In the News
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blends, removing or significantly revising E15 fuel survey requirements and labeling requirements, revising EPA’s outdated lifecycle greenhouse gas analysis of corn ethanol, and eliminating unnecessary registration and pathway certification barriers to cellulosic ethanol production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.”
Read the original story here.
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.
Read the original story here.
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.”
Read the original story here.
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.
Read the original story here.
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.
Read the original story here.
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.
Read the original story here.
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
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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.
Jul 15, 2020
The COVID-19 crisis has already led to more than $3.4 billion in lost revenues for the U.S. ethanol industry, according to an economic analysis released today by the Renewable Fuels Association. Based on the latest projections from the Energy Information Administration and the Food and Agriculture Policy Research Institute, the RFA study also found that pandemic-related damages in 2020 and 2021 could reach nearly $9 billion.
The new study by RFA Chief Economist Scott Richman uses empirical data to assess the actual impact of COVID-19 on the ethanol industry to date. For the period running from March through June 2020, the study found:
- The cumulative decline in ethanol production and consumption exceeded 1.3 billion gallons.
- Nearly 500 million fewer bushels of corn were used in ethanol production during the period.
- Industry revenues from ethanol and co-products sales were reduced by over $3.4 billion due to the combination of reduced output and lower prices.
Based on EIA and FAPRI projections and assuming current market conditions do not deteriorate, total pandemic-related revenue losses for the industry could approach $7 billion in 2020 and $1.8 billion in 2021. However, if additional travel and business restrictions are adopted by states, the losses would be larger and may even surpass the $10 billion estimate from RFA’s initial forward-looking analysis released in April.
“At one point in late April, more than half of the ethanol industry’s production capacity was shut down,” said RFA President and CEO Geoff Cooper. “The idling of dozens of ethanol plants reverberated throughout rural America and sent ripple impacts across the farm economy. We have seen conditions improve since the low point in April, but ethanol production and consumption remain well below pre-COVID-19 levels.”
Cooper said the report provides a clearer picture of the damage done to date, and the challenges the industry will continue to face well into 2021. “The analysis again underscores the need for Congress to act expeditiously to deliver emergency relief to the renewable fuels industry,” he said. “As members of the Senate begin to craft their next COVID-19 stimulus package, we implore them to ensure the renewable fuels industry is not left behind again. We ask that they stand up for the 350,000 critical and essential workers whose jobs are supported by the ethanol industry.”
Cooper said RFA strongly supports the Renewable Fuel Reimbursement Program included in the HEROES Act passed by the House on May 15, as well as the Renewable Fuel Feedstock Reimbursement Act of 2020, introduced in the Senate May 19 by Sens. Chuck Grassley (R-IA) and Amy Klobuchar (D-MN). Both programs would provide vital emergency relief to the nation’s struggling ethanol producers and help ensure the industry is able to participate in the nationwide economic recovery from COVID-19. According to RFA, either program should be included in the next comprehensive COVID-19 stimulus bill.
Read the original story here.
Jul 14, 2020
This winter, countries around the globe introduced months of unprecedented lockdown and shelter-in-place restrictions to stop the spread of COVID-19. An economic shutdown is the worst possible way to get environmental improvement, full stop. However, only a few weeks into lockdown, many noticed fresher air, and earnest talk began of this being a serious wake-up call about the environment. Whether governments in Canada will capitalize on this moment, however, remains to be seen.
The pandemic quickly cut down car traffic and saw oil prices plummet, a combination that set off a record 5 percent drop in annual carbon emissions from the burning of fossil fuels. Environmentally impressive but not at all perfect. First, this record cut in global emissions is still less than what scientists say is needed every year this decade to avoid disastrous climate impacts for much of the world. Second, even with remarkably less traffic, air pollution did not improve. Analysis by NPR shows that while car traffic decreased by 40 percent across the U.S., ozone pollution dropped only by 15 percent or less, which is to say barely at all, compared with levels over the past five years. Part of the reason is continued air pollutants beyond those from passenger cars, like emissions from trucking, refineries, petrochemical plants and coal power. But the more important lesson is that merely driving less, in and of itself, does little to improve climate outcomes unless we find ways to make sustained improvements. Put another way, the long-term solution remains cleaner fuel, not fewer cars.
Next come automobiles. On the surface, having a car can seem unnecessary when working from home and getting more purchases delivered. However, an April survey by Capgemini Research Institute suggests otherwise. Capgemini surveyed more than 11,000 potential buyers in 11 countries that account for 62 percent of global vehicle sales. It found half of all global respondents said they plan to drive their cars more in the future and will rely less on public transportation and ride-sharing services such as Uber and Lyft. The reason: “greater control of hygiene.” At the same time, one-third of those surveyed said they plan to buy a car in 2020, with 45 percent of those potential buyers under age 35. That’s a significant percentage, considering that 79 percent of people ages 25 to 35 currently do not own cars. Policymakers need to take note, especially when projecting post-pandemic vehicle fleets and fuel mixes.
