Ethanol Groups See Opportunity in EPA GHG Revision

Cindy Zimmerman

As expected, the Environmental Protection Agency (EPA) announced Monday the Revised Final Determination Regarding Model Year 2022-2025 Light-Duty Vehicle GHG Emissions Standards, with the conclusion that “the current standards are not appropriate and should be revised.”

“The Obama Administration’s determination was wrong,” said EPA Administrator Scott Pruitt. “Obama’s EPA cut the Midterm Evaluation process short with politically charged expediency, made assumptions about the standards that didn’t comport with reality, and set the standards too high.”

Ethanol organizations say this opens up an opportunity for the high-octane renewable fuel to play a role in helping automakers reduce GHG emissions as the standards are revised later this year.

“For several years, Growth Energy has strongly emphasized the fact that fuels and engines are a system and that high-octane fuels – such as ethanol blends like E25-E30 – should be part of this discussion,” said Growth Energy CEO Emily Skor. “We have provided a wealth of data to show that mid-level ethanol blends can be used by automakers to produce smaller, more efficient engines that will help meet future vehicle standards.”

EPA notes in the final determination that, “…ethanol producers and agricultural organizations commented in support of high octane blends from clean sources as a way to enable GHG reducing technologies such as higher compression ratio engines. They provided information suggesting that mid-level (e.g., E30) high octane ethanol blends should be considered as part of the Mid-term Evaluation and that EPA should consider requiring that mid-level blends be made available at service stations.”

American Coalition for Ethanol (ACE) CEO Brian Jennings says they are encouraged EPA Administrator Pruitt is seeking more information on the potential for high-octane blends.

“Some might argue today’s decision means EPA will eventually relax GHG standards allowing more gasoline use and tailpipe pollution, but not if the new standards pave the way for E25-30 high-octane fuel in future engines,” said Jennings. “Ethanol-enriched, high-octane fuel enables automakers to simultaneously reduce GHG emissions and improve fuel economy. We are confident E25-30 blends will be the most affordable way to thread that needle.”

Renewable Fuels Association (RFA) President and CEO Bob Dinneen adds, “For too long, our light-duty vehicle fuel economy and GHG emission regulations have focused exclusively on the vehicle. We have repeatedly encouraged EPA, NHTSA and the California Air Resources Board (CARB) to also consider the important impact of fuels on fuel economy and emissions…(H)igher octane fuel would unleash and enable a wide pallet of low-cost engine technologies that offer proven fuel efficiency and GHG emission improvements at a low cost for consumers.”

ACE, EPA, Ethanol, Ethanol News, Growth Energy, RFA

China Strikes Back

From almonds to frozen edible swine offal, the majority of the 128 products on which China imposed retaliatory tariffs Monday are agricultural, making farmers bear the brunt of the reaction to U.S. steel and aluminum tariffs.

“This is a tax on American farmers, brought about by protectionist trade policies,” said Farmers for Free Trade (FFT) Co-Chair Max Baucus. “American farmers appear to be the first casualties of an escalating trade war.”

U.S. exports of fruits, nuts, and wine will see a 15% tariff, while U.S. pork products were slapped with a 25% tariff, which is a significant blow to the industry that has China as the third largest value market, with more than $1 billion in U.S. pork being shipped there last year.

China added another 15% tariff on U.S. ethanol imports to an already-imposed 30% duty, making the total tariff 45%. “This one-two protectionist punch will ultimately harm Chinese consumers who are being denied access to the lowest-cost, highest-octane, and cleanest fuel on the planet,” said Renewable Fuels Association President and CEO Bob Dinneen. “But it will also hurt farmers in the U.S. who have worked to build value-added markets for their commodities here and abroad.”

The good news is that soybeans were not on the list announced Monday, since it could mean an overall drop in U.S. soybean exports of 40 percent, according to a study commissioned by the U.S. Soybean Export Council (USSEC). FFT has been sharing videos of soybean growers who are concerned about the possible trade disruption that would cause for their number one market, worth $14 billion annually. Watch one here:

AgWired Animal, AgWired Energy, Ethanol, Exports, International, RFA, Soybean, Trade

How EPA is Destroying Demand for Ethanol and Corn

Cindy Zimmerman

Recent actions by EPA have effectively reduced the Renewable Fuel Standard conventional renewable volume obligation (RVO) for 2016 by more than 1 billion gallons, and the agency appears poised to take similar actions to effectively reduce the 2017 and 2018 conventional RVOs by comparable amounts, according to Renewable Fuels Association Executive Vice President Geoff Cooper.

In a blog post last week, Cooper explains how these cuts have resulted in significantly lower prices for Renewable Identification Numbers, reduced corn and ethanol demand, avoided legal obligations for highly profitable businesses, and windfall profits for certain small oil refiners.

“In total, nearly 2.4 billion gallons of ethanol demand and 860 million bushels of corn demand have potentially been lost over the past two compliance years due to EPA’s recent actions,” Cooper says. He details how EPA’s actions to exempt refineries from the 2016 RFS requirements, not enforcing the full 2016 Renewable Volume Obligations (RVO) of 15 billion gallons and excusing Philadelphia Energy Solutions from its 2016 and 2017 RFS obligations results in the 2016 RFS requirement being lowered from 15 billion gallons to just 13.82 billion, an 8% reduction.

