In the News

Senator Amy Klobuchar

Sept 2, 2021

WASHINGTON – U.S. Senators Amy Klobuchar (D-MN), Tammy Duckworth (D-IL), Tammy Baldwin (D-WI), Tina Smith (D-MN), and Dick Durbin (D-IL) and Representatives Cindy Axne (D-IA), Angie Craig (D-MN), Cheri Bustos (D-IL), and Mark Pocan (D-WI) sent a letter to Senate Majority Leader Chuck Schumer (D-NY) and Speaker of the House Nancy Pelosi (D-CA) urging them to include support for homegrown renewable fuels in the upcoming reconciliation package.

“Providing additional market access for higher blends of low carbon fuels in the budget reconciliation process will create jobs in rural communities, lower the price of fuel for consumers at the pump, reduce our dependence on fossil fuels, and, most importantly, decrease carbon emissions,” the legislators wrote.

They continued later in the letter: “We know that the climate crisis is happening right now and we need to confront it with a sense of urgency. Our goal is to decarbonize our transportation sector through an all-hands-on-deck approach that includes investment and incentives for both electric vehicles (EVs) and homegrown renewable fuels.”

The legislators specifically asked Schumer and Pelosi to consider including the Biofuel Infrastructure and Agricultural Product Market Expansion Act, Consumer and Fuel Retailer Choice Act, Low Carbon Biofuel Credit Act, Clean Fuels Vehicle Act, Biodiesel Tax Credit Extension Act, and enacting a long-term extension of the Second Generation Biofuel Producer Tax Credit in the budget legislation.

Full text of the letter can be found  HERE  and below.

Dear Leader Schumer and Speaker Pelosi:

We write to respectfully urge you to make sure that the upcoming budget legislation currently being drafted includes support for homegrown renewable fuels. Providing additional market access for higher blends of low carbon fuels in the budget reconciliation process will create jobs in rural communities, lower the price of fuel for consumers at the pump, reduce our dependence on fossil fuels, and, most importantly, decrease carbon emissions.

Recent studies from the U.S. Department of Agriculture (USDA) and Harvard and Tufts Universities have demonstrated that using renewable fuels to displace fossil fuels reduces greenhouse gas emissions between 39 and 46 percent. When including on-farm adoption of climate-smart conservation practices, such as cover crops, no-till, or precision technologies, and improvements in biorefineries, emissions could be reduced by 70 percent over gasoline by 2022. Biodiesel producers are making fuels that emit as much as 89 percent less greenhouse gas compared to petroleum based diesel. 

We know that the climate crisis is happening right now and we need to confront it with a sense of urgency. Our goal is to decarbonize our transportation sector through an all-hands-on-deck approach that includes investment and incentives for both electric vehicles (EVs) and homegrown renewable fuels. The above studies confirm that renewable fuels can play a complementary role to EVs, immediately cut carbon emissions, and help meet our new commitment under the Paris Climate Agreement to reduce emissions by 50 – 52 percent by 2030. 

In the budget reconciliation process, we ask you to consider the following bipartisan proposals that will strengthen the production and sale of homegrown renewable fuels and allow them to play a significant role in supporting a greener economy.

