In the News
Jul 19, 2021
As we emerge from the pandemic and the economy begins to rebound, I’m focused on ensuring the industries that provide Nebraska jobs can continue to grow and thrive.
The ethanol industry is one of those. Nationwide, it provides tens of thousands of Americans with good-paying jobs, and it indirectly supports at least 200,000 more. In Nebraska alone, the 25 ethanol plants spread across our state are able to produce more than two billion gallons a year, making us the second-largest producer of this renewable fuel.
Higher ethanol blends are also far better for the environment than traditional gasoline. Study after study has shown that the more ethanol you blend into your gas, the cleaner it burns. Any plan to reduce emissions has to make ethanol part of the solution.
But last month, the U.S. Court of Appeals for the D.C. Circuit struck down an Environmental Protection Agency rule that allowed E15 – fuel that is 15 percent ethanol – to be sold year-round. Without this rule, E15 can only be sold from September to May in most areas of the country, leaving consumers with fewer choices during the busy summer months.
In their decision, the D.C. Circuit said that Congress didn’t intend for the EPA to apply this rule to E15. I recently introduced a bill to make it clear that we do.
The Consumer and Fuel Retailer Choice Act, which I reintroduced with Senator Amy Klobuchar in response to the ruling, offers a common-sense solution to this problem. Our bill would reinstate the waiver that allowed high-ethanol blends like E15 to be sold all year. This would give consumers a wider array of options at the pump and provide ethanol producers with the certainty they need to do their jobs.
I have been working to bring this certainty to our producers for many years. In 2019, I traveled on Air Force One with President Trump to Iowa, where he announced the waiver that our bipartisan bill would reestablish. The president’s announcement came after he and I had several conversations where I highlighted the importance of year-round E15 to rural America. It also followed a hearing I pushed for in the Senate Environment and Public Works Committee, where senators were able to talk about how year-round E15 would benefit their states.
From the Nebraska Farm Bureau to the Renewable Fuels Association, there is significant support for this bill. That is because it wouldn’t do anything radical, or even anything new. It would simply restore year-round E15.
However, there is one group who opposes reinstating this waiver: the oil industry. E15 is lower in carbon and easier on Americans’ wallets than regular gas, so it is no surprise that they want to prevent it from gaining too much market share. And after a separate Supreme Court ruling in June that threatens the integrity of the Renewable Fuel Standard, the main federal rule that promotes the use of ethanol, our producers can’t afford to suffer another setback.
I introduced the Consumer and Fuel Retailer Choice Act to let ethanol producers in Nebraska and across the country know that Congress has their back. Truly bipartisan wins for the environment, our producers, and consumers don’t come around often, and this is one of them.
Thank you for participating in the democratic process. I look forward to visiting with you again next week.
Read the original column here.
Jul 13, 2021
CoBank’s Knowledge Exchange released its second quarter report on July 8, reporting that the U.S. fuel ethanol sector outperformed expectations during the three-month period and is well positioned for the second half of 2021.
According to CoBank, several key demand drivers underpin its outlook for ethanol, including general economic growth, seasonal summer driving, and more people driving as they return to offices and classrooms. These factors helped increase fuel ethanol production in the second quarter, with production recently trending above 16 billion gallons, CoBank said. The report also states that average daily operating margins more than doubled during the second quarter, reaching 26 cents.
Regarding E15, CoBank’s report indicates that 48 states have now enacted legislation allowing for the sale of gasoline containing up to 15 percent ethanol. The report, however, does not discuss the expected impact of the D.C. Circuit Court of Appeal’s July 2 reversal of the U.S. EPA’s 2019 E15 rule.
The report does note that biofuel policy continues to be a major area of friction in Washington and between ethanol producers and fossil fuel refineries. CoBank said its unclear where biofuels, fossil fuels, and electric-powered vehicles will fit in under a final infrastructure package. The report also cites the U.S. Supreme Court’s recent ruling on small refinery exemptions (SREs) as a negative development for the ethanol industry.
In addition, CoBank said that electric vehicle adoption, a long-term threat to ethanol, is powering ahead.
Grain prices will also continue to impact ethanol producers, according to report. CoBank said corn prices hit a nine-year high during the second quarter. Moving forward, elevated price volatility is expected to continue.
Additional information, including a full copy of the report, is available on the CoBank website.
