In the News
Jun 25, 2021
WASHINGTON, DC – Today, the co-chairs of the bipartisan House Biofuels Caucus—Rep. Angie Craig (MN-02), Rep. Cindy Axne (IA-03), Rep. Rodney Davis (IL-13), Rep. Dusty Johnson (SD-AL), Rep. Mark Pocan (WI-02), and Rep. Adrian Smith (NE-03)—released the following statement after the Supreme Court weakened the RFS at the expense of family farmers and biofuels producers in rural America in HollyFrontier Cheyenne Refining, LLC v. Renewable Fuels Association:
“We are concerned with the potential consequences of today’s Supreme Court’s decision, which could have a devastating impact on farmers and producers who are still fighting to recover from the volatile markets, unpredictable weather, and trade instability of the past several years. However, we are encouraged that the Environmental Protection Agency had reversed its position on small refinery exemptions prior to the Supreme Court’s final opinion, and we urge the Administration to apply the same logic in deciding not to grant future waivers. Today’s decision underscores the importance of the RFS Integrity Act; we will continue to fight for the enactment of this legislation to support family farmers and the clean biofuels industry.”
The Renewable Fuel Standard is a federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels by mandating that oil refiners blend billions of gallons of ethanol and other biofuels into their fuel each year or buy credits from those that do. Under the previous Administration, the EPA greatly expanded the number of small refinery waivers that were issued while undermining transparency and accountability in the SRE process. By issuing dozens of waivers between 2016 and 2020, the EPA saved the oil industry hundreds of millions of dollars while threatening rural economies and harming the biofuels industry at large.
In 2018, the Renewable Fuels Association and other groups filed a lawsuit challenging the Administration’s issuance of small refinery exemptions to three refineries in Oklahoma, Wyoming and Utah. Last year, the 10th Circuit Court of Appeals ruled in favor of the RFS groups, declaring that the Environmental Protection Agency did not have the authority to extend an economic hardship waiver to any refinery that had not maintained a continuous string of annual waivers from the start of the RFS program. The court also held that in granting the waivers, EPA ignored its own studies that found refiners are largely able to pass through to customers their cost of acquiring Renewable Identification Number (RIN) compliance credits. Last year, several refineries, including HollyFrontier Cheyenne Refining appealed the original ruling to the Supreme Court.
Read the original press release here.
Jun 21, 2021
The Minnesota House of Representatives on June 19 voted 112 to 20 to pass an omnibus agriculture bill that includes $6 million to support the development of biofuel infrastructure to supply E15 blends of fuel.
The bill aims to allocate $3 million in 2022 and $3 million in 2023 for grants to upgrade retail petroleum dispensers, fuel storage tanks and other equipment that does not have the ability to be certified for use with E25. Grants would be offered for up to $200,000 per station, not to exceed 65 percent of costs.
In a statement released on June 18, State Rep. Paul Anderson said the funding will help building out Minnesota’s infrastructure for the expanded use of biofuels. “We hear a lot about using more electric cars to improve air quality in the future, but biofuels can have a much more immediate impact and this appropriation to aid in the transition will be helpful in that regard,” he said.
The legislation is now being considered by the Minnesota Senate.
Read the original story here.
Jun 16, 2021
WASHINGTON – U.S. Senator Amy Klobuchar (D-MN) led a letter with 15 bicameral colleagues – including Senator Tina Smith (D-MN) – to the Environmental Protection Agency (EPA) and National Economic Council (NEC) expressing concern about reports that the Biden administration is considering several options to exempt oil refiners of their obligations under the Clean Air Act’s Renewable Fuel Standard (RFS). The legislators noted that these proposals “all unjustifiably waive Clean Air Act compliance requirements for a small group of refiners that the EPA has repeatedly determined are not negatively impacted by the RFS.” They proceed to recognize the consequence of such actions, writing, “Exempting refiners of their obligations to blend biofuel would mean increased reliance on oil and more carbon emissions – a result this country cannot afford if we are to meet our new commitment under the Paris Agreement to reduce emissions by 50 – 52 percent by 2030.”
“Rather than exempting refiners of their obligations under the Clean Air Act, the Administration should provide additional certainty and stability to the renewable fuels marketplace that will create jobs, drive investment, and cut carbon emissions from the existing vehicle fleet. We encourage your Administration to swiftly issue a proposed rule for the 2021 and 2022 Renewable Volume Obligations (RVOs) with strong blending targets and respond to the 2017 Court remand in Americans for Clean Energy, et al., v. Environmental Protection Agency to reinstate 500 million gallons of blending requirements inappropriately waived from the 2016 blending targets,” the legislators wrote.
The letter was signed by Senators Tammy Baldwin (D-WI), Tammy Duckworth (D-IL), Richard Durbin (D-IL), Tina Smith (D-MN), Debbie Stabenow (D-MI), and Ron Wyden (D-OR), and Representatives Cheri Bustos (D-IL), Cindy Axne (D-IA), Angie Craig (D-MN) Mark Pocan (D-WI), Ron Kind (D-WI), David Scott (D-GA), Lauren Underwood (D-IL), Raja Krishnamoorthi (D-IL), and Ruben Gallego (D-AZ).
Full text of the letter can be found below and HERE.
Dear Administrator Regan and Director Deese:
We write with significant concern about recent reports that the Administration is considering several options to exempt oil refiners of their obligations under the Clean Air Act’s Renewable Fuel Standard (RFS). We support your efforts to address climate change, but we are concerned that rolling back the RFS obligation for refiners directly contradicts this work. Following through on the actions reportedly under discussion would directly undermine your commitment to address climate change and restore integrity to the RFS and we urge you to reject them.
