About Cindy Zimmerman

Cindy has been reporting about agricultural topics since 1980 when she graduated with a degree in broadcasting from the University of Florida. She is an emeritus member of the National Association of Farm Broadcasters and 1991 Oscar in Agriculture winner. She and her husband Chuck started ZimmComm New Media in 2003. They have three beautiful daughters and live near white sand beaches of Pensacola, Florida.

USDA Rural Development Supports Biofuel Investment

USDA Rural Business-Cooperative Service Administrator Lillian Salerno went on a three-state Midwest tour last week to highlight USDA investments that are helping expand business opportunities in the bio-economy, including biofuels.

usda-salerno“Creating jobs and expanding economic opportunity for rural small businesses are top priorities for the Obama Administration,” said Salerno, who visited companies in Iowa, Nebraska and South Dakota. “The new Farm Bill expands the potential for economic growth in rural America by maintaining momentum for the emerging bio-based industry and the more than 3,000 bio-based companies across the country.”

Salerno’s tour started with a visit to Quad County Corn Processors near Galva, Iowa where they are working on a process to turn corn kernel fibers into cellulosic ethanol and as a result boost the plant’s ethanol production. “It’s a co-op, so all the farmers around there have a vested interest in making this processing unit work,” she said. The company has received nearly $22 million in USDA Rural Development loan guarantees since it opened 13 years ago.

Salerno noted that the United States has the capacity to provide one billion tons of biomass per year by 2030. “This has a possibility of hundreds of thousands of jobs – actually 1.7 million estimated,” she said.

EPA Chief Discusses RFS With Ag Journalists

epa-mccarthyEnvironmental Protection Agency Administrator Gina McCarthy spoke to the North American Agricultural Journalists meeting in Washington DC on Monday and expressed confidence that the final rule for the Renewable Fuel Standard (RFS) will be different than the proposed rule that reduces volume requirements for biofuels in 2014.

According to Agri-Pulse McCarthy said EPA is in the process of reviewing more than 200,000 comments on the RFS proposal and plans to issue a final rule in late spring or early summer.

She stressed that EPA has to make sure the final rule is implementable. “And that means taking into realities of the fuel market. One of those realities is the fuel blend wall.”

Agri-Pulse reports that McCarthy expects the final rule will “almost certainly” be different than the one that was proposed. “Gasoline demand had an impact in the proposal and it will also be reflected in the final rule,” she said.

She also said that EPA expects legal challenges to any RFS standards. “We need to be able to justify it in court,” McCarthy said. With current the current infrastructure, the industry this year would not be able to “get anywhere near” the levels required in the original RFS. “But we think that the industry is stepping up to that challenge,” she said. “We’re going to try to work toward these goals the best we can, but we need to be realistic.”

Read the entire article from Agri-Pulse here.

Extenders Package Picks up Wind

After quite a bit of back and forth, the Senate Finance Committee finally included wind energy in the renewable energy Production Tax Credit (PTC) and Investment Tax Credit (ITC) tax extenders package out of committee this week.

AWEA1“We’re grateful to all the supporters of renewable energy on the Senate Finance Committee,” said Tom Kiernan, CEO of the American Wind Energy Association. “This provides a critical signal for our industry, which has created up to 85,000 jobs and has a bright future ahead, as we grow from 4 percent of the U.S. power grid to an expected 20 percent and beyond, so long as we have a predictable business climate.”

The PTC and the alternate Investment Tax Credit were added overnight to a modified “Chairman’s mark,” after an earlier draft released Monday left them and several other provisions for further negotiation.

They prevailed on a critical 18-6 vote during the committee markup late Thursday morning, on a motion by Sen. Pat Toomey (R-PA) to strip them out. Five Republicans joined the committee’s Democrats in voting down that amendment: Sens. Chuck Grassley (R-IA), John Thune (R-SD), Rob Portman (R-OH), Mike Crapo (R-ID), and John Cornyn (R-TX).

