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.
Biodiesel producers are pleased that the U.S. House of Representatives voted overwhelmingly to reinstate the biodiesel tax incentive as part of the tax extenders package passed on Wednesday, but they would prefer a longer term deal to provide more certainty for the industry.
“While we appreciate a one-year extension, we are urging Congress to continue pressing for a longer-term policy that can afford this industry the certainty needed to invest and grow,” said National Biodiesel Board VP of Federal Affairs Anne Steckel. “Biodiesel businesses across the country are poised to expand their operations, hire new workers and build new infrastructure, but we need forward-looking policy.”
She added that the deal passed Thursday is only good until the end of this year, so the biodiesel tax incentive expire once again on January 1,for the fourth time in six years. “It is very difficult to run a business with that kind of uncertainty,” Steckel said.
“The biodiesel incentive is proven to create jobs and economic activity, and it pays tremendous dividends in terms of reducing costly pollution and improving our energy security as well,” said NBB Board Chairman Steven J. Levy, managing director at Sprague Operating Resources. “It is a successful policy that is working so there is no reason to have this kind of perpetual uncertainty.”
The House voted 378-46 Wednesday night to approve HR 5771, setting up a potential Senate vote in the coming days.
Some drivers in the Sunshine State will now have access to 15% ethanol fuel (E15), approved by the Environmental Protection Agency (EPA) for use in vehicles 2001 and newer.
In partnership with Protec Fuel, retail stations in Ft. Myers and Sarasota operated by Mid-State Energy are holding kickoff events with substantial discounts on E15 and E85 fuel today to celebrate the new fuel choice for consumers.
Florida-based Protec Fuel helped manage the ethanol blends installation and provide fuel for the locations. “We are proud to help introduce American-made ethanol into the fuel pool through E15 in Florida, especially as it’s a higher performance fuel at 88-octane,” said Protec vice president of business development Steve Walk. “It’s so convenient for drivers to make a difference – you can use E15 interchangeably with gas if you’re driving a 2001 or newer model.”
The Renewable Fuels Association has been working with the Florida Department of Agriculture and Consumer Services for more than two years to overcome regulatory barriers that hindered the sale of E15 in Florida. “It is exciting to see E15 continue its expansion to the East Coast and it is my hope that additional states in the South and East that don’t currently offer E15 will follow Florida’s example and begin offering low-cost E15 to their consumers,” said RFA vice president of industry relations Robert White.
The Tampa Bay Clean Cities Coalition is pleased to see the expansion of bio-based fuels in the region. “These fuels can provide a renewable and cleaner fuel option for us now with virtually no additional investment in vehicle modification or infrastructure,” said coordinator Steven Reich. “I hope that more retailers will take advantage of the availability of these fuels in their product mix.” Clean Cities coalitions throughout the nation are charged with reducing the nation’s petroleum usage by the U.S. DOE.
O God, source and giver of all things,
You manifest your infinite majesty, power and goodness
In the earth about us:
We give you honor and glory.
For the sun and the rain,
For the manifold fruits of our fields:
For the increase of our herds and flocks,
We thank you.
For the enrichment of our souls with divine grace,
We are grateful.
Supreme Lord of the harvest,
Graciously accept us and the fruits of our toil,
In union with Jesus, your Son,
As atonement for our sins,
For the growth of your Church,
For peace and love in our homes,
And for salvation for all.
We pray through Christ our Lord. Amen.
The Ford Transit 3.7L engine conversion to propane autogas is in development and expected to go in for EPA certification by January 2015, according to Blossman Services, managing member of Alliance AutoGas and exclusive United States distributor of Prins Autogas products.
The Transit will be the first “bolt & plug” conversion to be installed by Blossman Services which says the bi-fuel Prins VSI system conversion will require no intake manifold drilling, cutting, or splicing of wiring. The Ford Transit conversion will go into testing this month.