Read the original story here.
Jul 13, 2021
Members of the High Octane Low Carbon Alliance and nearly two dozen other ag and biofuel groups sent a letter to President Biden on July 11 calling on the U.S. EPA to propose a higher octane gasoline standard in its upcoming rulemaking on light-duty vehicle greenhouse gas (GHG) emissions standards (SAFE-2 rule).
The SAFE-2 rule was delivered to the White House Office of Management and Budget on June 24 and is currently undergoing review. OMB review marks a final step before a proposed rule is released for public comment.
The upcoming rulemaking is expected 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. The EPA and U.S. Department of Transportation’s National Highway Traffic Safety Administration are set to further revise those CAFE and GHG emission standards as part of a review the agencies were directed to complete under an executive order issued by Biden on January 2021. That executive order directed all executive departments and federal agencies to immediately review, and as appropriate and consistent with applicable law, take action to address the promulgation of federal regulations and other actions taken during the Trump administration that conflict the national objectives outlined in the executive order, and to immediately commence work to confront the climate crisis.
In the letter, the biofuel and ag groups emphasize the importance of including a higher octane gasoline standard in the SAFE-2 Rule and ask Biden to urge EPA Administrator Michael Regan to request public comments on the role high-octane, low-carbon fuels can play in advancing the administration’s climate, environmental justice, public health, economic revitalization, and energy security objectives.
“High octane, low carbon fuels, including higher-level blends of ethanol, hold so much potential – and we should be doing everything we can to realize that potential,” said Rob Larew, president of the National Farmers Union, a member of the High Octane Low Carbon Alliance. “These fuels improve vehicle and fuel efficiency, which in turn can reduce greenhouse gas emissions, improve air quality, conserve oil, and strengthen energy security. That alone should be plenty of justification for the EPA to introduce a higher octane fuel standard. But the benefits go far beyond that – high octane fuels also drive economic growth and create new jobs in rural communities, slash pump prices for drivers, and open new markets for farmers. Given these many advantages, there’s really no reason the administration shouldn’t increase octane levels in fuel.”
Several groups are scheduled to meet with the OMB regarding the SAFE-2 Rule this month, including a meeting with the High Octane Low Carbon Alliance that was scheduled for the morning of July 13. The EPA is expected to release a notice of proposed rulemaking for public comment later this month, with a final rule scheduled to be issued in December.
In addition to NFU, members of the High Octane Low Carbon Alliance include the Clean Fuels Development Coalition, National Corn Growers Association, and Renewable Fuels Association. The letter is also signed by a variety of other biofuel and ag groups, including the Governors Biofuel Coalition, the Iowa Renewable Fuels Association, the Nebraska Ethanol Board, Renewable Fuels Nebraska, the Urban Air Initiative and the American Coalition for Ethanol. A full copy of the letter can be downloaded from the NFU website.
Read the original story here.
July 14, 2021
WASHINGTON – U.S. Senators Amy Klobuchar (D-MN) and Deb Fischer (R-NE) and Representative Angie Craig (D-MN) introduced a bipartisan bill to permit the year-round sale of E15, a blend of gasoline with 15 percent ethanol. This legislation follows the United States Court of Appeals for the District of Columbia ruling against year-round sales of E15. Original bill cosponsors include Senators Tina Smith (D-MN), Chuck Grassley (R-IA), Tammy Duckworth (D-IL), John Thune (R-SD), Tammy Baldwin (D-WI), Joni Ernst (R-IA), Dick Durbin (D-IL), Mike Rounds (R-SD), Jerry Moran (R-KS), and Roger Marshall (R-KS).
“We must work to diversify our fuel supply and invest in affordable, environmentally-friendly solutions for consumers. For the past three years, we’ve seen that making E15 gasoline accessible to drivers year-round is good for drivers, farmers, and the environment. It’s critical that we pass this bipartisan legislation to continue this progress and stay on the path to a greener future,” said Klobuchar.
“The recent D.C. Circuit Court ruling was a major blow to farmers and ethanol producers, and further highlighted the need to provide them with certainty. My legislation will ensure consumers continue to have access to higher ethanol blends at the pump and that E15 can be sold year-round. It will create significant economic opportunities for the hardworking men and women in rural America who are providing the country with a low-carbon solution,” said Fischer.
