Senator Grassley Rallies for Biodiesel

Senator Chuck Grassley (R-IA) visited the Renewable Energy Group (REG) biodiesel plant in Newton, Iowa Tuesday to rally the industry in opposition to proposed EPA actions that would cut volumes of biodiesel under the Renewable Fuel Standard (RFS).

“This proposal would drastically undermine biodiesel production,” said Grassley. “Most importantly, it’s contrary to statements made by candidate and President Trump. Whether it’s biodiesel or anything else, I believe a platform isn’t just to run on, it’s also to stand on.”

In late September, EPA put out a “Notice of Data Availability” seeking input concerning potential reductions for biodiesel under the RFS, on top of freezing biodiesel levels for 2019 in the formal proposed rule and decreasing levels for advanced biofuels, which includes biodiesel.

Grassley also talked about his American Renewable Fuel Jobs Creation Act bill, which would extends the biodiesel tax incentive, which expired at the end of 2016, for three years and changing it from a blenders’ to a producers’ credit. The change would ensure that the tax credit incentivizes domestic production without subsidizing imported fuel.

Listen to Grassley’s comments here: Sen. Grassley biodiesel rally comments

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Global Demand for Biofuels Continues to Increase

Cindy Zimmerman

The 2017 Renewables outlook from the International Energy Agency (IEA) is once again projecting continued increased demand for conventional biofuels.

The report notes that while sales of electric vehicles are increasing, “the share of EVs remains limited, and biofuels are still expected to represent over 90% of total renewable energy consumption in road transport by 2022. Biofuels production is expected to grow by over 16% during over the forecast period.”

Asia and Brazil are expected to lead in the growth of biofuels over the next five years, according to the report, with modest growth expected in the European Union. In the United States, ethanol and biodiesel production also forecast to expand as a result of “supportive policy frameworks”. Advanced biofuels (such as cellulosic ethanol) production is expected to almost quadruple from a low base, which is still just over 1% of total biofuels production.

“The IEA’s latest outlook clearly shows the key role that biofuels are playing in efforts to decarbonize the global transport sector,” said Global Renewable Fuels Alliance (GRFA) president Bliss Baker. “As the only cost-effective and commercially available alternative to crude oil currently available, the significant contributions that biofuels make in reducing GHG emissions from the global transport sector each year will continue to grow.”

For the first time, the report includes an “accelerated case” forecast for biofuels that assumes “additional investment in new production capacity in Brazil; scaling up fuel distribution infrastructure in the United States; and roll-out of a blending programme in India” and estimates biofuel production could be 13% higher.

“Previous projections have outlined how biofuel production could rise to 165,000 million litres by 2030 if the US, Canada and Europe adopted a common E15 blending standard,” said Baker. “This latest accelerated case forecast by the IEA demonstrates how growing demand for biofuels driven by developing economies could realistically drive these projections much higher in a much shorter timeframe.”

The report estimates total global production of conventional biofuels to grow by an average of 2.6% annually from 2017.

Ethanol, Ethanol News, International

Badger State Ethanol Partners with LE3 for Expansion

Cindy Zimmerman

Badger State Ethanol LLC (BSE) recently increased ethanol production to over 90 million gallons at its Monroe facility – more than doubling its original nameplate capacity of 40 million gallons when the plant began production in 2002.

BSE collaborated with Scott Lucas, Director of Engineering with Lucas E3 LLC (LE3), to expand the plant’s ethanol production. “Lucas E3 is looking forward to bringing low cost expansion opportunities to the industry,” Lucas said. “This project successfully demonstrates some of the technology being developed by our team.”

In the collaboration, BSE used LE3’s patent pending and efficient secondary distillation system. LE3’s secondary distillation system is innovative due to the heat integrations that reduce total energy usage by 2,000 Btu/gallon for the plant.

BSE has experienced over a 40 percent expansion to its distillation capacity, with seamless integration to the existing system. All plants are different, but LE3 expects these expansions to cost less than $1 per gallon.

Ethanol, Ethanol News

White Energy Appoints New CEO

Cindy Zimmerman

— White Energy of Plano, Texas has appointed Brian Steenhard as Chief Financial Officer, joining Greg Thompson, who became CEO of White Energy in September.

“Brian will be a tremendous asset to White Energy. He has a strong track record of successfully increasing revenues and generating value for ethanol and energy companies,” Thompson said.

