In the News
Mar 24, 2021
The USDA on March 24 announced its intent to provide COVID-19 relief to biofuel producers as part of its USDA Pandemic Assistance for Producers initiative, which aims to distribute relief resources more equitably.
The USDA said it is establishing new programs and efforts to bring financial assistance to farmers, ranchers and producers who felt the impact of COVID-19 market disruptions. The new initiative aims to reach a broader set of producers than in previous COVID-19 aid programs.
The agency said it will dedicate at least $6 billion towards the new programs. It will also develop rules for new programs that will put a greater emphasis on outreach to small and socially disadvantaged producers, specialty crop and organic producers, timber harvesters, as well as provide support for the food supply chain and producers of renewable fuel, among others. Rulemaking, where required, will commence this spring, according to the USDA.
“The pandemic affected all of agriculture, but many farmers did not benefit from previous rounds of pandemic-related assistance. The Biden-Harris Administration is committed to helping as many producers as possible, as equitably as possible,” said Agriculture Secretary Tom Vilsack. “Our new USDA Pandemic Assistance for Producers initiative will help get financial assistance to a broader set of producers, including to socially disadvantaged communities, small and medium sized producers, and farmers and producers of less traditional crops.”
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March 18, 2021
As fuel demand begins its recovery around the world, the U.S. Grains Council (USGC) is taking steps to ensure ethanol will continue to expand as a part of policy solutions that address greenhouse gas (GHG) emissions and offer a comprehensive portfolio of other benefits including air quality improvement and economic value.
USGC’s ethanol team and consultants offered an update this week to the Council’s Ethanol Advisory Team (A-Team), the member-driven group of grain producers and agribusiness representatives that identify opportunities, set priorities and chart the course of the Council every year, giving them background on ethanol’s role in the Paris Agreement, explaining what it means to have the U.S. rejoin and presenting an outlook for ethanol as it relates to the Paris Agreement as whole.
The U.S. has officially rejoined the Paris Agreement, and like other countries that have made the same commitment, the U.S. will have to submit Nationally Determined Contributions (NDC) that inform the country’s direction toward its goals as it updates its targets.
“Other countries are doing the same, drawing on the overall GHG emissions abatement that has occurred across various sectors,” said Brian Healy, USGC director of global ethanol market development, when he addressed the group. “Since its inception during COP21 [21st Conference of Parties to the United Nations Framework Convention on Climate Change], several countries have initiated expanded national ethanol policies that were directly implemented to meet their NDCs – Brazil’s RenovaBio and Canada’s Clean Fuel Standard (CFS) are two examples that come to mind.”
As many countries have listed their transportation sectors and named biofuels or ethanol specifically to contribute to overall emissions reductions outlined in the Paris Agreement, the case can be made for U.S. ethanol to help meet these countries’ global initiatives.
“The UK is the most recent example of another market moving in the direction of higher ethanol blends to decarbonize their transport fuels,” Healy said. “The global momentum in this space continues with ethanol readily available as an immediate abatement solution – one in which the U.S. has a role.”
The question at play is not only what U.S. ethanol’s role will be in meeting the U.S. and other countries’ Paris Agreement commitments, but also how.
“Even with policies in place some countries are not meeting the intended goals or mandates, leaving room for further GHG emissions reductions. India for example has recently announced its national plan to blend 20 percent ethanol nationwide by 2025. In the most recent market year, it blended just above a 5 percent rate from a nationwide average standpoint. Filling in that blend gap will be critical to fully realize these benefits,” Healy said. “Identifying these gaps and demonstrating the benefit and how to fill them is an ongoing role the Council provides with its global partners.”
For instance, new research from Environmental Health and Engineering Inc. demonstrates that U.S. corn-based ethanol cuts GHG emissions by 46 percent, providing benefits nationally, but also globally, as ethanol trade expands. In terms of emissions reductions, this means the U.S. saved more than 4 million metric tons of carbon dioxide equivalent in 2020 from ethanol exports alone and could provide other countries a pathway to meeting their own Paris Agreement commitments.
“Elevating the contribution that ethanol has already made to abate emissions globally is critical,” Healy said, “and these reductions are expected to continue as further investment in abatement technologies take place and policies expand around the globe.”
Mar 17, 2021
U.S. ethanol production was up nearly 4 percent the week ending March 12, according to data released by the U.S. Energy Information Administration on March 17. Fuel ethanol stocks were down more than 3 percent.
Ethanol production for the week ending March 12 averaged 971,000 barrels per day, up 33,000 barrels per day when compared to the 938,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production was down 64,000 barrels per day.
Weekly ending stocks of fuel ethanol fell to 21.34 million barrels the week ending March 12, down 730,000 barrels when compared to the 22.070 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending March 12 were down 3.258 million barrels.
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Mar 16, 2021
Using Market Access Program funds, the U.S. Grains Council sponsored a joint Vietnamese ministry and U.S. industry ethanol conference in Ho Chi Minh City in the fall of 2018 to share information on the country’s new E5 ethanol–gasoline blend mandate policy, the advantages of increased ethanol usage and ethanol marketing to consumers.
More than 200 representatives participated, including officials from the Vietnamese government’s ministries of finance and industry and trade, petroleum trading and petroleum distributors, private sector enterprises, the U.S. government, and the press.
The conference was a direct follow-up activity from the Ethanol Summit of the Asia–Pacific, held in May 2018, and in preparation for a post-tour to Nebraska associated with the Global Ethanol Summit, held in October 2019.