“I’m very disappointed in the D.C. Court ruling to overturn year-round sales of E-15,” said Smith. “Our country needs smart climate solutions like E-15–an affordable, cleaner fuel that lowers carbon emissions. The court's decision is also a major blow to Minnesota’s farm economy, where ethanol made from corn creates an estimated $6.7 billion in economic output. I’m going to fight to restore year-round sales of E-15 as soon as possible.”
“E15 and higher blend biofuels expand markets for family farmers, support economic growth in rural America and cut down on dangerous pollutants released into the air we breathe,” said Craig. “It’s long past time that the year-round sale of these renewable fuels was made permanent, expanding the market for lower-cost, lower-carbon fuel choices all across America. I’m proud to work with Representative Smith on this critical legislation to support our biofuels producers and family farmers, while expanding options at the pump for consumers across the country.”
In June, Klobuchar announced a new package of bipartisan bills with Senators Joni Ernst (R-IA) and John Thune (R-SD) to expand the availability of low-carbon renewable fuels, incentivize the use of higher blends of biofuels, and reduce greenhouse gas emissions.
Klobuchar and Ernst also partnered in February to introduce legislation to create a renewable fuel infrastructure grant program and streamline regulatory requirements to help fuel retailers sell higher blends of ethanol.
Jul 14, 2021
WASHINGTON, DC – Today, U.S. Representatives Angie Craig (D-MN) and Adrian Smith (R-NE) led Co-Chairs of the Congressional Biofuels Caucus in introducing the Year-Round Fuel Choice Act, bipartisan legislation that would ensure that the Environmental Protection Agency (EPA) can grant waivers to allow E15 and higher blend fuels to be sold at retailers year-round. Craig and Smith introduced the legislation after a federal appeals court struck down an EPA rule that lifted restrictions on the year-round sale of certain corn ethanol fuel blends. The legislation would provide key stability and predictability for family farmers and biofuels producers across the country.
Craig and Smith were joined in leading the introduction of the Year-Round Fuel Choice Act by caucus co-chairs Representatives Cindy Axne (D-IA), Rodney Davis (R-IL), Dusty Johnson (R- SD) and Mark Pocan (D-WI).
“E15 and higher blend biofuels expand markets for family farmers, support economic growth in rural America and cut down on dangerous pollutants released into the air we breathe,” said Representative Craig. “It’s long past time that the year-round sale of these renewable fuels was made permanent, expanding the market for lower-cost, lower-carbon fuel choices all across America. I’m proud to work with Representative Smith on this critical legislation to support our biofuels producers and family farmers, while expanding options at the pump for consumers across the country.”
“I have long championed the uninterrupted sale of E15 to provide consumers consistency in their fuel tank and farmers consistency in their production,” said Representative Smith. “Time after time I’ve introduced legislation to emphasize and reinforce EPA’s authority to allow the year-round sale of E15. With the recent D.C. Circuit Court ruling to roll back RVP waivers, it’s imperative we clarify congressional intent once and for all: there is no reason E15 should not have the same regulatory relief as E10.”
Earlier this month, the D.C. Circuit Court of Appeals reversed an EPA rule that allowed retailers to sell E15 blends of ethanol year-round by granting a waiver from Reid Vapor Pressure requirements. The court ruled that the EPA had exceeded its authority by lifting summertime restrictions on the sale of ethanol blends. While the court’s ruling has not yet taken effect, Craig and Smith’s legislation would preempt any restrictions by providing a legislative fix to ensure the permanent year-round sale of E15 and higher blend biofuels.
In Congress, Representative Craig has been a longstanding champion of family farmers and biofuels and an outspoken critic of efforts to weaken the Renewable Fuel Standard. Earlier this year, Craig led the introduction of the bipartisan Renewable Fuel Standard Integrity Act, which would ensure transparency in the small refinery waiver process. Craig also worked with Representative Randy Feenstra to introduce the bipartisan SRE Clarification Act to clarify and rein in small refinery exemptions in order to prevent the further expansion and abuse of a waiver process that has negatively impacted family farmers and ethanol producers for several years.