The RFS was designed to reduce greenhouse gas emissions from the vehicle transportation sector, diversify our fuel supply, strengthen our national security, and drive economic opportunity. When allowed to work as Congress intended, the RFS has delivered on these goals while serving as the economic engine behind a growing biobased manufacturing sector across rural America and a biofuel industry with a 100 percent U.S. supply chain and a higher union density than the national average.
The proposals identified in media reports as options under consideration by the Environmental Protection Agency (EPA) have one thing in common: they all unjustifiably waive Clean Air Act compliance requirements for a small group of refiners that the EPA has repeatedly determined are not negatively impacted by the RFS. If adopted, greenhouse gas emissions will increase, our reliance on oil will increase, consumers will pay more at the pump, and the U.S. economy will be harmed.
Rather than exempting refiners of their obligations under the Clean Air Act, the Administration should provide additional certainty and stability to the renewable fuels marketplace that will create jobs, drive investment, and cut carbon emissions from the existing vehicle fleet. We encourage your Administration to swiftly issue a proposed rule for the 2021 and 2022 Renewable Volume Obligations (RVOs) with strong blending targets and respond to the 2017 Court remand in Americans for Clean Energy, et al., v. Environmental Protection Agency to reinstate 500 million gallons of blending requirements inappropriately waived from the 2016 blending targets.
As your Administration continues to push for meaningful and rapid climate action, biofuels can and should play an important role in decarbonizing vehicle emissions. Recent studies demonstrate that using ethanol in place of gasoline reduces greenhouse gas emissions by almost half while biodiesel cuts greenhouse gas emissions by an average of 74 percent. Exempting refiners of their obligations to blend biofuel would mean increased reliance on oil and more carbon emissions – a result this country cannot afford if we are to meet our new commitment under the Paris Agreement to reduce emissions by 50 – 52 percent by 2030.
We urge you to reject any actions under discussion to exempt oil refiners of their obligations under the RFS and uphold your commitment to combatting climate change and supporting our nation’s farmers.
Read the original press release here.
United States Department of Agriculture
Jun 15, 2021
WASHINGTON, June 15, 2021 — Agriculture Secretary Tom Vilsack announced today additional aid to agricultural producers and businesses as part of the USDA Pandemic Assistance for Producers initiative. Earlier this year, Secretary Vilsack announced plans to use available pandemic assistance funds to address a number of gaps and disparities in previous rounds of aid. As part of the Pandemic Assistance initiative announced in March, USDA pledged to continue Coronavirus Food Assistance Program (CFAP) payments and to provide aid to producers and businesses left behind. Implementation of the assistance announced today will continue within 60 days to include support to timber harvesters, biofuels, dairy farmers and processors, livestock farmers and contract growers of poultry, assistance for organic cost share, and grants for PPE.
“USDA is honoring its commitment to get financial assistance to producers and critical agricultural businesses, especially those left out or underserved by previous COVID aid,” said Secretary Vilsack. “These investments through USDA Pandemic Assistance will help our food, agriculture and forestry sectors get back on track and plan for the future. Since January, USDA has provided more than $11 billion of assistance directly to producers and food and agriculture business.”
In March, USDA announced $6 billion (see Part 1) in available funds through Pandemic Assistance to support a number of new programs or to modify existing efforts. The following programming is planned for implementation within 60 days, which will continue to be focused on filling gaps in previous rounds of assistance and helping beginning, socially disadvantaged and small and medium sized producers that need support most:
- $200 million: Small, family-owned timber harvesting and hauling businesses
- $700 million: Biofuels producers
- Support for dairy farmers and processors:
- $400 million: The new Dairy Donation Program to address food insecurity and mitigate food waste and loss
- Additional pandemic payments targeted to dairy farmers that have demonstrated losses that have not been covered by previous pandemic assistance
- Approximately $580 million: Supplemental Dairy Margin Coverage for small and medium farms
- Assistance for poultry and livestock producers left out of previous rounds of pandemic assistance:
- Contract growers of poultry
- Livestock and poultry producers forced to euthanize animals during the pandemic (March 1, 2020 through December 26, 2020)
- $700 million: Pandemic Response and Safety Grants for PPE and other protective measures to help specialty crop growers, meat packers and processors, seafood industry workers, among others
- Up to $20 million: Additional organic cost share assistance, including for producers who are transitioning to organic
As the economy continues to gain strength after the Biden Administration’s historic vaccination and economic relief efforts, USDA is working with producers and agricultural businesses to ensure they have the resources and tools to thrive in 2021 and beyond. The funding associated with USDA Pandemic Assistance is meant to serve as a bridge from disruptions associated with the pandemic to longer-term investments to help build back a better food system. Through USDA’s Build Back Better initiative, USDA has already announced $5 billion in a mix of loans, grants and innovative financing to make meaningful investments to build a food system that is more resilient against shocks, delivers greater value to growers and workers, and offers consumers an affordable selection of healthy food produced and sourced locally and regionally by farmers and processors from diverse backgrounds.
“We have more work to do to build back a better food system, strengthen our supply chains, and make sure American agriculture gives our farming and ranching families every opportunity to earn a good living,” said Secretary Vilsack. “As the economy continues to bounce back, USDA will ensure American agriculture is ready to seize the moment.”
As USDA looks to long-term solutions to build back a better food system, the Department is committed to delivering financial assistance to farmers, ranchers, and agricultural producers and businesses who have been impacted by COVID-19 market disruptions.
