Biodiesel Advocates Storming the Hill

Cindy Zimmerman

With EPA set to release final volume obligations under the Renewable Fuel Standard (RFS), and Congress back at work on tax legislation, this week is a perfect time for members of the National Biodiesel Board (NBB) to put biodiesel on the front burner in Washington D.C.

Nearly 100 NBB members are storming the Hill to talk with lawmakers about the importance of renewing the biodiesel tax credit, which expired in December 2016, and increasing the RVOs to at least 4.75 billion gallons for advanced biofuels next year and at least 2.5 billion gallons for biomass-based diesel in 2019. The proposed rule earlier this year called for a reduction in advanced biofuels (which is 90 percent biodiesel) and no growth in biomass-based diesel volumes.

“Biodiesel has played a major role in our energy portfolio for the United States,” said Tom Verry, NBB Director of Outreach and Development, during an interview earlier this month. “We used almost three billion gallons last year and we are anticipating in 2017 to exceed that by quite a bit.”

Biodiesel advocates have a great story to tell being nation’s first domestically produced, commercially available advanced biofuel that now supports roughly 64,000 jobs across the country and has helped add value to soybeans and soybean oil. Verry talks more about the benefits of biodisel in this interview. Interview with Tom Verry, NBB

Audio, Biodiesel, NBB

Corn Harvest Wrapping Up

Cindy Zimmerman

The corn harvest is not quite finished, but weekly USDA crop progress reports are done for the year.

According to the last report issued on Monday, 95 percent of the corn crop nationwide is in the bin, less than the 98 percent average for the end of November. Michigan, Ohio and Wisconsin are dragging behind with less than 90 percent harvested, while Missouri is the only corn belt state reporting 100 percent.

Iowa, at 96 percent harvested, is down about three percent from normal. “Overall, many farmers have reported better than expected yields, despite the challenges of the growing season. Dry weather, particularly in southern Iowa, stressed crops and did negatively impact yields in some areas,” said Mike Naig, Iowa Deputy Secretary of Agriculture.

During the first two weeks of December, NASS will survey approximately 90,000 United States producers in one of USDA’s largest survey efforts to provide the final information about the 2017 U.S. row crops focusing on harvested acreage, production, and storage. The survey will also be used to help establish county level estimates used by the Farm Service Agency for the Agriculture Risk Coverage (ARC) program and the Risk Management Agency to administer insurance programs.

corn, USDA

Ethanol Production Hits Weekly Record

Cindy Zimmerman

Weekly U.S. ethanol production hit a new record high this month.

According to Energy Information Administration data analyzed by the Renewable Fuels Association (RFA), ethanol production for the week ending November 17 averaged 1.074 million barrels per day (b/d)—or 45.11 million gallons daily, up 20,000 b/d from the week before. That is the highest rate of output ever recorded, beating the previous record set the week of Jan. 27, 2017 by 13,000 b/d. The four-week average for ethanol production increased to a record 1.06 million b/d for an annualized rate of 16.25 billion gallons.

Stocks of ethanol were 21.9 million barrels, up nearly 2 percent from the previous week and a 22-week high. There were zero imports recorded for the second week in a row.

Ethanol, Ethanol News, Production, RFA

Industry Thankful for EPA Obligation Point Decision

Cindy Zimmerman

The ethanol industry got something extra to be thankful for the day before Thanksgiving as the Environmental Protection Agency followed through on the promise made by Administrator Scott Pruitt to deny a petition to change the point of obligation for compliance under the Renewable Fuel Standard (RFS).

“Based on a wide range of stakeholder input and information provided as a part of the public comment period, the agency has determined that changing the regulatory point of obligation for compliance with the RFS program is not appropriate,” EPA noted in its response.

“We commend the EPA for laying to rest a year of attempts from a small group of oil refiners who have been using every trick in the book to change the established rules for tracking compliance with the Renewable Fuel Standard,” said Growth Energy CEO Emily Skor. “This one-sided handout would have added regulatory red tape, created havoc in the marketplace, and denied consumers access to more affordable fuels with higher blends of biofuels like E15.”

