RFA Launches Ethanol and Boating Campaign

Cindy Zimmerman

With summer just around the corner, the Renewable Fuels Association (RFA) has launched an advertising campaign to explain the fact regarding ethanol usage in marine engines.

The campaign kicked off with a two-page ad in the latest issue of Marina Dock Age, which is delivered to nearly every marina in the United States. The campaign will also feature educational outreach and further ad placement in news outlets throughout the country.

The ad points out the fact that 10% ethanol (E10) has been used in all type of marine engines and that it is approved by major marine manufacturers including Honda, Kawasaki and Mercury Marine.

Quoted in the ad is Mike Vallentine, owner of the Crappie Masters Tournament Trail, who says 100% of the anglers in their tournament use E10 in their boats. “For three seasons now, Crappie Masters has received zero complaints, nor had any fuel-related engine problems reported,” said Vallentine.

RFA is co-title sponsor of the Crappie Masters Tournament Trail this year in an effort to educate boaters, conservation enthusiasts and consumers about ethanol’s benefits and its use in boats and other marine applications.

RFA notes that while E10 is approved for use in all marine engines, higher ethanol blends, such as E15, are not. EPA has approved the use of E15 in all 2001 and later model year vehicles, but only for on-road vehicles.

Audio, Boats, Ethanol, Ethanol News, RFA

Actions Seek to Keep U.S. Biodiesel Tax Benefits at Home

Cindy Zimmerman

Two actions last week made progress toward preventing foreign biodiesel producers from reaping the benefits of U.S. tax incentives.

Rep. Kristi Noem meets with biofuels supporters in her DC office

Rep. Kristi Noem (R-SD) announced the introduction of legislation would extend the $1-per-gallon tax credit for biodiesel through the end of 2020 and reform the credit so it is only used for fuel produced in the U.S.

“This legislation would give more certainty regarding biodiesel’s availability while ensuring the incentive is encouraging American biodiesel production, not the importation of foreign biodiesel – a move consistent with our goal of achieving American energy independence,” said Noem.

The bipartisan bill cosponsored by Reps. Bill Pascrell (D-NJ) and Dave Loebsack (D-IA) provides an additional 10-cent-per-gallon credit for small U.S. biodiesel producers. Companion legislation was recently introduced in the U.S. Senate by Senators Chuck Grassley (R-IA) and Maria Cantwell (D-WA).

“We are thrilled to see momentum building in both chambers of Congress for this important tax reform. It is long overdue to close this loophole and better align the incentive with Congress’ intent—to invest American taxpayer dollars to spur job creation here at home,” said Anne Steckel, vice president of federal affairs at the National Biodiesel Board.

At the same time, the International Trade Commission (ITC) decided to proceed with an investigation into biodiesel imports from Argentina and Indonesia. The National Biodiesel Board Fair Trade Coalition is the leading petitioner in this case which alleges serious injury to U.S. biodiesel producers as a result of a flood of imports coming from those two countries in particular.

Biodiesel imports to the U.S. have increased significantly in recent years, which NBB says is largely a result of the tax credit, and that fuel often receives subsidies in its country of origin. Argentinian biodiesel producers, for example, receive incentives under their country’s Differential Export Tax regime, then they can ship to this country where it also can qualify for the U.S. tax incentive.

Biodiesel, NBB

Secretary Perdue Shows Support for Renewable Energy

Cindy Zimmerman

During his first visit to Iowa as Secretary of Agriculture, Sonny Perdue made his support for renewable energy and ethanol perfectly clear.

“Do you know who I work for?,” the Secretary asked the local FFA officer who wanted to make sure he supported renewable energy. “I work for a fellow by the name of Donald J. Trump. Did you hear what he said during the campaign? Renewable energy, ethanol is here to stay…you have nothing to worry about.”

Listen here: Sec. Perdue ethanol question in Iowa

Secretary Perdue visited Couser Cattle Company in Nevada, Iowa where he was welcomed by Bill, Nancy and Tim Couser, as well as Iowa Senators Joni Erst and Chuck Grassley, and Rep. Steve King. Looking comfortable in worn jeans, Perdue related that he calmed Sen. Grassley’s concerns about him as secretary when he told him, “I got 12 grain elevators, all we do is corn, wheat and beans and we sell to an ethanol plant.”

Couser, who is co-founder of Lincolnway Energy ethanol plant in Nevada, presented Perdue with his custom made corn products display, as well as a Don’t Mess with the RFS button from the Iowa Renewable Fuels Association.