Since USDA rolled out the Pandemic Assistance initiative in March, the Department has announced approximately $6.8 billion in assistance (Part II and III) to producers and agriculture entities through the following programs:
- $6.295 billion: Coronavirus Food Assistance Program (CFAP) payments to farmers, ranchers and producers (March 24th)
- $35 million: Value Added Producer Grants (March 5th)
- $169.9 million: Specialty Crop Block Grants (April 13th)
- $75 million: Gus Schumacher Nutrition Incentive Program (April 13th)
- $37.5 million: Beginning Farmer and Rancher Development Program (April 13th)
- $80 million: Payments to Domestic Users of Cotton (April 13th)
- $92.2 million: Local Agriculture Market Program (May 5th)
- Approximately $20 Million: Pandemic Cover Crop Program (June 1st)
Read the original press release here.
Jun 14, 2021
Members of the House Biofuels Caucus sent a letter to Agriculture Secretary Tom Vilsack on June 9 urging the USDA to provide COVID-19 relief to biofuels producers under the agency’s Pandemic Assistance for Producers program.
Former President Donald Trump on Dec. 27, 2020, signed the Consolidated Appropriations Act of 2021 into law. That bill, in part, provided for $11.2 billion in COVID-19 relief for agriculture.
The USDA on March 24, 2021, provided guidance on how it intends to use a portion of those funds and announced its intent to provide pandemic relief to biofuel producers as part its USDA Pandemic Assistance for Producers Initiative, which the agency said aims to distribute relief resources more equitably. As part of that announcement, the agency announced plans to dedicated at least $6 billion towards new programs.
The letter authored by the House Biofuels Caucus urges Vilsack to use a portion of that $6 billion in funds to assist the biofuels industry. “Specifically, we respectfully request that you implement direct, per-gallon payments for biorefineries that were in normal operation in the first quarter of 2020 and with 2019 production year as a benchmark for providing relief,” members of the caucus wrote. “For advanced biofuels producers who operated at a market loss, we request that you implement direct payments to applicants utilizing an average net return over total costs difference between the pre and post pandemic production.”
The letter also addresses the need for USDA to invest in biofuels infrastructure. Members of the caucus applaud the $18.4 million investments made through the Higher Blends Infrastructure Program in April and urge further investments through the HBIIP. “Increased investments in this program will serve to help stabilize demand and bolster the ability of producers to sell into the market while expanding domestic energy production,” members of the caucus wrote.
“We continue to advocate for proactive approaches that complement COVID relief efforts to help rebuild the industry, and investments offered through the HBIIP, as well as clear and consistent labeling of higher biofuel blends including E-15 and B-20 or higher, are key for rural America to move forward with confidence,” they continued. “As markets continue to rebound, it is now more important than ever to quickly provide support, and bolster efforts that increase the demand for biofuels at home and abroad.”
The letter is signed by Reps. Rodney Davis, R-Ill.; Angie Craig, D-Minn.; Dusty Johnson, R-S.D.; Adrian Smith, R-Neb.; Cindy Axne, D-Iowa; Mark Pocan, D-Wisc.; Randy Feenstra, R-Iowa; Darin LaHood, R-Ill.; Ashley Hinson, R-Iowa; Mike Bost, R-Ill.; Mariannette Miller-Meeks, R-Iowa; Cheri Bustos, D-Ill.; Ron Kind, D-Wisc.; Tom Emmer, R-Minn.; Sam Graves, R-Mo.; Michelle Fischbach, R-Minn.; Don Bacon, R-Neb.; Ann Wagner, R-Mo.; Jim Hagedorn, R-Minn.; Adam Kinzinger, R-Ill.; James Baird, R-Ind.; and Jeff Fortenberry, R-Neb.
Read the original story here.
Jun 10, 2021
A recent poll found that voter support for the Renewable Fuel Standard (RFS) has hit its highest levels in at least five years. Meanwhile, the tracking poll shows support for the use of biofuels like low-carbon ethanol has remained consistently high, with a bipartisan majority of voters expressing a favorable opinion. The benchmark poll was conducted at the end of May by Morning Consult, a Washington polling and news site, on behalf of the Renewable Fuel Association.
The poll found that 64 percent of respondents support the Renewable Fuel Standard, with 29 percent expressing “strong support.” This is the highest level of “strong support” for the RFS recorded since RFA began the tracking poll in 2016. It also marks the second-highest level of total support for the RFS, trailing only the two most recent polls (May 2020 and February 2021) that both found 66 percent support for the program.
“Even in times of political division and polarization, the need for cleaner, greener American-made fuels is a uniting issue,” said RFA President and CEO Geoff Cooper. “A bipartisan majority of voters support the RFS specifically and ethanol generally, and it is apparent that they want their elected officials to protect the integrity and longevity of the RFS program. Renewable fuels clearly are an area where we can find common ground and bridge broad divides.”
Among registered voters, 72 percent of Democrats, 63 percent of Republicans and 57 percent of Independents hold a favorable opinion of ethanol. Similarly, the poll found that 76 percent of Democrats and 57 percent of Republicans supported the RFS, along with 57 percent of Independents.
The poll saw an uptick in respondents who reported a very favorable opinion of ethanol since last year, suggesting that more voters view themselves as champions and advocates for renewable fuels. Of those polled, 23 percent reported a very favorable opinion, compared to 13 percent in May 2020.
The desire for energy security is a key driver of support for biofuels. Among voters who have a favorable opinion of ethanol, being made in America was the attribute that contributed most to their favorable opinion of the fuel, of the options tested. Ethanol’s lower carbon footprint and affordability were the second and third most important attributes, respectively, according to the poll.
