In the News
Aug 13, 2020
A group of six former U.S. EPA administrators representing both republican and democratic administrations are calling for a “reset” of the agency as it approaches its 50th anniversary. The Renewable Fuel Standard and a potential federal Low Carbon Fuel Standard among the issues discussed in a report released on the effort.
The former EPA administrators, including Lee Thomas, William Reilly, Carol Browner, Christine Todd Whitman, Lisa Jackson and Gina McCarthy, are backing a plan published by the Environmental Protection Network, a bipartisan group launched in 2017 that includes hundreds of former EPA staff.
The report, titled “Resetting the Course of the EPA,” outlines specific and actionable steps that the group said EPA can take to reset the course of the agency to address the most significant and pervasive threats to public health and the environment.
The group names six priorities it says are critical to creating a renewed EPA. Those priorities include:
- EPA must reaffirm its commitment to fully protect public health and the environment.
- EPA must conduct its scientific and economic analysis free from political interference.
- EPA must incorporate environmental justice in every aspect of its work in order to address and resolve inequitable environmental conditions.
- EPA must focus on the most significant and pervasive public health and environmental risks, prioritizing actions that provide the greatest health benefit for the greatest number of people, including vulnerable populations.
- EPA must innovate and collaborate with states, tribes, local governments, and federal agencies as coregulators, as well as with stakeholders, including the private and non-profit sectors and community groups, to build an effective and resilient system of public health and environmental protections.
- EPA must earn and maintain broad public trust by demonstrating the best ethical behavior, transparently considering all stakeholder viewpoints, and providing objective environmental information.
One of the many recommendations released by the group focuses specifically on reducing air emissions from mobile sources. Under that recommendation, the Environmental Protection Network calls on the EPA to closely examine the RFS program and consider potential changes to increase greenhouse gas (GHG) reductions from renewable fuels. In addition, the group recommends the EPA evaluate the adoption of a federal LCFS under the Clean Air Act, including close examination of potential interactions with other federal and state programs. The recommendation notes that a federal LCFS could preempt state LCFS programs, and EPA should consider the pros and cons of additional state LCFSs. The recommendation also specifies that under the CAA, a federal LCFS would be in addition to—and not a substitute for—the RFS. The group also said the EPA should consider what cost-effective reductions could be achieved under a LCFS incremental to the RFS.
Additional information is available on the Environmental Protection Network website.
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Aug 12, 2020
The USDA maintained its forecast for 2020-’21 corn use in ethanol in its latest World Agriculture Supply and Demand Estimates report, released on Aug. 12. Projections for corn production and yield were revised up, while corn prices were revised down.
The USDA said the 2020-’21 U.S. corn outlook is for larger supplies, greater feed and residual use, increased exports, and higher ending stocks. Corn production is forecast at 15.3 billion bushels, up 278 million from the July projection. The season’s first survey-based corn yield forecast, at a record 181.8 bushels per acre, is 3.3 bushels higher than last month’s trend-based projection.
Within the WASDE report, the USDA cited a Aug. 12 Crop Production report that shows Illinois, Indiana, Iowa, Missouri, Nebraska, and Ohio are forecast to have yields above a year ago, with record-high yields expected for Minnesota and South Dakota.
Feed and residual use is raised based mostly on a larger crop and lower expected prices.
An estimated 5.2 billion bushels of corn is expected to go to ethanol production in 2020-’21, up from an estimated 4.85 billion bushels in 2019-’20, but down from 5.378 billion in 2018-’19.
Exports are higher reflecting U.S. export competitiveness and relatively low world market prices. With supply rising more than use, ending stocks are raised 108 million bushels to 2.8 billion. The season-average corn price received by producers is lowered 25 cents to $3.10 per bushel.
Internationally, EU corn production is lowered, mostly reflecting reductions for Romania and France that are partially offset by increases for several countries, including Poland, Italy, and Hungary. Ukraine corn production is forecast higher, largely reflecting higher expected area. Other notable corn production changes include projected increases for Mozambique and Malawi, with reductions for Canada and Thailand.
Corn imports are raised for the EU, Canada and Thailand, but reduced for India. Foreign corn ending stocks are slightly lower relative last month, reflecting an increase for Indonesia that is more than offset by declines for Canada and India.
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Aug 11, 2020
The U.S. Energy Information Administration slightly increased its forecasts for 2020 and 2021 ethanol production in its latest Short-Term Energy Outlook, which was released Aug. 11. Forecasts for ethanol blending were also revised up.
The EIA currently predicts ethanol production will average 910,000 barrels per day this year, up from the 900,000-barrel-per-day prediction made in the agency’s July STEO. The EIA has also increased its forecast for 2021 ethanol production to an average of 1.01 million barrels per day, up from its July prediction of 1 million barrels per day. Production averaged approximately 1.03 million barrels per day in 2019.
On a quarterly basis, ethanol production is expected to average 930,000 barrels per day during the third quarter of this year, increasing to 970,000 barrels per day in the fourth quarter. EIA data shows ethanol production averaged 1.02 million barrels per day during the first quarter of 2020, falling to 710,000 barrels per day during the second quarter. In 2021, ethanol production is expected to average 1 million barrels per day during the first quarter, 1.01 million barrels per day during the second quarter, and 1.02 million barrels per day in the third and fourth quarters.
The EIA currently expects the U.S. to blend 840,000 barrels per day of ethanol this year, up from the July prediction of 836,000. Blending in 2021 is expected to average 930,000 barrels per day, up from the 919,000-barrel-per-day prediction made in July. Ethanol blending averaged 950,000 barrels per day in 2019.
