What Ag Issue Will Top 2016?

Jamie Johansen

New Holland ZimmPollOur latest ZimmPoll asked the question, “What was your top ag story for 2015?”

We have a variety of responses to this week’s poll. COOL repeal jumped to the top, but many of the others were trailing closely. And many of these hot button ag issues will follow us into 2016.

Here are the poll results:

  • TPP – 11%
  • COOL repeal- 28%
  • Avian flu – 6%
  • RFS proposal – 17%
  • Low commodity prices – 11%
  • WOTUS – 22%
  • Equipment sales down – 5%

Our new ZimmPoll is now live and asks the question, What do you expect to be the top ag issue of 2016?

2016 has already started with a bang with the announcement of the 2015-2020 Dietary Guidelines. And as each week goes by, we will continually add to the list of important agricultural issues impacting each segment of the industry. I don’t have a crystal ball, but if you do please share what you expect to be the top ag issue in 2016.

ZimmPoll

2015 Sees Record Car Sales, Most Approved for E15

Joanna Schroeder

U.S. car sales in 2015 hit record sales according to statistics from Autodata. Increased sales have been spurred by cheap gasoline prices coupled with low interest rates. In total, 17.5 million cars and light trucks were sold last year to the tune of $570 billion.

According to the Renewable Fuels Association (RFA), a majority of these vehicles sold are approved for the use of E15 (15 percent ethanol; 85 percent gas). In 2016, an even more cars and light trucks are expected to be approved for E15 use by automakers.

E15 at the pump

Photo Credit: Joanna Schroeder

RFA estimates that E15 was identified by auto manufacturers as an approved fuel for slightly more than 60 percent of model year (MY) 2015 vehicles sold – nearly 10.7 million cars and light trucks. This number is expected to grow in 2016, as strong sales are expected to continue and more than 70 percent of MY2016 vehicles carry the manufacturers’ explicit endorsement of E15. Recent analysis by RFA showed that Fiat Chrylser, General Motors, Ford, Toyota/Lexus, Audi/Porsche/Volkswagen, Honda/Acura, Jaguar, and Land Rover all clearly identify E15 as an approved fuel for MY2016 vehicles.

“With each passing day, the number of automakers approving the use of E15 vehicles on U.S. roadways continues to grow,” said RFA President and CEO Bob Dinneen. “As we begin 2016 three important trends are worth noting: first, vehicle sales show no signs of slowing down; second, an even larger percentage of new cars, pickups, and SUVs are explicitly approved by their manufacturer for E15; and third, the oldest vehicles in the fleet— model years 2000 and older not EPA-approved for E15 use —are being scrapped at an accelerated rate. This means that someday in the not-so-distant future, nearly every car, truck, or SUV in the country will be unambiguously approved by the auto manufacturer for E15 and we can put to rest the false notion that carmakers don’t allow the use of E15.”

While automakers only began identifying E15 as an approved fuel for new vehicles following registration of E15 as a legal fuel in 2010, the Environmental Protection Agency (EPA) has approved the use of E15 in all vehicles built since 2001. This means more than 85 percent of the vehicles on the road today are legally approved to use E15.

automotive, E15, Ethanol News, RFA

Sen. Ted Cruz’s Evolution on Ethanol

Joanna Schroeder

Presidential candidate Senator Ted Cruz has come a long way on his view of ethanol.  For the first time during a bus stop in Sioux Center, Iowa, Cruz pledged to support the Renewable Fuel Standard (RFS) through 2022 and called for an end to oil and gas production subsidies if elected president. Former Senator Jim Talent, who is now spearheading Americans for Energy Security and Innovation (AESI), has commended Cruz for joining other Republican presidential candidates in voicing support for the RFS.

AESI logo“The RFS has been an extremely successful policy over the past decade – with 10 percent of the nation’s fuel supply now coming from cost-competitive biofuels,” said Talent. “It has helped the biofuels industry create more than 850,000 well-paying jobs in rural America and across the country.”