  • Biofuel Infrastructure and Agricultural Product Market Expansion Act(S.2271/H.R.1542): Fuel retailers want to offer smarter fuel options to their customers and consumers want to purchase lower cost and more environmentally friendly fuel, but a lack of federal investment has prevented them from moving forward. This legislation would provide for the installation of new fuel pump infrastructure to deliver ethanol blends greater than 10 percent and biodiesel blends greater than 20 percent. This sorely needed federal investment in renewable fuel infrastructure will allow small businesses across the nation to provide cleaner, more affordable, and lower emission options to American drivers.
  • Consumer and Fuel Retailer Choice Act (S.2339/H.R.4410): In 2019, the Environmental Protection Agency (EPA) finalized a rule to extend a Reid Vapor Pressure (RVP) volatility waiver to fuel blends with 15 percent ethanol (E15). The rule allowed for an open marketplace with more fuel options for consumers while encouraging competition and driving down fuel costs. E15 has been proven to lower evaporative and tailpipe emissions when compared to 10 percent ethanol fuel. Unfortunately, a July D.C. Circuit court ruling vacated EPA’s final rule. This legislation would make permanent the ability of retailers to sell E15 year-round.
  • Low Carbon Biofuel Credit Act (S.2262/H.R.4254): Federal tax incentives – along with the Renewable Fuel Standard (RFS) – have been critical in the development of homegrown renewable fuels. This legislation would build upon previous renewable fuel tax incentives by establishing a low carbon fuel tax credit to incentivize ethanol blends of 15 percent or greater in the marketplace, which will reduce emissions, diversify our fuel supply, and provide for rural economic development. 
  • Clean Fuels Vehicle Act (S.2267): The ability of renewable fuels to decarbonize liquid transportation fuels has been constrained due to the fact that roughly 90 percent of the vehicles on the road today are legally approved to use only E15 or less. The production of flex fuel vehicles (FFVs) – vehicles capable of utilizing higher blends of ethanol like E85 – peaked in model year 2014 at 2.8 million vehicles and fell to just 716,000 for model year 2019. This legislation would incentivize Original Equipment Manufacturers (OEMs) to manufacture FFVs for the market by offering a $200 tax credit and restoring Corporate Average Fuel Economy (CAFE) credits for FFV production. The more renewable fuel that can be utilized in the light duty vehicle fleet, the lower the carbon emissions and better the air quality will be for all Americans.
  • Biodiesel Tax Credit Extension Act (S.1806/H.R.3472): The domestic growth in production of biodiesel has been spurred through the biodiesel tax credit. After the 2019 extension of the credit, production grew more than 150 million gallons despite headwinds from coronavirus related market challenges. This legislation would extend the current federal biodiesel tax credit through 2025. The U.S. Department of Energy has noted that when used as a vehicle fuel, biodiesel offers considerable greenhouse gas emissions benefits, including a lifecycle analysis for 100 percent biodiesel (B100) that showed a 74 percent reduction in emissions as compared to petroleum diesel. 

Finally, we also support enacting a long-term extension of the Second Generation Biofuel Producer Tax Credit (§40(B)), which expired in 2020. This $1.01 per gallon credit will help increase the production of advanced biofuels that cut carbon emissions between 70 and 126 percent. 

We believe Congress can and should do more to ensure support for homegrown renewable fuels. We encourage you to include these provisions in the upcoming budget reconciliation package. 

Read the original press release here

Ethanol Producer Magazine

Sep 2, 2021

The U.S. exported 51.64 million gallons of ethanol and 1.06 million metric tons of distillers grains in July, according to data released by the USDA Foreign Agricultural Service on Aug. 2. Exports of both products were down when compared to July 2020.

The 54.64 million gallons of ethanol exported in July was down significantly from both the 81.86 million gallons exported during the previous month and the 72.91 million gallons exported in July of last year.

The U.S. exported ethanol to more than 30 countries in July. Canada was the top destination for U.S. ethanol at 29.24 million gallons, followed by South Korea at 5.32 million gallons, and the Netherlands at 4.02 million gallons.

The value of U.S. ethanol exports was at $138.82 million in July, down from $189.11 million in June, but up from $129.47 million in July 2020.

Total U.S. ethanol exports for the first seven months of 2021 reached 715.86 million gallons at a value of $1.39 billion, compared to 788.55 million gallons at a value of $1.36 billion exported during the same period of last year.

 The 1.06 million metric tons of distillers grains exported July was up from the 939,177 metric tons exported in June, but down slightly from the 1.08 million metric tons exported in July 2020.

The U.S. exported distillers grains to nearly three dozen countries in July. Mexico was the top destination at 247,511 metric tons, followed by Turkey at 151,738 metric tons and Vietnam at 151,499 metric tons.

