Real Jobs on the Line with EPA’s Changes to RFS

John Davis

beemer1One of the country’s oldest ethanol producers says it could generate a lot of economic activity for the rural communities where it has had to idle some plants, if the Renewable Fuel Standard (RFS) wasn’t being tinkered with. Speaking at yesterday’s Environmental Protection Agency (EPA) hearing on the agency’s proposed changes to the RFS, Mark Beemer, President of Aventine Renewable Energy, said the potential money that could come into just one rural community is staggering.

He said if they were able to re-open their two Aurora, Nebraska ethanol facilities, they would be adding $5 million of payroll to the local community (of 4,500 residents) with 65-70 jobs, paying for $5 million worth of millwright activities to repair and maintain these two ethanol facilities, plus another $85 million for other spare parts and supplies, and the biggest purchase of all – nearly $300 million in local corn purchases, for a total benefit to the local community of about $400 million. “That’s why ethanol has been so successful, because of the impacts in rural America.”

Mark also expressed frustration over possible wavering by the EPA over the Renewable Identification Numbers (RINs) issue and feared that if the agency doesn’t make the obligated parties follow through, those obligated know they’ll have found a way to end-run the law.

“Congress was fully informed of the blend-wall issue with RFS2 when it was established, and rising RIN values would be the stick, not the carrot, imbedded in the legislation that would incentivize the distribution of E85 and E15,” he said.

Mark said American agriculture has come through on its end of the RFS deal; now it’s time for the government to do its part.

“I ask the EPA to reconsider your changes to the mandate and restore the RFS2 to the original Congressionally mandated target levels.”

Listen to all of Mark’s testimony here: Mark Beemer, President of Aventine Renewable Energy comments to EPA hearing

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

RFS is Working… Why Are We Here?

John Davis

oestmann1So the Renewable Fuel Standard (RFS) should certainly be considered a success since it is doing many of the things it was projected to do:
– A capacity that is greater than 10 percent of the total fuel supply (that amount was expected right in the original bill)
– An alternative to foreign-based fuels
– A growing renewable fuels industry
– Adding to farm incomes in rural America

Plus, a lot more. So that led to this question during the Environmental Protection Agency’s hearing on the RFS in Arlington, Va.:

“So why are we even here?” asked Jeff Oestmann with East Kansas Agri-Energy LLC, an ethanol producer with an approximately 45 million gallon per year operation in Garnett, Kansas. “It boggles the mind to understand why we have a completely successful program by any measure, all targets are being met, and we have compliance by all [Renewable Volume Obligations (RVO)] parties.”

One of the most frustrating things Jeff cited was the fact that the EPA proposed lower amounts of ethanol and biodiesel that could be mixed into this country’s fuel supply than what the law intended, and that could destabilize the biofuels industry and the rural economy. He said all this turmoil is already stalling future work as investors are hesitant to put money into an industry they’re not sure will get the support required by the law. And Jeff said he just doesn’t have time to come to debate what is a successful program and was supposed to be the law of the land.

“It’s hard to come to Washington today, as our company is small and really cannot afford my time to be spent here today. Congress has created the RVO. It is EPA’s job to implement the will of Congress… not the will of the auto or petroleum industries.”

Listen to Jeff’s full testimony here: Jeff Oestmann, East Kansas Agri-Energy LLC comments to EPA hearing

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

AEC’s Coleman: RFS Proposal “Off Track”

John Davis

coleman1The executive director of the Renewable Fuel Association’s (RFA) Advanced Ethanol Council (AEC) says what the government is proposing when it comes to the amount of ethanol and biodiesel to be blended into fuels is “off track.” Speaking today at the Environmental Protection Agency’s (EPA) hearing on the Renewable Fuel Standard (RFS), in Arlington, Va., just across the river from the Nation’s capital, Brooke Coleman said the proposed changes to the RFS is causing some real problems.

“The new proposal is off track, and we’ve recoiled far too much,” he told the roomfull of biofuels advocates and foes. Brooke pointed out that the EPA’s E85 data is “woefully pessimistic” and needs to be updated.

The heart of the issue is the problems the proposal will cause with Renewable Identification Numbers (RINs). “For our investors to believe in this program and want to enter into this marketplace, they have to believe in RINs. That’s the game-changer,” going on to explain that the RIN program forces the Exxons of the world to buy RINs and forces non-compliant entities to play by the same rules. “It puts the Cumberland Farms and Gulfs of this world on equal footing with Exxon, and they are actually rewarded for complying with the rule.”

He concluded saying the biggest issue with the proposal is it depressurizes the RIN program to the point that investors don’t have confidence they will be able to drive change.

“So we have got to move those numbers up significantly, not unreasonably, to put the pressure back in the program, or the advanced biofuels industry is going to have a very, very, very difficult time surviving.”

Hear Brooke’s full testimony here: Advanced Ethanol Council Executive Director Brooke Coleman comments to EPA hearing

AEC, Audio, biofuels, EPA, Government, RFA, RFS

Branstad Makes Impassioned Plea for RFS

John Davis

branstad1Iowa Gov. Terry Branstad made an impassioned plea in favor of the current Renewable Fuel Standard (RFS) and showed no love for what the Environmental Protection Agency (EPA) is proposing for reducing the amount of ethanol and biodiesel to be put into gasoline as originally mandated in the 2007 law.