The poll was conducted from May 27 to 31, 2021, among a sample of 1,988 registered voters.
Read the original story here.
Jun 8, 2021
The U.S. Energy Information Administration maintained its forecasts for 2021 and 2022 ethanol production in its latest Short-Term Energy Outlook, released June 8. The outlook for 2021 and 2022 ethanol blending, however, was increased.
The EIA currently predicts U.S. fuel ethanol production will average 960,000 barrels per day in 2021, increasing to 990,000 barrels per day in 2022. Both forecasts were maintained from the May STEO. Ethanol production averaged 910,000 barrels per day last year.
On a quarterly basis, ethanol production is expected to average 980,000 barrels per day during the second quarter of this year, increasing to 990,000 barrels per day in the third quarter, and falling slightly to 980,00 barrels per day in the fourth quarter. In 2022, ethanol production is expected to average 970,000 barrels per day in the first quarter, increase to 990,000 barrels per day in the second quarter, and reach 1 million barrels per day in the third and fourth quarters.
Ethanol blending is currently expected to average 900,000 barrels per day in 2021, and 920,000 barrels per day in 2022. Both forecasts were increased from the May STEO, which predicted ethanol blending to be at 890,000 barrels per day this year and 910,000 barrels per day next year. Ethanol blending was at 820,000 barrels per day in 2020.
Read the original story here.
Jun 7, 2021
Greenfield Global Inc., a leading producer of renewable energy solutions and a global leader in the production of high-purity specialty alcohols and solvents, announced on June 2 that it has reached an agreement with Central Farm Service for the supply of corn to its newly acquired ethanol plant in Winnebago, Minnesota.
Greenfield acquired the Winnebago plant end of last year and will be ready to start the production renewable ethanol of as early as the fall of this year. The Winnebago plant has a capacity of 48 million gallons of ethanol per year which is mainly produced for the purpose of low-carbon fuels.
Central Farm Service has 17 grain locations in southern Minnesota and northern Iowa. The CFS grain team includes 10 experienced grain marketing advisors along with the tools and information to help farmers formulate effective grain marketing plans. CFS offers daily market commentary, a variety of grain marketing contracts, online grain marketing, and online account information.
The partnership also includes a takeoff agreement of the dried distillers grain products (DDGS) by CFS. DDGS, a co-product of the ethanol production process, are an excellent source of energy and a highly nutritious animal feed.
CFS will begin buying corn immediately for harvest and beyond for delivery to the Greenfield Global plant in Winnebago. For more information, please contact your local CFS Grain Marketing Advisor or call us at (507) 525-1576 or visit www.cfscoop.com.
Read the original story here.
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International Flavors & Fragrances Inc
Jun 2, 2021
CEDAR RAPIDS, IA – IFF’s Health & Biosciences division, a world leader in sustainable biotechnology solutions, announced today that they have entered into an agreement to offer advanced yeasts for first generation ethanol production developed by DSM Bio-based Products & Services. Under the terms of this agreement, DSM’s eBoost® product line will immediately become part of IFF’s XCELIS® Ethanol Solutions platform and will be offered and supported by IFF’s experienced global commercial team. In addition, IFF’s R&D team will collaborate with DSM scientists to accelerate IFF’s on-going development of high-performance yeast products. By combining the strengths of the companies’ patented and proprietary technologies, IFF’s XCELIS® Ethanol Solutions platform will deliver new yeasts with unparalleled yield, robustness and enzyme expression.
DSM newest yeast, eBoost® GTX, is currently undergoing US plant trials. It delivers low glycerol, high ethanol yield and up to 70% glucoamylase replacement. IFF will launch eBoost® GTX along with other new yeast products during 2021 including SYNERXIA® RUBY and SYNERXIA® SAPPHIRE.
Atul Thakrar, President of DSM Bio-based Products & Services stated, “We are excited by the potential of this agreement with IFF. By adding our eBoost® product line to IFF’s platform, IFF will deliver even more value to ethanol producers thanks to an enhanced yeast technology and portfolio, complementary enzymes, advanced data tools, global supply and regulatory infrastructure and an extensive technical and commercial global field organization. This collaboration is the optimal way to deliver the benefits of our yeast technologies to the broadest group of ethanol producers globally.”
Cindy McCracken, Vice President Grain Processing Business, Health & Biosciences division, IFF stated, “We are ready to serve the needs of new and current customers of both IFF and DSM. As we approach this July’s International Fuel Ethanol Workshop & Expo, the team looks forward to supporting the industry with the broadest portfolio of yeast and enzyme products and the technology to drive superior operational and financial performance.”
High yield yeasts and other advancements in the ethanol industry have enabled US producers to increase ethanol yields by 6.5%, reduce energy inputs by 24% while delivering ever-greater quantities of low carbon biofuels and animal feed*. By increasing yields, speeding up fermentation, reducing energy and chemical consumption, IFF’s XCELIS® Ethanol Solutions platform is helping ethanol producers meet the challenges of today’s renewable energy market.
Dr. Casper Vroemen, Vice President Global Research and Development, Health & Biosciences division, ?IFF stated, “Continued development of the best commercial embodiments of our yeast technology has been a key focus of our Grain Processing technology platform. We are delighted to add DSM’s technology to our platform to deliver improvements in fermentation yield with reduced byproduct formation.”