The value of U.S. distillers grains exports reached $262.64 million in July, up from $248.55 million in June and $226.47 million in July of last year.

Total U.S. distillers grains exports for the first seven months of this year reached 6.49 million metric tons at a value of $1.69 billion, compared to 6.02 million metric tons at a value of $1.29 billion exported during the same period of 2020.

Additional data is available on the USDA FAS  website

Read the original story here.

Ethanol Producer Magazine

Aug 30, 2021

The USDA predicts fiscal year (FY) 2021 ethanol exports will be at $2.2 billion, down $60 million when compared to FY 2020. Moving into FY 2022, however, U.S. ethanol exports are expected to reach $2.4 billion, up $200 million from FY 2021.

The agency made those predictions in its latest quarterly trade forecast, released Aug. 26. Beginning with this latest quarterly trade forecast, the USDA said it is adopting the World Trade Organization’s definition of “agricultural products,” which adds ethanol, distilled spirits and other products to the agency’s previous definition of agricultural products.

According to the Aug. 26 export forecast, the USDA currently predicts U.S. ethanol exports for FY 2022 will reach $2.4 billion, up $200 million from FY 2021 on volume and unit value gains. The agency said higher expected corn prices keep ethanol unit values elevated. Modest volume gains are projected for many markets, as gasoline fuel markets continue to recover and demand for industrial ethanol grows with the economic recovery and continued elevated demand for disinfectants.

For FY 2022, the largest export gains for U.S. ethanol are expected for Brazil and the U.K. The USDA said an expected sharp sales increase to Brazil is supported by the recent drought and frost damage that lowered sugarcane yields, higher sugar prices, and ongoing fuel recovery demand. The U.K. is raising its fuel ethanol blend to E10 this fall, increasing their overall demand, the agency added. India’s push to meet its E20 by 2025 continues to expand the demand for industrial ethanol. Uncertainty persists on the future of fuel ethanol exports to China, according to the USDA. The agency also said that the proportion of U.S. ethanol exports used as fuel remains at a historically low 60 percent since the pandemic eroded gasoline use and spurred demand for disinfectants.

For FY 2021, the USDA predicts ethanol exports will be at $2.2 billion, down $60 million from the previous year with higher export unit values only partially offsetting lower export volume. U.S. exports of fuel ethanol to Brazil in FY 2021 have fallen to levels not seen in a decade, according to the agency. In addition, Colombia’s lower blend mandate has reduced imports from the U.S. Exports sales to Mexico and Nigeria are also down from FY 2020 records, following the earlier demand surge for medical-grade ethanol. U.S. industrial ethanol sales to India are lower due to higher U.S. prices and the substitution of surplus sugar supplies to ethanol. U.S. fuel ethanol exports to China reached their second-highest level on record due to low, early-year U.S. prices, according to the USDA. U.S. sales to Canada are up on fuel demand recovery, while sales to South Korea are up due to record demand for industrial product.

Read the original story here.

Ethanol Producer Magazine

Aug 25, 2021

Representatives of the ethanol industry called on the U.S. EPA to address high-octane, low-carbon fuels as part of its proposed greenhouse gas (GHG) emissions standards for 2023-2026 light-duty vehicles during a hearing held Aug. 25.

The EPA on Aug. 5  released a proposed rule  to set light-duty vehicle GHG emission standards through 2026. Despite calls from government officials and industry trade groups, the proposed rule does not currently address biofuels or include a high-octane standard.

The proposed rule aims to revise the  SAFE Vehicles Rule  finalized by the Trump administration in March 2020. That rule replaced CAFE and GHG emissions standards put in place by the Obama administration. President Biden directed the EPA and U.S. Department of Transportation’s National Highway Traffic Safety Administration to revise the existing CAFE and GHG emission standards through an  executive order  issued in January 2021. 