“The fact is, continued Talent, “that energy markets are not free markets because of the international oil cartel. Senator Cruz is correct to call for leveling the playing field by ensuring market access for biofuels. His proposal to rescind the EPA blend wall will help to promote investment in biofuels that will help to create more jobs and spur innovation.”

In response to Sen. Cruz’s statements, America’s Renewable Future (ARF) state director Eric Branstad said, “Farmers and rural communities across Iowa are going to be encouraged by Sen. Cruz’s remarks. He is clearly listening to the people of Iowa and understands the importance of the Renewable Fuel Standard to America’s economy and energy independence, as he started the caucus process calling for immediate repeal. While not perfect, this is a big step forward by Sen. Cruz.”

Despite recent pro-RFS comments, Sen. Cruz has not been supportive through out his whole campaign. So much so that ARF has been campaigning with Iowans to let them know that Cruz is not a “true” supporter. However, Cruz wrote an Op-Ed this week outlining a new tone and position on ethanol and the RFS. 

ARF-Logo-Retina-AltIn addition to this new RFS position, Cruz also communicated support for breaking the artificial blendwall saying, “ethanol blends can be a win-win for automakers and consumers alike”. This, said ARF, is a far cry from Cruz’s 2013 introduction of an immediate repeal and his position that ethanol production drives “up the costs of fuel, food, and goods.” These are facts Cruz’s campaign conveniently left out of its response. Cruz’s recent comments, said ARF, come after being pressured by Iowans and are a welcome change.Read More

biofuels, Ethanol, RFS

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1U.S. Secretary of Agriculture, and former Iowa Governor, Tom Vilsack will provide a unique perspective on the U.S. Department of Agriculture’s (USDA) commitment to renewable fuels at the 10th Annual Iowa Renewable Fuels Summit. The Summit is free to attend and open to the public. Registration is required. Online registration closes January 12, 2016.
  • According to Navigant Research, global annual NGV sales are expected to grow from 2.4 million vehicles in 2015 to 3.9 million in 2025. The report analyzes the market for natural gas vehicles (NGVs), including global forecasts, broken down by vehicle segment, alternative drivetrain, and region, through 2025.
  • Canadian Solar Inc. has announced that it has energized an additional five solar power plants, totaling 22.9 MWp. Royston Solar Park, Wick Road Solar Park and Pant-Y-Moch Solar Park were developed under the community scheme, with a commercial component totaling 14.7 MWp. Long Meadow Solar Farm and Slade Solar Farm, totaling 8.2 MWp, have been connected to the grid under the Renewable Obligations Certificate (ROCs) program.
  • Duke Energy plans to add more clean, renewable energy to its generation mix with the construction of a 17 MW solar facility at Naval Support Activity Crane, located 40 miles southwest of Bloomington, Ind. The company has requested a certificate of public convenience and necessity from the Indiana Utility Regulatory Commission. If approved, Duke Energy Indiana will own and operate the facility, which is expected to be placed into commercial service in 2016.
Bioenergy Bytes

Renewable Diesel Approved for Mack Trucks

John Davis

macktruckMack Trucks says renewable diesel is cleared for use in all Mack engines. This article from Today’s Trucking says the decision comes following “extensive truck and engine testing” by the company.

“As the availability and customer requests for renewable diesel fuel increase, we worked to ensure its compatibility with our engines,” said Stu Russoli, Mack highway and powertrain products marketing manager. “This approval gives Mack customers who seek to reduce their environmental footprint an additional choice when it comes to alternative fuels.”

Renewable diesel fuel delivers performance similar to diesel refined from petroleum, but with several additional customer benefits, including reduced greenhouse gas and particulate emissions, as well as decreased maintenance costs, according to Mack.

Similar to conventional biodiesel, renewable diesel fuel is derived from biomass feedstocks, including animal fats and oils. However, unlike biodiesel, renewable diesel fuel is produced using a different process and maintains physical properties and performance similar to petroleum diesel, meeting the same ASTM D975 standard.