The EIA’s most recently weekly ethanol data shows production averaged 931,000 barrels per day the week ending July 31, down from 958,000 barrels per day the previous week. Ethanol stocks were at 20.346 million barrels the week ending July 31, up form 20.272 million barrels the previous week.
The agency’s most recent monthly data shows the U.S. imported 255,000 barrels of ethanol in March, all from Brazil. The U.S. exported 1.622 million barrels of ethanol in May, primarily to India, Canada and Mexico.
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Aug 5, 2020
U.S. ethanol exports were 78.5 million gallons (mg) in June, an 11.0 mg increase (up 16%). Sales across our northern border returned to pre-COVID levels, as Canada purchased 27.4 mg (up 89% from May), regaining its status as our largest export market. However, sales to India slipped 15% in June to 12.6 mg, and exports to Mexico eased 1% to 9.0 mg. Other sizable customers of U.S. ethanol included Finland (7.8 mg), South Korea (4.6 mg), the Netherlands (3.4 mg), and Jamaica (3.0 mg), while Brazil was nearly absent. Exports over the first half of the year were 730.7 mg.
U.S. undenatured fuel ethanol shipments in June dropped 58% to 12.4 mg—the lowest volume since September 2018—with India’s departure from the market responsible for the bulk of that dip. However, exports increased by 9% to Mexico, reaching 7.3 mg (representing roughly 60% of U.S. global sales). Jamaica (2.7 mg) and Switzerland (1.8 mg) also purchased significant volumes of American-made undenatured fuel ethanol.
Sales of U.S. denatured fuel ethanol nearly doubled in June to a three-month high of 54.1 mg. Shipments to chief customer Canada rose 11.8 mg to 23.8 mg (accounting for 44% of total exported product). Other large markets were India (9.3 mg), Finland (7.8 mg), South Korea (4.4 mg), the Netherlands (3.4 mg), and Peru (2.7 mg).
Exports of U.S. ethanol for non-fuel, non-beverage purposes grew 25% to 12.0 mg. India (3.3 mg), Canada (3.3 mg), Nigeria (2.3 mg), and Mexico (1.6 mg) were our largest customers.
The U.S. imported 10.5 mg of cane ethanol from Brazil, the first shipments since March. Imports totaled 46.5 mg during the first half of the year.
U.S. exports of dried distillers grains (DDGs)—the animal feed co-product generated by dry-mill ethanol plants—shot up 47% to 883,193 metric tons (mt). Thailand became our largest market for the first time with a record purchase of 208,456 mt, or nearly a quarter of June U.S. DDGs export sales. Mexico reduced imports by 18% to a five-year low of 97,873 mt, while sales were robust in Vietnam (94,277 mt, +38%), Turkey (86,925 mt, +82%), South Korea (69,231 mt, +33%), and Indonesia (56,780 mt, -10%). Worldwide U.S. DDGs exports for the first half of 2020 were 4.98 million mt.
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Aug 4, 2020
The U.S. Department of Energy has recommended that some of the oil refiners that applied for retroactive exemptions from the nation’s biofuel blending law be granted partial relief, two sources familiar with the matter said on Tuesday.
The move could help bring those refining companies into compliance with a court ruling earlier this year that requires waivers granted since 2010 to take the form of an extension - the latest twist in a long-running battle between the refining and biofuel industries over the program.
At present there are 58 pending requests from refiners for waivers covering the years 2011 through 2018, according to government data. The sources said the DOE recommended to the U.S. Environmental Protection Agency, which has final say on the waivers, that “a number” of those requests be partially granted. The sources, who requested anonymity in order to speak candidly, could not immediately provide further details.
“EPA has received initial feedback from the Department of Energy on certain petitions for small refinery exemptions for past compliance years under the Renewable Fuel Standards Program,” EPA spokesperson Molly Block said. “Our staff is reviewing.”
DOE did not immediately respond to requests for comment.
Under the U.S. Renewable Fuel Standard (RFS), oil refiners must blend billions of gallons of biofuels into their fuel, or buy credits from those that do. Small refiners that prove the rules would financially harm them can apply for exemptions.
In January, the Denver-based 10th U.S. Circuit Court of Appeals ruled that waivers granted to small refineries after 2010 had to take the form of an “extension.” Most recipients of waivers in recent years have not continuously received them.
Biofuel advocates say blending waivers hurt demand for corn-based ethanol. The oil industry disputes that, and says blending requirements are too expensive.
The EPA has 90 days to act once it receives a petition, according to EPA guidelines.
Senators Chuck Grassley and Joni Ernst, both from Iowa, the top ethanol-producing state, sent a letter to DOE on Tuesday asking for further details on the recommendations and expressing opposition to the waivers.
The senators had earlier in the day voted against the confirmation of Mark Menezes as Deputy Secretary of Energy as a protest, but failed to block his confirmation.
“We could not in good faith support Mr. Menezes at this time,” Grassley and Ernst said in a statement.
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Aug 3, 2020
ST. LOUIS — The U.S. Court of Appeals for the Tenth Circuit's ruling early this year that struck down three Small Refinery Exemptions improperly issued by the Environmental Protection Agency hasn’t deterred companies from filing more requests.
Geoff Cooper, Renewable Fuels Association president and CEO, said there are currently 52 “gap year” exemption requests for 2011 to 2018 and another 28 requests for 2019 and 2020 that have yet to be ruled on by the EPA.