The proposed rule would set an industry-wide target of 171 grams of CO2 per mile, or a 52 miles per gallon (mpg) equivalent, for model year 2026 passenger cars and light trucks. That is more stringent than the 205 grams of CO2 per mile, or 43.3 mpg, standard put in place by the current SAFE rule. A previous rule put in place in 2012 would have set the standards at 177 grams of CO2 per mile, or 50.1 mpg.

The agency held a virtual hearing on the proposed rule on Aug. 25. Representatives of the American Coalition for Ethanol, Renewable Fuels Association and Growth Energy were among those to offer testimony at the event.

Testimony  offered by Brian Jennings, CEO of ACE, emphasized how the proposal must place much greater emphasis on improving the quality of liquid fuel, which 98 percent of the 270 million light-duty vehicles on the road use, by including steps to replace fossil fuel with a lower carbon and higher octane fuel, such as ethanol, in order to significantly cut CO2 emissions from their tailpipes.

“If the overarching goal is net-zero emissions by mid-century, let’s start making progress right now by taking full advantage of the 15 billion gallons of domestically produced ethanol available today as an affordable way to boost octane and meaningfully reduce GHG emissions from gasoline powered engines,” Jennings remarks state.

Jennings testimony on behalf of ACE members concludes by highlighting three recommendations for EPA’s consideration in the final rule that ACE will detail, along with others, in its submitted comments. Those recommendations include the establishment of a research octane number (RON) rating for fuel in the range of 98 to 100 RON with 25 to 30 percent ethanol and provide automakers with a corresponding cert fuel for engine testing purposes; adoption of the latest U.S. Department of Energy GREET model with respect to the lifecycle GHG emissions of ethanol and other transportation fuels; and the establishment of a technology-neutral approach that provides automakers with incentives to produce flexible fuel vehicles (FFVs) and vehicles designed to achieve optimal efficiency and reduced emissions on high octane ethanol blends.

Testimony offered by Geoff Cooper, president and CEO of the RFA, also focused on the inclusion of high-octane, low-carbon fuels. “If our nation is to reach its goal of net-zero GHG emissions by mid-century, we’ll need both cleaner, more efficient cars and cleaner, more efficient fuels,” Cooper said in  prepared remarks.  “That’s why RFA’s member companies recently committed to achieving a net-zero carbon footprint by 2050 or sooner.”

RFA expressed its disappointment that EPA’s proposed GHG standards continue to focus solely on engines and vehicles, while ignoring the important influence of fuels on emissions and mileage.

“Unfortunately, EPA’s proposal fails to recognize that the fuels we put into our engines can have as much—or more—impact on fuel economy and GHG emissions as the engine technologies themselves,” Cooper said, noting that the proposal assumes automakers will increase production of certain engine technologies that rely on higher-octane fuels. “The proposed rule counts on broad deployment of high-compression ratio engines that will require high-octane fuel but does nothing to ensure those high-octane fuels will actually be produced and available in the marketplace.”

Cooper concluded by calling on EPA to use the current rulemaking, as well as the upcoming process to set GHG standards for 2027 and beyond, to create a higher octane standard for gasoline.

“Action by the EPA will be necessary to catalyze the development and introduction of cleaner, more efficient fuels into the marketplace, just as EPA action was required to eliminate lead, limit benzene, and reduce the sulfur content of our gasoline and diesel fuel,” Cooper added. “We respectfully ask that EPA use the current rulemaking process and future rulemakings to establish the roadmap for increasing the required minimum octane rating of our nation’s light-duty vehicle fuel.”

Chris Bliley, senior vice president of regulatory affairs at Growth Energy, urged EPA to consider the vital role that environmentally sustainable fuel options, such as ethanol, will play in reducing GHG emissions from the current and future vehicle fleet in his  testimony.

“We appreciate EPA’s work to reshape the nation’s transportation mix to make it more sustainable as it is a central driver for our industry as well,” Bliley said. “Vehicles and fuels operate as a system and liquid fuels will continue to play a dominant role in the transportation sector for decades to come, even as alternative technologies flourish. As such, it is imperative to consider the vital role that environmentally sustainable fuel options such as ethanol will play in reducing greenhouse gas emissions from the current and future vehicle fleet.”