“The RFS credit trading framework (RINs) has proven to be a powerful incentive that has allowed some of the most respected independent retailers in the country to offer cleaner, higher octane fuels such as E15 to their customers at lower prices,” said American Coalition for Ethanol (ACE) CEO Brian Jennings. “A RIN credit is a reward for RFS compliance. Companies complying with the RFS or blending more ethanol than required are able to use the additional RINs to discount prices of ethanol-blended fuels…It would be wrong to take away that incentive and give it to those few refiners who have made no effort to improve the fuels in our country.”

This week, EPA is expected to release its final rule for volume obligations under the RFS for the coming year, which the previous administration chose to do last year on the day before Thanksgiving. Thanks to the EPA for waiting until afterward this year!

EPA, Ethanol, Ethanol News, Growth Energy, RFS

Medford Celebrates 20 Years of Biodiesel School Buses

Cindy Zimmerman

When it comes to using cleaner burning biodiesel in school buses, Medford Township Public Schools in New Jersey goes to the head of the class, as they celebrate 20 years this month, making Medford the nation’s longest continuous user of biodiesel in a student transportation fleet.

The school district’s use of biodiesel has eliminated more than 123,376 pounds of smog-forming emissions, 2,408 pounds of diesel particulate matter and reduced its fleet operation costs by over $170,000.

“Medford’s 20-year commitment to powering its school bus fleet with biodiesel is benefiting a new generation of students by reducing harmful emissions and contributing to cleaner air,” said National Biodiesel Board CEO Donnell Rehagen. “Some of the children who rode the bus back in 1997 are now parents themselves whose children will enjoy the same air quality benefits in Medford today.”

“Utilizing biodiesel fuel in our school bus fleet is the cornerstone of our district’s overall commitment to sustainability,” said Medford Schools Superintendent Joseph Del Rossi. “We are proud to be a lead district for this initiative, especially serving as a positive role model for our school community and the Township of Medford.”

Medford filled its first school bus with B20 on November 17, 1997. When that bus was retired in 2011, it had logged 190,000 miles without any major engine work and still had its original fuel injectors and pump.

Biodiesel, NBB

Understanding the Farmers of Tomorrow

OsbornBarr has rounded up ag thought-leaders from across the country to discuss and tackle issues impacting the agricultural community. The first challenge they collectively believe is imperative is understanding farmers of tomorrow.

Chairman of the newly formed O+B Agricultural Advisory Council, Richard Fordyce, former Missouri Director of Agriculture, attended the 2017 National Association of Farm Broadcasting’s Trade Talk to talk about the research they conducted on Generation Z’s (18-22-year-olds) future in agriculture.

How do the children of today’s farmers view their role in agriculture’s future? How do their perceptions of brand and industry compare to those of their parents and grandparents? Can the answers to these questions shape the future of farming?

The results centered around four major factors shaping the future of our industry: Farm Succession Expectations Differ, View of Government Involvement, Agricultural Technologies Tops List, Preference of Peers Over Brand Names.

Richard reminded us that all those surveyed are currently somehow involved in agriculture. A glimpse of the results: 54% plan to take over their family farm, 77% are still active on their family farm and 71% of farmers believe their kids want to take over the family farm.

The council will continue to digest these results and conduct further research on areas of particular interest and make all findings available to the public. Visit RuralSpirit.com to learn more.

Listen to my complete conversation with Richard to learn more :Interview with Richard Fordyce, O+B Ag Advisory Council Chair

2017 NAFB Convention Photos

Coverage of the NAFB Convention is sponsored by
Coverage of the NAFB Convention is sponsored by FMC
Agribusiness, AgWired Animal, AgWired Energy, AgWired Precision, Audio, NAFB

No Back to the Future for the RFS

Cindy Zimmerman

Guest contributor – Rachel Gantz, Renewable Fuels Association

Do you remember the scene towards the end of “Back to the Future,” where Doc Brown is refueling the time-traveling DeLorean with banana peels and beer waste?