Advanced Biofuels in Tax Extenders Bill

aeclogoThe cellulosic biofuels industry was very pleased to see the Senate Finance Committee markup of a package of tax extenders that includes the Producer Tax Credit (PTC) and the special depreciation allowance for advanced biofuels.

“The cellulosic biofuel industry is just breaking through at commercial scale. Today’s markup sends a clear signal to the marketplace that Congress is making progress on extending its support for one of the most innovative, low carbon industries in the world,” said Brooke Coleman, Executive Director of the Advanced Ethanol Council (AEC). “It will be very important to move this package along quickly, as executives in our industry are weighing the pros and cons of developing the next wave of projects here or abroad.”

Advanced-Biofuels-Association-Logo“We applaud the Finance Committee and Chairman Wyden for supporting the advanced biofuels tax incentives included in the extenders legislation,” added Advanced Biofuels Association president Michael McAdams. “These extenders send a significant signal to the advanced and cellulosic industry and to the markets regarding the sustained support at the federal level, and our members appreciate the certainty of a two-year extension.”

Companies like Novozymes that are members of these organizations are very happy with the action. “When you’re on a road trip, you don’t stop every 10 minutes to put in one gallon—you fill up for the long haul. That’s what these tax credits and renewable fuel policies like the RFS need too: Fuel for the long haul to drive investment, create jobs and move our economy forward.” said Adam Monroe, Novozymes President, Americas.

The Second Generation Biofuel Producer Tax Credit, Special Depreciation Allowance for Second Generation Biofuel Plant Property, Biodiesel and Renewable Diesel Fuels Credit, and the Alternative Fuel and Alternative Fuel Mixture Excise Tax Credit all expired at the end of 2013. This package extends them through 2015 adding certainty for the advanced biofuel industry and its investors.

Retailers Tell Ethanol Story at ACE Fly-in

Fuel retailers in ethanol producing states had compelling stories to tell at the American Coalition for Ethanol Biofuels Beltway March last week in Washington DC. Several of them sat down with reporters during the event to talk about their success selling higher ethanol blends, as well as the hurdles they had to overcome to do so.

ace14-dc-badenhopGlenn Bedanhop is a third generation farmer who is also president and CEO of American Freedom Energy in the small town of Liberty Center, about 30 miles west of Toledo, Ohio. “It’s rewarding knowing the value you’re putting back in your local community,” said Badenhop, who became the first retailer in Ohio to offer E15 in January because he believes in consumer choice. “It’s their choice,” he said. “We’re not mandating that they buy Coke, Pepsi, Dr. Pepper – it’s just like the fuels.” Interview with Glenn Badenhop, Ohio fuel retailer

ace14-dc-goodCharlie Good has been in the fuel retailing business for 34 years as a convenience store operator and auto mechanic and he started offering higher ethanol blends at his Good and Quick store in Nevada, Iowa last August despite his supplier’s objections. “I had to de-brand because the oil company didn’t want that under their canopy,” said Good. “My sales are up 20-25% a month and of the gallons that they’re up, virtually all of it is the ethanol fuels.” Interview with Charlie Good, Iowa fuel retailer

ace14-dc-vollanBruce Vollan started using blender pumps at his rural Baltic, South Dakota convenience store six years ago. “My experience has been pretty incredible,” he said. “You see a lot of people actively seeking out blends.” Vollan has seen his small business has grown to 13 full and part time employees and he says the negative publicity about ethanol doesn’t bother him because he believes he’s on the right team. He was happy to take time away from his business to take his story to Washington DC and let lawmakers and bureaucrats know what is really happening. “That’s what the ethanol industry is all about,” he said. “It’s about telling the truth.” Interview with Bruce Vollan, South Dakota fuel retailer


2014 ACE Biofuels Beltway March photo album

Coverage is sponsored in part by Patriot Renewable Fuels

Sen. Thune Meets with Ethanol Supporters

ace14-dc-thune-groupA team of four biofuels supporters had the chance to meet with Sen. John Thune (R-SD) last week while in Washington DC for the American Coalition for Ethanol (ACE) Biofuels Beltway March.