“After decades of efforts to reduce our dependency on foreign oil and increase farm income with policies like the RFS, the EPA is now caving in to Big Oil!” Branstad thundered, pointing out that since Big Oil doesn’t control renewable fuels, it doesn’t want to see the green fuels grow. And the governor dismissed claims that vehicles can’t handle higher blends, pounding on the table as he said, “If you don’t believe it can be done, go to Brazil! Go to Brazil where they are making ethanol out of sugarcane and soon going to be doing it out of corn, and they have virtually all flexible-fuel vehicles in their fleets!”

Branstad continued his passionate speech, recalling the farm crisis of the 1980s when he was governor the first time around and how the proposed cuts in the RFS could cause another crisis, especially when you consider that there’s still no farm bill. And he said the problems could spread beyond Iowa’s borders.

“This EPA proposal will cost 45 thousand jobs in this nation. We don’t need to drive the number of people employed down,” simply to cater to the petroleum industry. Branstad added Iowans, who supported Obama during each of his campaigns, including his historic election in 2008, because he promised to support renewable fuels, now feel betrayed.

Moving forward, he wants the EPA to come to his state to hear from the people most directly affected by the proposed change, “where people know about the impact this has and know the truth and the facts!”

Listen to the entirety of Gov. Branstad’s testimony here: Iowa Gov. Terry Branstad comments to EPA hearing

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

Patriot’s Hulting Tells Rural Businesses’ Side of RFS

John Davis

hulting1A change in the Renewable Fuels Standard (RFS) will have dramatic impacts for the small businesses that have cropped up in rural America. That was the message Patriot Renewable Fuels‘ Judd Hulting made to the Environmental Protection Agency’s hearing on its proposal to reduce the amount of ethanol and biodiesel to be mixed into gasoline.

“We believe what is being proposed is a step backwards and really not what Congress envisioned back in 2005 and 2007,” he told the panel in Arlington, Va., today. He says small, rural companies, such as his, have been on a positive roll the last few years, thanks to the market the RFS has helped nurture. Judd also alluded to the fact that changing the RFS also puts too much uncertainty into investors’ minds and keeps them from putting more into the rural communities where these biofuels refineries have thrived. “What our investors envisioned was a long-term program.”

Judd pointed out that his plant is hiring more workers, as Patriot Renewable Fuels adds a refinery turning the corn oil from the plant’s ethanol operation into biodiesel. Plus, he said the industry is not getting enough credit for producing several products from that same bushel of corn.

“Over 5 years, we’ve produced half a billion gallons of ethanol; every day we produced a 1,000 tons of feed,” pointing out that his own livestock-producing family is benefiting from these biofuels co-products.

Listen to all of Judd’s testimony here: Judd Hulting, Patriot Renewable Fuels comments to EPA hearing

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

Dinneen: RFS Not for Big Oil’s Convenience

John Davis

dinneen1The case for keeping the Renewable Fuel Standard (RFS) as-is is being made today at an Environmental Protection Agency (EPA) hearing in Arlington, Va. Our friends from the Renewable Fuels Association (RFA) have shown up in force, making sure biofuels’ voices are being heard. Bob Dinneen, President and CEO of the RFA, told the EPA that they need to keep in mind why the RFS was set up in the first place.

“The RFS was designed to drive investment in new technologies, to drive innovations, to drive new market opportunities. It was NOT designed to be convenient for the oil companies,” he said, adding prices for Renewable Identification Numbers, or RINs, the currency on which the RFS relies, will be hurt by EPA’s proposal to lower the amount of ethanol and biodiesel to be blended into the Nation’s fuel supply. “What you’ve done with this proposal is rip this market-forcing mechanism [the RIN] away, returning us to more petroleum, fewer choices at the pump, more costly gasoline.”

Bob also made the case that rising RIN values don’t impact consumer gas prices. “There’s no correlation between rising RIN values and gasoline prices.”

He concluded by encouraging the EPA to listen to those making the case today for preserving the RFS as it was written and intended.

“Listen to those people that are concerned about what this program does for rural America, what this program does for consumers, what this program does for new technologies, and revise this [proposal].”

You can hear Bob’s testimony to the EPA here: Bob Dinneen, CEO RFA comments to EPA hearing

Audio, biofuels, EPA, Ethanol, Ethanol News, Government, RFA

Save The RFS Ad Debutes in Iowa

Joanna Schroeder

A new “Save the RFS” television ad is now running throughout Iowa, a key state in Presidential elections. The ad was produced by Americans United For Change (AUFC) who says while Big Oil is advertising to elites in the DC market, they are playing at the heart of the country where real people and their lives and livelihoods are at stake. The ad is aimed at all those who know the benefits from the RFS – from farmers, ethanol industry workers, secondary industries, surrounding economies, as well as American consumers – urging them to tell the EPA to do what’s best for rural America, not Big Oil’s bottom line.

