EPA Officials Visit Kansas Ethanol Plant

Cindy Zimmerman

EPA officials visit East Kansas Agri-Energy plant

EPA officials visit East Kansas Agri-Energy plant

In advance of a public hearing in Kansas City on the proposed volume obligations under the Renewable Fuel Standard, Environmental Protection Agency (EPA) officials visited East Kansas Agri-Energy (EKAE) in Garnett, Kansas Wednesday.

Federal and regional EPA personnel toured the 45 million gallon per year corn ethanol plant, examined progress on EKAE’s co-located renewable diesel project, and discussed the importance of the RFS with plant management and local investors. EPA also hand-delivered a letter to EKAE approving the company’s efficient producer pathway petition, which certifies that the company’s ethanol reduces GHG emissions by 27.2 percent compared to petroleum.

“Today’s event provided an excellent opportunity for key EPA officials to see firsthand the ethanol industry’s innovation and ingenuity,” said Jeff Oestmann, CEO of EKAE. “We were honored to host EPA, and we thank them for spending a few hours with us to learn more about the ethanol process, renewable diesel, and the importance of the biofuels industry to the Garnett community. We had a very productive discussion and hope they left here with a new appreciation for both the challenges and opportunities facing ethanol producers today.”

EKAE, which was founded by local farmers and business leaders, produced its first gallon of ethanol one month before the original RFS was adopted in 2005. In 2014, the company broke ground on a bolt-on renewable diesel facility, which will convert the corn distillers oil already produced at the plant into low-carbon advanced biofuel.

RFA Senior Vice President Geoff Cooper, who also attended the tour, said EKAE is proof that the RFS is working. “EKAE is an excellent example of how the RFS provided the stability needed for first-generation biofuels like corn ethanol to succeed and flourish, then delivered the investment certainty required to develop second-generation biofuels like renewable diesel from corn distillers oil,” he said.

Both Oestmann and Cooper will be testifying today at the EPA hearing in Kansas City, along with more than 250 other industry stakeholders.

Listen to an interview with Oestmann and Cooper about the plant tour and hearing here: Interview with Jeff Oestmann, EKAE and Geoff Cooper, RFA

EPA RFS Public Hearing photo album

Audio, EPA, Ethanol, Ethanol News, Government, RFA, RFS

Will EPA Change RFS Volume Proposal?

Jamie Johansen

New Holland ZimmPollOur latest ZimmPoll asked the question, “How will a ban on antibiotics impact your livestock operation?”

Our poll results clearly state that producers are not sure how the change in federal antibiotic guidelines will impact their operations. The livestock industry is currently working with producers to help with his transition and working closely with your veterinarians to create a health plan designed for your operation will be key.

Here are the poll results:

  • It won’t – don’t use them – 7%
  • Positively with correct health plan – 27%
  • Big financial impact – 13%
  • Unsure – 53%

Our new ZimmPoll is now live and asks the question, Will EPA change RFS volume proposal?

The EPA recently released a new proposal for biofuels volume obligations under the Renewable Fuel Standard – one that has made no one happy but particularly corn farmers and ethanol producers who note that the agency is not implementing the law as intended. EPA is holding a public hearing to get comments on the proposal but will it lead to a change?

ZimmPoll

Biodiesel Supports to Testify at EPA Hearing

Cindy Zimmerman

In addition to corn farmers and ethanol producers, EPA officials will also hear from the biodiesel industry at the public hearing Thursday on the agency’s latest proposal establishing volumes under the Renewable Fuel Standard (RFS).

nBBAccording to the National Biodiesel Board, about two dozen biodiesel representatives from across the country are slated to testify at the hearing to thank the EPA for increasing volumes in the latest proposal while calling for further growth in the final rule set to be released in November.

Bob Morton, co-owner of Newport Biodiesel in Rhode Island and a member of the National Biodiesel Board’s governing board, planned to highlight biodiesel’s success as an Advanced Biofuel under the RFS and to emphasize biodiesel’s potential for significantly reducing greenhouse gas emissions under the RFS.