Vietnam is the fastest-growing economy in Southeast Asia thanks to the increasing population, urbanization and rapid economic growth. Total gasoline consumption in the country is expected to grow by nearly 15 percent by 2022. Vietnam started offering E5 on Jan. 1, 2019, with a goal to move to E10 by 2020. By that time, Vietnam could represent a 225-million-gallon ethanol market at an E10 blend rate, equivalent to roughly 80 million bushels of corn.
The Council’s work – in partnership with domestic ethanol industry partners – is already starting to pay off in sales as the Vietnamese fuel industry expands. After importing no U.S. ethanol for the last four marketing years, Vietnam has imported more than 3.5 million gallons of U.S. ethanol in the 2018/2019 marketing year, valued at $4.9 million.
The Council invested $130,000 of MAP funds to promote U.S. ethanol exports to Vietnam, resulting in a return on investment (ROI) of $37 for every $1 of MAP funding invested.
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Mar 15, 2021
WASHINGTON, D.C. - Today, U.S. Senator Tina Smith (D-Minn.) announced that she has been named Chair of the Rural Development and Energy Subcommittee, which is tasked with overseeing many U.S. Department of Agriculture (USDA) Rural Development programs, including the Rural Housing Service, and programs relating to facilities, utilities, loans, and renewable energy.
In addition to her role as Chair, Sen. Smith will also serve on the Livestock, Dairy, Poultry, Local Food Systems, and Food Safety and Security Subcommittee, and the Commodities, Risk Management, and Trade Subcommittee, as part of her role on the Senate Agriculture Committee.
"By traveling to rural and Tribal areas across Minnesota, I know that in order for these communities to create jobs and strengthen rural communities, we need to support infrastructure," said Sen. Smith. "As Chair of the Rural Development and Energy Subcommittee, I will keep working to strengthen clean energy and clean energy jobs, access to affordable electricity and water systems, and advocate for funding that supports rural businesses and rural affordable housing, boosts local development, and promotes trade that benefits rural areas. I'm also looking forward to the work my colleagues and I will do on the Livestock, Dairy, Poultry, Local Food Systems, and Food and Safety Subcommittee, and the Commodities, Risk Management, and Trade Subcommittee, so that we can support farmers and producers nationwide."
When she first joined the Senate in 2018, Sen. Smith fought for and secured a spot on the Senate Agriculture Committee because ag is the backbone of Minnesota's economy. All Minnesotans are impacted by the Farm Bill, and Sen. Smith heard from Minnesotans with backgrounds in farming, rural development, rural health, and nutrition to make sure that all voices were reflected in the final 5-year bill that passed in 2018 after she joined the Ag Committee. That legislation included many provisions that Sen. Smith authored and championed, including improvement to the dairy safety-net program, the legislative roadmap for the energy title, and improvement to USDA conservation programs. It also included many provisions that benefit Minnesota's native communities and new American communities, like permanent funding for beginning and traditionally under-served farmer outreach programs.
Sen. Smith has heard from farmers about the high cost of health care, including access to health care providers and access to mental health care resources, which is why Sen. Smith championed the creation of the rural health liaison at the USDA as well as funding for local mental health resources and to expand access to stress reduction and suicide prevention programs.
She also believes it's important to invest more in Greater Minnesota, and with her leadership post on the Rural Development and Energy Subcommittee, she will keep working to expand access to broadband and better infrastructure. Thousands of Minnesotans are employed in the ethanol and biodiesel industry, selling corn and soybeans to biofuel facilities and boosting the incomes of farmers around the state. Biofuels are good for energy security, for our environment, and for our economy, which is why Sen. Smith will keep advocating for a strong Renewable Fuel Standards (RFS) program. More broadly, rural areas have a huge opportunity to benefit economically and in terms of good jobs from the clean energy transition, including wind, solar, and other energy sources.
Read the original press release here.
Mar 10, 2021
U.S. ethanol production expanded nearly 11 percent the week ending March 5, according to data released by the U.S. Energy Information Administration on March 10. Fuel ethanol stocks were down nearly 2 percent.
Ethanol production for the week ending March 5 averaged 938,000 barrels per day, up 89,000 barrels per day when compared to the 849,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production was down 106,000 barrels per day.
Weekly ending stocks of fuel ethanol fell to 22.07 million barrels the week ending March 5, down 355,000 barrels when compared to the 22.425 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending March 5 were down 2.264 million barrels.
Read the original story here.
Mar 11, 2021
Minneapolis, MN — A coalition representing automakers, biofuel producers, electric vehicle (EV) sector and conservation advocates is endorsing new bipartisan and bicameral legislation that would implement a clean fuels standard statewide in Minnesota.
The 26-member Minnesota Future Fuels Coalition is throwing its support behind the Future Fuels Act, which would direct the Commissioner of the Minnesota Department of Commerce with developing a rule to implement a clean fuels standard at the state level to achieve a 20 percent reduction in carbon intensity for all transportation fuel supplied in the state by the end of 2035.
The lead authors are Minnesota House of Representatives Assistant Majority Leader Todd Lippert (DFL) and Senate Energy and Utilities Finance and Policy Committee Chairman David Senjem (R). The bill will be discussed at a hearing today in the Minnesota House Energy and Climate Finance and Policy Committee.
The Minnesota Future Fuels Coalition, which is facilitated by the Great Plains Institute, has outlined a set of principles and benefits? underlying the Future Fuels Act and other efforts in the state to reduce greenhouse gas emissions from transportation fuels.
“Minnesota is behind schedule in achieving bipartisan transportation greenhouse gas reduction and clean fuel adoption goals and we believe that a clean fuels policy, such as the proposed Future Fuels Act, can help get the state back on track,” said ?Brendan Jordan, vice president for transportation and fuels at the Great Plains Institute?.