As I write this, many jurisdictions are beginning to reopen. Consumers are emerging eager to return to a semblance of “normal”—including driving and the associated carbon and tailpipe emissions. Ethanol blended in gasoline is proven to reduce both, and those designing Canada’s Clean Fuel Standard and proposed provincial increases to E15 in Ontario and Quebec should take note. Even though the pandemic delivered an unprecedented shock, the prospect of a green recovery will ultimately be decided by the strength of our climate policies and the content of our gas tanks.
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Jul 13, 2020
The Biogenic CO2 Coalition on July 10 issued a statement commending a bipartisan group of four members of Congress for pressing the U.S. EPA to address the concerns of agricultural crop producers and processors in a biogenic CO2 rulemaking.
Reps. Rodney Davis, R-Ill.; Collin Peterson, D-Minn.; Dave Loebsack, D-Iowa; and Roger Marshall, R-Kan., sent a letter to EPA Administrator Andrew Wheeler on June 29 asking the agency “to expeditiously provide regulatory clarity on thede minimisnature of biogenic carbon emissions generated from the processing of agricultural feedstocks such as corn, soybeans, oilseeds, and farm residues before the end of 2020.” The representatives also stressed that “current policy is a significant barrier to opportunities for economic growth across rural America, and a clarified and improved standard for biogenic CO2 from annual crops is needed in 2020.”
In the interim, the representatives said adding language offering background on thede minimus nature of biomass as a preamble to the EPA’s existing woody biomass rule might help reduce the amount of time needed to develop an annual crop standard.
“There is scientific research that supports the position that classifying biogenic emissions from crop-based feedstocks as carbon neutral,de minimis, or insignificant from a carbon accounting and regulatory perspective,” the representatives wrote. “In contrast, current EPA policy treats biogenic emissions the same as those from fossil fuels. This policy does not reflect the fact that biogenic CO2 from agricultural crops is part of a natural baseline carbon cycle by which agricultural crops absorb carbon dioxide as they grow, release it during fermentation or use, and repeat the cycle the next year. As you know, EPA regulates additional biogenic emissions from the baking sector that often present complications in permitting under the Clean Air Act.
“The current regulatory status quo hinders development of the domestic bioeconomy and creates a competitive advantage for competitors outside of the United States,” they continued. “According to USDA, our bioeconomy contributes approximately $459 billion in economic activity, and provides 4.6 million American jobs. It is critical that rural America has the ability to access new opportunities for growth when prospects in traditional markets are uncertain or declining. Farmers, processors, and manufacturers are ready and able to use our food and agricultural strengths to provide high-quality, competitive crop-derived consumer products and materials here and abroad.”
The Biogenic CO2 Coalition issued a statement July 10 thanking Davis, Peterson, Loebsak and Marshall for the letter. Members of the coalition include the American Farm Bureau Federation, Corn Refiners Association, Hemp Industries Association, National Corn Growers Association, National Cotton Council of America, National Cottonseed Products Association, National Farmers Union, National Grain and Feed Association, National Oilseed Processors Association, North American Millers’ Association, and the Plant Based Products Council.
“It’s great to see such strong support from Congress on this important issue. We need the EPA to address this regulatory barrier to help unleash jobs and investment in rural America,” said Zippy Duvall, president of the AFBF. “Farmers need certainty that the growing and processing of crops won’t be regulated the same as fossil fuels. We hope to see more members of Congress come forward to support this commonsense rulemaking.
“America’s agriculture industry greatly appreciates the strong, bipartisan support this critical issue continues to receive from Members of Congress and we encourage even more of them to make their voices heard,” said John Bode, president and CEO of the CRA. “American farmers, processors, and manufacturers are poised to make significant investments into new technology, rural development, and infrastructure. This will mean more jobs in America’s heartland, but we must be able to compete fairly against foreign competitors and this unfair regulatory barrier is preventing that from happening. We hope the EPA will listen to the bipartisan voices of our elected leaders in Congress, as well as those in the scientific community who have also called for action.”
A full copy of the letter can be downloaded from the Biogenic CO2 Coalitionwebsite.
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Jul 10, 2020
Ethanol destined for industrial-use applications helped stabilise overall US ethanol exports in April and May amid a bleak period for fuel demand globally.
The world’s fuel markets were dramatically disrupted in early 2020 as governments instituted movement restrictions and released social distancing guidelines to address the COVID-19 pandemic. Industrial end-use markets – including chemical, solvent and consumer products – were impacted to a lesser extent as the pandemic triggered substantial uptick for sanitizing and disinfecting products that also use ethanol as an ingredient.
