In the News
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.
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.
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.
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.
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.
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.
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.
Minnesota Pollution Control Agency
Dec 18, 2020
The Minnesota Pollution Control Agency (MPCA) today announced it is moving forward with its proposed clean car standards similar to those in 14 other states, including Colorado and Maine. If approved by an administrative law judge, Minnesota’s clean car standards would apply to new vehicles and are anticipated to take effect beginning with model year 2025 (January 2024).
Minnesota’s proposed clean car rule would adopt two new emission standards used in many parts of the country.
Low emission vehicle (LEV) standard fortifies standard for today’s new vehicles
The LEV standard regulates the amount of greenhouse gases and other harmful air pollution that new vehicles can emit. The LEV standard only applies to new light- and medium-duty vehicles like cars, SUVs, and pickup trucks. The LEV standard does not apply to off-road or farming equipment, heavy-duty vehicles, or used vehicles, and it does not require emissions testing. It also does not prevent the use of biofuels and other cleaner fuels.
Most importantly, all new vehicles sold in Minnesota since 2012 currently meet the LEV standard. Between 2012 and 2020, the United States only had one, unified standard – meaning the federal standard was aligned with the LEV standard. In March 2020, the federal government rolled back existing emissions standards, which could mean weaker environmental protections for our state if we don’t act.
Zero emission vehicle (ZEV) standard brings more hybrid and electric vehicles to Minnesota
The ZEV standard requires auto manufacturers to deliver more battery electric vehicles and plug-in hybrid models for sale in Minnesota, increasing each year. The exact number of vehicles is linked to the automaker’s overall sales within the state. The ZEV standard calls for incremental progress over time, not sudden, overnight change.
Minnesota has been on the tail end of receiving electric vehicles, and there are more makes and models available in ZEV states than Minnesotans can easily acquire here. A July 2020 survey found that Twin Cities auto dealers had only 171 new hybrids and electric vehicles on their lots out of more than 19,300 total vehicles for sale. In Greater Minnesota, consumers had even fewer options with no new hybrid and electric vehicles available in Duluth, Marshall, and Bemidji, and just 11 for sale in Rochester. Adopting the ZEV standard would ensure that Minnesota is at the forefront of receiving this new innovation.
“Minnesotans expect action to address our current climate crisis. That’s why the MPCA is using every available tool to address greenhouse gas emissions, including clean car standards that reduce emissions and increase electric vehicle options,” said Laura Bishop, MPCA commissioner. “Clean car standards, along with the electric school bus pilot project and supporting homegrown energy like biofuels, are part of a multipronged approach to reduce greenhouse emissions in our transportation sector.”
The MPCA’s Notice of the Intent to Adopt Rule will be published in the State Register on Monday, December 21. The Office of Administrative Hearings has scheduled a two-day hearing held by the presiding administrative law judge, Judge Palmer-Denig, on February 22-23, 2021, starting at 3 p.m. each day. In January, the MPCA also will hold four online information sessions on the following dates and times:
- Tuesday, January 19, 2021, at 10 a.m.
- Wednesday, January 20, 2021, at 5 p.m.
- Wednesday, January 27, 2021, at 1 p.m.
- Tuesday, February 2, 2021, at 6 p.m.
In 2007, Governor Tim Pawlenty signed the bipartisan Next Generation Energy Act into law, setting statutory goals to reduce greenhouse gas emissions by 15% from 2005 levels by 2015, by 30% by 2025, and by 80% by 2050. Minnesota missed the 2015 target and is not on track to meet future goals, either. Between 2005 and 2018, overall greenhouse gas emissions in Minnesota decreased by just 8%.
To get back on track, Minnesota must take swift action in all sectors, including transportation. Right now the transportation sector is the single largest source of climate-changing pollution in Minnesota. According to public input gathered during the 2019 Pathways to Decarbonizing Transportation in Minnesota project, Minnesotans want and expect action from state leaders for cleaner, lower-carbon transportation options, including adopting clean car standards. Once implemented, Minnesota’s clean car standards will reduce greenhouse gas emissions by 8.4 million tons in the first 10 years, and the clean air and climate benefits will continue to grow over time.
The MPCA works with partners across the private, public, and non-profit sectors to advance electric vehicles in Minnesota, including funding needed for electric vehicle charging infrastructure. In recent years, MPCA has used funding from the national Volkswagen settlement to build more than 1,100 miles of electric vehicle charging corridors in Greater Minnesota, and will continue expanding this statewide network by another 2,500 miles starting next year.
More information about the proposed rule, public hearing, and how to participate in the process will be available on the MPCA's website: mn.gov/cleancars
Read the original press release here.