While clean fuels policies are in place in several jurisdictions already and statewide legislation is pending this year in New York, New Mexico, and Washington state, this is the first legislative effort to try to implement a statewide clean fuels standard in the Midwest. It is also notable for involving a diverse coalition intent on paving a new path for an all-of-the-above strategy to decarbonize transportation fuels.
The Future Fuels Act requires reductions in transportation greenhouse gas emissions but is technology and fuel neutral? and rewards a fuel’s greenhouse gas reduction based on actual performance. ?It would establish a process for evaluating the lifecycle greenhouse gas emissions from any transportation fuel and allow transportation fuel providers to compete in offering lower carbon fuels at lower cost.
Clean fuels are defined as any that have a lower carbon intensity than what is required in the standard, which can include electricity for transportation fuel, ethanol, biodiesel, renewable diesel, propane, renewable propane, renewable natural gas, hydrogen, sustainable aviation and others.
The Future Fuels Act establishes criteria for the Commissioner to follow in developing the rule, including broad economic development; reliance on domestically-produced fuels; equitable transportation electrification powered primarily with low-carbon and carbon-free power; air quality and public health; state solid waste recycling goals by facilitating credit generation from renewable natural gas produced from organic waste; voluntary efforts led by farmers to improve soil health and water quality in growing low-carbon clean fuel feedstocks; and protecting natural lands and expanding biodiversity.
“The Future Fuels Act is smart legislation that would reduce emissions from transportation fuels in Minnesota, support low-carbon biofuels and renewable electricity, and pave the way for a cleaner transportation future,” said ?Jeremy Martin, senior scientist and director of fuels policy at the Union of Concerned Scientists?. “By creating the first clean fuels standard in the region, the Future Fuels Act would deliver real benefits to Minnesota residents and provide a model to states around the country.”
"The Future Fuels Act helps to transition Minnesota towards a clean transportation future by providing a regulatory scheme aimed at reducing the carbon intensity of transportation fuels like gasoline and diesel," said ?Joel Levin, executive director of Plug In America?. "This policy helps to highlight the cleaner transportation options available to consumers, like electric vehicles."
"This coalition and legislation is a much-needed complement to the Governor’s Council on Biofuels and other efforts to ensure Minnesota as one of the nation's leaders in encouraging domestically-produced renewable ethanol and other clean transportation fuels that benefit our consumers, farmers and environment," ?Minnesota Bio-Fuels Association Executive Director Tim Rudnicki? said.
“At GM we recently announced a $27 billion investment in our EV programs, laying the foundation for our aspiration to eliminate tailpipe emissions from our light-duty vehicles by 2035. However, realizing this vision will require investments and commitments from all stakeholders, including a comprehensive public policy framework that helps build the EV market,” said Thomas Van Heeke, policy lead for mobility and climate change at General Motors?. “The Future Fuels Act can be a key part of that framework, creating new funding for EV purchase incentives while spurring investment in EV charging and fleet electrification. It has the potential to be a win-win for the environment and the economy and a model for others to follow.”
The Alliance for Automotive Innovation, which includes General Motors and other global-leading automakers and their suppliers, is also supporting the measure.
Other members of the Minnesota Future Fuels Coalition supporting the Future Fuels Act include the American Coalition for Ethanol, Amp Americas, Audi of America, BioMass Solution, Center for Energy and Environment, ChargePoint, Christianson & Associates CPA, Coalition for Renewable Natural Gas, Conservation Minnesota, Farmers Business Network, Fresh Energy, Low Carbon Fuels Coalition, Partnership on Waste and Energy, Renewable Fuels Association, Rivian, Sustainable Farming Corporation, Tesla, The Nature Conservancy, Universal Renewable Products, LLC and Xcel Energy.
About the Minnesota Future Fuels Coalition: ?The Minnesota Future Fuels Coalition, facilitated by the Great Plains Institute, is a broad coalition of stakeholders working together to implement the Minnesota Future Fuels Act, which is a clean fuels policy tailored to Minnesota. Coalition members include producers and marketers, electric utilities, environmental nonprofits, auto manufacturers, and agriculture and industry groups.
About Great Plains Institute (GPI):? As a nonpartisan, nonprofit organization, the Great Plains Institute works with diverse interests to transform the energy system to benefit the economy and environment. We combine our unique consensus-building approach, expert knowledge, research and analysis, and local action to work on solutions that strengthen communities and provide greater economic opportunity through the creation of higher-paying jobs, expansion of the nation’s industrial base, and greater domestic energy independence while eliminating carbon emissions.
Learn more at ?www.betterenergy.org?.
Read the original press release here.
Mar 9, 2021
The USDA maintained its forecast for 2020-’21 corn use in ethanol in its latest World Agricultural Supply and Demand Estimates report, released March 9. The outlook for 2020-’21 corn supply, use and price were also unchanged.
The forecast for 2020-’21 corn planted area was unchanged at 90.8 million acres, up from 89.7 million acres in 2019-’20. Area harvested is expected at 82.5 million acres. Yield per harvested acre is expected at 172 bushels, up from 167.5 bushels in 2019-’20.
Corn production for 2020-’21 is expected at 14.182 billion bushels. An estimated 4.95 billion bushels of corn is expected to go to ethanol production in 2020-’21, up from 4.857 billion bushels in 2019-’20, but down from 5.378 billion bushels in 2018-’19.
The projected season-average farm price for corn is unchanged at $4.30 per bushel.
Foreign corn production is forecast higher with increases for India, South Africa, and Bangladesh that are partly offset by a decline for Mexico. India corn production is higher with increases to both area and yield. South Africa corn production is raised reflecting more favorable yield prospects.