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U.S. Grains Council

Aug 12, 2021

As policymakers in South Korea and Japan consider new emission reduction initiatives, the U.S. Grains Council (USGC) is working to demonstrate the carbon-reduction benefits of blending ethanol into local fuel supplies.

South Korea announced a goal last fall of achieving carbon neutrality by 2050. Since then, the Korean public and private sectors have been preparing scenarios and implementation measures for carbon reduction. In May 2021, a Carbon Neutrality Committee was launched to establish the 2050 Carbon Neutrality policy measures and, in the future, play a role in setting carbon neutrality policies.

Haksoo Kim, USGC director in South Korea, has been reaching out to stakeholders to offer information on ethanol’s contributions to these goals. He has spoken at events hosted by the Korea Biofuel Forum and the Transportation Sector Working Group of the Carbon Neutrality Committee, where he focused on the importance of a renewable fuel standard (RFS) in achieving 2050 carbon neutrality in South Korea.

“This year is the best time to create an environment for expanding ethanol use by persuading the government to introduce a fuel ethanol renewable fuel standard (RFS) to offer carbon benefits,” Kim said.

USGC will also co-host the Climate Crisis and Biofuel Symposium on Sept. 8 and will have a booth at the Seoul International Motor Show from Nov. 16 to Dec. 5.

South Korea, a major importer of U.S. grains and grain products, imported 81 million gallons of U.S. ethanol in 2020, mostly for industrial uses including sanitizer products and windshield washer liquid.

Like South Korea, ethanol is a major focus for the Council in Japan, another critical trading partner for the U.S. grains sector.

Japan’s strategic energy plan is being revised this summer, and policies are also in development to lead the country to carbon neutrality by 2050. Direct blending of ethanol presents an immediate opportunity for Japan to further reduce transport emissions under these policies.

Japan does not currently blend ethanol directly, instead relying on pre-blended ethanol in the form of ethyl tertiary-butyl ether (ETBE), reducing 712,000 tons of CO2 emission per year. Japan has an average blend rate of just 1.9 percent; direct blending at an E10 level would immediately expand CO2 emission reductions by five times.

The total potential U.S. market share today in Japan for ethanol is up to 66 percent of the estimated demand of 217 million gallons of ethanol used to make ETBE, equal to 142 million gallons per year.

“It’s important to make Japan aware of the benefits of bioethanol in reducing carbon emissions in the transportation sector, which is a focus of our work daily,” said Tommy Hamamoto, USGC director in Japan.

Read the original story here

The Hill

Aug 21, 2021

After suffering through more than a year of quarantines, stay-at-home orders, and travel lockdowns, millions of Americans have eagerly returned to the nation’s highways this summer for long-awaited vacations and road trips. As a result, gasoline demand has surged to record highsand pump prices are at levels not seen since 2014.

In recent weeks, regular-grade gas prices averaged $3.17 per gallon, up almost 50 percent from the same time last year. With higher fuel prices threatening to undermine the nation’s ongoing economic recovery, it’s easy to see why the Biden administration is looking for ways to ease America’s pain at the pump.  

But what’s not easy to see is why the White House recently chose to respond to higher pump prices bypushing OPEC+ countries to increase oil production. It was a baffling move that raised eyebrows across the political spectrum. After all, calling on countries like Saudi Arabia and Russia to boost their output of dirty, high-carbon crude oil obviously runs counter to the president’s stated goals regarding climate change, clean energy, domestic job creation and energy security.

At the same time, the administration’s ambitious electric vehicle goals are taking a hit due to geopolitical instability and uncertainty regarding the availability of minerals needed for electric vehicle batteries. The rapid fall of Afghanistan to the Taliban regime threatens to hand one of the world’s largest deposits of lithium— the most crucial mineral for batteries — over to Russiaand China, which already dominates the world market for rare earth metals. Indeed, the Pentagon once warned that Afghanistan could become the "Saudi Arabia of lithium.” 