Under the U.S. Renewable Fuel Standard, oil refineries are required to blend billions of gallons of biofuels such as ethanol into their fuel or buy credits from those that do. The EPA can waive those obligations if they prove compliance would cause them financial distress.
EPA Administrator Andrew Wheeler said earlier this month the SRE petitions that were received from companies for previous years have been forwarded to the Department of Energy for review — the first step in the process.
“We’ve not gotten recommendations back from Department of Energy yet. Some of these petitions go back to 2012 and the (Renewable Identification Numbers) from that year are no longer active and have expired, so there’re questions about whether or not they can show economic harm and what the remedy would be. We’re waiting to see what the Department of Energy has to say about those small refinery exemptions,” Wheeler said.
Cooper addressed this and other challenges the renewable fuel industry is facing during a recent podcast.
What are you hearing from the EPA regarding the pending SRE requests?
One of the big unresolved issues is what the EPA is going to do with these small refinery exemptions. It has been six months since the 10th Circuit Court struck down three of those exemptions that EPA illegally granted and set a precedent that should significantly limit or constrain EPA’s ability to give these exemptions to refiners moving forward.
So, rather than taking that decision and adopting it nationally and just moving ahead, EPA is kind of twiddling its thumbs and still hasn’t told anybody what it intends to do with these exemption requests and with this court decision. All they’ve said is the refiners may appeal this to the Supreme Court and so sort of need to wait until the Supreme Court decides whether they want to hear this case or not.
The chances of the Supreme Court showing any interest in reviewing this case are slim to zero, yet that’s the excuse that EPA is using. So, we have 52 new gap year exemption requests where refiners are looking for exemptions for past years going all the way back to 2011 and the scheme there is to get these exemptions as a way of circumventing the 10th Circuit Court decision so they can remain eligible to get more waivers moving forward.
So, we’re looking at another 80 SRE exemption petitions that are sitting at EPA or soon to be at EPA that haven’t been decided. That’s one big unresolved issue that is creating enormous uncertainty in the marketplace.
The ethanol industry also awaits EPA to announce the Renewable Volume Obligations under the RFS for 2021. The ruling for 2020 was made on July 5, 2019, and appears to be put on indefinite hold by EPA for next year.
Uncertainty reins around the RFS program and if there’s one thing we’ve learned over the years, no one in the marketplace likes uncertainty. That’s true whether we’re talking about ethanol and biodiesel producers or whether we’re talking about the obligated parties, the refiners that are obligated to blend renewable fuels.
We are just in a cloud of confusion around the RFS right now because EPA is not making decisions and just seems to want to kick the can down the road on just about all of these important decisions.
We’re waiting for EPA to make several very important decisions about the RFS, four or five major issues that need some resolutions here very soon. And we’re growing more and more worried that EPA is just trying to drop back and punt on these decisions and wait until after the election. They want to delay any decisions that are going to be controversial or decisive.
We know the industry is being intimidated and pushed around by the oil refiners and so it seems like their solution right now is just to throw up their hands and do nothing. That’s just not an acceptable solution.
EPA has laws that it needs to follow and it has statutory deadlines that it needs to meet, so it is time to move forward on these unresolved RFS issues and give the industry some answers.
All of this is happening a time when the ethanol industry tries to recover from major production reductions from lower demand at the onset of the pandemic and stay-at-home requests. How is the ethanol industry doing at this point?
At the low point in April, more than half of the industry’s capacity was idled. We had more than 100 facilities that had either completely shutdown or had significantly reduced output rate. So, at the apex of this thing it was a bloodbath for the industry. We saw deeply negative margins.
We had one-half the industry’s capacity offline. We lost billions of dollars in sales revenues. In the weeks since then, we have seen incremental recovery and a rebound of sorts, but the industry still has a long way to go. We are still operating 15% below levels of a year ago and it appears that things have kind of plateaued and we’re not expecting to get back to that sort of pre-COVID market dynamic any time soon.
We still have a number of facilities that are idled. We still have a number of facilities that are running at less than full capacity. The margin structure has improved but it’s still not great when viewed in historical terms. So, it remains a very challenging market environment.
We came into this year expecting to produce something around 16 billon gallons. We know that number is going to be closer to 13.5 billion gallons. So, when you think about the lost revenue associated with that big drop in production and, at the same time, we have lower ethanol prices, the financial hit to the industry is enormous.
We originally estimated something around a possible $10 billion loss to the industry. As we take a fresh look at some those numbers, we think that was a pretty good estimate. It looks like we’re on track if things play out the way we think they will, to see an $8 billion to $10 billion loss for the industry this year.
Now we’re looking at the possibility of another round of stay-at-home orders in the late summer and fall. What happens to some of these estimates and predictions if we do have states like Texas, California and Florida going through another round of stay-at-home orders? It just adds more uncertainty and more cloudiness to the recovery. It’s another reason our industry continues to seek some assistance and help from Congress as they begin to think about a fourth stimulus package.
We remain confident that biofuels and ethanol specifically will not be left behind this time as we had been in the previous stimulus packages but we’ve got to stay vigilant and continue to make our case to Congress.
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Jul 31, 2020
The Renewable Fuels Association this week responded to the U.S. Department of Agriculture’s request for comment on its Agriculture Innovation Agenda (AIA). Regarding renewable fuels, the agenda calls for Increased biofuel feedstock production and biofuel production efficiency and competitiveness to achieve market-driven blend rates of E15 in 2030 and E30 in 2050.