Corn exports are raised for India, Vietnam, and South Africa. Imports are increased for Vietnam, Bangladesh, and the Philippines.
Foreign corn ending stocks for 2020-‘21 are higher, mostly reflecting increases for India, Vietnam, and Paraguay that are partly offset by reductions for Argentina and Mexico. Global corn ending stocks, at 287.7 million tons, are up 1.1 million from last month.
Read the original story here.
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Mar 8, 2021
A bipartisan group of 10 senators on March 8 sent a letter to Agriculture Secretary Tom Vilsack urging him to provide targeted COVID-19 relief to U.S. biofuel producers through the USDA’s Commodity Credit Corp.
“We have been advocating for targeted relief for the biofuels industry since last spring when we were first made aware of the demand collapse for ethanol and other renewable fuels due to the COVID-19 pandemic,” the senators wrote. “As you know, additional funding was added to the Commodity Credit Corporation (CCC) by the Coronavirus Aid, Relief, and Economic Stabilization (CARES) Act. However, the previous administration argued that congressional intent was not clear with regard to support for biofuels and did not use its discretionary authority to assist biofuels producers through available CCC funding.
“As a result, we worked to ensure specific language was included in December’s COVID relief bill that explicitly clarifies that USDA may provide direct payments to biofuels producers hard hit by the pandemic,” they continued. “Providing aid to the ethanol industry would provide much-needed financial assistance for these key agriculture processors and help keep these critical markets open to farmers. It is for these reasons that we are supportive of the proposals the biofuels industry and key agricultural organizations have put forward to stabilize the market from last year’s macroeconomic shock.
“As the Department prepares a proposal for providing assistance to the agriculture industry using CCC and other resources, we ask that you use this explicit authority to aid the nation’s biofuels industry,” the senators added. “Keeping biofuels plants open is vital to the states we represent. We have been encouraged by your recent statements at your confirmation hearing that you will fully utilize USDA resources to get biofuel producers back on track and will aid the Biden Administration in restoring the integrity of the Renewable Fuel Standard.”
The letter is signed by Sens. Chuck Grassley, R-Iowa; Amy Klobuchar, D-Minn.; Joni Ernst, R-Iowa; Richard Durbin, D-Ill.; John Thune, R-S.D.; Tina Smith, D-Minn.; Deb Fischer, R-Neb.; Roger Marshall, R-Kan.; Michael Rounds, R-S.D.; and Mike Braun, R-Ind.
Growth Energy has issued a statement in support of the letter. “We’re grateful to our Senate biofuels champions for their bipartisan effort in asking USDA to use CCC’s COVID funding for biofuels relief assistance,” said Emily Skor, CEO of Growth Energy. Biofuel producers, farmers, and others throughout the biofuels supply chain have been hit hard financially over the course of the pandemic and securing much-needed financial assistance would bring relief and certainty as they look ahead to a brighter year and build back what was lost.
“Secretary Vilsack understands the critical role the biofuels industry plays in supplying critical co-products, providing cleaner fuel choices to American drivers, and supporting the rural economy,” Skor continued. “We look forward to working with him on a solution.”
A full copy of the letter can be downloaded from Grassley’s website.
Read the original story here.
Mar 3, 2021
U.S. ethanol production rebounded significantly the week ending Feb. 26, reaching 849,000 barrels per day following a substantial downturn the previous week related to disruptions caused by February’s polar vortex. Ethanol stocks fell by nearly 2 percent the week ending Feb. 26, according to data released by the U.S. Energy Information Administration on March 3.
Ethanol production for the week ending Feb. 26 was up approximately 29 percent, or 191,000 barrels per day, when compared to the 658,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production was down 230,000 barrels per day.
Weekly ending stocks of fuel ethanol fell to 22.425 million barrels the week ending Feb. 26, down 360,000 barrels per day when compared to the 22.785 million barrels of stocks reported for the previous week. When compared to the same week of last year, ethanol stocks for the week ending Feb. 26 were down 2.539 million barrels.
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Feb 28, 2021
WASHINGTON — COVID-related lockdowns and travel restrictions caused a sharp drop in ethanol demand, forcing partial or full shutdowns of two-thirds of U.S. ethanol plants in 2020.
However, there was a silver lining as numerous plants were able to transition production to aid in the fight against the invisible enemy.
Geoff Cooper, Renewable Fuels Association president and CEO, reflected on the unique challenges of 2020 and looked ahead to an optimistic future in his state-of-the-industry address to kickoff the National Ethanol Conference.
“As COVID cases began to surge across the country, ethanol facilities quickly ramped up production of the high-purity alcohol needed for virus-killing sanitizers and disinfectants,” Cooper said.
“Many producers took the extra step of bottling and packaging hand sanitizer on site, and companies throughout the industry generously donated sanitizer and other cleansers to local healthcare workers and first responders.”
“When America’s ethanol industry stops running, so does America.” - Geoff Cooper, Renewable Fuels Association president and CEO
According to a study conducted for RFA by Information Resources Inc., consumer demand for hand sanitizer skyrocketed by 1,300% between January and May of 2020.
“And the ethanol industry was there to meet that new demand. We may never know how many lives were protected or saved because of these actions, but we do know that, according to the Centers for Disease Control, using hand sanitizer is one of the most important steps you can take to avoid getting sick and spreading germs to those around you,” Cooper said.
As several COVID vaccines proved highly effective in clinical trials and they would soon be approved for nationwide distribution, there was a catch, but the ethanol industry stepped up once again.