Before the Biden administration looks to OPEC+ countries or mineral-rich nations like Afghanistan, China and Bolivia for help, it has an opportunity to turn to America’s heartland for a homegrown solution. Renewable fuels like ethanol have a 40-year proven track record of success in helping to lower prices at the pump while simultaneously reducing carbon emissions,  supporting good-paying clean energy jobsand curtailing crude oil imports.

Four decades’ worth of investment and innovation by ethanol producers has resulted in real breakthroughs in lower-carbon transportation fuels. Today’s corn-based ethanol reduces carbon emissions by 52 percent when compared directly to gasoline, according to a recent studyfrom the Department of Energy’s Argonne National Laboratory. Another studyby scientists from Harvard University, Massachusetts Institute of Technology (MIT) and Tufts University similarly shows corn ethanol achieves an average carbon reduction of 46 percent compared to gasoline, with some ethanol in the market today achieving a 61 percent carbon reduction. 

In response to policies like the Renewable Fuel Standard (RFS), California Low Carbon Fuel Standard, and Oregon Clean Fuels Program, along with the Biden administration’s recommitment to the Paris Agreement, the pace of low-carbon innovation and investment is accelerating. We firmly believe ethanol will achieve a net-zero carbon footprint in the years ahead, as the supply chain adopts carbon capture and sequestration technologies, uses more renewable electricity and biogas to power biorefineries, and expands carbon-efficient feedstock production. In fact, the members of my organization sent a letterto President Bidenin July pledging to ensure that ethanol is a fully carbon-neutral fuel source by 2050 or sooner.

For this vision to become a reality, our industry is looking to the Biden administration and Congress to take action that drives further innovation and creates certainty in the biofuels marketplace. The first step should be enforcing robust RFS volumes and resisting presurefrom oil refiners to waive biofuel blending requirements or push their blending obligations off on retail gas station owners. In addition, Congress and the administration should support the development of a national clean fuel standard, as well as provisions to expand ethanol infrastructure and production of flex-fuel vehicles that can operate on fuels containing up to 85 percent ethanol. 

Before we turn to the Persian Gulf for answers to our nation’s energy and climate challenges, let’s give the American heartland a shot. The solution to high pump prices and decarbonization lies in the farm fields of Minnesota, Wisconsin, Iowa and other Midwest states — not in the oil fields of Iraq, Saudi Arabia, and other Middle East nations.

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Fuels Market News

Aug 11, 2021

If the global priority with regards to the transportation sector is to reduce carbon emissions, then putting all our eggs in one basket and waiting for electrification to transform the world is already a failed strategy. With nearly 1.5 billion vehicles in the world, and with more than 90 million new vehicles sold annually (*nonpandemic years, of course), it is impossible to envision a transition to relying on only battery electric vehicles (BEV) any time soon, no matter what governments may try to do in terms of sales requirements. So, what should be done regarding the existing and continuing combustion engine-liquid fuels market? To find viable solutions—and we certainly can—we must adopt a broader perspective, be open to options and think about engines and fuels as a system.

Relevant to this topic is our musical feature of the month: Willie Nelson. The song “On the Road Again” plays well with some of the recurring themes found in this column, but the primary importance is found with Willie himself, a strong advocate for the use of biofuels who even established a brand of biodiesel called “BioWillie.” His support for the fuel was based upon personal experience with its performance but also his interest in supporting farmers and reducing America’s reliance on foreign oil.

There are options to improve the emissions profile and lower the carbon impact of traditional powertrains by evaluating engines and fuels from a systemic perspective. One of the most developed efforts in this context involves high compression engines and higher-octane fuel. The U.S. Department of Energy’s Co-Optimization of Fuels and Engines initiative has done great work evaluating what might be possible and how fuel enabling more efficient engine design could be produced.