Mack says renewable diesel fuel offers several environmental benefits to customers, including reducing particulate matter. A life cycle analysis of renewable diesel fuel conducted by the California Air Resources Board also demonstrated reductions in greenhouse gases by 15 to 80 percent, depending on feedstock source used. Also, customers can also save money with renewable diesel fuel, as it requires fewer maintenance costs compared to other alternative fuels.

renewable diesel

Biodiesel Smart Enough to Take on a Harvard Winter

John Davis

nBBWhile we’re in the midst of winter’s icy grip, the folks at the National Biodiesel Board (NBB) remind us how the green fuel can take on the coldest, snowiest winters. They point to last winter in Boston, when the city received nearly 10 FEET of snow, and Harvard University’s biodiesel-powered fleet didn’t miss a beat.

David E. Harris Jr., Harvard’s Director Transit and Fleet Management, reports they had no problems even on the most frigid days. “After the snowiest and coldest winter since we started using biodiesel 11 years ago, we were up and running providing transit service and keeping campus operations running smoothly,” Harris said. “Biodiesel is the fuel that helped us do that.”

Harvard uses approximately 2,000 gallons of B20 per week, for a total of more than 100,000 gallons a year. Their diesel fleet includes about 75 service vehicles – such as shuttle buses, solid waste and recycling trucks, mail delivery vehicles and more – and about 25 pieces of off-road maintenance equipment.

Harris, who shares his biodiesel know-how as a volunteer Biodiesel Ambassador, adds that the precautions he takes with biodiesel in cold weather are good practice with regular diesel fuel as well. He emphasizes that ensuring good quality fuel is priority one.

NBB adds that biodiesel can gel in very cold temperatures, and there are some things you need to keep in mind when using biodiesel in cold climates:

• Use high-quality fuel that meets the ASTM spec purchased from a reputable supplier.
• Be sure to discuss fuel options with your supplier to ensure that both the diesel fuel and biodiesel are blended only after meeting their respective specifications.
• Develop a good fuel management plan, in partnership with your supplier, that includes additization (just like for regular diesel) to improve cold weather operability.
• Test fuel periodically to verify its cold weather properties.
• Make sure you understand your fuel’s cold flow characteristics and have appropriate fuel handling and storage plans in place.
• Remain diligent on your tank maintenance program to help ensure fuel cleanliness.

Biodiesel, NBB

Vaisala Partners to Assess Growth of Wind Energy

Joanna Schroeder

Vaisala is partnering with several groups to assess the potential of growth for wind energy. Southeastern Wind Coalition (SWEC) members Southern Company and Santee Cooper will be working with Vaisala on a wind feasibility study to assist the utilities in identifying the potential for utility-scale wind development. Currently, the region has very little wind energy production.

1 Vaisala logo in jpeg formatThe southwest has a longstanding reputation for low wind resources in comparison to the rest of the U.S. has led many developers to overlook the Southeast as a potential site for commercial wind energy projects. However, as turbine and resource mapping technologies improve, interest in the region is starting to increase.

As reported by the American Wind Energy Association (AWEA), SEWC, and the National Renewable Energy Laboratory (NREL), taller towers, longer blades, and improved electronics have significantly increased turbine output and efficiency and expanded the areas where wind energy projects are not only feasible but also profitable, such as the southeast.

In order to further evaluate this growth and mobilize the development of utility-scale wind projects in the Southeast, the industry must have access to high-quality wind resource data as a basis for crucial project siting decisions and to complete financial modeling. Vaisala’s wind feasibility study will provide this access by creating a wind resource database of the Southeast, which will be available to coalition members, as well as a wind resource map at high altitudes, which will be publically available. The wind study will be conducted over 12 months.

“The Southeast is poised for considerable wind energy growth,” said Pascal Storck, global manager of Energy Services at Vaisala. “However, before utilities and developers can start to make the most of the region’s wind potential, the industry needs to provide these would-be investors with access to trusted, reliable data. That includes comprehensive resource assessment that demonstrates the viability and longevity of southeastern wind energy as an investment proposition.”

Clean Energy, Electricity, Wind

Energy, Ag Scholarships Available from CHS

Joanna Schroeder

Current college students and soon to be college students who are interested in alternative energy and agriculture are eligible to apply for scholarships from the CHS Foundation. The major giving entity of CHS Inc., more than 300 scholarships will be awarded in 2016.

