Ethanol and Trade Center Stage for NCGA

National Corn Growers Association president Kevin Skunes of North Dakota says he expected to be focused mainly on the farm bill this year, but trade and ethanol have “taken a lot of oxygen out of the room.”

During an interview at the Corn Utilization and Technology Conference (CUTC) this week, Skunes saiede they are disappointed that the House version of the farm bill was defeated as a result of a “non-agriculture issue” because farmers are really struggling right now. “The number one priority in a farm bill for us is a robust crop insurance program,” he said.

In this interview, Skunes also comments on trade issues, ethanol, the Bayer Monsanto closing, and more.

Interview with NCGA president Kevin Skunes

2018 CUTC Photo Album

AgWired Energy, Audio, corn, CUTC, NCGA

RFS Deal Becomes No Deal

Cindy Zimmerman

The White House has reportedly backed away from a deal that would have made changes in the Renewable Fuel Standard (RFS) that concerned the biofuels industry.

An announcement was expected this week, but late yesterday both of Iowa’s senators tweeted that the deal was off. “#Iowa is feeling that love today, as the President just assured me he “won’t sign a deal that’s bad for farmers!” Thank you, Mr. President!” tweeted Sen. Joni Ernst. “Pres Trump helped farmers by rejecting bad ethanol deal. I appreciate. GREAT NEWS” added Sen. Chuck Grassley.

The deal would have allowed year-round use of E15 but let ethanol exports count for Renewable Identification Numbers, which the industry said would be devastating. No official word from the White House but it appears to put the whole issue back to square one where it was last fall when the meetings started to find a compromise for oil refiners looking for a way out of paying to not blend ethanol.

Ethanol, Ethanol News

Purdue Tackles Biorefinery Blockage Issues

Cindy Zimmerman

Purdue mechanical engineering doctoral student Yu Liu working on solving biorefinery blockage issues

A team led by Purdue University scientists is receiving a $1.8 million grant from the U.S. Department of Energy’s Bioenergy Technologies Office to solve the problem of biomass flow for biorefineries.

Lignocellulosic biomass, often made up of materials such as corn stover and soybean hulls, often accumulates and compacts while moving through augers, forcing costly shutdowns for cleaning and repairs. The goal for the researchers is to transform solid biomass into a slurry that can act more like a liquid flowing freely through material transportation systems in biorefineries. To do that, the researchers will create models to predict the physical properties necessary for a liquid-like flow of solid materials, then develop methods for modifying the biomass to meet the models’ specifications, changing particle size, shape and charge.

Researchers will start with corn stover, which could be the foundation to develop similar technology for other biomass products, including wood chips, soybean hulls, wheat straw and sugarcane in the future. The funding, which will amount to $2.3 million total with cost share from partners, will cover three years.

advanced biofuels, biomass, Cellulosic, Ethanol, Ethanol News, Research

Midwest Voters Want Trump to Protect RFS

Cindy Zimmerman

A new poll, funded by the National Biodiesel Board, shows that voters across three Midwestern states overwhelmingly say they support federal policies to encourage growth in biodiesel and renewable fuels use.

In a survey of voters in Iowa, Missouri and Minnesota, respondents’ support cut across party lines, with more than two-thirds of Republicans and nearly three-quarters of Independents saying they support U.S. efforts to boost the expansion of the biodiesel industry. In total, 73 percent of voters agreed.

A substantial majority of voters in these Midwestern states, including 63 percent of Independents, say EPA Administrator Scott Pruitt’s efforts to lower demand for biofuels does not reflect the President’s promise to support renewable fuels and the RFS. More than 80 percent of Republican voters in the survey said it was important to them that President Trump keep his promise to defend the RFS.

NBB Vice President of Federal Affairs Kurt Kovarik said the response from Iowa, Missouri and Minnesota accurately represents the opinion of America’s Heartland, which propelled President Trump to the White House. “When candidate Trump promised he would be their defender in Washington, DC, farming communities turned out to the polls in big numbers for him in November of 2016,” Kovarik said. “To be frank, rural voters haven’t seen that similar support reciprocated from EPA Administrator Pruitt and that’s reflected in the survey.”

Read more from NBB.

Biodiesel, Ethanol, Ethanol News, NBB, RFS

Ethanol Report on EPA Lawsuits

Cindy Zimmerman

The Renewable Fuels Association (RFA) has joined a coalition of biofuel and agriculture groups in a lawsuit against EPA over lost volumes of renewable fuel resulting from retroactive small refinery exemptions from Renewable Fuel Standard (RFS) obligations.