In an interview following that meeting, Thune talked about some of the issues facing the biofuels industry, in particular the EPA proposal to lower volume requirements under the Renewable Fuel Standard. “Trying to reverse the EPA’s decision on this is what we’ve been focused on since it came out,” said Sen. Thune.”Going down to 13.1 gallons is horrible for the industry so we hope they make some accommodation for getting beyond the blend wall.”

Thune says he expects to Congress to get a package of expired tax credit extensions passed soon, including renewable energy credits for wind, advanced biofuels, and biodiesel. “It’s very hard for people to plan to invest when they don’t know what the rules are going to be,” he said.

The senator also talked about the rail delays that have been impacting shipments of ethanol and grain. “The railroads are going to have to do a better job,” he said, noting that the problem has been caused by both the long, cold winter and increased shipping of crude oil from North Dakota. “It’s important that the railroads recognize that agricultural commodities need to be shipped too.” Interview with Senator John Thune (R-SD)

2014 ACE Biofuels Beltway March photo album

Coverage is sponsored in part by Patriot Renewable Fuels

American Ethanol on the NASCAR Green® Team

nascar-race-greenAmerican Ethanol is once again partnering with NASCAR® for the NASCAR Race to Green™ initiative now through April 25 to promote environmentally friendly biofuels.

The goal of the initiative is to highlight the accomplishments of green programs that have helped reduce the NASCAR’s carbon footprint. “This partnership with NASCAR Green truly shows the sport’s commitment to preserving our environment. Each race further proves ethanol is a reliable, high-performance fuel that has revitalized our rural communities and created more than 400,000 jobs across the country,” said Tom Buis, CEO of Growth Energy.

American-Ethanol-and-NASCAR-LogoAmerican Ethanol has partnered with NASCAR since 2011 to promote the use of biofuels by using Sunoco Green E15, a 15 percent ethanol blended fuel, across its three national series. American Ethanol also sponsors the Richard Childress Racing No. 3 Chevrolet SS driven by Sunoco Rookie of the Year™ contender and 2013 NASCAR Nationwide Series™ Champion Austin Dillon.

I had a chance to catch up with Buis while in DC last week and this year’s American Ethanol program was one of several topics we discussed. Interview with Growth Energy CEO Tom Buis

Global Ethanol Output to Exceed 90 Billion Litres

The latest forecast calls for global ethanol production to exceed 90 billion litres, or about 24 billion gallons, in 2014.

GRFA1The Global Annual Ethanol Production Forecast from the Global Renewable Fuels Alliance (GRFA), in cooperation with F.O. Licht, estimates the world’s ethanol output will peak at 90.38 billion litres this year.

That amounts to an increase of almost 2.7% growth in production, up from 88 billion litres in 2013, according to GRFA spokesman Bliss Baker. “While forecasts of global economic growth remain sluggish, the global ethanol industry continues to increase its production and contribution to the global economy,” said Baker.

The latest data from F.O. Licht shows significant growth in most major ethanol producing regions in 2014. The world’s two largest producers, Brazil and the United States, are forecasted to maintain and increase their production by almost 2.5% respectively. Another major producing region, the European Union, is forecasted to see ethanol production jump over 8% this year. Africa, an emerging region with huge biofuel production potential is forecasted to see a growth of more than 136% in ethanol production in 2014.

“Although total volumes of ethanol produced in emerging regions like Africa are lower in comparison to more established producers, a production increase of over 130% is incredible because we know that these production increases will drive new investment in agricultural and job creation while reducing Africa’s reliance on imported oil,” stated Baker.