CHS_LOGOOne hundred $1,000 scholarships will be made to high school students who choose to pursue agricultural-related degrees or STEM-related (science, technology, engineering, math) fields of study with an interest in agriculture or energy industry careers. More than 200 additional scholarships will help fund expenses for existing agriculture college students currently pursuing agriculture-related degrees at two- and four-year colleges.

“CHS and the CHS Foundation are dedicated to developing future leaders,” said William Nelson, president, CHS Foundation and vice president, CHS Corporate Citizenship. “We are proud to invest in educating young people to ensure they gain experience and build the skills necessary for long-lasting careers in the agriculture and energy industries.”

High school scholarship applications must be submitted by April 1, 2016. An independent, external committee will select scholarship recipients based on essays, transcripts and reference letters. For additional eligibility information and to apply, click here. The college scholarships are directly administered by more than 30 partnering universities throughout the U.S. and application deadlines vary by by school. For more information and a list of partnering universities, click here.

Agribusiness, Education, Renewable Energy

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1The Detroit Zoological Society (DZS) has taken another big step on its green journey by powering Detroit Zoo operations with 100% renewable electricity from wind farms. The organization’s commitment to sustainable electricity with the purchase of Renewable Energy Credits (RECs) is being made possible through the support of ITC Holdings Corp.
  • Royal Philips has announced Philips North America will use 100 percent renewable energy for its North American operations by the end of 2016, a major step toward its 2020 carbon neutrality ambitions announced during COP21. Working with EDP Renewables North America, Philips will purchase 250,000 MWh of electricity per year over the next 15 years from the Hidalgo Wind Farm in McCook, Texas, an amount equivalent to the power used at the company’s 133 sites which support over 21,000 employees in the market.
  • The U.S. Energy Information Administration has published the 2014 state-level estimates for fuel ethanol consumption. The data shows the U.S. consumed nearly 320.1 million barrels (13.44 billion gallons) of ethanol in 2014.
  • Biofuels Digest is hosting a free webinar, “Loan Guarantees: USDA Section 9003 Feasibility Study and Technical Evaluation,” on Tuesday, January 12, 2016 at noon ET. The webinar will discuss topics including: What is the Purpose of the Feasibility Study? How can I know if my project is feasible? What should I look for in choosing a feasibility study consultant? What does a successful proforma look like when oil prices are so low and predictions of future pricing so unpredictable? Why won’t lenders talk to me? (Recommendations and pointers from prior successful clients and what lenders really want before they will consider your project for funding.) Is my project technically ready? (Understand the role of the Independent Engineer and the status of your pilot and integrated demonstration testing and how this will affect your application.) Deal Jeopardy – what are some common application pitfalls?
Bioenergy Bytes

Biodiesel Board Hires Franco as General Counsel

John Davis

nBBWashington attorney Sandra Franco is the new general counsel at the National Biodiesel Board (NBB). This news release from the group says Franco comes to NBB from the the environmental group at the international law firm Morgan Lewis, where she specialized in the Clean Air Act and natural resources law, and has long worked with the renewable fuels industry, including NBB, on a variety of legal matters. She is one of the nation’s foremost legal experts with respect to the Renewable Fuel Standard (RFS).

“There isn’t an attorney in the country who knows renewable fuels law better than Sandra Franco, and we are thrilled to have her join our team,” said NBB CEO Joe Jobe.

Franco has participated in litigation before the U.S. Supreme Court, the U.S. Court of Appeals for the District of Columbia Circuit, and the U.S. District Court for the District of Columbia, as well as other federal district courts and courts of appeal. For NBB, Sandra worked on regulatory proceedings affecting the biodiesel industry and led her firm’s team on litigation over the RFS, successfully defending full implementation of the program.

“Sandra is a tremendously skilled and seasoned attorney who will help us ensure that the U.S. biodiesel industry has a strong voice and expert counsel in Washington as well as on legal and regulatory issues across the country,” Jobe added.

Biodiesel, NBB