“We appreciate that EPA has improved the numbers and that the volumes increase with time; however, the volumes remain well below what the industry can produce and they are far from an aggressive approach to expanding biodiesel production and thereby significantly reducing greenhouse gas emissions,” Morton says in his prepared testimony. “There is little we can do regarding 2014 and 2015, but we can take a more aggressive stance in 2016 and 2017.”

NBB Vice Chairman Ron Marr, director of government affairs at Minnesota Soybean Processors, planned to emphasize the industry’s strong potential for growth with the right policy.

“Our message to EPA is simple,” Marr says in his prepared testimony. “The biodiesel industry has, can and will deliver on the goals of the RFS, particularly those for Advanced Biofuels. We are poised to expand production and continue building this industry with the right policy signals, but we need stronger biodiesel and Advanced Biofuels volumes in the final rule to make that happen.”

Biodiesel, NBB, RFS

Brazilian Tariff on Imported Ethanol Increases

Cindy Zimmerman

The Brazilian government this week increased the tariff on imported ethanol from 9.25 percent to 11.75 percent, effective immediately.

unicaThe Brazilian Sugarcane Industry Association (UNICA) issued a statement regarding the changes to Brazil’s tax policy signed into law by Brazilian President Dilma Rousseff Monday.

Ethanol produced in Brazil is subject to a range of federal taxes with revenue allocated to social security, including the social participation program (PIS) and social security financing contribution (COFINS) on domestic production. Today’s action by President Rousseff will level the playing field between Brazilian sugarcane ethanol and imported biofuels by subjecting foreign renewable fuels to comparable taxation and should not be confused with an importation tariff.

It is important to note the PIS and COFINS paid on ethanol imports will turn into a credit for the importer, which may then be used to pay other tax debts or be reimbursed by the Brazilian government, having the effect of anticipated taxes that would already be collected.

“Brazilian sugarcane producers have long been strong advocates of removing trade barriers and creating tax parity for renewable fuels,” said Elizabeth Farina, UNICA President. “Working together, the United States and Brazil have built a thriving global biofuels trade benefiting both countries, and we look forward to continued progress toward shared environmental and economic goals.”

Brazil, Ethanol, Ethanol News, Exports, UNICA

#NEO2015 Identifies Five Power Trends

Joanna Schroeder

Worldwide power generation will experience five trends over the next 25 years according to the New Energy Outlook 2015 published by Bloomberg New Energy Finance. The report is based on analysis country-by-country and technology-by-technology of electricity demand, costs of generation and structural changes in the electricity system.

New Energy Outlook 2015“NEO 2015 draws together all of BNEF’s best data and information on energy costs, policy, technology and finance. It shows that we will see tremendous progress towards a decarbonised power system. However, it also shows that despite this, coal will continue to play a big part in world power, with emissions continuing to rise for another decade and a half, unless further radical policy action is taken,” said Michael Liebreich, chairman of the advisory board at Bloomberg New Energy Finance.

New Energy Outlook focuses on five major shifts that will occur through 2040:

  • Solar, solar everywhere. The further decline in the cost of photovoltaic technology will drive a $3.7 trillion surge in investment in solar, both large-scale and small-scale.
  • Power to the people. Some $2.2 trillion of this will go on rooftop and other local PV systems, handing consumers and businesses the ability to generate their own electricity, to store it using batteries and – in parts of the developing world – to access power for the first time.
  • Demand undershoots. The march of energy-efficient technologies in areas such as lighting and air conditioning will help to limit growth in global power demand to 1.8% per year, down from 3% per year in 1990-2012. In OECD countries, power demand will be lower in 2040 than in 2014.
  • Gas flares only briefly. Natural gas will not be the “transition fuel” to wean the world off coal. North American shale will change the gas market, but coal-to-gas switching will be mainly a US story. Many developing nations will opt for a twin-track of coal and renewables.
  • Climate peril. Despite investment of $8 trillion in renewables, there will be enough legacy fossil-fuel plants and enough investment in new coal-fired capacity in developing countries to ensure global CO2 emissions rise all the way to 2029, and will still be 13% above 2014 levels in 2040.