* Retrospective analysis of the U.S. corn ethanol industry for 2005–2019: implications for greenhouse gas emission reductions https://onlinelibrary.wiley.com/doi/10.1002/bbb.2225?af=R
About DSM Bio-based Products & Services
DSM Bio-based Products & Services is part of Royal DSM, a global, purpose-led, science-based company active in Nutrition, Health and Sustainable Living. DSM’s purpose is to create brighter lives for all. DSM addresses with its products and solutions some of the world’s biggest challenges while simultaneously creating economic, environmental and societal value for all its stakeholders – customers, employees, shareholders, and society at large. DSM delivers innovative solutions for human nutrition, animal nutrition, personal care and aroma, medical devices, green products and applications, and new mobility and connectivity. DSM and its associated companies deliver annual net sales of about €10 billion with approximately 23,000 employees. The company was founded in 1902 and is listed on Euronext Amsterdam. More information can be found at www.dsm.com.
About IFF Health & Biosciences
Inspired by nature and distinguished by its world-class bioscience and microbiome capabilities, IFF’s Health & Bioscience (H&B) platform is a leading innovation partner for customers across a broad range of consumer product, industrial and agricultural sectors. H&B works closely with our customers to enhance products – and their processes – to deliver safer, healthier and more sustainable solutions.
About IFF
At IFF (NYSE: IFF), an industry leader in food, beverage, health, biosciences and sensorial experiences, science and creativity meet to create essential solutions for a better world – from global icons to unexpected innovations and experiences. With the beauty of art and the precision of science, we are an international collective of thinkers who partners with customers to bring scents, tastes, experiences, ingredients and solutions for products the world craves. Together, we will do more good for people and planet. Learn more at iff.com, Twitter, Facebook, Instagram, and LinkedIn.
© 2021 by International Flavors & Fragrances Inc. IFF is a Registered Trademark. All Rights Reserved.
Jun 2, 2021
President Biden on May 28 released his proposed budget for fiscal year (FY) 2022. The budget includes proposed support for biofuels; biorefinery, renewable chemical and biobased product manufacturing; renewable energy; and sustainable aviation fuel.
For biofuels, the budget would allocate $1 billion in support over the 2022-’26 period, including $500 million in 2022, $250 million in 2023 and $250 million in 2024.
The budget also includes $15.4 billion in support to increase biorefinery, renewable chemical and biobased product manufacturing. Those funds include $4.93 billion in support for FY 2022, $4.06 billion for FY 2023, $3.19 billion for FY 2024, $1.74 billion for FY 2025, and $580 million for FY 2026.
In addition, the budget includes $6.636 billion in tax incentives for sustainable aviation fuel (SAF) over the next decade, including $363 million in FY 2022, $503 million in FY 2023, $633 million in FY 2024, $693 million in FY 2025, $1.313 billion in FY 2026, $1.696 billion in FY 2027, $743 million in FY 2028, $376 million in FY 2029; $199 million in FY 2030, and $117 million in FY 2031.
The budget also includes provisions to extend and enhance renewable and alternative energy incentives, and to extend and modify the renewable energy production tax credit.
The Renewable Fuels Association issued a statement June 1 on Biden’s proposed budget. “We are pleased to see funding for renewable fuels like low-carbon ethanol included in the President’s budget proposal and we look forward to learning more about the intended use of this proposed funding,” said Geoff Cooper, president and CEO of the RFA. “Ethanol and other renewable fuels can immediately jumpstart our nation’s efforts to transition away from fossil fuels to a net-zero carbon future. According to scientists from the Department of Energy, Harvard University, MIT, and other institutions and agencies, today’s ethanol is already reducing greenhouse gas emissions by nearly 50 percent compared to petroleum; and innovation and continuous efficiency gains are already putting corn ethanol on the road to net-zero emissions. An investment in renewable fuel production and distribution infrastructure is an investment in a cleaner and brighter future for our nation.”
A full copy of the proposed budget can be downloaded from the White House website.
Read the original story here.
Jun 2, 2021
A pair of recent studies examining purported cropland expansion in the Midwest are based on a flawed methodology that “suffers from accuracy and certainty issues,” according to a new review of the studies by researchers at Southern Illinois University Edwardsville. In reviewing studies by Zhang et al. and Lark et al., the SIUE authors found that the inherent defects in their methodology “severely hinder its use for estimating land use change over time.”
In their paper, Joshua Pritsolas and Randall Pearson of SIUE’s GeoSpatial Mapping, Applications, and Research Center pointed out that both studies relied on the U.S. Department of Agriculture’s Cropland Data Layer (CDL) tool to estimate the conversion of grassland to cropland, a use for which the tool was not intended and is poorly suited. As the USDA itself has noted, “Unfortunately, the pasture and grass-related land cover categories have traditionally had very low classification accuracy in the CDL,” meaning grassland is often confused with cropland in the CDL dataset.
The reliance of Zhang et al. and Lark et al. on USDA’s CDL tool renders the results of both studies highly questionable. “Given these issues, policy makers should exercise caution in referencing studies that have performed or integrated land cover/use change analysis that relies on the CDL,” according to Pritsolas and Pearson.
According to the SIUE analysis, it is likely that Zhang et al. and Lark et al. grossly overstated the amount of cropland expansion between 2008 and 2016 because the CDL tool frequently misclassified cropland as grassland in the early part of this time period. “The cropland expansion claimed by Lark et al. (2020) and adopted by Zhang et al. (2021) has a high potential of being false change due to poor classification certainty in the earlier CDL,” the authors found.