Click to read the analysis.

Ethanol, Ethanol News, RFA, RFS

Show Me Ethanol Celebrating 10 Years

Cindy Zimmerman

Show Me Ethanol (SME), a dry-mill ethanol production facility located in Carrollton, Missouri is celebrating its 10th anniversary this year. The plant broke ground in March 2007 and began commercial production in May 2008. Today, the facility produces more than 60 million gallons of ethanol and 160,000 tons of distiller grains animal feed per year. SME marked the occasion in a ceremony last week at the plant.

“It’s been an amazing decade here at Show Me Ethanol,” said General Manager Richard Hanson. “We have accomplished so much, producing above our initial capacity and helping to grow ethanol co-products like DDGS and distillers corn oil. We are pleased to reach this anniversary and look forward to continuing to contribute to our economy, energy security, and environment.”

Renewable Fuels Association President and CEO Bob Dinneen congratulated the RFA member plant on the milestone. “True to its name, Show Me Ethanol has led by example and proven the many benefits of renewable fuels to the Carrollton community, the state of Missouri, and our nation,” said Dinneen.

SME is operated by 40 employees, has more than 460 investors, and uses more than 20 million bushels of Missouri corn every year. In 2012, the company also began producing distillers corn oil, which is sold into the animal feed and biodiesel markets.

Ethanol, Ethanol News, Facilities, RFA

Siouxland Ethanol Educates Tomorrow’s Drivers

Cindy Zimmerman

Pam Miller (back row center) visits 5th Grade class at Harney Elementary School

Pam Miller, Board Chair and Director of Industry and Investor Relations for Siouxland Ethanol in Nebraska, recently visited a local fifth-grade classroom to educate the next generation of drivers about ethanol.

Using the Renewable Fuels Association’s “Ethanol in the Classroom” curriculum as a guide, Miller says the students at Harney Elementary in South Sioux City Community Schools sat with rapt attention as she outlined how ethanol is produced, its environmental and economic impacts, and the overall use of the renewable fuel.

“The ethanol curriculum is an incredibly useful tool,” Miller wrote in a blog post for RFA. “It’s broken down into three levels: Grades 3-5, Grades 6-8, and Grades 9-12. After selecting the appropriate level, students choose a vehicle that runs on ethanol to navigate through the program. These students loved selecting the vehicles (the choices are a sports car, a motorcycle, a small car, or a pick up truck), and tracking the progress along the way. At the end of each stop, they completed activities to test how much they learned and then earned badges.”

Two weeks after her classroom visit, Miller returned the favor by hosting the students for a tour at Siouxland Ethanol. “I was surprised at how much the students remembered, including that ethanol is made primarily from corn and that the fuel is transported via railcars to the West Coast,” said Miller. “It won’t be long before these fifth graders are driving and I want to make sure they understand the numerous economic, environmental and energy security-related benefits of this fuel made in their own community.”

Read more.

Education, Ethanol, Ethanol News, RFA

NBB and Cummins Have Some Fun with Biodiesel

Cindy Zimmerman

Photo courtesy of Joseph Sanders Photography

National Biodiesel Board Director of Sustainability Don Scott recently joined a group from Cummins Inc. for some high-powered diesel fun.

The crew from Cummins was passing through Missouri while road testing a group of vehicles equipped with Cummins’ recently released R2.8 Turbo Diesel engine. Scott invited them to rev their engines and ride through Big Muddy National Wildlife Refuge as they crossed the state, and they took strong interest in his road-tested (and off-road tested) family truckster.

Cummins recently released these 2.8L engines for the aftermarket, which represents the first time Cummins has sold engines specifically for aftermarket conversions. But Scott converted a Jeep Wagoneer ten years ago using a Cummins engine to gain fuel economy and to burn biodiesel instead of gasoline while camping, exploring, and taking family outings.

“I joined NBB, because I wanted to protect the environment, but also because I wanted to do so while driving diesel trucks,” Scott said. “We take our work seriously creating jobs and reducing emissions by growing the biodiesel industry, but every so often we get to have a little fun in the process.”

Watch a short video on the Cummins Inc. Instagram where the roaring diesel engines can be appreciated in full. All new Cummins Engines are approved to run blends of biodiesel up to 20 percent.

Biodiesel, NBB

NCGA President Working Hard for Ethanol in DC

Cindy Zimmerman

NCGA president Kevin Skunes in meeting with Sen. Heidi Heitkamp

National Corn Growers Association (NCGA) president Kevin Skunes has probably spent more time in Washington DC over the past month or so than on his farm in North Dakota working hard to protect the Renewable Fuel Standard (RFS) and the important market of ethanol for corn growers.

Last week, Skunes joined the American Coalition for Ethanol (ACE) in visits to Congressional offices. “For the fly-in we go to offices that we wouldn’t normally go to…states that might not be as friendly to ethanol,” said Skunes during an interview at the fly-in.