Jon Moore, chief executive of Bloomberg New Energy Finance, added, “Last year’s forecast from BNEF identified the big share that renewables would have in power investment – that raised eyebrows at the time, but other energy forecasters have since piped a similar tune. This year’s report pushes our thinking further, with updated analysis on the slowing levels of demand we are already seeing, and on the proliferation of small PV systems.”

Clean Energy, Electricity, Solar, Wind

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDF1Renewable energy auctions are increasingly becoming the policy tool of choice to support renewable energy deployment, according to a new publication released by the International Renewable Energy Agency (IRENA). The six-volume guidebook, Renewable Energy Auctions: a Guide to Design, finds more than 60 countries have adopted renewable energy auctions, up from six in 2005, largely due to their ability to attract competition and drive down costs.
  • The Center for the Polyurethanes Industry (CPI) has announced that André Borschberg, one of the pilots and co-developer of the Solar Impulse solar-powered aircraft, will deliver the keynote address During the Opening Session of the Polyurethanes 2015 Technical Conference on October 5 in Orlando, Fl. Solar Impulse 2 is the only solar-powered aircraft only in the world that can fly day and night with a pilot on board.
  • The Environmental Protection Agency and the Department of Transportation have proposed fuel efficiency standards for heavy duty vehicles that would increase fuel economy standards for by 2027. The EPA predicts the proposed rule would cut greenhouse gas emissions by about 1 billion metric tons and save about $170 billion over the lifetime of the vehicles.
  • The American Solar Energy Society (ASES) and Pennsylvania State University, have announced ASES’ 44th annual event. This year’s conference will be hosted from July 28-30, 2015 at The Penn Stater Conference Center Hotel. Under the theme “Expanding Horizons: Shaping the New Energy Economy,” SOLAR 2015 will embrace the story of the past, enrich the communities of today, and reveal the trends of the future.
Bioenergy Bytes

Iowa Biodiesel Users Soon to Save on Tax

John Davis

IBBBiodiesel users in Iowa will soon be saving some money on their gas tax. The Iowa Biodiesel Board says that as of July 1, diesel blended with at least 11 percent biodiesel (B11) will enjoy a tax exemption of 3 cents a gallon compared to regular diesel.

“This state policy represents another link in the chain that secures Iowa’s energy and economic future,” said Grant Kimberley, executive director of IBB. “This incentive, along with other state policies that encourage biodiesel production and use, shores up support for a fuel that delivers jobs, diversifies our fuel supply and reduces greenhouse gases.”

Prior to 2015, the tax for diesel was $0.225 a gallon. The new diesel tax, already in effect, is $0.325 a gallon. Users of B11 or higher will now pay tax of just $0.295 a gallon.

Kimberley added that this won’t automatically mean B11 is less expensive at the pump than diesel, but: “All of the pro-biodiesel policies in Iowa working together, plus federal programs that encourage energy independence, add up,” he said. “This is likely to make B11 pretty competitive at the pump.”

Biodiesel, Government

Corn Growers to Protest EPA’s Ethanol Cuts

John Davis

rallyforruralamerica1Corn farmers are going to make their voice heard on the Obama Administration’s cuts to ethanol. The National Corn Growers Association says producers from more than a dozen states are expected to turn out at a public hearing and rally in Kansas City, Kansas, this Thursday, protesting the U.S. Environmental Protection Agency’s (EPA) proposal to slash nearly 4 billion gallons of corn ethanol from the Renewable Fuel Standard through 2016.

“Last time, we were very clear to EPA about what we wanted,” said NCGA President Chip Bowling. “It is simple: EPA should follow the statute. For farmers and others in rural America, this new EPA proposal means low corn prices and ethanol plant and industry cutbacks. And for everyone, it means higher gas prices and dirtier air.”