Perdue held a round table discussion with Iowa biofuels and agricultural leaders and answered questions during a town hall event, all held on the Couser operation. During his visit to Iowa, Perdue also met with current Governor and soon to be Ambassador Terry Branstad, and incoming governor Kim Reynolds.

Check out USDA’s photo albums on Flickr. Watch the Facebook Live video on Iowa Agribusiness Radio. Download audio of Perdue’s introduction and remarks here: Sec. Perdue visit to Iowa

Audio, Ethanol, Ethanol News, USDA

Ethanol Industry Supports Wyden Clear Energy Act

Cindy Zimmerman

Senate Finance Committee Ranking Member Ron Wyden (D-OR) last week announced legislation to “reduce carbon pollution over the next decade through a series of incentives for clean energy and the promotion of new technologies in the private sector.”

Wyden’s Clean Energy for America Act includes technology-neutral tax credits for domestic production of clean electricity and clean transportation fuel, as well as performance-based tax incentives for energy-efficient homes and office buildings. These credits are open to all resources, including fossil fuels that capture carbon or make efficiency improvements.

The legislation includes a proposal for a technology neutral tax credit designed to encourage the development and production of advanced and cellulosic biofuels, which has the support of the Renewable Fuels Association (RFA). “The RFA supports Senator Wyden’s efforts to develop an energy tax policy that provides long term certainty and stability for the second generation ethanol industry, encourages the development of new biofuel technologies and promotes the production and use of greater volumes clean fuel in the United States,” said Renewable Fuels Association President and CEO Bob Dinneen. “By reforming the existing tax credit into a technology neutral incentive, it will help stimulate investment among a wider range of production technologies and help promote the growth of the second generation biofuels industry.”

Energy, Ethanol, Ethanol News, Government, RFA

Groups Comment on Proposed Canada Clean Fuel Standard

Cindy Zimmerman

Representatives from USGC, Growth Energy, the Renewable Fuels Association and USDA/FAS discussed ethanol policy, usage and benefits with Canadian officials in April.

A recent U.S. ethanol industry mission to Canada delivered the message that ethanol can help them achieve their goals of reducing greenhouse gas emissions by 30 megatons by 2030.

Following the mission, Growth Energy and the Renewable Fuels Association (RFA) joined the U.S. Grains Council (USGC) last week in submitting comments in response to Environment and Climate Change Canada’s (ECCC) Discussion Paper on a Federal Clean Fuel Standard (CFS).

The comments stressed that in addition to increasing the mandated blending rate to 10 percent ethanol (E10), an effective, transparent and accountable ethanol policy, the Clean Fuel Standard must be based on sound, peer-reviewed science and eliminate as many regulatory and legislative barriers as possible.

Canada has an existing national blending mandate of 5 percent in place and is already an important market for U.S. ethanol exports, thanks in part to the free trade preferences between the two nations under the North American Free Trade Agreement (NAFTA). One-third of all U.S. ethanol exports are destined for Canada, making it the top export market for U.S. ethanol for the past four marketing years. In the first six months of the 2016/2017 marketing year, U.S. ethanol exports to Canada have already increased 40 percent year-over-year, totaling 166.2 million gallons or 1.51 million metric tons (59.4 million bushels) in corn equivalent.

Read more

Ethanol, Ethanol News, Exports, Growth Energy, RFA, USGC

Ethanol Report on Trade Issues and Trump Administration

Cindy Zimmerman

Welcome to our new look for The Ethanol Report!

We have been doing The Ethanol Report podcast for the Renewable Fuels Association (RFA) since the beginning of 2008 when podcasting was first introduced so we are giving it a facelift, re-introducing it and putting it in iTunes and other podcast subscription services.

In this episode, we get a Washington update from Renewable Fuels Association president and CEO Bob Dinneen, focusing on recent trade developments and the Trump Administration. Dinneen comments on President Trump’s first 100 days, the potential for Brazil to reinstate a 20% tariff on U.S. ethanol, how Terry Branstad could help the ethanol industry trade situation with China, what re-negotiating NAFTA could mean for ethanol and distillers feed exports, urging EPA to grant waiver for E15, and what he thinks of “Secretary Sonny.”