RFA is also a petitioner in a lawsuit filed last week over three specific small refinery exemptions granted by the agency. “EPA Administrator Scott Pruitt has had a fire sale on small refiner exemptions for anyone with a stamp and an envelope, making a mockery of the President’s commitment to a 15 billion gallon RFS for conventional biofuel. This must end. We take no pleasure in having to litigate to protect the integrity of the RFS, but it appears we have no other recourse,” said RFA CEO Bob Dinneen.

In this Ethanol Report, Dinneen discusses why RFA is taking this legal action and also comments on what they expect the White House to announce today: Ethanol Report on EPA Lawsuits

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EPA, Ethanol, Ethanol News, Ethanol Report, RFA, RFS

Farm and Biofuel Groups Sue EPA Over Lost Gallons

Cindy Zimmerman

A coalition of biofuel and agriculture groups have petitioned the Environmental Protection Agency (EPA) to change its regulations to “account for lost volumes of renewable fuel resulting from the unprecedented number of retroactive small refinery exemptions from Renewable Fuel Standard (RFS) obligations recently granted by EPA.” The petitioners are the Renewable Fuels Association (RFA), American Coalition for Ethanol (ACE), Growth Energy (Growth), National Biodiesel Board (NBB), National Corn Growers Association (NCGA), Biotechnology Industry Organization (BIO), and National Farmers Union (NFU).

This petition comes days after several ethanol and farm groups challenged three specific small refinery exemptions granted by EPA. While the lawsuit in the Tenth Circuit challenged those exemptions as wrongly decided, this petition to EPA seeks a broader, forward-looking remedy to account for the collective lost volumes caused by the unprecedented number of retroactive small refinery exemptions.

The existing regulation for calculating the annual percentage of renewable fuels to be blended into transportation fuel does not provide a means to “true up” the annual standards for any retroactive small refinery exemptions, i.e., exemptions granted after the renewable volume obligations (RVOs) for that year have been finalized. As a result, any volumes covered by such exemptions are lost.

But EPA’s continued use of its regulation in the face of its recently and greatly expanded use of retroactive small refinery exemptions is now arbitrary and capricious. News reports within the last 60 days reveal a flood of more than two dozen retroactive small refinery hardship exemptions have already been granted this year.

ACE, Ag group, BIO, Biodiesel, corn, EPA, Ethanol, Ethanol News, Growth Energy, NBB, NCGA, NFU, RFA, RFS

Pennsylvania Retailer to Sell E15

Cindy Zimmerman

A Pennsylvania-based fuel retailer plans to start selling 15% ethanol fuel at seven locations in three states.

Growth Energy has announced that Rutter’s convenience store chain will begin selling E15 in Maryland, Pennsylvania, and West Virginia.

“The success of Prime the Pump in opening the marketplace for E15 has opened the doors for more and more innovative retailers to offer their customers the E15 choice,” said Growth Energy CEO Emily Skor. “We are proud to welcome Rutter’s to the ever-growing E15 retailer family and look forward to giving even more American drivers an engine smart and earth kind fuel choice with cleaner burning E15.”

Rutter’s joins Casey’s, Cenex, Family Express, Holiday, Kum & Go, Kwik Trip, MAPCO, Minnoco, Murphy USA, Protec Fuel, QuikTrip, RaceTrac, Sheetz, and Thorntons in offering E15 at nearly 1,400 stations across 30 states.

“At Rutter’s we take pride in in giving our customers the best choices whether in-store or at the fuel pump and we’re excited to be expanding our offerings with E15,” said Rutter’s President and CEO, Scott Hartman. “We look forward to continuing to work with Growth Energy to maximize our advantage with E15 while providing our customers with greater choice and value at the pump.”

To find their nearest E15 stations, Rutter’s customers can go to GetBiofuel.com.

E15, Ethanol, Growth Energy, Retailers

Poll: 80% Say E15 Should be Sold Year Round

Cindy Zimmerman

As 15% ethanol fuel became unavailable June 1, the Renewable Fuels Association (RFA) released a new poll that shows American consumers are frustrated by the lack of choice that stems from the summertime prohibition on E15.

In a recent poll of registered voters conducted by Morning Consult, almost 80 percent of respondents said they believe the federal government should allow E15 to be sold year-round. Despite the fact that President Trump committed his administration would approve year-round access of E15 and remove the “unnecessary and ridiculous” regulation, EPA Administrator Scott Pruitt has yet to act on the President’s commitment, meaning another summer driving season without consumers having that choice.