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Dec 16, 2020
The Renewable Fuels Association on Dec. 16 said the COVID-19 pandemic will likely continue to negatively impact the U.S. ethanol industry well into 2021. The group, however, expressed optimism in working with the upcoming Biden administration.
Representatives of the RFA discussed the impact of the pandemic, the need for COVID-19 relief, and several policy initiatives during a media call held Dec. 16.
Geoff Cooper, president and CEO of the RFA, said market conditions for ethanol have gone from bad to worse in recent weeks as higher COVID-19 cases have resulted in new restrictions and reduced demand for transportation fuels.
Scott Richman, chief economist at the RFA, said ethanol production was down approximately 2 billion gallons from March to November. As a result, the ethanol industry lost approximately $3.8 billion in revenues, he said, noting the impact of that loss will not be mitigated through future sales.
Although COVID-19 vaccines are now being distributed, Richman said fuel demand will likely remain depressed for several months. At the earliest, he said volumes could normalize by late spring 2021. Reduced demand associated with the pandemic, however, could persist for longer. “The impact of this pandemic is not over,” Richman said.
Cooper said the RFA has has been advocating for the federal government to provide dedicated COVID-10 relief to the biofuels industry since last spring. While the CARES Act did provide funds for ag relief, none of the funds were specifically allocated to the renewable fuels industry.
Congress is currently negotiating a new relief package and is expected to reach a deal this month. Although that legislation is unlikely to provide dedicated relief for ethanol, it will likely provide a fresh round of ag relief. The upcoming Biden administration might make it possible for ethanol producers and other downstream ag processors to benefit from those ag relief funds.
Coper explained that the USDA does have the discretion and authority to provide ethanol producers and other downstream ag producers with relief through Commodity Credit Corp. funds. Current Agriculture Secretary Sonny Perdue has been reluctant to do so, Cooper said. The RFA believes, however, that President-elect Joe Biden’s pick for ag secretary is likely to take a more inclusive approach to COVID-10 relief. Biden has announced his intent to nominate Tom Vilsack to lead the USDA. Vislack is a former two-term Iowa governor and served as ag secretary during all eight years of the Obama administration.
Cooper also discussed RFA’s advocacy work related to the Renewable Fuel Standard, small refinery exemptions (SREs) and related court challenges. Regarding the overdue RFS rule to set 2021 renewable volume obligations (RVOs), Cooper said the RFA believes the upcoming Biden administration should manage that rulemaking.
“It’s been a wild year, to say the least,” Cooper said. “I’m sure I speak for the entire ethanol industry when I say we will not be sad to say goodbye to 2020 and ring in the new year.”
Read the original story here.
Dec 15, 2020
Cedar Rapids, Iowa – Fluid Quip Technologies announced a new partnership, making them an exclusive distributor of Trislot screens for the corn grind and biofuels industries. Trislot screens are utilized in fiber separation and washing in FQT’s patented technologies. The high-quality screens allow for optimal performance at critical points in the separation process. Trislot screens will be marketed and distributed through FQT’s partner Fluid Quip Mechanical (FQM).
“The exclusive partnership with Trislot is a natural alignment for FQT. We have long utilized Trislot, as our technologies have continued to develop.” says Michael Franko, Partner for Fluid Quip Technologies. Franko continued, “In addition to being a fit for our technology needs, Trislot is also a match for our mechanical services. Their ability to provide high-quality, innovative designs allows our mechanical engineers to develop cost-effective and specific solutions for operations and maintenance.”
“Trislot designs and manufactures stainless steel filter elements and separation screens based on V-shaped profile wires.” states Florian Van Assche, Operations Officer – Trislot USA, Inc. Florian continues, “These high precision filtration elements are made from profile wires that are resistance welded onto support wires in an automated production process.” Trislot’s continued development of cutting-edge technology and additional manufacturing locations, has led to the achievement of a leading position in the international market.
About Fluid Quip Technologies
Fluid Quip Technologies is a premier process engineering and technology development company headquartered in Cedar Rapids, Iowa. FQT has provided technologies for more than 2.3 billion gallons per year of biofuels production worldwide. The engineering and technical leadership team have been developing and implementing new technologies and process solutions applicable to the biofuels and biochemical markets for more than 30 years. FQT provides fully integrated solutions and services to dry- grind ethanol and biochemical facilities, which include green field plant design, process optimization, yield improvement technologies, new co-product technologies, and turn-key capital project solutions.
About Trislot
Trislot is a dynamic company, well known for excellence in customer service and leadership in technology. Serving customers worldwide, Trislot’s focus is on providing highly specialized filter elements and reactor internal to key players in various industries.