That was biofuel before it was available at so many of our neighborhood gasoline stations. Nowadays, Doc Brown just needs to pull up to his local station and select ethanol-blended gasoline; no more digging through Marty McFly’s garbage. Thanks to the Renewable Fuel Standard, consumers all across our country have a choice at the pump. However, that will only occur if EPA finalizes a strong 2018 RFS rule.

By Nov. 30 each year, EPA is statutorily required to finalize the annual RFS Renewable Volume Obligations for the following year. In July, EPA proposed to reduce the total 2018 RFS renewable fuel blending requirements below the levels required in 2017. The proposal, if finalized, would maintain the 15 billion gallon statutory requirement for conventional biofuels, but would slash the cellulosic biofuel target by nearly one-quarter, among other changes. While EPA Administrator Scott Pruitt has since promised the final 2018 RFS RVOs will be equal to or greater than those proposed in July, nothing is set in stone.

Read more

Ethanol, Ethanol News, RFA, RFS

S&P Global Platts Launches New Weekly Ethanol Assessment

Cindy Zimmerman

S&P Global Platts has launched a new North-Northeast Brazil anhydrous ethanol assessment which reflects demand for greater transparency and a clearly defined methodology to help market participants understand the drivers of pricing.

“The North-Northeast of Brazil is a region that is net short ethanol and therefore needs to import from the Center-South region of the country as well as from the United States,” said Ian Dudden, Global Content Director, Agriculture, S&P Global Platts.

“So far this year our ethanol analysis shows falling production in the NNE region, with imports having more than doubled to over a third of consumption, compared to just 15% in 2016. We expect this trend to continue into 2018 amid the lower production expectations for the 2017-18 NNE sugar cane crop. Overall ethanol production in Brazil is expected to remain stagnant due in large part to older cane in the fields and lower crushing volumes offsetting an anticipated increase in the ethanol mix. We expect Brazil will remain a net importer of ethanol for a second consecutive year,” Dudden concluded.

Read more from S&P Global Platts.

Brazil, Ethanol, Ethanol News, Exports

RFA Releases Ethanol Savings Calculator

Cindy Zimmerman

The Renewable Fuels Association (RFA) has just released an easy-to-use online calculator just in time for the holidays to help drivers find out how much money they can save by choosing ethanol blends like E15 and E85.

Here’s how it works:
Step 1 – enter retail prices for E10, E15 and E85. Prices from thousands of stations nationwide, along with state and national averages, are available at E85prices.com.
Step 2 – enter the total miles driven for a specific trip or time period
Step 3 – enter average fuel economy of vehicle when using E10.
Step 4 – shows cost of trip on E10
Step 5 – shows the savings that result from using E15 or E85 instead of E10

For example, today’s national average prices are $2.52 per gallon for E10, $2.43 for E15, and $1.81 for E85. The Smith family is driving from Omaha to Denver and back for the Thanksgiving holiday (1,080 miles roundtrip). The Smith family’s flex fuel vehicle gets the national average fuel economy of 24.8 miles per gallon (mpg), meaning it would get approximately 24.4 mpg on E15 and 19.2 mpg on E85. The calculator shows the Smith family would spend almost $110 on fuel if they use E10 for the trip. If they use E85 instead, they would spend less than $102 on fuel. And using E15 instead of E10 would mean the Smiths spend less than $108 on fuel.

The calculator also allows users to calculate annual savings. The average U.S. family drove 25,600 miles last year, meaning they could save $190 or $50 on their annual fuel bill by using E85 or E15, respectively, instead of E10 (based on current national average prices). RFA also notes that standard 10% ethanol, which accounts for the majority of fuel sales in the nation, is still a savings compared to gasoline without ethanol (E0) which is currently $2.84 per gallon, 13% higher than the average price for E10.

Click here to check out the new calculator.

E15, E85, Ethanol, Ethanol News, RFA