GROWMARK Announces 2018 Essay Contest Theme

Carrie Muehling

For the past 25 years, GROWMARK has challenged students to think creatively about the future of agriculture and how cooperatives can continue to thrive and contribute to the industry through an annual essay contest.

This year’s 2018 GROWMARK Essay Contest asks students “How can cooperatives demonstrate their value to the next generation of agriculturists?” All high school FFA members in Illinois, Iowa, Missouri, and Wisconsin can participate.

GROWMARK invites students to submit essays online by November 10, 2017. Winning students in each state receive $500, with the winner’s FFA chapter receiving $300.

Agribusiness, AgWired Animal, AgWired Energy, GROWMARK

Rumors Send RIN Markets Plunging

Cindy Zimmerman

A news report this week that EPA was considering a policy change to count ethanol exports toward Renewable Identification Numbers (RINS) caused their prices to dive on the market. That, on top of EPA’s announcement this week that further cuts in the volume obligations under the Renewable Fuel Standard (RFS) were being considered, caused some to question the administration’s commitment to biofuels, but others say there is no need to panic, yet.

“This is a town that thrives on rumors,” said Renewable Fuels Association (RFA) president and CEO Bob Dinneen. “But if true, the notion of allowing exported biofuels to qualify towards an oil company’s RFS renewable fuel volume obligation would be a gross misinterpretation of the letter and spirit of the Energy Independence and Security Act of 2007, designed to enhance—not export-U.S. energy security.”

Currently, RINs are not associated with exported U.S. ethanol, and if they were it could add another billion ethanol (D6) RINs annually. The change is reportedly being sought by Valero Energy and other oil interests, including presidential advisor Carl Ichan, who was the basis of the rumor earlier this year that EPA planned to change the point of obligation in favor of refiners, which never happened.

Ethanol, Ethanol News, RFA, RFS, RINS

Tri-State Governors Conference Highlights Biofuels

Cindy Zimmerman

There was a big focus on biofuels at the 15th annual Tri-State Governors’ Conference in Sioux City, Iowa this week. The governors of Iowa, Nebraska and South Dakota get together for this biannual event to discuss the issues impacting their respective states and the Siouxland region, and since the three states together produce almost half of the nation’s ethanol, that is definitely a big priority for them.

Each of the governors shared initiatives their states are implementing to support the use of ethanol-blended fuels during the conference. Iowa Gov. Kim Reynolds mentioned a test program for E30 in the Iowa Energy Plan. Nebraska Gov. Pete Ricketts, who recently keynoted ACE’s 30th annual conference in Omaha, expressed his optimism in working with the administration and the opportunity the biofuels industry possesses to further grow rural economies. South Dakota Gov. Dennis Daugaard mentioned a state bid to bring E30 into the main state fleet fuel locations in Pierre, Brookings and Sioux Falls. He also mentioned that a greenfield ethanol plant, Ringneck Energy, is being constructed in Onida, South Dakota.

Also on the conference program was American Coalition for Ethanol member Pam Miller of Siouxland Ethanol, who thanked the governors for their ethanol industry advocacy through their involvement on the Governors’ Biofuels Coalition and asked for their consideration of a plan to lead a Midwestern-focused E30 demonstration program in which states would receive a waiver from the EPA, which has already been requested, to allow E30 use in non-flex fuel vehicles.

ACE, Ethanol, Ethanol News

Ethanol Report on EPA RFS Notice

Cindy Zimmerman

The Environmental Protection Agency released its proposed Renewable Fuel Standard (RFS) renewable volume obligations (RVOs) for 2018 on July 5, the comment period just ended on August 31, and then this week EPA gave notice that it is seeking comment on options for further reductions in the biomass-based diesel, advanced biofuel and total renewable fuel volumes.

Renewable Fuels Association (RFA) president and CEO Bob Dinneen says this has never happened before. “This is a new town with new rules but this one sort of has me scratching my head a little bit,” said Dinneen.

Listen to Dinneen’s comments on the EPA move in this edition of the Ethanol Report: Ethanol Report on EPA Notice

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

ACE Celebrates NE Flex Fuel Station Opening

Cindy Zimmerman

American Coalition for Ethanol (ACE) board member Scott McPheeters of KAPPA Ethanol was first in line to fill up this week at the new Blue Heron Renewable Flex Fuel Plaza on Interstate 80 in Nebraska.

“There was a need and an opportunity to provide more ethanol blends at a great price in central Nebraska,” said McPheeters. “Blue Heron is a great location to attract business from the more than 15,000 vehicles a day traveling on Interstate 80.”

Blue Heron has installed Wayne Helix dispensers and offers E10, E15, E30, E40 and E85. “Based on the early reports, the station’s overall volume is triple what it was before the upgrade and blends above 10 percent ethanol make up well over half of their volume,” said ACE Senior Vice President Ron Lamberty who has documented the station’s upgrade on flexfuelforward.com to demonstrate how privately-owned, single-store owners can add E15 and flex fuels affordably and profitably.

The station is hosting a grand opening this morning with a ribbon cutting followed by an E85 fuel promotion. The station received state and federal grant funding coordinated by Access Ethanol Nebraska, as well as support from ethanol producers in central Nebraska. McPheeters’ plant KAAPA Ethanol in Minden sponsored fuel canopy and billboard upgrades for the station, and Nebraska Corn Processing and Anew Fuel Services provided ethanol at a discounted price for the grand opening.

ACE, Ethanol, Retailers

NFU President Joins Board of New Energy America

Cindy Zimmerman

National Farmers Union’s (NFU) President Roger Johnson has joined the advisory board of New Energy America, a new organization created to promote clean energy jobs in rural America.

As part of its launch last week, New Energy America released the first Fifty State Clean Energy Jobs Report, which shows that clean energy jobs outpace fossil energy jobs in 41 states.