“The most effective vaccines needed to be stored and shipped at a temperature of minus 94 degrees Fahrenheit. As the largest provider of captured biogenic carbon dioxide and dry ice in the United States, ethanol producers supplied the millions of pounds of dry ice needed to keep tens of millions of doses of life-saving vaccine at the proper temperature,” Cooper said.
Lower Production
Gasoline consumption in 2020 dropped 14% compared to 2019 due to the pandemic-related lockdowns and travel restrictions. With more than half of the industry’s capacity idled at one point last year, the 13.8 billion gallons of ethanol produced in 2020 represented the lowest annual output volume since 2013.
“But ethanol still comprised nearly 10.2% of the U.S. gasoline pool, the number of retail outlets selling E15 and flex fuels like E85 continued to grow and the ethanol export total of 1.33 billion gallons was the fourth-highest ever,” Cooper continued.
“Meanwhile, the ethanol industry remained as one of the world’s top manufacturers of high-protein animal feed, producing 33 million metric tons of distillers’ grains and other feed co-products. And even though distillers’ grains production was down 13% compared to 2019, our DDG exports actually increased slightly in 2020.
“When two-thirds of U.S. ethanol plants were partially or fully idled last spring, there was a palpable sense of panic coming from the industry’s customers around the world. After all, they count on our industry to deliver the essential building blocks and ingredients that become fuel, feed, food, beverages and countless other bio-products.
“So, while 2020 was an incredibly difficult year for the ethanol industry, it definitely taught us one thing: When America’s ethanol industry stops running, so does America. Ethanol truly is essential energy.”
New Beginning
Just as the U.S. ethanol industry played a critical role in addressing the COVID crisis, American ethanol will serve as an essential solution to the emerging challenges facing the nation and the world.
“At the top of the list of those challenges is the urgent need to reduce greenhouse gas emissions from all sectors of the global economy. In recent years, momentum has been building—and outcry has been growing — for public policies that can aggressively shrink the carbon footprint of our nation and our world. And following last November’s elections, addressing climate change and reducing carbon emissions will most assuredly be an immediate priority for Washington,” Cooper noted.
“Our new president, Joe Biden, has already issued executive orders focused on reducing U.S. carbon emissions, he’s taken the first steps to re-enter the Paris climate agreement and he has promised to put the U.S. on a path to achieve net-zero emissions economy-wide by 2050. President Biden’s pledge comes after committees in both the U.S. House and Senate last year also called for taking action to reach carbon neutrality by 2050.
“The U.S. economy cannot achieve net-zero emissions in the next three decades without addressing transportation fuels. The combustion of fossil fuels of transportation is the single largest source of greenhouse gas emissions in the country, contributing nearly 30% of the total.”
Cooper said ethanol can and should play a central role in the effort to achieve net-zero greenhouse gas emissions by 2050. The carbon footprint of typical corn ethanol is already 50% better than gasoline, he said, with greater reductions on the way.
“Mark my words, zero-carbon corn ethanol is coming,” Cooper said.
But, he added, smart policy and regulation will be necessary to ensure ethanol reaches its full potential to decarbonize transportation fuels. That includes restoring integrity to the Renewable Fuel Standard, which according to a new study has already reduced greenhouse gas emissions by nearly one billion metric tons.
Cooper also called on the Biden administration to remove burdensome roadblocks that are keeping E15 from spreading more rapidly, embrace a national standard for low-carbon and high-octane fuels and encourage the production of more flex-fuel vehicles, as President Biden himself once called for, when serving as the ranking member of the Senate Foreign Relations Committee.
Read the original story here.
Environmental Protection Agency
Feb 22, 2021
On February 22, 2021 EPA announced that, after careful consideration of the 2020 decision of the U.S. Court of Appeals for the Tenth Circuit in Renewable Fuels Association et al. v. EPA, 948 F.3d 1206 (“Decision”), EPA supports that court’s interpretation of the renewable fuel standard (RFS) small-refinery provisions. This conclusion, prompted by a detailed review following the Supreme Court’s grant of certiorari in the case, represents a change from EPA’s position before the Tenth Circuit. The change reflects the Agency’s considered assessment that the Tenth Circuit’s reasoning better reflects the statutory text and structure, as well as Congress’s intent in establishing the RFS program.
RFS Program Background
Congress created the RFS program to reduce greenhouse gas emissions and expand the nation’s renewable fuels sector while reducing reliance on imported oil. This program was authorized under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007. In enacting the RFS program, Congress recognized the need to allow small refineries (those with aggregate crude oil throughput less than or equal to 75,000 barrels per day) to transition into the program. Small refineries were exempted from the RFS program in its earliest years, 2006-2010, after which a small refinery could petition EPA for and receive an extension of its exemption if it could demonstrate the refinery would suffer “disproportionate economic hardship” as a result of complying with its RFS obligations. See CAA section 211(o)(9).
Surge in Small-Refinery Petitions Granted in Past Four Years
In calendar year 2017 (largely for the 2016 RFS compliance year), EPA began granting a large number of petitions for extensions of Small Refinery Exemptions (SREs). By 2018, the number of SREs issued for the 2017 compliance year was more than quadruple the number issued for the 2015 compliance year. For example, for the 2015 compliance year, only 290 million renewable identification numbers (RINs) were not retired due to SRE petitions granted, yet for the 2017 compliance year, that number grew to 1.82 billion non-retired RINs. The large increase in SRE petitions granted and associated unretired RINs represents a significant decline in the required use of renewable fuel volumes, which in turn decreased the incentives for the production and use of renewable fuels.