While Big Oil is at war with farmers and rural communities and has called for the repeal of the RFS – AUFC says they are out to save the RFS for the good of our economy and our environment. In addition through the SavetheRFS website, VoteVets will recruit people to become part of a team who will help communicate the importance of renewable fuels to Americans as well as to local, state and federal legislators.

Brad Woodhouse, president of AUFC said of the RFS, “The industry that brought us the Gulf oil spill loves the new RFS rule as it stands and would love nothing more than to keep rural America quiet until the ink is dry. That’s why it’s incredibly important that Americans in the heartland make their voices heard, because the strength in numbers of those who benefit from the RFS can beat Big Oil’s deep pockets.”

“If this misguided EPA rule is made permanent, the ripple effect cannot be overstated. As the family farmer and ethanol industry goes, so goes the positive growth we’ve seen in rural economies since the RFS was established, so goes the hundreds of thousands of American jobs that have been created, so goes the availability of fuel 70 cents cheaper whole sale than gasoline, so goes the billion dollars American consumers save every week, so goes the gains made in combating climate change and reducing dependence on oil from unstable regions overseas,” continued Woodhouse.

“Big Oil knows if they’re successful at eliminating their cheaper, cleaner competition, then anything goes when it comes to prices at the pump – even if it means sending more of our troops, and money and jobs overseas.”

Agribusiness, Biodiesel, biofuels, EPA, Ethanol, Farming, RFS, Video

What Does Wall Street Think of the RFS?

Joanna Schroeder

So what does Wall Street think of the EPA’s 2014 proposed rule for the Renewable Fuel Standard (RFS). This question was asked during a media call hosted by the Advanced Biofuels Association (ABFA) in anticipation for the EPA public hearing on December 5th regarding their proposed rule. And the answer was given by Pavel Molchanov, SVP and Equity Research Analyst, Raymond James & Associates Inc.

Pavel PhotoMolchanov has covered the biofuels industry, both first generation and second generation since 2006. He framed some of the issues surrounding the RFS in terms of investors and capital markets. He brought up an interesting fact that is not often spoken about and that is the RFS is scheduled to sunset in 2022 and unless Congress votes to expand the legislation, then states will have to take on the roll of continuing the use of biofuels in the transportation fuel sector.

He explained that the “nine year cliff” that faces the industry in 2022 is distinctly unhelpful especially for the debt markets.

This year the EPA lowered the proposed renewable fuel volumes for the first time ever and this is a problem. This is a problem, explained Molchanov, “Because if there is a mandate and the mandate is effectively set aside by the EPA on essentially this unilateral basis, well its not much of a mandate. From the standpoint of what investors think about of the stability and credibility of the nation’s biofuels policy, both of these aspects of the RFS are certainly not ideal and not helpful at all.”

Listen to Pavel Molchanov’s remarks during the press call here: What Does Wall Street Think of the RFS?

advanced biofuels, Audio, EPA, RFS

What You Are Thankful For

Talia Goes

zp-nhOur latest ZimmPoll asked the question, “What are you thankful for?”

Our poll results:

· All of the above – 37%
· Friends and family – 15%
· Good health – 12%
· Freedom – 8%
· Affordable food – 8%
· Rewarding work – 7%
· Our great nation – 7%
· Other – 7%

There are so many things for us to be thankful for that it’s no wonder an “All of the above” would be the top choice. We hope your families had a wonderful holiday and are now preparing for the Christmas season with full hearts as well!

Our new ZimmPoll is now live and asks the question, “Do you plan to make any year-end equipment purchases?” Is your farm expanding? Maybe it’s out with the old, in with the new? Maybe for tax purposes? Let us know!

ZimmPoll

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFElimu’s Alage EMEA Summit 2014 is taking place in Dubai May 20-21, 2014 in Dubai. Eight new speakers have been announced whose remarks will focus on how Europe and the MENA region can work together in accelerating the commercialization of algae biomass through research and the latest technologies. Early bird registration is still open.
  • ROUSH CleanTech has hired five new business development executives with the new employees increasing ROUSH CleanTech’s staff to 80, up from six in 2010. New hires include: Steve Whaley, Don Manfredi, Phillip Mailey, Joe Rudolph and Derek Whaley.
  • All-Energy Canada 2014 is taking place April 9-10, 2014 in Toronto, Ontario. One of the key topics of the event is to help companies come to Canada to help grow its renewable energy industry. In particular current solar and wind projects in Ontario rely heavily on imports of solar panels, wind turbines, and wind-powered generators and the import market was U.S. $1.5B in 2010 and growing. Early bird registration rates are still available.
  • Su-Kam Power Systems Ltd., India’s leading power back-up solutions provider, and Trojan Battery Company, the world’s leading manufacturer of deep-cycle batteries, have launched a co-branded, long-lasting and reliable INV-150 deep-cycle battery in India. Su-Kam’s alliance with Trojan will build a strong battery portfolio for solar and inverter applications in India. The Su-Kam/Trojan INV-150 deep-cycle battery is specifically engineered to power both commercial and residential inverter applications.
Bioenergy Bytes