Steenhard has extensive experience in the renewable energy industry. He previously served as CFO of Aventine Renewable Energy Holdings, Inc., where he implemented a turnaround strategy that generated more than $200 million of equity value for Aventine’s shareholders. His work included securing capital to modernize the company’s ethanol facilities and generate new product lines with enhanced revenue streams.

Steenhard also served as a vice president of Hawkeye Energy Holdings, a large privately-held ethanol company, where he helped grow top-line revenues from $400 million to $1 billion.

Ethanol, Ethanol News

Ethanol Industry Submits High-Octane Comments

Cindy Zimmerman

Ethanol industry stakeholders submitted comments this week to the Environmental Protection Agency (EPA) and National Highway Transportation Safety Administration (NHTSA) regarding the Midterm Reivew of 2022-2025 CAFE and GHG standards and how high octane ethanol blends can help clean the air.

Comments from the Renewable Fuels Association (RFA) encouraged the agencies to consider the beneficial impacts of high-octane, low-carbon (HOLC) fuels on fuel economy and GHG emissions and underscored that EPA has the authority and responsibility to regulate minimum gasoline octane ratings. “We were very encouraged to see EPA specifically ask for comment on the ‘potential for high-octane blends’ in the notice announcing the reconsideration of the last administration’s Final Determination,” said RFA President and CEO Bob Dinneen. “Such fuels can serve as an important tool for complying with increasingly stringent future fuel economy and tailpipe GHG standards.”

The American Coalition for Ethanol (ACE) recommended changes in the way the agency tests new vehicles and how ethanol is treated as a fuel. “While the CAFE-GHG program has resulted in meaningful progress with respect to fuel efficiency and GHG emissions, this progress will plateau unless EPA increases the octane rating of fuel used in future engines,” said Brian Jennings, ACE Executive Vice President.

And a coalition of stakeholders led by the Urban Air Initiative (UAI) said ethanol can help meet efficiency and CO2 reduction goals if given access to the market. “We commend EPA for giving this important issue of fuel economy and carbon reductions the thorough and complete evaluation it requires, and correcting the serious errors in the technical assessment issued last November,” said UAI President Dave VanderGriend.

The Urban Air Initiative-led effort included the Clean Fuels Development Coalition, Nebraska Ethanol Board, Nebraska Ethanol Industry Coalition, Glacial Lakes Energy, Siouxland Ethanol, Prairie Horizons Agri-Energy, Little Sioux Corn Processors, South Dakota Farmers Union, and Nebraska Farmers Union.

EPA, Ethanol, Ethanol News

Senators Call on EPA to Keep RFS Strong

Cindy Zimmerman

Senators Amy Klobuchar (D-MN) and Chuck Grassley (R-IA) are leading a bipartisan group of 38 senators in calling for a strong Renewable Fuel Standard (RFS) as the Environmental Protection Agency works toward finalizing biofuels volume requirements for 2018.

In a letter to EPA Scott Pruitt this week, the senators urged “the continued implementation of the RFS as intended by Congress and the release of a strong final rule that would give consumers more choices at the pump, strengthen the economy, and make the country more secure.”

EPA’s formal 2018 RFS proposal would maintain the 15 billion gallon statutory requirement for conventional biofuels, but would slash the cellulosic biofuel target by nearly one-quarter. Recently EPA issued an additional proposal with further cuts to the 2018 RFS volumes and now there are rumors that the agency is considering allowing U.S. biofuel export volumes to count toward compliance with the RFS.

Renewable Fuels Association President and CEO Bob Dinneen applauded the efforts of the senators. “EPA is sending all the wrong signals on a program that has helped clean the air, reduce dependency on petroleum and boost local economies,” said Dinneen. “We thank the senators for their leadership and hope Administrator Pruitt heeds their call to implement a final 2018 RFS that follows Congressional intent.”

EPA, Ethanol, Ethanol News, RFA, RFS

Biodiesel Drives Manufacturing

Cindy Zimmerman

The biodiesel industry is celebrating Manufacturing Day℠ today – a celebration of modern manufacturing meant to inspire the next generation of manufacturers that occurs on the first Friday in October each year.

Biodiesel is a driving force in America’s manufacturing sector, supporting more than 64,000 good paying, clean energy jobs across the country. These jobs are contributing to a vibrant manufacturing sector, reinvigorating rural economies and driving innovation.