Tenth Circuit’s Decision
In January 2020, the Tenth Circuit vacated and remanded three EPA decisions granting SRE petitions for the 2016 and 2017 RFS compliance years which were issued in calendar years 2017 and 2018, holding that a small refinery’s petition can be granted only if the refinery satisfies two conditions:
- Demonstrate an existing exemption: Emphasizing the dictionary definitions of the word “extension” as “an increase,” the court held that EPA could not extend or increase a small refinery’s exemption unless the exemption was “in existence.” In the court’s view, “a small refinery which did not seek or receive an extension in prior years is ineligible for an extension, because at that point there is nothing to prolong, enlarge, or add to.” The court also described CAA section 211(o)(9)(b)(i) as “funnel[ing] small refineries towards compliance over time.
- Demonstrate disproportionate economic hardship caused by RFS compliance: The court held that any alleged hardship justifying the grant of an SRE petition must be “caused by” RFS compliance. The court also held that EPA had acted arbitrarily and capriciously by deviating, without acknowledgment or a stated reason, from its prior position that refineries generally do not incur disproportionate economic hardship from purchasing RINs on the open market because the refineries “pass through most or all of their RIN purchase costs” to their customers.
Supreme Court Case and EPA’s Position
On January 8, 2021, the U.S. Supreme Court granted the small refineries’ petition for a writ of certiorari asking the Court to review the Tenth Circuit’s holding regarding the SRE eligibility of small refineries that lack an existing exemption. HollyFrontier Cheyenne Refining, LLC, et al. v. Renewable Fuels Assn., et al., United States Supreme Court, Case No. 20-472.
After further, careful review of the RFA Decision following the change of Administration, EPA has reevaluated the statutory text and now agrees with the Tenth Circuit’s reading of CAA section 211(o)(9)(B)(i) that an exemption must exist for EPA to be able to “extend” it. EPA agrees with the court that the exemption was intended to operate as a temporary measure and, consistent with that Congressional purpose, the plain meaning of the word “extension” refers to continuing the status of an exemption that is already in existence.
Feb 19, 2021
WASHINGTON, DC — Today, U.S. Representatives Angie Craig (D-MN) and Dusty Johnson (R-SD) led Co-Chairs of the Congressional Biofuels Caucus in introducing bipartisan legislation to ensure transparency and predictability to the Environmental Protection Agency’s small refinery exemption (SRE) process. The Renewable Fuel Standard Integrity Act would require small refineries to submit a petition for a Renewable Fuel Standard (RFS) hardship exemption by June 1st of each year, allowing EPA to properly account for exempted gallons in the annual Renewable Volume Obligations set each November. The bill would also increase transparency by mandating the public disclosure of data surrounding SREs – a process that has previously been carried out behind closed doors with little to no congressional oversight.
Craig and Johnson were joined in introducing the RFS Integrity Act by Representatives Cindy Axne (D-IA), Rodney Davis (R-IL), Mark Pocan (D-WI) and Adrian Smith (R-NE). Rep. Craig's recent appointment to the House Committee on Energy and Commerce will allow her to play a key role in fighting for its passage and enactment in the 117th Congress. Her role on this Committee positions her to champion biofuels as Congress considers climate change and clean energy packages in the coming months.
“For the past several years, the Environmental Protection Agency has skirted Congressional oversight and prioritized the interests of Big Oil over family farmers in Minnesota, leaving ethanol producers at a distinct disadvantage,” said Representative Angie Craig. “This senseless, shortsighted policy has greatly impacted rural communities who depend on the Renewable Fuel Standard to help support their local economies – at a time when these communities are especially vulnerable due to the COVID-19 pandemic and economic crisis. Fortunately, our bipartisan bill would reverse that trend by helping to ensure that transparency, predictability and accountability are prioritized in the EPA’s waiver process moving forward – and that rural communities receive the support they deserve from the federal government in the years to come.”
“No matter the administration, Congress should not sit on the sidelines while the intent of the Renewable Fuel Standard is being abused and manipulated,” said Representative Dusty Johnson. “The RFS Integrity Act adds accountability and transparency to the EPA Small Refinery Exemption process – something we should all agree upon. With each approved waiver, rural communities continue to suffer. This bill will ensure that volume obligations are met whether it's a Republican or Democrat in the White House.”
“For the last four years, the EPA has abused its authority and given out dozens of small refinery waivers at the expense of farmers across the Midwest. These illegal waivers resulted in over 4 billion gallons of biofuels being removed from the market, reducing demand and creating uncertainty for producers,” said Representative Cindy Axne. “While I’m hopeful our new administration will uphold the RFS, new legislation is clearly needed to permanently increase transparency and accountability at the EPA. I’m proud to help introduce the RFS Integrity Act to ensure the EPA is always upholding the law.”
“In recent years, the Renewable Fuel Standard has been weakened by Small Refinery Exemptions to the detriment of farmers and biofuels producers across America,” said Representative Rodney Davis. “Particularly in this struggling economy, where our biofuels producers continue to lack access to assistance, we should strengthen the RFS and ensure regulators adhere to it. That’s why I’m proud to introduce the RFS Integrity Act alongside my fellow House Biofuels Caucus co-chairs. Our legislation will help bolster the RFS through increased transparency to support our farmers and biofuels producers.”
“I am proud to join my colleagues as an original sponsor of the RFS Integrity Act. For too long, big oil corporations have taken advantage of federal law at the expense of farmers and agricultural communities,” said Representative Mark Pocan. “This commonsense legislation will provide needed transparency and certainty for Wisconsin farmers at a time when they need it the most.”
“Now, more than ever, transparency in fuel markets is vital for our farmers and biofuels producers,” said Representative Adrian Smith. “The Renewable Fuel Standard Integrity Act will ensure all parties can make production decisions knowing they can rely on EPA to fairly and evenly enforce the RFS.”
