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USDA: No actions expected under Feedstock Flexibility Program

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By Erin Voegele

October 02, 2019

FeedstocksPolicyBusiness

The USDA's Commodity Credit Corp. announced Sept. 27 that it does not expect to purchase and sell sugar under the Feedstock Flexibility Program for crop year 2019, which coincides with fiscal year 2020.

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From the Fall 2019 print edition of Biodiesel Magazine, National Biodiesel Board CEO Donnell Rehagen provides his perspective on small refinery exemptions and what they are doing to U.S. biodiesel producers.

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Biodiesel and soy leaders sent a letter Sept. 30 to Wilbur Ross, secretary of the U.S. Department of Commerce, requesting he meet with the groups before the department finalizes its review of countervailing duties on biodiesel imports from Argentina.

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A series of unfortunate events this summer—all caused by U.S. government action or inaction—has led to a precarious situation in the biodiesel sector, but there may be a silver lining.

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The U.S. EPA has released renewable identification number (RIN) generation data for August, reporting that nearly 1.65 billion RINs were generated during the month, including 37.37 million cellulosic RINs.

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In August, W2Fuel began idling its two biodiesel plants—a 15 MMgy facility in Adrian, Michigan, and a 10 MMgy plant in Crawfordsville, Iowa—due to poor market conditions. CEO Roy Strom says he plans to restart them when the market turns around.

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MnDOT released a report Sept. 18 that aims to get the state on track to meet future goals for reducing GHG emissions in accordance with state laws. It includes a variety of recommendations to guide state policy, including those focused on biofuels.

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A new trade agreement was reached Sept. 25 between the U.S. and Japan, our nation's third largest agricultural export market. According to the Office of the U.S. Trade Representative, the agreement includes a staged tariff elimination for ethanol.

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Ag leaders from Iowa and Ohio say there is no question SREs issued by U.S. EPA are hurting ethanol producers and farmers. Four farmers from the two states took part in a media call Sept. 26 to address the impact SREs are having on their industries.

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The USDA published a final rule Sept. 23 that allows agency administrators additional flexibility to obligate federal funds associated with certain infrastructure projects, including those associated with several of its rural development programs.

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Data released by the U.S. Energy Information Administration on Sept. 25 shows U.S. ethanol production for the week ending Sept. 20 slipped to an average of 943,000 barrels per day, the lowest level since April 2016.

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The Renewable Fuels Association sent a letter to U.S. EPA Administrator Andrew Wheeler Sept. 25 criticizing statements he made during a Sept. 19 congressional hearing where he claimed SREs are not impacting the ethanol industry.

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Taiwan signed a memorandum of understanding Sept. 18 committing to purchase 5 million metric tons of U.S. corn and 500,000 tons of U.S. distillers dried grains with solubles (DDGS), extending their stable buying commitment for another two years.

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Growth Energy has released a report examining the potential impact of U.S. biofuels in America's clean energy future. It presents data on ag innovation, provides a review of recent studies, and illuminates gaps in EPA's understanding of biofuels.

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A bipartisan group of 25 members of the U.S. House of Representatives sent a letter to U.S. EPA Administration Andrew Wheeler on Sept. 20 urging the agency to account for SREs when setting annual RFS blending obligations.

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U.S. EPA Administrator Andrew Wheeler fielded questions on SREs and the potential of E30 during a Sept. 19 hearing on U.S. EPA science and technology held by the U.S. House of Representatives Committee on Science, Space and Technology.

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The White House Office of Science and Technology Policy is seeking public input on the U.S. bioeconomy in an effort to inform notable gaps and vulnerabilities and to identify areas in which the bioeconomy could benefit from government attention.

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FROM THE OCTOBER ISSUE: Editor Lisa Gibson previews the magazine, including feature articles about South Dakota's new ethanol plant, a look at E15's market trajectory, tips about lab maintenance and more.

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FROM THE OCTOBER ISSUE: Projections for E15 have been inconsistent since the May 31 Reid vapor pressure waiver. Ethanol Producer Magazine explores some of the factors that will influence the blend's trajectory in the coming years.

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FROM THE OCTOBER ISSUE: 2020 RFS rule is an opportunity for EPA to alleviate damage done to the ethanol industry by granting small refinery exemptions.

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A new study shows that the RFS not only saves drivers money at the gas pump every day, but also enhances energy security by greatly reducing or even eliminating the blow to our nation's drivers when global oil production is disrupted.

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Legislation introduced by Rep. Rodney Davis, R-Ill., on Sept. 18 would require the U.S. EPA to account for small refinery exemptions (SREs) when formulating annual Renewable Fuel Standard volume obligations.

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Trump is set to continue discussions Sept. 19 regarding the SRE reallocation proposal by meeting with Senators representing Big Oil. Meanwhile, Sen. Joni Ernst R-Iowa, said she needs to see the proposal in writing before she can announce her support.

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Wholesale prices for biodiesel have seen a sharp rise since Aug. 14, from 70.5 euro cents per liter ($2.95 per gallon) in mid-August to recently 91.6 euro cents per liter ($3.82 per gallon). This translates to an approximately 30 percent increase.

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Elevate and Collaborate

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By Brian Healy

September 18, 2019

FROM THE OCTOBER ISSUE: The U.S. industry is working to expand ethanol's global use by hosting the Global Ethanol Summit in Washington, D.C.

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European renewable ethanol association (ePURE) members produced 5.81 billion liters of ethanol and 5.55 million metric tons of beneficial co-products in 2018, according to new audited data released Sept. 5 by the industry group.

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U.S. Grains Council staff, consultants and members attending the Asia Pacific Petroleum Conference (APPEC) in Singapore in September found reason for enthusiasm for ethanol's future in the region.

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Wondering What If

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By Steve Vander Griend

September 17, 2019

FROM THE OCTOBER ISSUE: Real-world fuels are needed as part of real-world testing to prove ethanol's worth in helping to boost octane and lower emissions.

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Joana Hassan re-joined the U.S. Grains Council on August 26 as the ethanol programs coordinator at the organization's Washington, D.C., headquarters. Hassan worked in the same position from September 2017 to June 2018.

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Minnesota Gov. Tim Walz signed an executive order Sept. 16 establishing a Governor's Council on Biofuels that will advise the governor and state agencies on the role of biofuels in reducing GHG emissions and recommend policies to foster growth.

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