As a result, industrial ethanol played a significant role in stabilizing the overall US ethanol export mix. At the same time, the US Grains Council (USGC) has been working with its global staff to determine the best opportunities to assist the world’s expanding needs for industrial ethanol alongside a robust fuel ethanol programme.
“As we work to expand the global use of ethanol, we are creating awareness of how the environmental, human health and economic benefits of the product apply to uses outside of the fuel market,” said Lucas Szabo, USGC manager of global ethanol market development. “We are working to foster the development of end-use applications for industrial ethanol and support current uses like sanitisers.”
Industrial-use markets typically account for 25% of total U.S. ethanol exports, bought for uses like windshield wiper fluid in South Korea and the European Union or bioplastics in India. As fuel demand began to decline in March, industrial ethanol exports started to represent a larger proportion of the export mix and help support overall US ethanol exports.
US ethanol exports for industrial uses equated to approximately 50 percent of total exports in April and May, at roughly 44 million gallons (15.7 million bushels in corn equivalent) and 33 million gallons (11.7 million bushels in corn equivalent), respectively.
The remaining half of exports continued to supply fuel markets. India, Nigeria and the Persian Gulf remained strong purchasers of U.S. ethanol for industrial use, while increases in exports to South Korea and Mexico were notable.
“The importance of industrial ethanol has been highlighted in recent months,” Szabo said. “These markets play a key role in supporting global environmental and human health initiatives in a variety of sectors beyond transportation fuel.”
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Jul 8, 2020
U.S. ethanol production was up nearly 2 percent the week ending July 3, while weekly ending stocks of fuel ethanol increased by more than 2 percent, according to data released by the U.S. Energy Information Administration on July 8.
U.S. ethanol production averaged 914,000 barrels per day the week ending July 3, up from an average of 900,000 barrels per day the previous week. The week ending July 3 marks the tenth consecutive week of growth following sharp declines that began in late March and continued through April due to market impacts caused by the COVID-19 pandemic. Production was down 133,000 barrels per day when compared to the same week of 2019 and down 165,000 barrels per day when compared to the final week of February, before COVID-19 began to impact U.S. fuel markets.
Weekly ending stocks of fuel ethanol increased for the first time since mid-April, reaching 20.62 million barrels for the week ending July 3, up from 20.164 million barrels the previous week. The increase follows 10 consecutive weeks of falling U.S. weekly ending stocks of fuel ethanol following a record high of 27.689 million barrels that was set the week ending April 17. Weekly ending stocks, however, were down 2.389 million barrels when compared to the same week of last year.
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Jul 7, 2020
The U.S. Energy Information Administration increased its forecasts for 2020 and 2021 ethanol production in its latest Short-Term Energy Outlook, which was released July 7. Forecasts for ethanol consumption were also revised up.
The EIA currently predicts ethanol production will average approximately 900,000 barrels per day in 2020, up from the 850,000-barrel-per-day prediction made in the agency’sJune STEO. The EIA has also increased its forecast for 2021 ethanol production to an average of 1 million barrels per day, up from its June prediction of 860,000 barrels per day. Production averaged approximately 1.03 million barrels per day in 2019.
On a quarterly basis, the EIA currently expects ethanol production to average 920,000 barrels per day in the third quarter of 2020, increasing to 960,000 barrels per day during the fourth quarter of the year. Data released by the agency shows ethanol production averaged 1.02 million barrels per day during the first quarter of this year, but fell to 710,000 barrels per day during the second quarter. Moving into 2021, the EIA predicts ethanol production to average 980,000 barrels per day during the first quarter, 1 million barrels per day during the second quarter, 1.01 million barrels per day during the third quarter and 1.02 million barrels per day during the fourth quarter.
The EIA currently expects the U.S. to blend 836,000 barrels per day of ethanol this year, up from the June prediction of approximately 800,000 barrels per day. The agency also increased its prediction for 2021 blending to 919,000 barrels per day, up from approximately 880,000 barrels per day predicted in June. Ethanol blending averaged 948,000 barrels per day in 2019. This level of consumption would result in the ethanol share of total gasoline averaging 10.1 percent in 2020 and 2021, compared to 10.2 percent in 2019 and 10.1 percent in 2018. The EIA said this stable ethanol share assumes that growth in higher-level ethanol blends is limited by a combination of lower gasoline prices reducing incentives for increased ethanol blending and limited consumer demand for ethanol blends beyond E10.
The EIA’smost recent weekly ethanol datashows production reached 900,000 barrels per day the week ending, June 26, up from 893,000 barrels per day the previous week. Ethanol stocks fell to 20.164 million barrels the week ending June 26, down from 21.034 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 2.457 million barrels of ethanol in April, primarily to Brazil, India, and Mexico.
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