In addition to what Co-Optima has produced, the Fuels Institute published two reports on octane evaluating its role in engine performance and what it would take to introduce a new high-octane fuel into the market to support advanced engine design. Short story: It would take about 20 years and cost quite bit of money to transition the entire market. But the idea of maximizing fuel properties to improve the efficiency of engines is the right approach, and the results of the Co-Optima research provide some valuable insights into possibilities.

The octane discussion continues, and there are opportunities to be exploited.

BIOWILLIE AND FRIENDS

We have been blending biofuels into petroleum products for decades, and there could be opportunities to leverage that experience to reduce the overall carbon intensity of our fuel, thereby having an immediate impact on carbon emissions from existing and future combustion engine vehicles.

According to the California Air Resources Board (CARB), biofuels already provide a lower carbon footprint than hydrocarbon fuels and are projected to improve over time as energy inputs for producing the fuels becomes greener. Compared with California-specification gasoline, starch ethanol (i.e., produced from corn) is 28% less carbon intense and is projected to reach 55% reduction by 2040. Meanwhile, biomass-based diesel (both biodiesel and renewable diesel) is 70% less carbon intense. These are fuels currently available throughout the market with decades of user experience.

While there are some compatibility issues associated with increasing the use of biofuels, these can be overcome on a shorter time frame than will be required to convert the fleet to BEVs. And, according to a study currently under development by the Fuels Institute (slated for release this summer), there are business opportunities associated with the retail of biofuel blends.

The benefits of incorporating more biofuel blends into the market can be enhanced if we apply the systems approach mentioned above. Not all vehicles are manufactured to run on all the biofuel blends that can be brought to market, but if there were a strategy in place in which new combustion engines were designed to take advantage of the performance properties of biofuels, then new markets could develop.

LESSONS FROM THE HIGHWAYMEN

Willie Nelson was a great solo act, but he also found success by joining with Johnny Cash, Waylon Jennings and Kris Kristofferson to form the Highwaymen—a country music supergroup. I think our policymakers can learn a lot from this example of bringing together the best of the best to create something even better—let’s combine the best options available to us to reduce emissions.

I believe the next couple of years represent a unique opportunity to consider the future of federal biofuels policies. The statutory volumetric standards of the Renewable Fuel Standard extend only through 2022, at which point the Environmental Protection Agency will be fully responsible for setting requirements. There are many who believe the program needs to be reconsidered by Congress, and some are suggest that California’s Low Carbon Fuel Standard should be reviewed as a possible model. I have no idea how these discussions will play out, but the data suggest a robust biofuels policy could be a significant contributor to the overall objectives of lowering our carbon emissions.

In the shadow of all the attention being given to electrification, it is my hope that policy discussions will incorporate the many ideas that exist and do not ignore the continuous role of the dominant transportation energy source in the world—liquid fuels.

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Ethanol Producer Magazine

Aug 10, 2021

The U.S. Energy Information Administration increased its forecast for 2022 ethanol production in its latest Short-Term Energy Outlook, released Aug. 10. The forecasts for 2021 ethanol production and 2021 and 2022 ethanol blending were maintained.

The EIA currently predicts fuel ethanol production will average 970,000 barrels per day this year, up from 910,000 barrels per day in 2020. In 2022, ethanol production is currently expected to average 1.01 million barrels per day, up slightly from the agency’s forecast of 1 million barrels per day made in the July STEO.

On a quarterly basis, ethanol production is expected to average 1.01 million barrels per day during the third quarter of this year, falling to 980,000 barrels per day in the fourth quarter. In 2022, ethanol production is expected to average 980,000 barrels per day in the first quarter, 1.02 million barrels per day in the second quarter, 1.03 million barrels per day in the third quarter, and 1.02 million barrels per day in the fourth quarter.

Ethanol blending is currently expected to average 900,000 barrels per day in 2021, up from 820,000 barrels per day in 2020. Moving into 2020, ethanol blending is expected to increase to an average of 920,000 barrels per day.

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