By law, the RFS requires that the EPA make adjustments when determining future biofuels targets to account for waivers to ensure that the overall biofuels targets are not reduced by waivers. However, in recent years, the agency has not accounted for these waivers, which has undercut the demand for biofuels. And under the Trump Administration, the EPA greatly expanded the number of small refinery hardship biofuel waivers that were issued, including exemptions to Exxon Mobil and Chevron. By issuing 85 waivers under former Administrator Scott Pruitt, the EPA saved the oil industry hundreds of millions of dollars while threatening rural economies and harming the biofuels industry at large.
The bipartisan bill is supported by the National Corn Growers, Growth Energy, Fuels America, the Renewable Fuels Association, the National Biodiesel Board, the American Soybean Association, POET, the American Farm Bureau Federation, the National Farmers Union and other groups dedicated to protecting and strengthening the Renewable Fuel Standard.
Below are statements in support of the Members’ bipartisan legislation:
“We applaud the introduction of the RFS Integrity Act and the strong bipartisan effort to restore integrity and transparency to the Renewable Fuel Standard,” said Growth Energy CEO Emily Skor. “The intent of the RFS is to blend more biofuels into our nation’s transportation fuel supply every year, not have oil companies use questionable tactics to delay and avoid their blending obligations, creating a tremendous amount of uncertainty for farmers, biofuels producers, and the entire fuel supply chain. Recent research has found that greenhouse gas emissions from corn ethanol are 46 percent lower than gasoline. As science on biofuels continues to update and highlight the increasing environmental benefits of ethanol over gasoline, it’s critical we restore the RFS to its original intent and harness the power of biofuels to immediately address climate change concerns and decarbonize our transportation fleet. We are grateful to Rep. Craig and Rep. Johnson for their continued leadership on this issue.”
“Given the accomplishments of the RFS program to date, EPA’s previous excessive and unreasonable use of the small refinery waiver dampened the prospects for reduced emissions and increased energy security,” said Zippy Duvall, President of the American Farm Bureau Federation. “The Renewable Fuel Standard Integrity Act ensures transparency through a fair and timely EPA waiver process going forward.”
“We are grateful to Reps. Angie Craig and Dusty Johnson for leading this effort to rein in EPA’s abuse of the small refinery exemption program. This bipartisan bill will prevent oil refiners from gaming the system and undercutting the Renewable Fuel Standard, something they have been doing a great deal of the past four years,” said Geoff Cooper, President and CEO of the Renewable Fuels Association. “Our hope is that this legislation and the new Administration will restore the integrity of the RFS and the law will be applied as it was intended. We applaud Reps. Craig and Johnson for working together to restore both transparency and integrity to the RFS.”
“The EPA’s abuse of small refinery waivers not only undermined the Renewable Fuel Standard but significantly impacted corn demand. NCGA appreciates Representatives Craig and Johnson and members of the Congressional Biofuels Caucus introducing the RFS Integrity Act,” said John Linder, President of the National Corn Growers Association. “Bringing transparency to the waiver process and establishing clear deadlines for refineries to apply for waivers will allow the EPA to avoid retroactive waivers and ensure the RFS is properly administered.”
“The RFS has positively linked soybean production to energy markets, allowing farmers to contribute to a cleaner fuel system and climate-friendly solutions. We have embraced this opportunity, so it is disheartening when small refinery exemption waivers are granted without transparency. It creates uncertainty in biodiesel markets and harms soybean farmers aiming to help,” said Kevin Scott, President of the American Soybean Association. “A strong RFS adds value to soybeans while also creating jobs, diversifying our fuel supply, and reducing our greenhouse gas emissions. We applaud Representatives Craig and Johnson on introducing the RFS Integrity Act, which will add much-needed transparency to the small refinery exemption waiver process at the EPA.”
“The Renewable Fuel Standard plays an important role in building new markets for farmers and creating good rural jobs. But in recent years, this crucial program has been undermined by refineries’ abuse of exemptions,” said Rob Larew, President of the National Farmers Union. “By fostering greater transparency in the way these exemptions are granted, the RFS Integrity Act would help prevent this abuse, thereby ensuring more stability in the program for farmers and biofuels producers. National Farmers Union warmly welcomes this beneficial piece of legislation and thanks Reps. Craig and Johnson for introducing it.”
“This is a commonsense step to ensure that RFS biomass-based diesel volumes are fully met each year and to prevent the demand destruction for biodiesel that we’ve seen since 2017,” said Kurt Kovarik, Vice president of Federal Affairs at the National Biodiesel Board. “Biodiesel producers are grateful to Representative Angie Craig and Representative Dusty Johnson for their leadership on this issue and strongly support Congress’ desire to restore integrity to the RFS program.”
“Representative Craig and Johnson’s bill is a fundamental step to ensure biofuel-blending volumes are fully met and will provide much-needed clarity for rural America,” said Joshua Shields, Senior Vice President of Government Affairs and Communications for POET. “Bioethanol producers and farmers deserve transparency in the exemption process and have a right to know the number of gallons of biofuel lost as a result of the waivers and to which companies they are granted.”
“ACE thanks Representatives Johnson and Craig for leading the reintroduction of this bipartisan legislation to ensure the statutory volumes of the Renewable Fuel Standard are enforced by restoring transparency and integrity to EPA’s handling of small refinery exemptions,” said Brian Jennings, CEO of the American Coalition for Ethanol. “This legislation is necessary because under President Trump, EPA brazenly granted nearly 90 waivers for small refineries, erasing over 4 billion gallons from the RFS volumes established by Congress. As of today, 66 additional refinery waivers are pending.”