Replacing the Ford E-Series, the Ford Transit vans and wagons are available in single and dual-rear wheels models, with three body lengths, and three roof heights to choose from. Configurations cover 8, 10, 12 and 15 passenger seating, providing flexible cargo volume and payload options. Compared with the previous Ford full-size E-Series van, the all-new Transit Wagon offers higher fuel economy ratings and is designed to haul cargo or carry people. The 3.7L Ti-VCT V6 surpasses the E-Series standard 4.6L V8 gas engine in EPA estimated highway mpg by 19 percent.
The theme for the 2014 conference, which will be held February 18-20 in Grapevine, Texas is “Gowing Global” with a focus on the export markets that are critical to the future growth and financial health of the ethanol industry.
Among the program highlights:
• Going Global: Building Ethanol Demand Internationally
• RFS and LCFS: Driving Demand or Stuck in Neutral?
• Advanced Ethanol Industry Breaks Through; Now What?
• Global Energy Market Outlook
• Global Grain Market Outlook
• The Road Ahead for Higher Blends
• How Rail Safety and Congestion are Impacting the Marketplace
As always, the agenda also includes the annual State of the Industry address by Renewable Fuels Association president and CEO Bob Dinneen, as well as the popular Washington Insiders Panel.
The Chicago City Council is on the verge of passing the “Chicago Clean Air Choice Ordinance,” which was proposed by city aldermen earlier this year, but the oil industry is fighting it.
The ordinance allows city drivers to choose 15% ethanol at the pump. The original ordinance was introduced last summer, while the enhanced ordinance includes an exemption for filling stations selling less than 850,000 gallons of fuel per year and provides a phase-in period of nearly a year.
The law would require all filling stations in the city to provide dispensing pumps and offer mid-grade E15 for sale. The proposal offers as justification the fact that Chicago is dedicated to reducing fuel costs, that ethanol is a renewable domestic fuel that burns cleaner than gasoline, E15 is approved for use in model year 2001 and newer vehicles and is less expensive than gasoline, “with expected savings between 5 and 15 cents per gallon.”
In addition, the ordinance points out that “Illinois is the third largest ethanol producing state in the nation, with 14 ethanol plants that can produce 1.5 billion gallons of ethanol per year.”
With oil companies working against passage of the ordinance, supporters have started a petition drive to allow ethanol proponents to voice their opinions to the city council. Over 4,000 from around the country have already signed on and many have left messages to state their reasons.
“Big Oil has arrived on the scene and is ready to spend whatever it takes to keep this legislation from seeing the light of day,” says Gene Griffith, CEO of Patriot Renewable Fuels, one of the 14 ethanol plants in Illinois. He is urging supporters to sign the petition in support of the ordinance.
On Monday, biofuels industry leaders will hold briefings for Capitol Hill staff and the media to discuss the implications of the decision and where we go from here. The Fuels America briefing will feature Buis, Dinneen, Advanced Ethanol Council (AEC) Executive Director Brooke Coleman, and Brent Erickson with the Biotechnology Industry Organization (BIO).
The biodiesel industry and soybean growers weighed in on the EPA decision today to delay 2014 volume requirements under the Renewable Fuel Standard (RFS).
“This Administration says over and over that it supports biodiesel, yet its actions with these repeated delays are undermining the industry,” said National Biodiesel Board Vice President of Federal Affairs Anne Steckel. “Biodiesel producers have laid off workers and idled production. Some have shut down altogether. We know that fuels policy is complex, but there is absolutely no reason that the biodiesel volume hasn’t been announced. We are urging the Administration to finalize a 2014 rule as quickly as possible that puts this industry back on track for growth and puts our country back on track for ending our dangerous dependence on oil. We also urge them to move quickly on 2015 so that we don’t repeat this flawed process again next year.”
“The continued delays create great uncertainty for the biodiesel industry and soybean farmers and limits the industry’s ability to invest and expand,” said American Soybean Association President Ray Gaesser. “The Proposed Rule was unacceptable and would have taken biodiesel backward from the amounts produced and utilized in 2013. However, ASA believes that EPA can and should finalize a 2014 rule that sets the biomass-based diesel volumes at or above the nearly 1.8 billion gallons that were produced and consumed in the U.S. in 2013.”