Ethanol Report From RFA in DC

dinneen-dcAfter the ACE Biofuels Beltway March, I was able to stop by and visit with Renewable Fuels Association president and CEO Bob Dinneen in his Washington DC office and we covered the waterfront on issues currently facing the ethanol industry.

ethanol-report-adIn this Ethanol Report, Dinneen discusses what he’s hearing about the EPA proposal to lower the RFS, the latest anti-RFS ad campaign from Big Oil, rail delays impacting ethanol shipments, getting the tax credits for advanced biofuels reinstated, USDA plans to continue to support ethanol, and enthusiasm in the industry.

Ethanol Report with RFA president Bob Dinneen from DC

Subscribe to “The Ethanol Report” with this link.

BIO Report Says Lowering RFS Will Increase GHG

biologo2A new white paper from the Biotechnology Industry Organization (BIO) finds that lowering the volume requirements for biofuels under the Renewable Fuels Standard (RFS) as proposed by the administration will lead to an increase in emissions of greenhouse gases next year.

According to Brent Erickson, Executive Vice President of BIO’s Industrial & Environmental Section and lead author of the special report, the proposal from the Environmental Protection Agency could “reverse progress on one of the central goals of the law – reducing climate-changing emissions from the U.S. transportation sector.”

The paper utilizes Energy Information Administration projections of fuel use from 2014 to 2022 to estimate volumes of petroleum and biofuel use for each year. The authors then assigned estimates of greenhouse gas emissions from the GREET1.2013 model to the volumes and added up year-by-year emissions. Based on EPA’s proposed requirements for 2014, the United States would emit 6.6 million more metric tons of CO2 equivalent greenhouse gases than it did in 2013. If EPA followed past practice, allowing the overall requirements to remain at the statutory level, the achieved reduction in GHG emissions would be 21.6 million metric tons CO2e. The difference between the increase and the achievable decrease is equivalent to putting 5.9 million additional cars on the road next year. Under other available options for setting the RFS volume requirements, the United States could still achieve carbon emission reductions, the paper finds.

Read the report here.

The Littlest Lobbyist for Ethanol

ace14-dc-ethan1Wearing a tie and sporting a “Don’t Mess with the RFS” button, 10-year-old Ethan Fagen was the youngest of the American Coalition for Ethanol (ACE) Biofuels Beltway marchers this week on Capitol Hill.

Ethan came along with his grandfather, Ron Fagen of Fagen, Inc., and was right in the trenches handing out materials and talking about the benefits of ethanol, like how good it is for the environment compared to fossil fuels. “Think in 200 years if you run ethanol there will be cleaner air for the next generation,” said Ethan, who is part of that next generation.

ace14-dc-fagensSitting in the front as the ACE Fly-in participants heard from government officials, Ethan caught the attention of Secretary of Agriculture Tom Vilsack, who thought it was “pretty cool” he was there for the event.

In my interview with Ethan, he told me that he would like to be a farmer someday and grow corn and have cattle. It’s interesting that if you add two letters to Ethan’s name, it becomes ethanol. Interview with Ethan Fagen, ACE Fly-in Participant


2014 ACE Biofuels Beltway March photo album

Coverage is sponsored in part by Patriot Renewable Fuels

ACE Takes Ethanol Message to Friends and Foes

ace14-dc-alversonThere were over 25 battalions of ethanol troops on Capitol Hill this week to fight for the honor of biofuels, bringing the message to both friends and foes in Congress.

American Coalition for Ethanol president Ron Alverson, a South Dakota farmer and board member for Dakota Ethanol, says the teams had appointments with the offices of more than 130 senators and representatives, and he thought they were well received, even in enemy territory. “We went into what we thought were going to be some pretty hard places – representatives from Alabama, Pennsylvania, Rhode Island,” he said. “They were very cordial and they listened well … we were really pleased.”

ace14-dc-johannsWhen meeting with friends like Senator Mike Johanns (R-NE), the ethanol supporters delivered messages of gratitude and asked advice for approaching less friendly lawmakers. They also provided “ammunition” for allies in the form of the packets of the latest information to defend against some of the more popular arguments against ethanol, such as food versus fuel and engine issues with higher blends. “We’ve got some really good arguments and good data…all we can do is go out and tell our story,” said Alverson.