Read the original press release here.
Dec 15, 2020
Novozymes, the world leader in biological solutions, has expanded its portfolio of innovative enzyme solutions for the bioenergy industry with the launch of Fortiva Hemi. The unique new product brings novel enzymes to liquefaction that enable unmatched substrate conversion to deliver the highest corn oil and ethanol yields possible. Effective across the broadest pH and temperature ranges, it is also the most flexible liquefaction solution available to ethanol producers.
"Corn input costs remain the highest variable cost for fuel ethanol producers, and failure to convert all that is available in corn means lost opportunity and profit,” says Brian Brazeau, Novozymes’ Vice President, Agricultural & Industrial Biosolutions, Americas. “Fortiva Hemi enables utilization of a previously untapped potential in corn conversion, creating the opportunity for more than 10% corn oil yield increase and up to 1% additional ethanol yield, enhancing profit in a difficult fuel ethanol market.”
Fuel ethanol plants have previously only been able to achieve on average 40% efficiency in extracting available corn oil, but greater than 95% efficiency in converting starch to ethanol. Fortiva Hemi acts upon the fiber matrix during liquefaction, creating the potential for improved fat and starch conversion that lead to oil and ethanol yield previously inaccessible. This newly freed substrate is then converted using Novozymes’ highest yielding enzyme blends to once again improve ethanol production efficiency.
The new enzyme solution can work at high temperature liquefactions (195°F/91°C), across a wide pH range, and is ideal for the operational conditions of all plants.
Creating new standards in corn oil yield
Novozymes believes that increasing the efficiency of corn oil extraction could be significant in advancing bioethanol production.
“Fortiva Hemi is a drop-in liquefaction technology and builds on the operational flexibility that our customers have come to expect and value. It is expected to create a new standard for corn oil yield in the bioenergy industry that exceeds 10% higher oil yield,” adds Brian Brazeau. “Novozymes focuses across the full spectrum of ethanol processing and, making available some of the most advanced biology ever developed, aims to advance the market’s push for more sustainable, renewable energy.”
Fortiva Hemi will be immediately available globally, along with the rest of Novozymes’ Fortiva liquefaction products already proven to be the highest performing liquefaction solutions in the biofuel industry.
Read the original press release here.
Dec 11, 2020
With COVID-19 cases on the rise again, state and local governments are taking additional actions to limit travel and promote social distancing. In turn, consumption of ethanol-blended gasoline is rapidly falling again, threatening to derail an already tenuous economic recovery in the ethanol industry. Through November, U.S. ethanol producers had already lost $3.8 billion since the start of the pandemic, according to a new analysis released today by the Renewable Fuels Association. In response to reduced travel and lower fuel demand, ethanol producers slashed production by 2 billion gallons between March and November, and cuts are expected to continue for months to come.
In the first week of December, consumption of both gasoline and ethanol fell to their lowest points since May, according to data from the Energy Information Administration.
“As Congress debates another COVID-19 relief package, we implore policymakers to consider the devastating economic impact the pandemic has had on renewable fuel producers,” said RFA President and CEO Geoff Cooper. “Our new analysis provides an in-depth look at how rural communities have suffered. The decrease in ethanol production has idled or permanently closed plants across the heartland and caused job losses in rural communities where good employment is often hard to find. As an industry deemed critical and essential to America, we call on Congress to act swiftly to provide some targeted relief to our nation’s renewable fuels industry.”
Cooper pointed out that U.S. ethanol plants are also playing a crucial role in combatting the pandemic by producing high-purity alcohol for hand sanitizer and other disinfectants, as well as capturing the CO2 needed to make the dry ice required for distributing COVID-19 vaccines. “But ethanol plants can’t help in the fight against COVID if they can’t keep their doors open,” Cooper warned.
According to RFA Chief Economist Scott Richman, who authored the white paper, the 2-billion-gallon cut in ethanol production meant a significant 700-million-bushel decline in the use of corn for ethanol. He stressed that while this report looks at a one time period, the effects of the pandemic will continue for a long time to come.
“Gasoline and ethanol consumption are still substantially below pre-pandemic levels, and it is likely that this will persist for a number of months,” Richman wrote. “Moreover, the winter is typically a time when ethanol prices are weak, and the decline in demand has already started to intensify pressure on industry margins. As a result, the economic impact on the ethanol industry and, in turn, the agriculture sector is likely to deepen in the coming months.”
Richman’s new analysis provides an important update on earlier reports from April and July.
Click here for additional research on the COVID-19 impact on renewable fuels.
Read the original story here.