The Environmental Protection Agency’s decision to hold off on issuing a final rule for 2014 volume obligations under the Renewable Fuel Standard (RFS) continues the atmosphere of uncertainty for the advanced biofuel industry, according to the Biotechnology Industry Organization (BIO).
“We appreciate that EPA will not be finalizing a proposed 2014 RFS rule containing a flawed methodology for setting the renewable fuel volumes,” said BIO President & CEO Jim Greenwood. “Unfortunately, the delay in this year’s rule already has chilled investment and financing of future projects, even as first-of-a-kind cellulosic biofuel plants are right now starting up operations. The industry needs a final rule that is legally appropriate and continues to support our efforts.”
Advanced Ethanol Council (AEC) Executive Director Brooke Coleman says that pulling back on the 2014 RFS rule is “the right thing to do at this stage in the game when it comes to preserving the integrity of the program.”
“While the cellulosic biofuel industry will not get the policy certainty it needs from this decision, it does suggest that the Administration is listening when it comes to our concerns about giving oil companies too much power to avoid its obligations under the RFS going forward,” Coleman added. “This battle was never about the 2014 volumes for the oil industry, and we appreciate the Administration’s willingness to pivot in the right direction this late in the game. The key now for advanced biofuel investment is to move quickly to fix what needs to be fixed administratively so we can reestablish the RFS as the global gold standard for advanced biofuel policy.”
EPA hit the big reset button. Given the fact that we are already at the end of 2014, we appreciate EPA’s recognition that the real importance is to set the program on a clear glide path for 2015 and 2016. The numbers do matter, and utilizing the actual production will be a positive step from what was a proposed. We appreciate how EPA recognized that cutting requirements for advanced biofuels would be a mistake. This emerging industry deserves better considering it has already demonstrated the capacity to generate 3.2 billion gallons of advanced biofuel annually. But, at least EPA’s decision leaves the glass more than half full and allow us to get back on track next year.
Deciding not to decide is not a decision. Unfortunately, the announcement today perpetuates the uncertainty that has plagued the continued evolution of biofuels production and marketing for a year. Nevertheless, the Administration has taken a major step by walking away from a proposed rule that was wrong on the law, wrong on the market impacts, wrong for innovation, and wrong for consumers.
Today’s announcement is a clear acknowledgement that the EPA’s proposed rule was flawed from the beginning. There was no way the methodology in the proposed rule would ever work, as it went against the very purpose and policy goals of the RFS. The EPA wisely decided not to finalize the rule so they could fix the flawed methodology. Their initial proposal over a year ago was unacceptable and simply acquiesced to the demands of Big Oil and their refusal to blend more renewable fuels into the marketplace.
American Coalition for Ethanol (ACE) Executive Vice President Brian Jennings credits ethanol supporters for helping the EPA reconsider the 2014 RVO obligations under the Renewable Fuel Standard.
Big Oil came close to bullying the Administration to completely rewrite the RFS this year so oil companies could escape their legal responsibility to blend more ethanol in gasoline. But thanks to thousands of comments from ACE members and other biofuel supporters, EPA wisely chose to reconsider their ill-advised proposal which would have legitimized the so-called ‘blend wall’. While we will reserve full judgment until they finalize the 2014 targets next year, it certainly appears the Administration recognizes their proposed RFS changes were inconsistent with legislative history and the Clean Air Act.
New National Corn Growers Association (NCGA) CEO Chris Novak talked about challenges facing the corn industry as he visited with members of the agricultural media during the National Association of Farm Broadcasting convention last week in Kansas City.
“Lots of big challenges ahead for us,” said Novak, who just took over the CEO job for Rick Tolman who retired last month. “Looking at a record crop and lower prices than we’d like to see but that’s an opportunity as well.”
Novak sees increasing demand as the most important challenge and opportunity for the industry. “How do we ensure that with a second record crop in a row that we’ve got the demand that can keep our farmers profitable?” he said. The primary demand sectors – livestock, ethanol and exports – all offer new growth potential.