“Too often the debate in Washington misses the fact that what is good for clean energy is good for rural America,” said Mike Carr, Executive Director of New Energy America. “New Energy America will make sure that rural America knows that clean energy policies are creating jobs in their communities.”

The organization focus on clean energy includes solar, wind and biofuels.

Energy, Ethanol, NFU, Solar, Wind

EPA Proposes Further Cuts in Biofuels Under RFS

Cindy Zimmerman

The Environmental Protection Agency surprised the biofuels industry Tuesday by issuing a notice asking for comment on further reducing volume obligations for some fuels under the Renewable Fuel Standard (RFS) program.

The EPA Notice of Data Availability (NODA) suggests a reduction of the 2018 advanced biofuel volume requirement from the proposed level of 4.24 billion gallons to 3.77 billion gallons, and the 2018 total renewable fuel volume requirement from the proposed level of 19.24 billion gallons to 18.77 billion gallons, driven by apparent concerns over biofuel imports.

Sen. Chuck Grassley (R-IA) calls EPA’s action outrageous “This seems like a bait-and-switch from the EPA’s prior proposal and from assurances from the President himself and Cabinet secretaries in my office prior to confirmation for their strong support of renewable fuels…This all gives me a strong suspicion that Big Oil and refineries are prevailing, despite assurances to the contrary,” said Grassley.

“There is no rationale for further lowering either the 2018 advanced biofuel volume requirement or the total renewable fuel volume,” said Renewable Fuels Association president and CEO Bob Dinneen. “EPA appears to be adopting API’s argument that ‘domestic supply’ somehow means ‘domestic production,’ when this is clearly not the case. The domestic supply of biofuels includes both imported and domestically produced biofuel volumes, just as USDA recognizes in its monthly supply-demand estimates that the total domestic supply of corn includes corn imports from other countries.”

The EPA notice cites concerns that price of biodiesel used in the U.S. could increase as a result of the recent Department of Commerce determination that it would be appropriate to place countervailing duties of 41% to 68% on imports of biodiesel from Argentina and Indonesia. Doug Whitehead, chief operating officer at the National Biodiesel Board (NBB), says EPA was already “underestimating the power of domestic biodiesel production and ignoring the intent of the law” in the proposed RVO rule and this request for comment is even more disappointing. “NBB will be working with EPA to demonstrate the industry’s proven success record, continued growth and impacts to American workers who were promised that this administration had their back,” said Whitehead.

Biodiesel, EPA, Ethanol, Ethanol News, RFA, RFS

Crappie Masters National Champs Appreciate Ethanol

Carrie Muehling

The recent 2017 Crappie Masters National Championship, sponsored in part by the Renewable Fuels Association, American Ethanol, and Bass Pro Shops, saw Missouri fishermen Paul Alpers and Phillip Haynes finishing on top. The partners fought unseasonably hot weather and dropping river levels as they brought in a two-day total weight of 21.89 pounds. They use ethanol in their vehicles and in their boats, and shared an appreciation for the quality and the value of the fuel.

“Anything you can save, especially on the fuel, and I appreciate everything they’re doing to make it cheaper on the folks,” says Alpers.

This year’s champions shared their enthusiasm for the sport and their confidence in ethanol after winning the recent competition.

Listen to Chuck’s interview with Paul Alpers and Phillip Haynes here: Paul Alpers & Phillip Haynes, 2017 Crappie Masters Tournament National Champions

AgWired Energy, Audio, Ethanol, RFA

USDA Trade Mission Heading to Brazil

Cindy Zimmerman

A USDA Foreign Agriculture Service trade mission to São Paulo and Recife, Brazil, is underway this week with ethanol industry leaders looking to expand their agricultural exports and further develop their business relationships in Brazil.

“Brazil holds significant untapped market potential for U.S. exporters,” said Mark Slupek, deputy administrator of the Office of Trade Programs for USDA’s Foreign Agricultural Service. “The country’s growing population and rising per-capita income, coupled with the fact that Brazilian consumers have a high regard for U.S. products and brands, make this a market well worth exploring for American exporters.”

Last year, Brazil purchased nearly $1.4 billion in agricultural and related products from the United States. Top U.S. exports to Brazil in 2016 included ethanol, wheat, prepared foods and dairy products.

The delegation traveling to Brazil represents a range of U.S. products, from prepared foods and specialty food ingredients to bulk commodities and ethanol. Among the ethanol companies and organizations represented on the trip are all three ethanol industry organizations, and member companies including E Energy Adams and Green Plains of Nebraska and Lakeview Energy in Chicago.

ACE, Ethanol, Ethanol News, Exports, RFA, Trade, USDA

Magellan to Offer E15 at all Iowa Fuel Terminals

Cindy Zimmerman

Magellan Midstream Partners fuel pipeline and storage company is now offering pre-blended E15 at many terminals across the U.S., including all Magellan terminals that service Iowa.

“This announcement from Magellan is game-changing,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “It is now possible for most retailers across the state to replace a low-demand product with E15 without investing in major infrastructure upgrades.”

“While IRFA remains very supportive of blender pumps because they provide consumers access to even more ethanol blend options, I expect Magellan’s decision to offer pre-blended E15 will rapidly increase the number of Iowa retailers who decide to offer this exciting new fuel,” Shaw added.

Without access to pre-blended E15, retailers have to install blender pumps to blend the fuel onsite. Nearly all underground storage tanks are certified to store E15 and all fuel dispensers in Iowa are approved to dispense E15. Therefore, the ability to purchase pre-blended E15 at the terminal means most Iowa retailers could offer E15 through their existing station infrastructure with little or no equipment upgrades.

E15, Ethanol, Ethanol News, Iowa RFA