Since before Commodity Classic, NCGA has been working to educate the administration about Renewable Identification Numbers (RINS) and why they are so important to the overall success of the RFS. “RINs do matter to farmers,” Skunes said. “I think that over the last month and a half, they have come around to see that it would be very detrimental to cap the price of RINs and I hope that we are making some headway.”

Listen to that interview here: Interview with NCGA president Kevin Skunes

2018 ACE DC Fly-in Photo Album

NCGA this week submitted formal comments to the U.S Department of Justice opposing the proposed settlement between Philadelphia Energy Solutions and the EPA regarding the outstanding RFS compliance obligations the refiner has included in its Chapter 11 bankruptcy filing. That situation is what originally brought the RIN price issue to the attention of the administration.

Skunes tweeted on Tuesday this week that he had a chance to visit with Vice President Pence about the RFS. “He said we are looking for a “win, win” solution, I asked him if we could meet to talk about what that solution looks like! He said let’s talk!” Skunes tweeted on Tuesday.

ACE, Audio, corn, Ethanol, Ethanol News, NCGA

First of Three Ethanol Safety Webinars Next Week

Cindy Zimmerman

Next week, the Renewable Fuels Association and TRANSCAER® will be holding the first of three ethanol safety webinars for ethanol emergency response teams. The webinars are scheduled for April 4, May 23, or July 25.

The “Train the Trainer” webinars are funded through a Federal Railroad Administration/TRANSCAER® grant. A single webinar can train a group of individuals, who can then turn around and pass that information forward, equipping entire communities with the knowledge necessary to respond to any potential ethanol-related emergency.

The webinar is intended to develop instructors to lead operations-level training. The webinar, led by national hazardous materials trainer Joel Hendelman, is open to all professional individuals above the technical level of training who are interested in learning how to teach ethanol emergency response. These professional individuals must also have an awareness level of hazardous material storage, handing and emergency response. The webinar is intended to develop instructors to lead operations-level training.

The free webinars will be held from 2:00-4:00 pm ET, but registration is limited to the first 100 attendees per webinar. Certificates of attendance will be awarded following the completion of the safety seminar.

In addition, RFA and TRANSCAER® are hosting two ethanol safety seminars in Jersey City, N.J., at the end of next week, April 6-7. The seminars will be held at New Jersey City University from 8:30am-4:00pm. Registration is free, but limited, and lunch will be provided. Certificates of Attendance will be awarded following completion of the safety seminar. The seminars are designed for individuals who respond to ethanol-related emergencies, as well as emergency planning committees and safety managers.

For more information or to register, visit www.rfa.traincaster.com

Ethanol, Ethanol News, RFA, safety

Iowa Blender Pump Program Demand Exceeds Funding

Cindy Zimmerman

The Iowa Renewable Fuels Infrastructure Program (RFIP) is already out of funding for 2018, but many more retailers are interested in offering higher blends in the state.

During the third of its four scheduled meetings, the RFIP board awarded funds to 15 projects for retailers around the state to install the necessary equipment to offer higher blends of ethanol and biodiesel. Due to lack of funds, some retailers were turned away and no funds remain for any fourth quarter applications. This is the second straight year that demand has exceeded funding for the program.

“RFIP is the definition of a successful program,” said Iowa Renewable Fuels Association Policy Director Grant Menke. “We’ve seen the number of retail stations offering higher biofuel blends increase dramatically, and interest in the program is still at an all-time high. It is critically important the state continue to make this investment and sustain this momentum toward higher blends.”

RFIP cost-share grants are offered to Iowa retailers wishing to upgrade fueling infrastructure to offer E15, E85 and/or biodiesel blends to help increase consumer access to renewable fuels. For every dollar of state funding invested in the program, four dollars of private investment has resulted, totaling over $138 million in private economic activity.

Reimbursement can be up to 70 percent of the installation costs, up to a maximum of $50,000 per project, with a five-year commitment.

Biodiesel, blends, Ethanol, Ethanol News, Iowa RFA

ND Farm Couple Makes ACE Fly-in a Priority

Cindy Zimmerman

Pam and Mike Clemens with Sen. Heidi Heitkamp

Husband and wife farmers Mike and Pam Clemens from North Dakota spent last week in Washington DC with the American Coalition for Ethanol (ACE) meeting with lawmakers on Capitol Hill.

Mike says ethanol is very important to their family farm in the tiny town of Wimbledon. “It really has changed over the last 20 years when we used to grow just wheat and barley and now we switched to corn and beans and ethanol fits right in as a market for us,” he said.

Pam says her story when she visits Congressional offices is that ethanol has had such a positive impact on their operation and their community that three of their five grown children have returned to the farm. “To have five children and have 3 of the 5 that come back with such gusto and excitement is the reason I want them to hear that message,” she said. “We got to plant more corn because of the ethanol plants going up and all of that excitement brought them back.”

The Clemens’ have been to about four of the ten ACE Fly-ins so far and they strongly encourage others to join the effort. Listen to my interview with them here:

Interview with Mike and Pam Clemens at ACE fly-in

2018 ACE DC Fly-in Photo Album

ACE, Audio, corn, Ethanol