Featuring real-life, field-based presentations, the Plant Maintenance & Safety Summit is geared towards biofuels industry professionals focused on production efficiency, plant optimization, process control, advanced maintenance, compliance, quality control, safety and other areas of facility operations. This event will particularly appeal to plant managers, operations managers, process engineers, maintenance managers, operators and other personnel seeking the latest facility maintenance solutions.
This event provides the opportunity to meet face-to-face via live private video meetings with industry experts who will offer new technology and solutions to making plants and facilities safely operate at peak capacity and optimum efficiency.
What to Expect, Virtually Speaking
General Session: Hear the latest on industry policy from the industry’s leaders.
25 Speakers: Watch live and get content from companies and people who are shaping the biofuels world. Hear about the latest techniques, research and products helping producers become more efficient and profitable.
Presentations OnDemand: All sessions will be recorded and will be available for attendees for 30 days, so you can go back and view presentations you may have missed.
Virtual Program Guide: As an attendee, you’ll gain access to the digital program guide, containing writeups about the sponsors, exhibitors and speakers.
Ask Questions, Get Answers: You’ll have access to network with the speakers, once they are finished. You’ll be able to ask questions and get answers real-time.
Virtual Exhibit Hall
Chat with Exhibitors: Exhibitors will have someone online at their virtual booth at all times. There will be live chat rooms available to network with exhibitors.
Live Zoom Meetings: In addition to live chat rooms, as an attendee, you’ll have the ability to have live Zoom meetings with exhibitors and sponsors.
Private Meetings: You will have the ability to hold private meetings with exhibitors and sponsors.
Play Virtual Bingo and Win prizes. Attendees will have a chance to meet with exhibitors, complete their bingo card and enter to qualify into the Virtual Bingo game for a chance to prizes.
Whitepapers and Brochures: Download whitepapers, brochures and videos posted by each exhibitor.
Producer Giveaways: All producers will have the ability to win cash prizes each day and gain “Network Nickels.”
Networking Rooms
Private Meetings with Sponsors: Attendees can be personally invited to join private networking rooms to chat with specific attendees and VIP invites only.
Read the original announcement here.
Dec 9, 2020
U.S. fuel ethanol production increased by nearly 2 percent the week ending Dec. 4, according to data released by the U.S. Energy Information Administration on Dec. 9. Ethanol stocks were up by approximately 4 percent.
U.S. ethanol production averaged 991,000 barrels per day the week ending Dec. 4, up 17,000 barrels per day when compared to the 974,000 barrels per day produced during the previous week. When compared to the same week of last year, production was down 81,000 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 22.083 million barrels the week ending Dec. 4, up 843,000 barrels when compared to the 21.24 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. 4 were up 268,000 barrels.
Read the original story here.
Dec 8, 2020
Tom Vilsack is set for another stint as U.S. secretary of agriculture.
News organizations in Washington, citing people familiar with the decision, reported Tuesday night that President-elect Joe Biden would select Vilsack for the post.
Vilsack, who could not be reached for comment Tuesday, said in an interview with the Des Moines Register last week that he didn't know if he was being considered for the job.
"I don’t think anybody knows," Vilsack said. "It’s not like they put out a list saying, 'Here are the people we’re thinking about.' It’s not the way it works."
Media outlets also had reported that Biden was considering U.S. Rep. Marcia Fudge of Ohio, former Michigan Gov. Jennifer Granholm and former U.S. Sen. Heidi Heitkamp of North Dakota. But on Tuesday afternoon, reports emerged that Fudge would be nominated for Housing and Urban Development secretary.
Iowa farm leaders like the idea of Vilsack leading the department again. But some warn he will face challenges unlike those he saw during his eight years in the job during the Obama administration.
If confirmed by the Senate, the Democrat will come to office at a time when U.S. farmers face low commodity prices, diminished trade and an ongoing decline in rural population, jobs and opportunities.
He will have the backing of U.S. Sen. Chuck Grassley, an Iowa Republican who served as Agriculture Committee chairman during Vilsack's previous tenure.
“I liked what Vilsack did as the secretary of agriculture for eight years, and if he was in for another four years, it would be OK with me," Grassley said Tuesday. "I would be glad, if he wants me to, to speak for him before the Agriculture Committee.”
"He certainly understands rural issues," said Patty Judge, a Democrat who served as Iowa's agriculture secretary during Vilsack's tenure as governor. "And not just food production, but issues like broadband access, lack of affordable housing and the need for jobs."
"Having an Iowan at the helm of USDA would be positive for our state’s agriculture community," Mike Naig, Iowa's current agriculture secretary, said in a statement. "Tom Vilsack would certainly be able to hit the ground running given his previous experience, and being a former governor, he understands the interaction between states and the federal government.