“Not only will the AIA initiative’s Renewable Energy benchmarks, if achieved, stimulate long-term economic growth in rural America, they will also enhance sustainability, improve environmental quality, and provide lower costs and greater consumer choice at the pump,” said RFA President and CEO Geoff Cooper. “The AIA’s Renewable Energy goals are proactive and ambitious, and the USDA should be applauded for undertaking such a forward-looking initiative that provides clear benefits to American consumers.”
RFA’s response identified the following five opportunities for the industry:
- Increasing productivity in crops and ethanol to meet volume requirements sustainably
- Stimulating more demand and reducing more emissions from the current RFS policy
- Facilitating greater demand from future policy
- Continuing USDA infrastructure investments to expand biofuel deployment and sell higher blends
- Adopting carbon capture, sequestration and utilization technologies
In addition, the association identified several roadblocks that need to be addressed by the federal government. This includes providing RVP (Reid Vapor Pressure) parity for all ethanol blends, removing or significantly revising E15 fuel survey requirements and labeling requirements, revising EPA’s outdated lifecycle greenhouse gas analysis of corn ethanol, and eliminating unnecessary registration and pathway certification barriers to cellulosic ethanol production from corn kernel fiber.
“RFA has worked had to build a bold, sustainability-driven vision for the future of agriculture and transportation, and through our membership, we have positioned ourselves to lead that effort as advocates,” Cooper said. “On behalf of the nation’s ethanol producers, we are fully committed to collaborating with USDA to sustainably increase the production and availability of renewable fuels to achieve nationwide average blend rates of E15 in 2030 and E30 in 2050.”
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Jul 29, 2020
U.S. ethanol production was up approximately 5.5 percent the week ending July 24, while weekly ending stocks of fuel ethanol increased by about 2.4 percent, according to data released by the U.S. Energy Information Administration on July 29.
U.S. ethanol production averaged approximately 958,000 barrels per day the week ending July 24, up from an average of 908,000 barrels per day the previous week. Ethanol production has been trending upward since hitting a low of 537,000 barrels per day the week ending April 24 due to market impacts caused by the COVID-19 pandemic. Production was down 73,000 barrels per day when compared to the same week of last year, and down 121,000 barrels per day when compared to the final week of February, before COVID-19 began to impact U.S. fuel markets.
Weekly U.S. ethanol ending stocks increased to 20.272 million barrels the week ending July 24, up from 19.801 million barrels the previous week. Stocks of fuel ethanol have fallen significantly over the past few months after reaching a record high of 27.689 million barrels the week ending April 17. When compared to the same week of last year, ethanol ending stocks were down 4.196 million barrels.
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Jul 28, 2020
The list of accomplishments and accolades for Larry Johnson — “The Ethanol Answer Man” and self-proclaimed “Governor of Gotha” — is quite long.
But a large number of his friends, family members and acquaintances can provide something even more impressive — testimonials about his high-caliber character and values.
“He lived by a certain set of values; hard work, honesty and integrity,” says Johnson’s oldest son, Adam Johnson of Belle Plaine. “He was very humble. He taught us kids to be humble and not brag about yourselves or look for compliments, but that your work would show that for you.”
Larry Johnson of rural Cologne, died July 19 from a stroke. He was 76.
“Dad was very rational in his decision-making; that he never made it with emotion,” Adam said. “He told us what we should hear, not always what we wanted to hear. That was constant. You never felt sorry for yourself.”
“He also told us if something is worth complaining about, it’s worth the time to solve it,” Adam continued. “People say those things, but he lived it; backing that up every day. He definitely was someone you looked up to and wanted to model your life after.”
That tenacity and resolve was a Larry Johnson trademark.
A lifelong resident of San Francisco Township, he grew up on the farm family. After graduating high school and a year of college, Larry focused his attention on farming, joining brother Jim in taking over the family farm and running a large turkey hatching egg operation and cash grain farm, particularly corn and soybeans.
Because of his farming experience, as well as nine years on the Minnesota Corn Growers Board and six years on the National Corn Growers Board, Johnson was well aware of ethanol and its values, particularly during the farm crisis of the 1980s.
“He listened to people; paid attention to what they were going through and became well versed on ethanol,” said his brother Cliff Johnson. “He not only became well known in the state, but became an international promoter and educator of ethanol.”
Larry Johnson started a consulting business in 1985, which led him to stop farming in 1988. One of his clients was the Minnesota Agriculture Department.
Johnson served the ethanol industry in many facets and his expertise led him to be dubbed ‘The Ethanol Answer Man.’ A van he used to travel the state was called ‘The Ethanol Answer Van.’
“He traveled all over the state, the country and the world with people recognizing him that way,” Cliff Johnson said, adding that Larry was very popular with farmers who visited him at a Minnesota State Fair booth. “He was always very dedicated to whatever he did, so he had answers to any questions people had about ethanol.”
Larry Johnson was a founder of the “Minnesota Ethanol Model,” a public/private partnership designed to provide jobs by keeping profits in local communities.
He served on many other county, state and national agriculture-related boards and organizations.
“Larry was one of ethanol’s most energetic and passionate advocates, said Brian Jennings, CEO of American Coalition for Ethanol, adding that Johnson had a “near-superhero status” in educating so many about the benefits of ethanol.
“He was a trusted advisor over the years, patiently teaching me about the history of ethanol, but also helping me understand the future of this industry as well,” Jennings said.