All farmers who can make the trip are encouraged to attend the hearing and public rally, with free bus transportation provided from several points across four states – Kansas, Missouri, Nebraska and Iowa. The buses are scheduled so growers can depart and return the same day, and free food and refreshments will be provided.

A rally in conjunction with the public hearing will kick off at 11:30 a.m. at nearby Huron Park, with several prominent agriculture, business and political leaders talking about the importance of renewable fuels for rural America.

Ag group, Agribusiness, corn, EPA, Ethanol, Ethanol News, Government, NCGA, RFS

Iowa RFA President at American Ethanol 200

Cindy Zimmerman

Iowa RFA president Brian Cahill (right) interviewed by KMA radio at American Ethanol 200

Iowa RFA president Brian Cahill (right) interviewed by KMA radio at American Ethanol 200

Iowa Renewable Fuels Association president Brian Cahill of Southwest Iowa Renewable Energy was at the NASCAR American Ethanol 200 presented by Enogen last Friday to support ethanol and this week he will be in Kansas City, Kansas to do the same.

Iowa RFA members will be among those testifying at a public hearing on Thursday to explain what is wrong with EPA’s latest proposal to set volume obligations for biofuels under the Renewable Fuel Standard (RFS). “We’ll be testifying to show the benefits that ethanol provides to the whole country and also get the message across that EPA just can’t change the law,” said Cahill, who says that having the hearing in the Midwest will allow many RFS supporters to attend. “There’s more than just ethanol involved in this so hopefully we’ll see a good show of support for the biofuels industry in Kansas City.”

In this interview from the race on Friday, Cahill also talks about why growers who supply corn for his plant grow Syngenta Enogen, a corn trait designed specifically for ethanol production. Interview with Iowa RFA president Brian Cahill

2015 American Ethanol 200 Presented by Enogen Photo Album

Coverage of the American Ethanol 200 sponsored by Enogen
Coverage of the American Ethanol 200 is sponsored by Enogen
Audio, Enogen, Ethanol, Ethanol News, Iowa RFA, RFS, Syngenta

Approps Bill Shortchanges Rural America

Joanna Schroeder

According to the Agriculture Energy Coalition (AgEC), the current version of the House Appropriations Committee’s Fiscal Year 2016 Agriculture Appropriations Bill would shortchange rural America. As it currently stands, the bill would reduce mandatory spending levels for Energy Title programs including the Renewable Energy for America Program (REAP), Biomass Crop Assistance Program and the Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Program. In light of this, AgEC has vowed to fight the changes in mandatory spending.

Lloyd Ritter, co-director of the AgEC, said, “The renewable energy and energy efficiency programs in the Farm Bill help rural America create new manufacturing opportunities and AgEC logostable, well-paying jobs. A new report to Congress, released just yesterday, demonstrates the broad economic impact of innovative biobased technology. The biobased products industry contributes $369 billion annually to the U.S. economy and employs more than four million Americans. The more than 40,000 biobased products already on the market displace about 300 million gallons of petroleum per year, which is equivalent to taking 200,000 cars off the road. Countless wind, solar, biomass and other projects are making a major impact as well.”

Ritter continued, “Nevertheless, the House Appropriations Committee is seeking to roll back the mandatory funding levels Congress agreed to last year when passing the bi-partisan Farm Bill. For Fiscal Year 2016, the House bill proposes cutting millions from the Section 9003 program, the Biomass Crop Assistance Program, and the Renewable Energy for America Program.”

“Such reductions in the mandatory funding levels that Congress previously set will undermine the ongoing effectiveness of these programs. The Agriculture Energy Coalition, comprising renewable energy, energy efficiency and agricultural groups, will continue to fight to ensure that these programs are implemented successfully,” concluded Ritter.

advanced biofuels, biofuels, biomass, Legislation, Renewable Energy, Solar, Wind