Meanwhile, researchers from Purdue University, the University of Illinois—Chicago, and the Department of Energy’s Argonne National Laboratory earlier this month responded to unfounded criticism from a British consulting group about the land use change modeling framework developed by Purdue and the DOE. In a point-by-point rebuttal, the Purdue, UIC, and DOE authors corrected the record regarding their methodology for estimating land use change emissions. “The existing literature has reached the conclusion that early research in this area significantly overstated the land use implications of biofuels,” they wrote. “As the conversation continues, it is important for the community to remain focused on the big picture regarding agriculture’s role as a very effective GHG mitigation tool that can shape the new policies to govern production and consumption of biofuels.”
Renewable Fuels Association President and CEO Geoff Cooper commented on the importance of the new reports from both SIUE and Purdue, UIC, and DOE.
“As part of the process to propose Renewable Fuel Standard volumes for 2023 and beyond, the Environmental Protection Agency is currently analyzing the environmental impacts of the RFS to date,” Cooper said. “At the same time, the National Academy of Sciences is examining the state of the science regarding lifecycle analysis of low-carbon transportation fuels like ethanol. Therefore, it is crucial that the scientific and regulatory communities have access to current, reliable data and robust methodologies for assessing the climate impacts of a broad array of transportation fuel options. Important decisions regarding the future of the RFS should be based on sound science—not political science. We applaud the experts at SIUE, Purdue, UIC, and DOE for defending their good work and scrutinizing questionable studies that misrepresent the lifecycle impacts of biofuels.”
RFA Chief Economist Scott Richman testified at a NAS hearing Monday and stressed the fact that historical predictions about land use/cover change have turned out to be greatly exaggerated. “There has not been a significant increase in U.S. cropland since the Renewable Fuel Standard was expanded in 2007,” Richman said. “Given the clarity of statistics on this fact, opponents have turned to contorting satellite-based imagery to try to find land cover and land use change.”
Read the original story here.
May 27, 2021
The USDA recently released its Grain Crushings and Co-Products Production report for May, reporting that corn use for fuel ethanol in March was up when compared to both the previous month and March 2020.
Total corn consumed for alcohol and other uses was 473 million bushels in March, up 25 percent from February and up 1 percent from March 2020. Usage included 91.1 percent for alcohol and 8.9 percent for other uses.
Corn consumed for fuel alcohol reached 420 million bushels, up 26 percent when compared to the previous month, and up 2 percent when compared to the same month of last year. Corn consumed for dry milling fuel production and wet milling fuel production was at 91.5 percent and 8.5 percent, respectively.
The report shows no sorghum was consumed for fuel ethanol production in March. Data for the prior month was withheld to avoid disclosing data for individual operations. In March 2020, 4.64 million hundredweight (cwt) (259,840 tons) of sorghum went to fuel ethanol production.
At dry mills, condensed distillers solubles production fell to 90,530 tons, down from 92,525 tons in February and 99,381 tons in March 2020. Corn oil production increased to 156,903 tons, up from 117,903 tons the previous month and 149,066 tons during the same month of last year. Distillers dried grains production increased to 368,075 tons, up from 262,261 tons in February and 317,411 tons in March 2020. Distillers dried grains with solubles production increased to 1.8 million tons, up from 1.41 million tons in February and 1.67 million tons in March 2020. Distillers wet grains production was at 1.11 million tons, up from 885,932 tons the previous month, but down from 1.27 million tons in March of last year. Modified distillers wet grains production was at 391,913 tons, up from 377,688 tons in February, but down from 478,416 tons in March 2020.
At wet mills, corn germ meal production was at 50,088 tons, up from 44,416 tons in February, but down from 69,960 tons in March 2020. Corn gluten feed production was at 266,308 tons, up from 217,605 tons the previous month, but down from 291,861 tons during the same month of last year. Corn gluten meal production increased to 113,365 tons, up from 97,680 tons in February and 92,269 tons in March 2020. Wet corn gluten feed production was at 206,831 tons, up from 169,005 tons in February, but down from 220,423 tons in March 2020.
At dry and wet mills, carbon dioxide captured increased to 237,819 tons, up from both 182,552 tons in February and 218,593 tons in March 2020.
Read the original story here.
May 25, 2021
WASHINGTON, D.C.] – U.S. Senator Tammy Duckworth (D-IL) joined U.S. Senator Deb Fischer (R-NE) in introducing the bipartisanRFS Integrity Act of 2021. This legislation would provide more certainty for rural America by bringing transparency and predictability to the United States Environmental Protection Agency’s (EPA) small refinery exemption process. The bill would require small refineries to petition for Renewable Fuel Standard (RFS) hardship exemptions by June 1st of each year. This change would ensure that the EPA properly accounts for exempted gallons in the annual Renewable Volume Obligations (RVO) it sets each November.
“Farmers across Illinois and throughout the Midwest are hurting and ethanol plants are idling as a result of years of misuse of the small refinery exemption program that undermined the intent of the bipartisan Renewable Fuel Standard,”said Senator Duckworth.“I am proud to work with Senator Fischer to introduce this bipartisan legislation to bring much-needed transparency to the waiver process and prevent it from being misused to benefit billion dollar oil companies at the expense of hardworking Americans again.”
“The EPA’s very opaque small refinery exemption process is unfair to hardworking farmers and ethanol producers across rural America. By ensuring the EPA accounts for exempted gallons in the annual RVO process, my bipartisan bill will uphold the integrity of the RFS and bring much needed transparency to this exemption process,”said Senator Fischer.
This legislation fixes the unnecessarily complex “rolling deadline” by setting a deadline for refineries to apply for an SRE by June 1 in the year before the RVO is in effect, giving the EPA sufficient time to ensure exemptions are accounted for in the annual RVO process. It further requires the EPA to publish the name of the refinery and how many gallons are exempted on their dashboard at the same time the refiner is notified that they received an exemption.
