In the News

Senator Amy Klobuchar

Jan 12, 2021

[WASHINGTON, D.C.] — U.S. Senators Amy Klobuchar (D-MN) and Tina Smith (D-MN) are calling on the incoming Biden administration to take bold action immediately following the inauguration to support farmers and rural communities by restoring integrity to the Renewable Fuel Standard (RFS). Senators Tammy Duckworth (D-IL), Tammy Baldwin (D-WI), Debbie Stabenow (D-MI), and Richard J. Durbin (D-IL) joined Klobuchar and Smith on this request.

The RFS sets the amount of renewable fuels made from farm products such as corn and soybeans that is blended into the nation’s fuel supply. A strong renewable fuel standard is critically important to Minnesota corn and soybean farmers and is key to job creation in many rural communities. Waivers granted by the Trump Administration allowed fuel refineries to blend billions of gallons less of renewables into the fuel supply, hurting farm income.

In part, the Senators wrote: “The outgoing administration undermined the Renewable Fuel Standard (RFS), which was designed to reduce greenhouse gas emissions from the transportation sector, diversify our fuels, strengthen our national security and drive economic opportunity in America’s heartland. It is critical that the integrity of this policy be restored, and that biofuels be part of your efforts to combat climate change and reduce greenhouse gas emissions from the Nation’s largest emitting sector.”

A full copy of the letter is available below and here.

Dear President-Elect Biden,

We write to respectfully request your administration take bold action to support our Nation’s farmers and rural communities while acting to combat climate change. The outgoing administration undermined the Renewable Fuel Standard (RFS), which was designed to reduce greenhouse gas emissions from the transportation sector, diversify our fuels, strengthen our national security and drive economic opportunity in America’s heartland. It is critical that the integrity of this policy be restored, and that biofuels be part of your efforts to combat climate change and reduce greenhouse gas emissions from the Nation’s largest emitting sector.

In order to deliver on these goals, we urge you to swiftly act by taking these steps:

  1. Direct EPA to adopt the Tenth Circuit decision nationwide and swiftly reject any pending and future petitions for small refinery exemptions (SREs) that do not meet the standards set forth by the court: Congress included SREs under the RFS with the intention of mitigating economic harm to small refinery operations. Under the last administration, the intent of SREs was grossly abused when multi-billion dollar companies, like ExxonMobil and Chevron, were provided these waivers.
  2. Publish Renewable Volume Obligations (RVOs) swiftly: The outgoing administration failed to meet its statutory obligation by not publishing a set of 2021 RVOs. EPA must now publish them quickly and restore certainty in the fuel markets. The RVOs must facilitate substantial growth opportunity for advanced biofuels and include the court-ordered reallocation of 500 million gallons of blending obligations that were wrongfully waived in 2016.
  3. Approve pending pathway applications for corn kernel fiber ethanol and update EPA’s biofuels emissions modeling: EPA faces a backlog of applications from companies seeking to produce cellulosic biofuel from various feedstocks and have them qualify under the RFS. The Agency’s failure to approve these applications is discouraging investment and impacting the ability of these fuels to be commercialized. Companies have waited, on average, more than two years for their applications to be approved. This has led some companies to abandon their plans. Furthermore, EPA’s emissions modeling for the RFS is a decade old and inaccurate. It is critical their modeling be updated so that we fully recognize how biofuels are contributing to our greenhouse gas emission reduction goals. We urge EPA to adopt Argonne National Laboratory’s Greenhouse gases, Regulated Emissions, and Energy use in Technologies (GREET) model.
  4. When reaffirming our commitment to the Paris Climate Accord, include biofuels: Transportation is responsible for approximately one-quarter of total global energy-related greenhouse gas emissions and the sector is rapidly growing. Biofuels are substantially lower in carbon intensity than fossil fuels and have the advantage that they can reduce the carbon emissions of gasoline vehicles in the short run. For example, in its January 12, 2017, report, the U.S. Department of Agriculture (USDA) found that corn ethanol reduces greenhouse gas emissions by 43 percent compared to conventional gasoline and has the potential to reduce emissions by as much as 76 percent. It is essential that biofuels are included in addressing carbon reduction in the transportation sector for our international climate goals to be met.

We strongly support your administration’s goal of addressing the climate crisis and supporting our Nation’s farmers. Ending the policy abuses that were prevalent during the outgoing administration early on in your term will help to renew commitments to rural communities and drive economic resiliency in the heartland. In addition to the policy recommendations above, we urge your administration to begin consideration of the RFS “set” for RVO volumes for 2023 and beyond, guided by the important role that biofuels must play in meaningful and rapid climate action.