But there was plenty more to Larry Johnson than his massive ethanol knowledge, including, in part: efforts with West Union Lutheran Church, where he chaired the church council; mentoring young adults; and assisting community gardeners.
“He had a very full plate,” Adam Johnson said, emphasizing that his father’s top priority was his family. “He cared so deeply.”
And about Larry’s distinguished mustache?
“If you did something well, you’d see the mustache rise and a smile come out,” Adam said. “If it rised up and you saw his lip quivering, you were going to get a life lesson.”
Larry Johnson also was recognized as ‘The Governor of Gotha,’ when he routinely called in a weather report to a local radio station.
“That’s what he would call himself,” Cliff Johnson said. “Certainly not everyone knew where Gotha is, or was (near Cologne), but he had fun with it.”
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Jul 28, 2020
The USDA recently released its Grain Crushings and Co-Products Production report for July, reporting that corn use for ethanol production was at 300 million bushels in May, up from the previous month, but down from May 2019.
Total corn consumed for alcohol and other uses was 354 million bushels in May, up 18 percent from April, but down 31 percent from May 2019. May usage included 89.4 percent for alcohol and 10.6 percent for other purposes.
Corn consumed for fuel alcohol reached 300 million bushels, up 22 percent from April, but down 35 percent when compared to May 2019. Corn consumed in May for dry milling fuel production and wet milling fuel production was 85.2 percent and 14.8 percent, respectively.
Sorghum consumed for fuel alcohol production fell to 2.047 million hundredweight (cwt) (114,632 tons) in May, down from 2.716 million cwt in April and down from 5.176 million cwt in May 2019.
At dry mills, condensed distillers solubles production was at 81,971 tons, up from 78,629 tons in April, but down from 115,995 tons in May 2019. Corn oil production was at 104,898 tons, up from 89,132 tons in April, but down from 157,623 tons in May of the previous year. Distillers dried grains production was at 205,750 tons, up from 173,465 tons in April, but down from 401,171 tons in May 2019. Distillers dried grains with solubles production was at 1.23 million tons, down from 1.01 million tons in April, but down from 1.94 million tons in May 2019. Distillers wet grains production fell to 696,152 tons, down from 696,475 tons in April and 1.36 million tons in May of the previous year. Modified distillers grains production fell to 242,264 tons, down from 274,285 tons in April and 456,572 tons in May 2019.
At wet mills, corn germ meal production fell to 64,200 tons, down from 51,929 tons in April and 68,852 tons in May 2019. Corn gluten feed production was at 291,064 tons, up from 231,145 tons in April, but down from 298,347 tons in May of the previous year. Corn gluten meal production was at 91,013 tons, up from 76,897 tons in April, but down from 93,185 tons in May 2019. Wet corn gluten feed production was at 224,695 tons in May, up from 188,258 tons in April, but down from 269,967 tons in May of the previous year.
Carbon dioxide captured at dry and wet mills fell to 149,453 tons, down from 162,926 tons in April and 235,559 tons in May 2019.
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Jul 27, 2020
Legislation released by the U.S. Senate on July 27 could provide relief to biofuel producers impacted by the COVID-19 pandemic. A separate bill introduced on the same day aims to benefit workers who have lost their jobs as a result of the pandemic.
Senate Appropriations Committee Chairman Richard Shelby, R-Ala., on July 27 introduced an emergency supplemental appropriations bill that provides $306 billion in emergency appropriations to aid American families and businesses suffering from the COVID-19 pandemic. While the bill does not provide dedicated relief for biofuel producers, one provision of the bill provides $20 billion of additional funding to the USDA to support agricultural producers, growers and processors impacted by COVID-19.
That $20 billion funding would provide support for agricultural producers, growers, and processors impacted by COVID-19, including producers, growers and processors of specialty crops, non-specialty crops, dairy, livestock and poultry. Biofuel producers would be considered eligible entities under the program.
“This is a good first step towards healing the damage wrought by COVID-19, but falls short of providing the necessary clarity that would have been provided in Senators Ernst, Grassley and Klobuchar's proposed language," said Emily Skor, CEO of Growth Energy. "The next critical step in a final agreement between House and Senate is to provide additional certainty around the nature of biofuel industry relief to ensure our producers have access to this much needed assistance. Our fight is far from over, especially with the number of retroactive refinery exemption applications continuing to rise and COVID-19 depressing trade to our key ethanol markets abroad. It’s encouraging to know that we have House and Senate leaders in our corner who understand that protecting America’s biofuel workforce now is vital to rebuilding our nation’s agricultural supply chain and markets for American farmers.”
A separate bill released by Senate Finance Committee Chairman Chuck Grassey, R-Iowa, would provide further relief for workers affected by COVID-19; assistance to individuals, families, and employers to reopen the economy; support for patients, nursing home residents, providers and foster youth in responding to COVID-19; additional flexibility and accountability for coronavirus relief fund payments and state tax certainty for employers and employees.
One section of that bill, would provide supplemental unemployment insurance payments of $200 per week through September. Starting in October, the payment would be replaced with a payment of up to $500, that when combined with the state unemployment insurance payment, would replace 70 percent of lost wages. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was signed into law in March, provides a $600 per week supplemental unemployment insurance payment through the end of July.