The bill is supported by the American Soybean Association, Growth Energy, National Biodiesel Board, National Corn Growers Association, American Farm Bureau Federation and the Renewable Fuels Association.
Senator Duckworth has been a longtime supporter of the Renewable Fuel Standard (RFS) policy. In February, after weeks of leading an effort calling on the Biden administration to take such action, she applauded the Administration’s decision to support farmers and rural communities by restoring RFS policy, which supports a $5 billion biofuel industry in Illinois that employs more than 4,000 people. Last Congress, Duckworth introduced the RFS Integrity Act of 2019 to make applications for small refinery exemptions (SRE) public and create more certainty for rural America.
Read the original press release here.
Archer Daniels Midland Company
May 19, 2021
ADM (NYSE: ADM) and the University of Illinois announced today the successful completion of the Illinois Basin - Decatur Project (IBDP), a carbon capture and storage (CCS) project designed to evaluate and test the technology at commercial scale. This is one of two CCS projects located adjacent to ADM’s corn processing plant in Decatur, Illinois.
The first-of-its-kind project was primarily funded through the Midwest Geological Sequestration Consortium (MGSC) by the U.S. Department of Energy – National Energy Technology Laboratory with the goal to confirm the ability of the Mt. Simon Sandstone to accept and store one million metric tons of carbon dioxide over a period of three years, the equivalent of annual emissions from about 1.2 million passenger cars according to EPA calculations. Working together through the MGSC, the Illinois State Geological Survey at the University of Illinois designed, implemented, and monitored the project and ADM was the host and operator.
“ADM is committed to leveraging innovation and technology to advance sustainability across every aspect of our business. Deploying carbon capture and storage technology in our processing operations is one of the many ways we are reducing our environmental footprint,” said Alison Taylor, Chief Sustainability Officer, ADM.
As part of its Strive 35 sustainability goals, ADM aims to reduce absolute greenhouse gas emissions by 25% against a 2019 baseline.
“Today’s announcement marks an important milestone, not only for the Illinois Basin - Decatur Project but also for the advancement of CCS to combat the climate crisis,” said Dr. Jennifer Wilcox, Acting Assistant Secretary for Fossil Energy and Carbon Management at the U.S. Department of Energy. “We congratulate ADM and the University of Illinois, and we’re proud to be a part of this achievement.”
The project utilized 20,000 feet of wells to successfully inject carbon dioxide from ADM’s processing plant more than 6,500 feet underground. More than 2,000 visitors from 30 countries have come to the site throughout the project to learn more about the process and technology.
“The Illinois Basin - Decatur project has successfully achieved its desired outcome to demonstrate that carbon capture and storage can be undertaken safely and effectively. This milestone represents a launching point for the future of this technology, including commercial scale deployments around the world,” said Sallie Greenberg, Principal Scientist Energy & Minerals, Illinois State Geological Survey.
“Addressing climate change in a meaningful way requires carbon emission reductions across the board,” U.S. Senator Dick Durbin (D-IL) said. “The Illinois Basin - Decatur Project shows how carbon capture and storage can play an important role in reducing these emissions. I congratulate ADM and the University of Illinois on reaching this milestone, and will continue advocating for federal investments in a clean energy economy.”
“Agribusiness leaders and producers have a vital role to play in reducing our carbon footprint, and game-changing innovation to do just that is occurring right here in central Illinois,” said Congressman Rodney Davis (IL-13). “ADM and the U of I’s partnership to capture and store carbon underground will serve as a global model on how to reduce emissions. I’d like to thank ADM and the U of I for proactively taking on this project.”
ADM also began injection operations at a second CCS project, the Illinois Industrial Sources Carbon Capture and Storage Project, in Decatur in April 2017. The project is currently permitted to operate through 2022 and has the potential to store up to 5.5 million metric tons of carbon dioxide.
Collectively, these two projects have successfully stored more than 3.4 million metric tons to date.
About Illinois State Geological Survey
The Illinois State Geological Survey (ISGS) is part of the Prairie Research Institute at the University of Illinois at Urbana-Champaign. The ISGS is a premier state Geological Survey serving the needs of Illinois with earth science information relevant to the State's environmental quality, economic vitality, and public safety.
About ADM
At ADM, we unlock the power of nature to provide access to nutrition worldwide. With industry-advancing innovations, a complete portfolio of ingredients and solutions to meet any taste, and a commitment to sustainability, we give customers an edge in solving the nutritional challenges of today and tomorrow. We’re a global leader in human and animal nutrition and the world’s premier agricultural origination and processing company. Our breadth, depth, insights, facilities and logistical expertise give us unparalleled capabilities to meet needs for food, beverages, health and wellness, and more. From the seed of the idea to the outcome of the solution, we enrich the quality of life the world over.
Learn more at www.adm.com.
Read the original press release here.
May 21, 2021
The USDA on May 20 published its 90-Day Progress Report on Climate-Smart Agriculture and Forestry. The report reflects initial conversions with stakeholders on how the agency should develop its climate smart strategy and indicates bioenergy will play a significant role in meeting federal climate goals.
“Over the past months, USDA has heard the views of Tribes and stakeholders across agriculture and forestry on how USDA should develop its climate smart agriculture and forestry strategy,” wrote Agriculture Secretary Tom Vilsack in the report. “This report reflects some of those initial conversations, and in the coming months we look forward to continuing to work with you to develop and implement our approach. It will be multi-pronged and centered on voluntary incentives that benefit producers and landowners. We will look across climate science and research, forest health, outreach and education, existing programs, and new and emerging markets to advance climate-smart agriculture and forestry. All of this must be done in partnership with landowners, producers, state and local governments, Tribes, and other stakeholders across agriculture and forestry.”