We look forward to working with you on this important effort. 

Read the original press release here.

Ethanol Producer Magazine

Jan 11, 2021

On “Day One” in office, President-elect Biden’s incoming administration can immediately secure 10.7 million metric tons of greenhouse gas (GHG) reductions simply by rejecting the 66 pending waiver requests from oil refiners who are looking to dodge their Renewable Fuel Standard (RFS) obligations. In addition, another 1.2 million metric tons of GHG reductions can be achieved by finally implementing a 2017 court order to restore renewable fuel blending requirements that were illegally waived by EPA in 2016. These findings come from a new analysis released today by the Renewable Fuels Association.

According to the RFA report, the GHG reductions associated with these actions would be equivalent to removing 2.6 million gasoline-powered passenger vehicles from the road, eliminating the annual emissions from three coal-fired power plants, or replacing 3.7 million gasoline-powered passenger vehicles with battery electric vehicles.

“Not only have the Trump administration’s illegitimate refinery exemptions caused extensive economic harm to renewable fuel producers and farmers, but they have also led to increased GHG emissions and environmental damages. That needs to end now, and outgoing EPA officials should absolutely not—under any circumstances—issue any further waivers on their way out the door, lest they do even more damage to the environment and rural America’s economic health,” said RFA President and CEO Geoff Cooper. “By putting an immediate stop to these secretive oil refinery waivers, President-elect Biden and his incoming team have a rare opportunity to instantly secure significant GHG emissions reductions from the transportation sector on day one. Rejecting the exemption requests also would fulfill commitments made by President-elect Biden during the campaign, generating trust and goodwill in rural America.”

Cooper also pointed out that rejecting the waivers and enforcing the court’s 500-million-gallon remand would not require executive orders, rulemakings, or legislative action. “These are truly things that can be done immediately to safeguard the market for low-carbon renewable fuels and secure meaningful GHG reductions,” he said.

According to the RFA analysis, “When refiners are inappropriately released from their renewable fuel blending obligations, they supply more petroleum-based fuels—like gasoline and diesel—to the market in lieu of renewable fuels.” In turn, those exemptions “…lead to higher GHG emissions from the transportation sector than would have been the case if the exemptions had not been issued and the required volumes of renewable fuel had been used.”

RFA’s analysis is available here.

Read the original story here

Renewable Fuels Association

Jan 7, 2021

U.S. ethanol exports in November declined 10% to 113.6 million gallons (mg) but landed 6% above year-ago levels at this time. Shipments crossing the border to Canada were fractionally lower, down 0.3% to 35.5 mg, securing nearly a third of total U.S. ethanol exports. Brazil re-entered the market with 13.4 mg in sales, which is the country’s largest U.S. ethanol draw in seven months. Exports to India were slightly higher (up 0.5%) at 11.7 mg while sales to Colombia decreased 8% to 10.2 mg. China also re-entered the market with 8.6 mg in sales, which is the country’s largest U.S. ethanol draw since March 2018. Other larger markets included South Korea (6.8 mg, -54%), Peru (6.1 mg, +72%), and Nigeria (5.9 mg, +56%). Global year-to-date exports of U.S. ethanol totaled 1.223 billion gallons, or 8% less than this time a year ago.

The U.S. imported 19.4 mg of ethanol, down 14% from October, with essentially all gallons sourced from Brazil. Year-to-date imports total 151.9 mg.

U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—declined 3% in November to 927,604 metric tons (mt). U.S. export sales moderated in Mexico (139,844 mt, -23%), Vietnam (128,036 mg, -2%), and South Korea (88,810, -31%) but perked up in Turkey with a four-month high of 119,231 mt (+151%). The remaining half of export sales landed in another thirty countries, including Indonesia (84,002 mt), Canada (37,287 mt), Ireland (37,246 mt), Colombia (36,649 mt), and China (31,685 mt). Total worldwide U.S. DDGS exports through November were 10.12 million mt, or 1% ahead of last year at this time.

Read the original story here

Renewable Fuels Association

Jan 5, 2021

In a court filing today,  the Renewable Fuels Association and Growth Energy continued to call on the U.S. Environmental Protection Agency and the Department of Energy to release the names and locations of refineries granted exemptions from their Renewable Fuel Standard obligations.