“Certainly EPA’s support and implementation of the renewable fuels law as passed by Congress is going to be important to us in the short term,” he added. “Longer term we’re looking to build consumer demand for a renewable fuel that increases our energy independence and helps reduce greenhouse gases.”
Chris Novak previously served many years as chief executive officer of the National Pork Board and prior to that, he was executive director of the Indiana Corn Marketing Council, the Indiana Corn Growers Association and the Indiana Soybean Alliance.
Among the topics he addressed were the need for Congress to pass tax extenders for biofuels, first cellulosic ethanol plants going on line this year, how lower oil could be impacting domestic oil production, rail transportation issues, and of course, the Renewable Fuel Standard (RFS).
Regarding the lame duck session of Congress, Dinneen says it’s called lame for a reason but he does expect them to pass a tax extenders bill. “It will include the biodiesel tax credit and the cellulosic ethanol tax incentive, which will be good to have now that we finally have cellulosic ethanol production so they can take advantage of the tax incentive that has been there for them,” he said.
While the industry continues to expect a final decision from the EPA on the 2014 volume requirements any day, Dinneen says it could still be next week. “I fear for my Thanksgiving dinner because I suspect that the minute I carve into that turkey, I’m going to get an email that Gina McCarthy has just signed the rule,” he said. “I wish they’d get it out, let’s just be done with it.”
Seeing gas prices continue to drop nationwide, Dinneen agrees with some analysts that OPEC could be trying to cut U.S. oil production. “The Saudis, I think, have become annoyed that the U.S. is producing more (oil) and has decided that they want to try to break the back of these fracking operations,” said Dinneen, noting that those operations start losing money with prices below $80 a barrel. “Ethanol remains the lowest cost transportation fuel on the planet today and it’s unlikely that the Saudis will be able to break our back.”
A new analysis of real-world land use data by Iowa State University raises serious concerns about the accuracy of models used by regulatory agencies regarding “indirect land use changes” (ILUC) attributed to biofuels production.
The study, conducted by Prof. Bruce Babcock and Zabid Iqbal at ISU’s Center for Agricultural and Rural Development (CARD), examined actual observed global land use changes in the period spanning from 2004 to 2012 and was compared to predictions from the economic models used by the California Air Resources Board (CARB) and Environmental Protection Agency (EPA) to develop ILUC penalty factors for regulated biofuels. The report concluded that farmers around the world have responded to higher crop prices in the past decade by using available land resources more efficiently rather than expanding the amount of land brought into production.
“There hasn’t been much land use change in terms of converting non-agricultural land into crop land,” said Renewable Fuels Association (RFA) Senior Vice President Geoff Cooper. “We’ve seen more double-cropping, we’ve seen triple-cropping in some parts of the world. And, very interestingly, we’ve seen an increase in the amount of planted acres that are harvested.”
Cooper says the study, which was funded in part by RFA, comes at a time when the California ARB is in the process of re-adopting its low carbon fuel standard, which includes revisiting their land use analysis. “So this paper, we hope, should inform that debate and bring some clarity and commonsense,” said Cooper. More importantly, this new analysis can provide input to states like Oregon and Washington which are currently working on developing low carbon fuel standards.
The biodiesel industry is doing fairly well right now, but producers are anxiously awaiting some policy decisions that could improve the situation.
The two outstanding issues right now are the final 2014 volume requirements under the Renewable Fuel Standard (RFS) and the once again expired biodiesel tax credits, according to Kaleb Little with the National Biodiesel Board. “The delay in the volumes has really hurt production,” said Little. “Overall production, we’re still probably going to be around 1.28 billion gallons for the year, but certainly below 2013’s record production (of 1.8 billion).”
Little says that 2013 is an example of what stable policy could do for the industry, with both the biodiesel tax credit in place and the RFS volumes in line with production capability. “You get those things lined up right in the same year and – record production,” he said. “Producers were glad to see it after some rough years and some ups and downs.”
Policy issues will be at the forefront as always during the 2015 National Biodiesel Conference January 19-22 in Fort Worth, and Little says they will also have some good news about new support for biodiesel from manufacturers.