“Manufacturing Day 2017 is an appropriate time to reflect on the biodiesel industry’s economic contributions,” said Donnell Rehagen, National Biodiesel Board CEO. “With nearly 90 NBB-member plants, American-made biodiesel is produced in almost every state in the country. There are countless real-life examples of the power of biodiesel supporting the American economy and jobs throughout the supply chain. From the farmers who grow the feedstocks, to the producers who make the fuel, to the marketers and distributors who ensure it gets to the end users – biodiesel is an economic and job creation success story.”

Biodiesel

Ethanol Industry Leader Calls on EPA to Maintain RFS

Cindy Zimmerman

RFA chairman Mick Henderson talks with biker filling up with E10 at Sturgis

In an op-ed published this week in The Hill, the chairman of the Renewable Fuels Association (RFA) urges EPA Administrator Scott Pruitt to stick with President Trump’s vision for an America First energy policy and keep the Renewable Fuel Standard (RFS) strong.

Pointing to EPA actions and rumors of actions in recent weeks to reduce volume obligations and lower demand for ethanol, Commonwealth Agri-Energy general manager Mick Henderson said Pruitt apparently “has not gotten the memo from the White House that the RFS is to be protected and allowed to grow the market for biofuels, while providing consumers with more choice and savings at the pump.”

Henderson was just re-elected as chairman of the RFA this week during the organization’s annual meeting in Des Moines. Henderson’s ethanol plant, located in Hopkinsville, Ky., produces 35 million gallons of ethanol per year from 12 million bushels of corn. Henderson has been with Commonwealth Agri-Energy since 2003 and has served on the RFA Board of Directors since 2006.

RFA also elected Neil Koehler of Pacific Ethanol as Vice Chairman, and Charles Wilson of Trenton Agri-Products as Treasurer.

EPA, Ethanol, Opinion, RFA

ACE Partners with EPA Smart Sectors Program

Cindy Zimmerman

The American Coalition for Ethanol (ACE) is one of the participants in the Environmental Protection Agency’s Smart Sectors program launched this week to provide a platform for collaboration with regulated sectors to help the agency develop forward-thinking ways to improve environmental outcomes.

“The Smart Sectors program is designed to effectively engage business partners throughout the regulatory process,” said EPA Administrator Scott Pruitt. “When industries and regulators better understand each other, the economy, public, and the environment all benefit.”

Smart Sectors is partnering with trade associations from 13 industry sectors selected for their environmental and economic impacts. ACE represents biofuels under the oil and gas sector as the only ethanol industry association representative invited to partner in the launch.

“We’re grateful Administrator Pruitt invited ACE to participate in this Smart Sectors program given the timely and critical ethanol issues currently under consideration at EPA,” said Brian Jennings, ACE Executive Vice President. “We will take advantage of this opportunity to work with EPA to ensure that RFS implementation grows demand for biofuels, to continue pushing for RVP relief for E15 and higher ethanol blends, and to position high-octane fuel as a solution to fuel economy and emissions standards.”

Organizations chosen to represent the agricultural industry in the program are the American Farm Bureau Federation and CropLife America.

ACE, Ag group, EPA

Help Finally on the Way for USDA

Secy Perdue greets McKinney and Censky before Senate hearing (USDA Photo)

Over five months after he took office, Agriculture Secretary Sonny Perdue finally has some help on the way.

Yesterday, the Senate voted to formally approved the nominations of Stephen Censky as Deputy Secretary of Agriculture, and Ted McKinney as Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs.

“I am pleased that the U.S. Senate was able to work in a bipartisan and swift manner to confirm Stephen Censky and Ted McKinney,” said Senate Agriculture Committee chair Pat Roberts (R-KS). “Secretary Perdue, help is on the way.”

“I commend the Senate for confirming these two experienced, prepared, and capable nominees, who will provide the steady leadership we need at USDA,” said Secretary Perdue in a statement. “We eagerly await their arrival at USDA, and urge the Senate to continue to act on other nominees who are awaiting confirmation.”

The Senate Agriculture Committee held a hearing with both nominees on September 19. Tomorrow, the committee will hold a hearing on the nominations of Greg Ibach of Nebraska to be Under Secretary of Agriculture for Marketing and Regulatory Programs, and Bill Northey of Iowa to be Under Secretary of Agriculture for Farm and Foreign Agricultural Services. No hearing has been scheduled yet for Sam Clovis of Iowa, President Trump’s controversial pick for Under Secretary for Research, Education, and Economics.

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