Another section of the bill would create a second recovery rebate payment of $1,200 to all U.S. citizens and U.S. residents with adjusted gross income up to $75,000. For married couples with gross income up to $150,000, the payment would be $2,400. An additional rebate of $500 per dependent would be available. The amount of the rebate would phase out completely for single filers that exceed $99,000 and joint filers with no children and income over $198,000.
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Jul 24, 2020
The US Grains Council (USGC) has been engaging future export opportunities for distiller’s dried grains (DDG) to South East Asia.
Thanks to extensive technical education and trade servicing by USGC staff, DDG is expanding its footprint in countries throughout the region. Vietnam, Indonesia and Thailand all rank in the top 10 buyers for the co-product. Other markets like the Philippines and Malaysia are also increasing interest and purchases of DDG and other corn co-products.
“South East Asia is now the destination for one-third of all US DDG exports,” said Caleb Wurth, USGC assistant director of South East Asia. “The region will be one of the strongest performing markets for distiller's grains this marketing year, despite challenges related to movement restrictions, lack of available containers and new trade agreements signed between major markets and U.S. competitors.”
The DDG tech talk series followed webinars focused on trade policy and challenges and opportunities in the region. The first talk was conducted in partnership with PAFMI (the Philippine Feed Mill Association) with technical staff of PAFMI member companies joining the webinar. PAFMI members represent the largest segment of the Philippine feed industry, making this partnership critical to expanding trade relationships in the country.
“When designing the program, we wanted to address the top constraints to increased DDG usage in the Philippines,” Wurth said. “Leading examples were storage and handling followed by nutritional value awareness, which became our focus topics for the webinar.”
The second talk was conducted with one of the largest feed millers in South East Asia, part of a new strategic partnership in the region. More than 60 decision-level participants logged in from all the company’s offices in South East Asia, South Asia and North Asia.
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Jul 22, 2020
After carving out a role as an "ethanol senator," Republican Sen. Chuck Grassley said yesterday he's not sure he's won much support even in his own party — but he's making an additional pitch to help the industry weather the pandemic.
Grassley, Iowa's senior senator, told reporters he and fellow Iowa Republican Sen. Joni Ernst are still pressing for pandemic-related aid for biofuel producers in the next coronavirus aid bill and that he wishes more lawmakers from corn-growing states would warm to the idea.
"We need help from others, and I expect that other people are going to help, but it seems like we have to be the instigators of it," Grassley said. Iowa is the country's top ethanol-producing state.
By Grassley's count, 14 states are considered big corn producers. With two senators each, he said, those states ought to generate 28 pro-biofuel votes in the chamber.
"I don't know why it always falls on Ernst and Grassley to be the only ones that presumably are ethanol senators," he said.
Grassley repeated his earlier calls for financial assistance to help biofuel producers who had to shut down or slow their plants during the early months of the pandemic. At one time, as much as half the nation's ethanol production was affected, and more than 130 plants either fully or partially shut down.
Asked if he believes biofuel producers should be given dollar-for-dollar parity with the oil industry — which benefited from government purchases for the Strategic Petroleum Reserve — Grassley said ethanol should be treated more generously.
"There ought to be more help for ethanol than for oil," Grassley said, because oil was cheap at the time the government helped that industry though SPR purchases.
Among the measures Grassley has sought: reimbursement to biofuel producers for feedstocks they bought between Jan. 1 and March 31. He introduced thatbillwith Sen. Amy Klobuchar (D-Minn.) in May, resurrecting a proposal he'd initially intended to add to a pandemic relief bill — but hadn't because oil industry relief wasn't included either.
The petroleum reserve purchases came through Trump administration actions instead.
Grassley's call for biofuel assistance is one of a few agriculture provisions he's pressing, including help for hog producers who lost money through forced depopulation of animals. That was a result of COVID-19 outbreaks forcing meatpacking plants to close.
Biofuel groups such as the Renewable Fuels Association continue to press for assistance, along with restrictions on EPA's ability to waive biofuel blending requirements for small refineries.
Prospects for biofuel aid aren't clear as the Republican leadership crafts a relief bill this week. And while Grassley said he doesn't think his party's leadership is much more friendly to ethanol than in previous years, the Democrats aren't any more receptive.
"I've got all sorts of quotes from Schumer, how he's anti-ethanol," Grassley said, referring to Senate Minority Leader Chuck Schumer (D-N.Y.), who's supporting Ernst's opponent, Theresa Greenfield, in a close reelection race this fall.
Despite Schumer's history against ethanol mandates, Democrats have tried to cast Ernst as not aggressive enough on biofuel issues, including prodding her to demand EPA Administrator Andrew Wheeler's resignation, as Greenfield has (E&E Daily, July 21).
"Don't put it on the shoulders of Republican leaders when Democratic leaders are fighting it," Grassley said. "It's not just a Republican problem."
Read the original story here.
Jul 21, 2020
Whitefox continues growth in North America – now at 100 mmgy of installed capacity
Council Bluffs, IA – Whitefox Technologies, is pleased to announce Southwest Iowa Renewable Fuels (SIRE) has surpassed 250 days of operation of their Whitefox ICE® membrane dehydration system at its plant in Council Bluffs, Iowa. The start?up in September 2019 was Whitefox’s third in 2019, now Whitefox’s 8th installation in the U.S., and its second installation in Iowa. The first ICE® installation in the leading ethanol producing state was at Pine Lake Corn Processors in Steamboat Rock.