Listen to this episode here: Ethanol Report on Trade Issues and Trump Administration

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Audio, Ethanol, Ethanol News, Ethanol Report, RFA

Brazil Postpones Imposing Tariffs on US Ethanol

Cindy Zimmerman

A decision by Brazil’s Chamber of Foreign Trade (CAMEX) on whether to impose tariffs on U.S. ethanol has been postponed by until next month for further evaluation. Brazilian sugarcane and ethanol producer associations proposed to reinstate the ethanol import tariff in Brazil after a recent surge in shipments coming in from the United States. UNICA has proposed a 16% tariff on imported ethanol while other producer groups have requested a return to the 20% duty that was discontinued in 2010.

“This is a critically important issue that will impact Brazilian consumers and commodity markets across the globe. It demands very thoughtful consideration,” said the Renewable Fuels Association (RFA), Growth Energy and the U.S. Grains Council in a joint statement. “We strongly believe that re-imposing an import tariff on U.S. ethanol would only lead to increased fuel prices, and endanger the positive and hard-won cooperative trade relationship between our two countries concerning the production, use and global trade in ethanol.”

Brazil was the top destination for U.S. ethanol in March, according to RFA, with nearly 30% of total market share. However, shipments to Brazil were down 28% from February’s record. U.S. ethanol producers have already shipped a total of 146.4 mg to Brazil in the first quarter of 2017, meaning the country has accounted for almost 40% of total year-to-date exports.

RFA president and CEO Bob Dinneen says they are concerned that Brazil is even considering this as an option. “It would be a step backwards for Brazilian consumers who would see higher prices at the pump because some sugarcane producers want to maximize profitability and keep out competition,” said Dinneen. “And it stands in stark contrast to decades of rhetoric from Brazil about the need for free trade when it comes to biofuels.”

Listen to Dinneen’s comments here: RFA CEO Bob Dinneen comments on Brazil considering ethanol tariffs

Audio, Brazil, Ethanol, Ethanol News, Exports, RFA

Ag Secretary to Visit Iowa Cattle Producer and Ethanol Investor

Cindy Zimmerman

U.S. Secretary of Agriculture Sonny Perdue will travel to Nevada, Iowa tomorrow to tour Couser Cattle Company, give his first major farm policy speech, and host a farmer’s town hall meeting.

Couser Cattle Co. is a diversified operation that annually feeds and finishes 5,000 to 6,000 head of cattle and farms 5,000 acres, producing both corn seed and soybean seed. Bill Couser is a fifth generation farmer and one of the founders of Lincolnway Energy, a 50 million-per-year-gallon ethanol plant. He is also past president of the Iowa Renewable Fuels Association and was co-chair of the America’s Renewable Future initiative during the presidential campaign.

The American Coalition for Ethanol (ACE) is encouraging members to attend the town hall meeting and encourage the Trump administration to take steps to help increase demand for renewable fuels like ethanol. ACE wants to thank him for USDA’s support of Biofuel Infrastructure Partnership (BIP) grant funds which will help install nearly 5,000 new pumps for E15 and higher blends, and at the same time urge him to help convince EPA to provide regulatory relief (Reid vapor pressure) for E15 and flex fuels and to keep the Renewable Fuel Standard (RFS) on track.

ACE, Ethanol, Ethanol News, USDA

Propel Fuels Launches 105 Octane Tour in California

Cindy Zimmerman

​Propel Fuels​ kicked off its “105 Octane Tour” this week in California, offering Flex Fuel E85 for $1.05 per gallon at several retail locations in the state to drive awareness of the fuel’s high octane rating.

“E85 is truly connecting with today’s smart, savvy drivers who want more value from their fuel than gasoline is giving them,” said Rob Elam, CEO of Propel. “Millennials are our fastest growth segment, as more drivers of high performance cars are seeking a powerful fuel to meet their needs.”
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The 105 Octane Tour includes stops at five Propel stations around the greater Sacramento area. At each tour stop Propel will give away Propel ProShop swag including E85 decals, caps and mugs, register members to the elite Hi-Octane Society aficionado club, and have fuel experts on hand to answer questions.

Learn more from Propel.

E85, Ethanol, Ethanol News

Ethanol Production Continues to Decline

Cindy Zimmerman

U.S. ethanol production declined for the fifth straight week last week, but stocks have only dropped slightly, according the latest Energy Information Administration (EIA) data and analysis by the Renewable Fuels Association.

Ethanol production averaged 986,000 barrels per day the week ending April 29, down 1,000 b/d from the week before. The current annualized rate is still over 15 billion gallons at this point. Stocks of ethanol decreased just 0.4% from the previous week to 23.2 million barrels, 7.4% higher than year-ago levels.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 10.77%, a full percentage point higher than one year ago.

Ethanol, Ethanol News, RFA