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

RFA Asks EPA to Fix Pruitt Damage to RFS

Cindy Zimmerman

The Renewable Fuels Association (RFA) is imploring the Environmental Protection Agency (EPA) to use the 2019 Renewable Volume Obligation (RVO) rulemaking process “to fix the extensive damage done to the Renewable Fuel Standard (RFS) by former Administrator Scott Pruitt.”

“Administrative cuts to the RFS have resulted in significantly lower RIN prices, reduced corn and ethanol demand, avoided legal obligations for highly profitable businesses, and provided windfall profits for certain oil refiners,” said RFA Vice President of Government Affairs Samantha Slater in testimony delivered at a public hearing today in Ypsilanti, Mich. “The final rule should do less to cater to the whims of the oil industry in implementing the nation’s renewable fuel program, and more to create demand for ethanol, lowering prices at the pump for consumers and creating economic opportunities for farmers across the country.”

Listen to Slater’s testimony here: RFA testimony on EPA 2019 RVO proposal

Audio, biofuels, EPA, Ethanol, Ethanol News, RFA, RFS

Biodiesel Producers Ask EPA to Raise RFS Volumes

Cindy Zimmerman

Representatives of the biodiesel industry testified today at the Environmental Protection Agency’s (EPA) Public Hearing for Proposed Renewable Fuel Standards (RFS) for 2019 and Biomass-Based Diesel Volume for 2020.

Executives from the National Biodiesel Board (NBB) and its member companies are asking EPA to set the 2020 Biomass-based Diesel volume at 2.8 billion gallons, based on the agency’s own analysis in the proposed rule showing that volume is achievable next year. The agency must also reduce the uncertainty it has caused by issuing retroactive small refiner hardship exemptions, the industry told EPA staff.

“There are many positive elements in this proposal for which we applaud EPA. But these are rendered meaningless unless EPA accounts for waived gallons to make sure the RVO’s are real numbers,” said Kent Engelbrecht, Biodiesel Trade Manager at Archer Daniels Midland and NBB Board Chairman.

NBB CEO Donnell Rehagen testified, “To provide the certainty that the biodiesel industry needs, EPA should raise the 2020 volume for biomass-based diesel to at least 2.8 billion gallons. That number better aligns with the goals that Congress set for the RFS program. And it will better fulfill the promise of the RFS program.”

EPA has estimated that the small refinery hardship exemptions it retroactively granted to refiners reduced the 2016 and 2017 RVOs by a combined 2.25 billion RINs. NBB estimates the 2016 and 2017 exemptions reduced demand for biodiesel by more than 300 million gallons. And since every 100 million gallons of increased biodiesel production supports some 3,200 jobs, NBB estimates the small refinery hardship exemptions puts 9,600 jobs in jeopardy.

Listen to testimony from Engelbrecht and Rehagen. National Biodiesel Board testimony on EPA 2019 RVO proposal

advanced biofuels, Audio, Biodiesel, EPA, NBB, RFS

EPA Waivers Make Deep Cuts in RFS

Cindy Zimmerman

The latest data from the Environmental Protection Agency shows just how much the small refiner exemptions have resulted in demand destruction, even more than estimated just a few months ago.

According to an analysis by the Renewable Fuels Association (RFA) updated from April, the waivers have resulted in “effectively lowering the 2017 required volume of renewable fuels by 1.37 billion gallons, or 7%. The data also show that small refiner exemptions also effectively reduced the 2016 RFS requirement by 523 million gallons.”

After effectively reducing the 2013-2015 RFS blending obligations by a combined total of about 165 million gallons, EPA essentially slashed the 2016 RFS volume by 523 million gallons and the 2017 RFS by 1.365 billion gallons. Collectively, the amount of lost blending obligations in 2016-2017 is 11 times the collective lost obligations from 2013-2015.

EPA has ignored repeated requests to provide information regarding the number and magnitude of its small refiner exemptions, but the agency’s monthly compliance data shows the impact of the exemptions. With the resignation of Scott Pruitt as EPA administrator, industry stakeholders are hoping his acting successor Andrew Wheeler will be less generous with his granting of waivers going forward.

EPA, Ethanol, Ethanol News, RFA, RFS