Read the original press release here.
Feb 17, 2021
Pozna?, Poland - Whitefox Technologies is pleased to announce that BGW Sp. z o. o. is to install its Whitefox ICE® membrane dehydration system at BGW’s 108 million litres per year plant in R?bczyn. The project involves installing a Whitefox system designed to produce up to 400,000 litres per day of anhydrous ethanol. The project is in construction and is due to start up towards the end of 2021.
Bartosz Walkowiak, BGW President and CEO, said in a statement, “BGW is continuously looking to expand high quality production of bioethanol, for industrial and biofuels uses to meet the growing demand for our products. At the same time, we target ongoing operational efficiencies to meet CO2 targets and reduce costs. Since we first purchased the distillery in R?bczyn in 2002 we have undertaken several modernisation initiatives to create a state-of-the-art plant. Whitefox’s membrane solution will help us take a further leap towards our overall goal to produce the most energy efficient ethanol in Poland”.
Gillian Harrison, Whitefox CEO said: “We started to work on this solution with Bartosz and his team over a year ago and together we developed an advanced solution to help BGW set a new standard in ethanol production. It will also be the first Whitefox ICE® solution to directly dehydrate ethanol from 50% to 99.9% in the main production stream. At Whitefox we are focused on using our membrane separation technology to help industry address the challenges of meeting Europe’s NetZero targets.”
Whitefox ICE® is a membrane-based technology solution that dehydrates water-rich recycle streams to produce high-purity ethanol. Its technology is already operating in 8 US ethanol facilities, eliminating recycle streams from molecular sieves to improve energy consumption, carbon emissions and operational costs. The membrane solution developed for BGW takes the technology one step further by being the sole dehydration technology in the stream, rather than sitting alongside molecular sieves and thereby providing a step-change improvement in overall plant efficiency.
About BGW Sp. z. o. o.
BGW Sp. z o. o. was established in 1990, the company initially based its activities on trading liquid fuels and engine oils. The Company has firmly established itself as a leader in the market for the production of animal feed from ethanol co-products from corn based DDGS and corn oil. Over the years, through constant investments, it has expanded its activity to other industries and now the main direction of the company's activities is the production of ethanol at the Production Plant in R?bczyn.
About Whitefox Technologies Limited
Established in 2000, Whitefox specialises in technology development and process integration based on its proprietary membrane solutions. Whitefox’s Integrated Cartridge Efficiency solution (Whitefox ICE®) is a membrane-based dehydration solution with a small footprint. Its efficient designs help reduce operation and maintenance costs by simplifying production, reducing GHG emissions by reducing energy consumption and improving the water balance in ethanol and organic chemical manufacturing processes. Whitefox provides solutions for fuel ethanol, other biofuels, and industrial alcohol production in the U.S., Canada, Europe, and South America.
Read the original press release here.
Feb 17, 2021
The Renewable Fuels Association released its 2021 Ethanol Industry Outlook and Pocket Guide today during the 26th annual National Ethanol Conference. The annual publications and conference all share a common theme: Essential Energy. A related video also debuted at the event.
“As you review the 2021 Ethanol Industry Outlook, I hope you do so with the same sense of pride I have for our response to the unparalleled challenges of the past year,” RFA President and CEO Geoff Cooper writes in the introduction. “But more importantly, I hope you recognize that as we move forward, it is with the understanding that tomorrow’s challenges of climate change, food and energy security, and rural prosperity will continue to make ethanol an Essential Energy.”
Now in its 22nd year, the annual Outlook publication provides policymakers, regulators, consumers, the media, and renewable fuel advocates with key statistics, trends, insight, and analysis on the latest developments in the U.S. renewable fuels industry, as well as commentary on what to expect in 2021. The publication, which is recognized worldwide as the go-to source for ethanol industry facts, also features a detailed listing of every fuel ethanol plant in the country, along with production capacity. The Pocket Guide to Ethanol contains much of the same information as the Outlook, but in an abbreviated format and smaller size for ease of use.
Read the original press release here.
Feb 16, 2021
Even after experiencing a sudden drop in demand due to the COVID pandemic, the U.S. ethanol industry still had a significantly positive impact on the U.S. economy in 2020, according to the annual ethanol industry economic impact study released today by the Renewable Fuels Association.
The economic analysis was prepared for the RFA by John M. Urbanchuk, Managing Partner of ABF Economics.
“Despite the disruptive effects of the COVID pandemic, economic and regulatory challenges in 2020, the ethanol industry continued to make a significant contribution to the economy in terms of job creation, generation of tax revenue, and displacement of crude oil and petroleum products,” Urbanchuk writes. “The importance of the ethanol industry to agriculture and rural economies is particularly notable.”
In 2020, more than 62,000 U.S. jobs were directly associated with the ethanol industry, which supported an additional 242,600 indirect and induced jobs across all sectors of the economy. The industry created $18.6 billion in household income and contributed $34.7 billion to the national gross domestic product. This was 19 percent below 2019’s GDP contribution, primarily as the result of lower output and lower prices.
“Even though the pandemic created enormous headwinds for our industry in 2020, the resilience of the men and women who work in the U.S. renewable fuels sector shined through,” said RFA President and CEO Geoff Cooper. “The ethanol industry certainly was not spared from the devastation that beset the entire U.S. economy in 2020, but the nation’s 200-plus ethanol biorefineries continued to provide good-paying jobs in scores of rural communities. And those essential workers did more than produce renewable fuel and livestock feed in 2020—they also made virus-killing sanitizers and the dry ice used to ship millions of doses of life-saving vaccines.”
Read the original press release here.