RFA President and CEO Geoff Cooper and Growth Energy CEO Emily Skor offered the following joint statement on the filing: “The public has a right to know which companies are receiving waivers from their Clean Air Act obligations and skirting requirements to blend cleaner, greener renewable fuels like ethanol. It is disingenuous for EPA to suggest that the names and locations of the exempted refineries constitute confidential business information, especially when the Agency itself has twice proposed to publicly disclose this information. We will not stop our efforts to bring transparency to this process until the shroud of secrecy has been lifted on the small refinery exemption program.”

The dispute centers on EPA’s refusal to provide certain basic information about refinery exemptions as requested by RFA and Growth Energy under the federal Freedom of Information Act. EPA incorrectly claims that even the names and locations of refineries receiving waivers are protected because they constitute  “commercial or financial information obtained from a person [that is] privileged or confidential.” But RFA and Growth Energy have simply requested the names and locations of the refineries petitioning for exemptions, not any commercial information or financial data that might otherwise be exempt from public disclosure under FOIA.

“Although EPA shares the aggregate number of exemptions it has decided to grant or deny, its withholding of the basic information regarding individual exemption decisions sought here has made it difficult or impossible for affected third parties (such as Plaintiffs) to challenge its exemption decisions,” RFA and Growth Energy state in the court filing. “EPA has relieved scores of refineries of their statutory compliance obligations without any public process, leaving Plaintiffs and other affected entities ‘without a viable avenue for judicial review.’”

Read the original press release here.

Ethanol Producer Magazine

Dec 29, 2020

The USDA recently released its Grain Crushings and Co-Products Production report for December, reporting that corn use for fuel ethanol production reached 433 million bushels in October, up from the previous month, but down from November 2019.

Total corn consumed for alcohol and other uses was 481 million bushels in October, up 7 percent when compared to the previous month, but down 1 percent from October 2019. October usage included 92 percent for alcohol and 8 percent for other purposes.

Corn consumed for fuel alcohol was at 433 million bushels, up 8 percent from the previous month, but down 1 percent when compared to October 2019. Corn consumed for dry milling fuel production and wet milling fuel production was 89.6 percent and 10.4 percent, respectively.

The volume of sorghum consumed in October for fuel alcohol production was withheld from the USDA’s report to avoid disclosing data for individual operations. Data was also withheld for the previous month. In October 2019, however, 4.054 million hundredweight (cwt) (227,024 tons) of sorghum went to fuel alcohol production.

At dry mills, condensed distillers solubles production was at 82,598 tons, up from 77,294 tons in September, but down from 93,867 tons in October of the previous year. Corn oil production increased to 160,875 tons, up from 140,468 tons the previous month and 150,112 tons in October 2019. Distillers dried grains production reached 377,960 tons, up from 341,156 tons in September and 348,762 tons in October of the previous year. Distillers dried grains with solubles production was at 1.8 million tons, up from 1.74 million tons in September, but down from 1.87 million tons in October 2019. Distillers wet grains production was at 1.01 million tons, up from 961,695 tons the previous month, but down from 1.3 million tons in October of the previous year. Modified distillers grain production was at 416,516 tons, up from 403,603 tons in September, but down from 447,475 tons in October 2019.

At wet mills, corn germ meal production fell to 43,242 tons, down from 50,401 tons the previous month and 51,988 tons in October 2019. Corn gluten feed production was at 293,793 tons, up from 284,409 tons the previous month, but down slightly from 293,890 tons in October of the previous year. Corn gluten meal production increased to 108,844 tons, up from 85,348 tons in September and 87,589 tons in October 2019. Wet corn gluten feed production was at 244,618 tons, down from 251,199 tons the previous month, but up from 233,348 tons during the same month of the previous year.

At dry and wet mills, carbon dioxide captured was at 197,696 tons, up from 185,854 tons in September, but down from 241,014 tons in October 2019.

Read the original story here

Ethanol Producer Magazine

Dec 23, 2020

U.S. ethanol production was up 2 percent the week ending Dec. 18, according to data released by the U.S. Energy Information Administration on Dec. 23. Weekly ending stocks of fuel ethanol increased by 1 percent.

U.S. ethanol production averaged 976,000 barrels per day the week ending Dec. 18, up 19,000 barrels per day when compared to the 957,000 barrels per day produced during the previous week. When compared to the same week of last year, production was down 107,000 barrels per day.

Production of fuel ethanol has stabilized in recent months after falling to historic lows in the spring of 2020 due to market impacts caused by the COVID-19 pandemic. Ethanol production hit a low of 537,000 barrels per day the week ending April 24, but began to recover in May and June as travel restrictions associated with the pandemic began to ease and demand for transportation fuels started to recover. Production levels since July have been maintained at a level above 900,000 barrels per day, but are down roughly 10 percent when compared to the same period of last year.