SIRE CEO Mike Jerke stated “We’ve had a lot of highlights at SIRE in the past year, and the Whitefox project has been one of them. The combination of benefits improves our plant operations and efficiency, and helps SIRE provide more value to the community and our shareholders. SIRE is in our best position ever to move forward and efficiently meet the demand for ethanol driven by increased use of higher blends.” Jerke recently wrote in an op?ed piece for the Des Moines Register: “Ethanol’s best days remain ahead of us… our industry and workers will always go above and beyond.”
Gillian Harrison, CEO of Whitefox CEO, commented “working with SIRE was a very positive experience for our team. Their professional culture and high standards start at the top and extend throughout the whole organization. I felt that our respective teams complimented each other well, getting the best out of the project. They were an excellent project partner from the start. We share Mike’s positive view of the industry; ethanol is a home?grown product that gives us cleaner air and Whitefox is committed to helping plants improve their profitability and reduce energy and emissions.”
The Whitefox ICE® system treats existing recycle streams to free up distillation?dehydration capacity, enabling SIRE and other producers to lower natural gas use by over 1,000 BTU/ gallon, cut carbon emissions, improve plant cooling, and increase potential production capacity by 20% or more depending on the system design. Whitefox ICE® is integrated into existing corn ethanol production plants with minimal disruption and a small footprint.
Paul, Kamp, Whitefox VP of Business Development added “SIRE has always been a plant with a unique vision for innovation and a strategic location. Working closely together with the SIRE plant team on project execution was a great experience and results are top notch. Together we achieved the initial target objectives for reduced steam use and higher production capacity potential. Almost immediately after start?up, their engineers and operators dialled?in improvements and BTU reductions across distillation and dehydration.”
About SIRE
Southwest Iowa Renewable Energy, LLC: SIRE is located on 275 acres in Council Bluffs, Iowa, operating a 140 million gallon per year ethanol plant. SIRE began producing ethanol in February 2009 and sells its ethanol, distillers’ grains, corn syrup, and corn oil in the continental United States, Mexico, and the Pacific Rim. SIRE is a Limited Liability Company incorporated in the State of Iowa on March 8, 2005. The owners of SIRE have positioned the Company to be a locally controlled business enterprise providing farmers and local investors with the chance to extract added value through ownership of a processing plant that converts local corn to higher value products.
About Whitefox Technologies Limited
Established in 2000, Whitefox Technologies is a leading solutions provider for fuel ethanol and other alcohol production processes. Specializing in technology development and process integration based on proprietary membrane solutions, its efficient designs reduce energy and water consumption in ethanol and organic chemical manufacturing processes. Whitefox provides solutions for fuel ethanol, other biofuels, and industrial alcohol production in the U.S., Canada, Europe, and South America. www.whitefox.com @WhitefoxTech
For further information:
Trond Heggenhougen
Whitefox Technologies
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+44 (0)20?7953?8408
Jul 17, 2020
Sen. Chuck Grassley, R-Iowa, confirmed during a press call on July 17 that he and Sen. Joni Ernst, R-Iowa, will advocate for the inclusion of dedicated relief for ethanol producers the fourth COVID-19 stimulus bill, which Congress is expected to take up as soon as next week.
Grassley sponsored a bill introduced in Maythat would provide relief to ethanol producers via payments for feedstock made through the USDA’s Commodity Credit Corp. During the July 17 call, Grassley indicated he and Ernst would work to include provisions of that bill into the upcoming COVID-19 bill.
In the long-term, however, Grassley said he thinks that hope for the ethanol industry will be directly related to the extent to which the economy picks up and people start driving. While ethanol production has picked up in recent weeks following sharp declines in March and April, Grassley said he thinks it will be a slow turnaround for the industry to return to pre-COVID-19 production levels. “I think the Ernst-Grassley bill will help in that effort a lot, if we can get it put into the [upcoming COVID-19 relief bill],” he said.
Grassley also briefly addressed the “gap year” small refinery exemption (SRE) petitions that several small refineries have filed with the U.S. EPA in recent months in an effort to circumvent a January ruling made by the Tenth Circuit Court of Appeals that determined the EPA cannot extend SREs to any small refinery whose earlier, temporary exemptions had lapsed. The 58 gap year SRE petitions that have been submitted to the EPA so far represent an effort by several small refiners to create a continuous chain of SRE approvals that would allow the impacted refineries to maintain eligibility for future SREs.
Grassley discussed a conversation he and Ernst recently had with EPA Administrator Andrew Wheeler regarding the gap year waivers, noting that Wheeler said the agency is considering the waivers as required by law. Grassley also noted that Wheeler indicated the agency isn’t sure how it would provide relief for any approved gap year waivers. “We got the feeling they don’t know what to do about these, but they have to consider them,” Grassley said.
He also briefly addressed comments made by Energy Secretary Dan Brouillette during a July 14 hearing held by the House Subcommittee on Energy. During that hearing, Brouillettee was questioned on the gap year SRE petitions and the Department of Energy’s process to evaluate them. He confirmed that he will work with the DOE’s general council to ensure the analysis his agency is required to conduct is fully compliant with both the Tenth Circuit Court decision and federal statute.
Read the original story here.
Jul 15, 2020
WASHINGTON – U.S. Senators Amy Klobuchar (D-MN) and Tina Smith (D-MN) sent a letter to Department of Agriculture (USDA) Secretary Sonny Perdue urging USDA to allow businesses that have received grants under the Higher Blends Infrastructure Incentive Program (HBIIP) to use grant funds to cover project costs incurred any time in 2020—before or after their grant agreements are signed. Eligible fuel retailers in Minnesota may not be able to effectively participate in the HBIIP if construction of storage tanks and blender pumps cannot begin before cold weather and frozen ground halts their ability to complete projects. The senators note that biofuel infrastructure improvement efforts have a significant impact on increasing demand for clean energy and providing consumers with more environmentally friendly fuel choices.