Vilsack, who turns 70 on Sunday, said last week that putting together a Cabinet was like putting together a jigsaw puzzle that must balance gender, race and geographic considerations.
Some national leaders have criticized Biden for failing to have enough diversity in his Cabinet selections thus far.
"You just don’t know until all the pieces are put together. Or at least enough pieces," Vilsack said, adding that he was told he "would not be" Obama's agriculture secretary, but then was asked a few weeks later to meet with the then-president-elect, who hired him. He ended up serving for eight years.
Most Iowans interviewed by the Register welcomed the idea of Vilsack returning to Washington, even if they didn't always agree with the Obama administration's policies.
"It would be pretty exciting," said Monte Shaw, president of the Iowa Renewable Fuels Association. "Not only is he an Iowan, but knows the biofuels industry. He's been through the policy fights."
Vilsack supports the Renewable Fuel Standard, a federal mandate that requires ethanol, biodiesel and other renewable fuel to be blended into the nation's fuel supply. Farmers fought with President Donald Trump's administration over exemptions it provided the oil industry, waiving some refiners from blending biofuels.
Iowa is the nation's leading producer of biofuels, and industry experts say the exemptions have destroyed demand for billions of gallons of ethanol and biodiesel. Ethanol production uses half of Iowa's annual corn crop.
Additionally, Shaw said the U.S. Environmental Protection Agency will have greater freedom in setting renewable fuel levels in 2022, when guidelines from the 2007 law end. "If anyone is listening, I'd rather (Vilsack) head the EPA," Shaw said.
Kirk Leeds, CEO of the Iowa Soybean Association, said Vilsack has been a strong advocate for trade. In last week's interview, Vilsack noted that trade is tied to about 30% of U.S. farm revenue.
Leeds said he believes Vilsack agrees that China is guilty of "trade agreement abuses and misuses," from blocking U.S. farmers from some markets to stealing intellectual property. The Trump administration levied tariffs against China because of those abuses. But Leeds said Vilsack, like Biden, thinks the solution needs to be "multilateral," working with U.S. trade allies.
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American Coalition for Ethanol
Dec 8, 2020
Sioux Falls, SD – The Renewable Fuels Association, Growth Energy, National Corn Growers Association, National Biodiesel Board, American Coalition for Ethanol, and National Farmers Union today filed a brief challenging EPA’s August 2019 decision to exempt 31 small refineries from their obligations to comply with the Renewable Fuel Standard in 2018. Collectively known as the Biofuels Coalition for this case, the group submitted its filing to the D.C. Circuit Court of Appeals, arguing that EPA lacked the authority to issue such exemptions and that it acted in an arbitrary and capricious manner in attempting to do so.
In its brief, the Coalition asserts some of the same arguments that the Renewable Fuels Association, NCGA, NFU, and ACE successfully made in the Tenth Circuit Court of Appeals against three small refinery exemptions, including the fact that EPA lacked the authority to extend small refinery exemptions that had lapsed in earlier years. The Coalition also took on EPA’s failure to provide its own refinery-by-refinery analysis to support a finding of a disproportionate economic hardship, particularly in the 20 instances where EPA decided to grant a full exemption despite the Department of Energy recommending that only a partial exemption be granted. In addition, the Biofuels Coalition posed the same question on which the Tenth Circuit found EPA inexcusably silent: If all RFS compliance costs are ultimately passed through to end users and recovered, as EPA has repeatedly maintained, how is it that any small refinery can suffer a disproportionate economic hardship?
“Among all of EPA’s indefensible actions surrounding small refinery exemptions in recent years, the Agency’s two-page decision to grant 31 waivers from 2018 RFS compliance really takes the cake. Enough is enough,” Coalition representatives said. “The EPA had absolutely no legal basis for continuing to destroy demand for renewable fuels, which is contrary to the intent of Congress for the RFS program. When it adopted the RFS in 2005, Congress clearly intended for small refinery exemptions to be temporary in nature. Yet, 15 years later, some refiners—most of whom have readily complied with RFS obligations in the past—are trying to claim they need more time to prepare for compliance with RFS requirements. If these exemptions were meant to be a ‘bridge to compliance’, as concluded by the courts, it should be obvious that we all crossed that bridge many years ago.”
In prior years, EPA would respond separately to each small refinery exemption petition with several pages of analysis on the individual refinery’s unique circumstances. However, for the 2018 exemptions, EPA announced its decisions on more than three dozen refinery petitions in a single, two-page memorandum issued by Acting Assistant Administrator Anne Idsal. That brevity alone reflects EPA’s reflexive reaction to exempt oil interests from compliance whenever they asked without justification.
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