Listen to an interview with Alverson here: Interview with Ron Alverson, South Dakota farmer and American Coalition for Ethanol president


2014 ACE Biofuels Beltway March photo album

Coverage is sponsored in part by Patriot Renewable Fuels

Ag Secretary Takes Time on Ag Day for Ethanol

ace14-dc-vilsackThere are lots of activities for National Agriculture Day going on today in Washington DC, including a big celebration unveiling a statue of Dr. Norman Borlaug in the Capitol, but Agriculture Secretary Tom Vilsack still took time to meet with members of the American Coalition for Ethanol in town this week to visit Congressional offices

“The country needs a robust renewable fuel industry,” said Vilsack. “It provides choice for consumers and less cost gas at the pump. It helps to create hundreds of thousands of jobs which is important for the economy. It stabilizes farm income, it’s better for the environment, and it makes us a safer nation because we’re less reliant on others for our energy and fuel sources. So we need to continue to have a robust commitment to this industry, we need to expand it and grow it.” Brief interview with Secretary Vilsack after ACE visit

The secretary spoke to the more than 80 ethanol industry about what USDA is doing to achieve that goal, including finding creative ways to increase higher ethanol blend pumps, promoting exports of ethanol to Japan, India and China, and continuing to work towards encouraging use of higher blends in this country.

2014 ACE Biofuels Beltway March photo album

Coverage is sponsored in part by Patriot Renewable Fuels

Big Turnout for ACE Biofuels Beltway March

ace14-dc-brianAn enthusiastic crowd of more than 80 ethanol supporters from 15 states are chomping at the bit to be set loose on Capitol Hill to visit the offices of Congress members and educate them about the importance of biofuels during the American Coalition for Ethanol (ACE) Biofuels Beltway March.

“We’ve got people from all walks of life here,” said ACE Executive Vice President Brian Jennings. That includes not just ethanol producers and corn farmers, but bankers, truckers, cattle ranchers and students. “It shows the diversity of this industry, the breadth and depth of support we have out there in the grassroots for ethanol.”

ace14-dc-crowdJennings says 40 percent of the group gathered for this sixth annual DC event have never visited the office of a Congressional representative before. “We try to give them some advice,” he said. “Most importantly, tell your story.”

The ACE group is hearing this morning from the Assistant Administrator of the Environmental Protection Agency, the Secretary of Agriculture, and the Special Assistant to the president for Energy and Climate Change before heading to the Hill to meet with congressional representatives.

Listen to my interview with Brian here: Interview with Brian Jennings, ACE

2014 ACE Biofuels Beltway March photo album

Coverage is sponsored in part by Patriot Renewable Fuels

Biofuels Supporters Heading to Beltway

ACE Biofuels Beltway LogoEthanol advocates from around the country are marching on Capitol Hill this week with the message that the Renewable Fuel Standard (RFS) is working.

It’s the 6th annual Biofuels Beltway March organized by the American Coalition for Ethanol (ACE). “We have more than 80 people registered to attend, which is our highest attendance yet,” said Director of Strategic Projects Shannon Gustafson. “Those attending the event are fuel retailers, farmers, ethanol producers, bankers, and business owners representing 15 different states.”

The event officially kicks off on Tuesday when attendees will hear from representatives of the Environmental Protection Agency, USDA, and the White House. After that, the marchers will be split into groups to attend meetings on Capitol Hill Tuesday afternoon and Wednesday. “So far we have meetings scheduled with more than 130 offices on Capitol Hill,” said Gustafson, who anticipates they will have even more before they begin.

In addition to carrying the message that the RFS is working, supporters will also be telling lawmakers how ethanol benefits consumers, decreases our dependence on foreign oil, and plays a critical role in the future of our nation’s energy independence.

Domestic Fuel will be there to bring it home to those of you who are unable to attend. Thanks to ACE and Patriot Renewable Fuels for making that possible.