The report is related to President Biden’s Jan. 27 executive order on tackling the climate crisis. Section 214 of that executive order focuses on empowering workers by advancing conservation, agriculture and reforestation. According to the executive order, “America’s farmers, ranchers, and forest landowners have an important role to play in combating the climate crisis and reducing greenhouse gas emissions, by sequestering carbon in soils, grasses, trees, and other vegetation and sourcing sustainable bioproducts and fuels.”
The order, in part, directed the USDA to collect within 60 days input from Tribes, farmers, ranchers, forest owners, conservation groups, firefighters, and other stakeholders on how to best use USDA programs, funding and financing capacities, and other authorities, and how to encourage the voluntary adaptation of climate-smart agricultural and forestry practices that decrease wildfire risk fueled by climate change and result in additional, measurable, and verifiable carbon reductions and sequestration that source sustainable bioproducts and fuels.
The USDA on March 15 announced the opening of a 45-day comment period to collect the input required by the executive order. Several topics addressed within the agency’s request for comments focused specifically on biofuels, bioproducts and renewable energy.
The USDA said it received more than 2,700 written comments during the comment period. The agency also hosted a series of 10 stakeholder listening sessions that were attended by more than 260 participants.
The report released May 20 takes note of the broad array of perspectives raised during these initial outreach activities, according to the USDA. Several common themes also emerged, with many respondents urging the agency to account for co-benefits of its CSAF strategy but cautioning against taking a one-size-fits-all approach.
The report lists seven recommended elements of a CSAF strategy, including prepare USDA to quantify, track, and report the benefits of CSAF activities; develop a CSAF strategy that works for all farmers, ranchers, forest land-owners, and communities; leverage existing USDA programs to support CSAF strategies; strengthen education, training, and technical assistance for CSAF practices; support new and better markets for agriculture and forestry products generated through CSAF practices; develop a forest and wildfire resilience strategy; and improve research.
Biofuels and bioenergy are mentioned several times under those seven elements. The report notes that a wide range of market-based approaches exist for incentivizing climate-friendly agriculture commodities, including voluntary offset and credit markets. “They can also include markets for low-carbon biofuels, renewable energy, and biobased and wood products,” the USDA said in the report. “These markets can promote voluntary adoption of conservation technologies and practices and leverage private-sector demand for GHG benefits associated with CSAF practices. These types of market opportunities can offer cost-effective ways to incentivize CSAF practice adoption and provide new income streams. Through the CSAF strategy, USDA should support the identification and verification of the GHG benefits associated with CSAF practices and facilitate the participation of farmers, ranchers, and landowners in new markets for CSAF goods and services.”
The report also stresses that USDA can support the role of agriculture in decarbonizing the transportation sector. “The growth of the U.S. biofuels sector, driven in part by the Renewable Fuels Standard, has reduced GHGs and strengthened the rural economy,” the agency wrote. “Ethanol produced from corn reduces GHG emissions relative to gasoline. Market opportunities such as California’s Low Carbon Fuels Standard and the 45Q Federal Tax Credit for carbon capture and sequestration can further drive down the GHG footprint of the biofuels sector. USDA should identify opportunities for agriculture and forestry to play a role in the production of low-carbon biofuel feedstocks, and for innovative technologies such as bioenergy with carbon capture (BECCS) to reduce emissions associated with biofuel production while spurring rural economic development.”
In addition, the report shows USDA should help position Tribes, farmers, ranchers, rural landowners, and environmental justice communities to be leaders in renewable energy development. This includes investments in renewable energy technologies, including those to produce liquid fuels, renewable natural gas (RNG) from livestock, and sustainable biomass for renewable energy generation. “Investments in these technologies can provide new market opportunities for Tribes and rural America and create new uses for agriculture and forestry waste products, while reducing GHG emissions,” the agency said.
Another section of the report stresses the opportunities associated with USDA support for the deployment and development of methane digesters, biogas, and biobased products. “The adoption of on-farm biogas capture technologies and the production of biobased products can provide producers with new income streams while also reducing GHG emissions and improving water quality,” according to USDA. “Opportunities to generate income from these technologies include the generation of renewable electricity and the production of biobased products from manure, renewable natural gas (RNG) and liquefied natural gas (LNG). USDA should support producers as they enter these new markets and consider innovative finance mechanisms to provide upfront capital for biogas technologies and encourage the connection of multiple small operations to provide economical renewable energy production.”
A full copy of the report can be downloaded from the USDA website.
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May 19, 2021
U.S. fuel ethanol production averaged 1.032 million barrels per day the week ending May 14, marking the first time in more than a year that production has exceeded 1 million barrels per day, according to data released by the U.S. Energy Information Administration on May 19.
Ethanol production for the week ending May 14 was up more than 5 percent, or 53,000 barrels per day, when compared to the 979,000 barrels per day of production reported for the previous week. The week marks the first time since the week ending March 20, 2020, that production has averaged more than 1 million barrels per day. When compared to the same week of last year, production for the week ending May 14 was up 369,000 barrels per day.
Weekly ending stock of fuel ethanol were up slightly for the week ending May 14, reaching 19.433 million barrels, up 40,000 barrels when compared to the 19.393 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending May 14 were down 4.193 million barrels.
Read the original story here.