Weekly ending stocks of fuel ethanol expanded to 23.169 million barrels the week ending Dec. 18, up 219,000 barrels when compared to the 22.95 million barrels of stocks reported for the previous week. Stocks of fuel ethanol trended down for several months after reaching a record high of 27.289 million barrels the week ending April 17 and remained at levels below those reported for the same period of 2019 through mid-November. Ending stocks, however, have been growing in recent weeks. When compared to the same week of last year, ethanol stocks for the week ending Dec. 18 were up 1.7 million barrels.

Read the original story here

U.S. Grains Council

Dec 16, 2020

As the ongoing impacts of COVID-19 push air quality and climate issues to center stage, the U.S. Grains Council is continuing its work to demonstrate the environmental benefits of ethanol to global stakeholders.

Five years after the Paris Agreement to reduce carbon emissions was first signed, countries are reporting their progress in meeting their nationally determined contributions (NDCs) to overall reductions, including some that have created or implemented domestic ethanol policies to help meet these goals. These include Canada and Brazil with the Clean Fuel Standard and RenovaBio, respectively.

“The International Energy Agency (IEA) recognizes the important role of policies as a demand driver and the ability for countries to achieve their environmental and climate goals,” said Brian Healy, USGC director of global ethanol market development. “Continued attention on the Paris Agreement’s commitment requirements is one factor that furthers the opportunity for ethanol to be recognized as a solution to greenhouse gas emission (GHG) reductions.”

To foster growing use of ethanol around the world, the Council has focused on developing partnerships with local governments and industries; promoting trade policy that recognizes ethanol’s role as a transportation fuel; and ensuring tariff lines and non-tariff trade policies treat ethanol equitably.

“It is clear ethanol is a readily available component that can be incorporated in transportation policies focused on reducing overall emissions,” Healy said. “We are working with our partners to elevate that narrative around GHG emissions savings potential as countries evaluate and present progress on their NDCs.”

Fuel ethanol trade is expected to be down in 2020 from the nearly 2.5 billion gallons of total trade in 2019. Stay-at-home orders have weighed heavily on overall fuel demand, which impacted U.S. ethanol exports by 12 percent in the last marketing year. That short-term market loss serves as a critical reminder of the importance of strong trade policy to incentivize the use of biofuels and ensure they get fair treatment in the global market.

“Our work continues globally, highlighting the ongoing role that policies have for expanded ethanol use,” Healy said. “This is especially prudent considering delays in implementation that have occurred in some Asian markets with currently low blend rates, which are trying to abate their own emissions across the transport sector.”

Read the original press release here

Energy AgWired

Dec 22, 2020

Agricultural and biofuels groups as well as farm state lawmakers are pleased that the new COVID relief package passed by Congress last night includes help for producers excluded from previous aid legislation.

Sen. John Thune  (R-SD) says relief includes the  Paycheck Protection Program for Producers Act.  “The bill also includes funding to allow the Department of Agriculture to provide additional assistance to ag producers who were dealing with a tough economy before the pandemic hit,” said Thune.

The bill explicitly makes producers of biofuels like ethanol and biodiesel eligible for USDA assistance, at the discretion of the secretary. “Biofuel producers have suffered from the drop in fuel demand during the pandemic and I hope the secretary will ensure that they are able to receive assistance,” Thune said. 

The bill also extends key tax provisions that support innovation and expansion in the renewable fuels industry, including the Second Generation Biofuel Producer Tax Credit, Alternative Fuel Refueling Property Credit, and the Section 45Q tax credit for carbon sequestration. 

Renewable Fuels Association  (RFA) President and CEO Geoff Cooper says the aid is much needed. “More than half of the ethanol industry shut down during the extraordinary demand collapse in the spring, and producers across the country still have not fully recovered from that market shock. The pandemic has cost the industry nearly $4 billion in lost revenue to date, with losses expected to continue well into 2021.”

American Coalition for Ethanol  (ACE) CEO Brian Jennings says they were hoping Congress would require USDA to make relief payments to biofuel producers, but he expects Agriculture Secretary nominee Tom Vilsack will be supportive. “Congress gave USDA flexibility to provide relief for biofuel producers in the last stimulus package, but USDA declined to exercise it. That is why job one in 2021 will be to work with incoming USDA Secretary Vilsack, upon his confirmation in the U.S. Senate, to get assistance to the industry in rapid fashion.”

Read the original story here