“Our state has proven to be a valuable partner in utilizing United States Department of Agriculture cost-share programs to aid in the adoption of infrastructure upgrades that deliver higher blends of biofuels to consumers,” the senators wrote.
“Under the original Biofuels Infrastructure Partnership (BIP), the combined federal, state, and matching funds provided investments of $14 million in new biofuels infrastructure in the state, where we now exceed 350 retail stations selling E15,” the senators continued. “These efforts have had an enormous impact in driving investment, increasing demand for clean energy, and providing consumers with more low-emission, environmentally friendly fuel choices when they fill up at the pump. Last year, sales of E15 in Minnesota tripled in volume from 2017 and exceeded 70 million gallons.”
“With an application window that is set to close on August 13, the effectiveness of the HBIIP in Minnesota and other cold weather states may be limited unless additional flexibility is granted,” the senators continued. “We urge you to modify the program to allow grant funds to cover costs incurred during the 2020 calendar year.”
For years, Klobuchar has been a leader in the fight to strengthen the RFS to support American jobs and decrease dependence on foreign oil. Klobuchar has led several letters urging the Administration to cease issuing small refinery waivers and reject changes to the RFS that would upend stability and predictability for small businesses and rural communities.
In June, Klobuchar led a bipartisan letter joined by Smith, with Senators Joni Ernst (R-IA), Tammy Duckworth (D-IL), and Chuck Grassley (R-IA) urging the Environmental Protection Agency (EPA) to reject petitions for Small Refinery Exemptions (SREs) under the Renewable Fuel Standard (RFS) for past compliance years.
At a Senate Agriculture hearing in June, Klobuchar highlighted the urgent need to help farmers identify conservation techniques that would have the greatest benefit for the climate and farmers’ bottom lines.
In December 2019, Klobuchar led a public comment letter to EPA Administrator Andrew Wheeler expressing concern over the proposed supplemental rule establishing the Renewable Fuel Standard’s (RFS) 2020 Renewable Volume Obligations and 2021 Biomass-Based Diesel Volumes. The senators argued that the proposed rule—which determines how much biofuel is required to be blended into our transportation fuel supply on an annual basis—fails to adequately account for the waivers, including those given to big oil companies. In October 2019, Klobuchar sent a letter to U.S. Department of Agriculture Secretary Sonny Perdue asking the agency to document the impact of small refinery waivers on farm income, commodity prices, and renewable fuel usage.
In May 2020, Klobuchar and Senator Chuck Grassley (R-IA) introduced bipartisan legislation to support biofuel producers that are feeling economic hardship from fuel demand and ethanol price declines as a result of the coronavirus pandemic. The Renewable Fuel Feedstock Reimbursement Act will require the U.S. Department of Agriculture (USDA) to reimburse biofuel producers for their feedstock purchases from January 1, 2020 through March 31, 2020 through the Commodity Credit Corporation.
As a senior member of the Senate Agriculture Committee Klobuchar successfully pushed for key climate provisions in the 2018 Farm Bill, including provisions to increase acres in the Conservation Reserve Program (CRP) by 3 million acres, invest in renewable energy programs including the Rural Energy for America Program (REAP), protect native prairies by fixing a loophole in the “Sodsaver” program, and improve the use of conservation data so that farmers are able to make better choices about conservation practices that benefit their yields and the environment - based on her Agriculture Data Act with Senator Thune.
Full text of today’s letter can be found HERE and below:
Dear Secretary Perdue:
We write to urge you to modify the Higher Blends Infrastructure Incentive Program (HBIIP) so that fuel retailers may use grant funds to cover costs incurred for qualified projects throughout the full 2020 calendar year. Doing so will ensure that the HBIIP meets its goals of increasing the availability of higher-blend biofuels, driving demand for our farmers, and improving air quality through decreased emissions.
Our state has proven to be a valuable partner in utilizing United States Department of Agriculture cost-share programs to aid in the adoption of infrastructure upgrades that deliver higher blends of biofuels to consumers. Under the original Biofuels Infrastructure Partnership (BIP), the combined federal, state, and matching funds provided investments of $14 million in new biofuels infrastructure in the state, where we now exceed 350 retail stations selling E15. These efforts have had an enormous impact in driving investment, increasing demand for clean energy, and providing consumers with more low-emission, environmentally friendly fuel choices when they fill up at the pump. Last year, sales of E15 in Minnesota tripled in volume from 2017 and exceeded 70 million gallons.
That’s why we were disappointed to learn that funds from HBIIP cannot be used to reimburse expenses that are incurred on qualified projects before a grant agreement is signed. Fuel retailers in our state are ready to utilize the HBIIP to purchase, install, and enhance storage tanks and blender pumps dedicated to dispensing E15 and E85, but are concerned that they will not be able to promptly receive permits and begin construction before cold weather and frozen ground halts their ability to complete projects. With an application window that is set to close on August 13, the effectiveness of the HBIIP in Minnesota and other cold weather states may be limited unless additional flexibility is granted.
We urge you to modify the program to allow grant funds to cover costs incurred during the 2020 calendar year.
Thank you for your consideration.
Sincerely,
Read the original press release here.