-billion-gallon requirement for conventional biofuels like corn ethanol, but does nothing to address the 2.25 billion gallons worth of small refinery exemptions granted by EPA in the past year.

“The numbers themselves are good, but those numbers are meaningless if you’re going to waive billions of gallons (of biofuels),” said Growth Energy Vice President of Regulatory Affairs Chris Bliley who testified on behalf of the organization at hearing Wednesday in Michigan.

In its proposed rule, the agency declined to accept comments on the controversial waiver program or Reid Vapor Pressure restrictions on E15, but that did not stop ethanol stakeholders from bringing it up in comments. “We thought that was absolutely absurd,” said Bliley. “There’s no way they can’t take comment. This is a public forum and people can comment as they wish.”

Bliley says they are hoping Acting EPA Administrator Andrew Wheeler “provides a fair forum for biofuel producers and for farmers.”

Interview with Chris Bliley, Growth Energy, on EPA hearing testimony
Audio, biofuels, EPA, Ethanol, Growth Energy, RFS