“It’s time for EPA to follow the law and the direction of the president. It’s time for EPA to create biofuel demand by eliminating this antiquated regulatory barrier and empower consumers to make the fuel choices that are best for their cars and wallets,” said RFA president and CEO Bob Dinneen.

Dinneen also penned an op-ed for The Hill last week on the topic.

In 2011, EPA approved the use of E15 in 2001 and newer vehicles, but the agency did not allow E15 to benefit from the 1-pound per square inch (psi) Reid Vapor Pressure (RVP) waiver that is available to E10 blends. As a result of this disparity, retailers in conventional gasoline areas would have to secure special “sub-RVP” gasoline blendstock in order to continue selling E15 during the EPA summer ozone control season. Such gasoline blendstock is generally unavailable in conventional gasoline areas and would be uneconomical to ship.

E15, Ethanol, Ethanol News, RFA

Growth Energy Urges RVP Relief for Consumers

Cindy Zimmerman

As the Reid Vapor Pressure (RVP) restriction on E15 sales goes into effect across most of the country today, Growth Energy notes the ban on the lower priced fuel comes at a time when gas prices are approaching a national average of $3 per gallon.

“Every summer, earth-friendly E15 is held to tougher standards than other fuels sold year-round, cutting off sales and imposing needless costs on retailers and consumers alike,” said Growth Energy CEO Emily Skor. “The Environmental Protection Agency must act to fulfill President Trump’s promise to ‘unleash E15’ by cutting this arcane regulation – saving retailers millions of dollars in labeling costs and letting rural America succeed in the marketplace unhampered.”

E15 retailers face costs of up to $1.5 million dollars each year just to relabel pumps around RVP, while others markets are entirely shut off for consumers because retailers cannot adjust for these astronomical barriers.

“RVP relief now means lifting our rural economy out of the worst crisis in a generation, with farm income plunging to a 12-year low,” said Skor. “And it means putting our industry on the path to an additional 1.3 billion gallons of ethanol demand within five years.”

Through an ongoing digital advocacy campaign Growth Energy is mobilizing rural America to call on the Administration to follow through on President Trump’s promise to make E15 available year-round.

E15, Ethanol, Growth Energy

More Ethanol Demand Destruction from EPA

Cindy Zimmerman

The biofuels industry was disturbed to hear news reports this week that the Environmental Protection Agency is continuing to destruct demand for ethanol and corn with more “small refinery” exemptions.

Reuters reported that EPA created nearly $34 million worth of Renewable Identification Number (RIN) credits and handed them over to HollyFrontier, along with an additional undisclosed amount of RINs to Sinclair Oil to make up for their small refiner RFS exemption requests that were rejected under the previous administration. In a statement to reporters, EPA said its actions were “narrow in scope,” and are consistent with the direction from the 10th Circuit Court, but Renewable Fuels Association (RFA) president and CEO Bob Dinneen disagrees.

“The 10th Circuit Court’s decision in the Sinclair case did NOT give EPA license to approve any and all small refinery waiver requests independent of a demonstration of disproportionate economic hardship tied directly to the RFS,” said Dinneen. “Moreover, by retroactively granting RIN relief to highly profitable refineries, the Agency is now making a mockery of the RFS and the President’s oft-stated commitment to a 15-billion-gallon RFS for conventional biofuels.”

RFA Executive Vice President Geoff Cooper detailed the continued demand destruction caused by EPA in a blog post this week, following up on his first analysis in early April. “Six weeks later, U.S. ethanol demand is even softer, RIN prices have fallen even further, and EPA Administrator Scott Pruitt’s “Demand Destruction” campaign continues to roll on through the Heartland,” writes Cooper.

Cooper says the “tidal wave of small refiner exemptions has resulted in a flood of cheap RINs” reducing the use of ethanol.

Refiners who received an exemption in 2016 and/or 2017 are likely confident they’ll score another bail-out from 2018 compliance obligations. Or at worst, if they don’t get another exemption, they know they can meet their 2018 RFS obligation with the glut of dirt-cheap RINs that were recently dumped on the market (not to mention vintage 2018 RINs that were apparently created out of thin air by EPA as yet another giveaway to Sinclair and HollyFrontier).
Read Cooper’s post here.

Ethanol, Ethanol News, RFA, RFS, RINS