The bipartisan Year-Round Fuel Choice Act is supported by Growth Energy, the Renewable Fuels Association and the National Corn Growers Association. The co-chairs were joined in introducing this legislation by Representatives Randy Feenstra (R-IA), Jeff Fortenberry (R-NE), Jason Smith (R-MO), Cheri Bustos (D-IL), Ashley Hinson (R-IA), Ron Estes (R-KS), Vicky Hartzler (R-MO), Mike Bost (R-IL), Mariannette Miller-Meeks (R-IA), Jim Hagedorn (R-MN), Blaine Luetkemeyer (R-MO), Jim Baird (R-IN), James Comer (R-KY), Michelle Fishbach (R-MN), Ron Kind (D-WI) and Darin LaHood (R-IL).
Read the original press release here.
Jul 12, 2021
The USDA maintained its forecast for 2021-’22 corn use in ethanol in its latest World Agricultural Supply and Demand Estimates report, released July 12. The forecast for the season-average corn price was lowered.
When compared to last month, the July WASDE’s corn outlook is for larger supplies, greater feed and residual use, increased exports, and higher ending stocks.
Corn beginning stocks are lowered 25 million bushels to 1.082 billion bushels based on greater feed and residual use for 2020-’21 as indicated in the June 30 Grain Stocks report.
Corn production for 2021-’22 is forecast 175 million bushels higher, at 15.165 billion bushels, based on greater planted and harvested areas. The national average corn yield is unchanged at 179.5 bushels per acre.
According to the USA, total corn used for 2021-’22 is forecast 75 million bushels higher with increases for feed and residual use and exports. Feed and residual use is raised reflecting a larger crop.
Approximately 5.2 billion bushels of corn is expected to go to ethanol production in 2021-’22, a forecast maintained from the June WASDE. According to the USDA, 5.05 billion bushels of corn went to ethanol production in 2020-’21, up from 4.857 billion bushels in 2019-’20.
Corn exports are raised 50 million bushels, with sharply lower expected for Brazil. With supply raising more than use, ending stocks are up 75 million bushels.
The season-average farm price received by producers is lowered 10 cents to $5.60 per bushel.
Foreign corn production is forecast higher, with a projected increase for Russia based on higher indicated area. For 2020-’21, corn exports are raised for Argentina but lowered for Brazil for the local marketing year beginning March 2021. Foreign corn ending stocks for 2021-’22 are virtually unchanged from the June WASDE.
Read the original story here.
Jul 7, 2021
The U.S. Energy Information Administration increased its forecasts for 2021 and 2022 fuel ethanol production in its latest Short-Term Energy Outlook, released July 7. The outlook for 2021 and 2022 ethanol blending was maintained.
The EIA currently predicts fuel ethanol production will average 970,000 barrels per day in 2021, up from the June STEO's forecast of 960,000 barrels per day. Production is expected to increase to 1 million barrels per day in 2022, up from the prior month’s forecast of 990,000 barrels per day. Ethanol production averaged 910,000 barrels per day in 2020.
On a quarterly basis, the EIA currently predicts ethanol production will average 1 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 during the first quarter, 1.01 million barrels per day in the second quarter, and 1.02 million barrels per day in the third and fourth quarters.
Ethanol blending averaged 820,000 barrels per day in 2020. Blending is currently expected to increase to 900,000 barrels per day in 2021 and 920,000 barrels per day in 2022. Both forecasts were maintained from the June STEO. The EIA said this level of consumption results in the fuel ethanol share of total gasoline, which was an estimated 10.2 percent in both 2019 and 2020, remaining near this level in 2021 and 2022.
The EIA said its forecast for ethanol blending assumes that growth in high-level blends is limited by a lack in consumer demand for fuels beyond E10 despite significantly elevated renewable identification number (RIN) prices, which could incentivize increased fuel ethanol blending by some gasoline blenders and retailers.
Read the original story here.
July 6, 2021
Minnesota U.S. Senator Amy Klobuchar is confident E15 will remain a summertime choice at the pump despite last week’s court decision striking down the 2019 rule that allowed for year-round sales of fuel blended with 15 percent ethanol.
“The ethanol groups are going to ask for that (decision) to be stayed so it doesn’t take effect right away. Right now there’s a 45-day period anyway (because) it’s not the U.S. Supreme Court, it’s the Court of Appeals.”
Prior to the Reid Vapor Pressure waiver, E15 sales were prohibited between June and September.
Klobuchar tells Brownfield she’s working on a bill that would require E15 be sold year-round.
“That would be a really good way to get at that. And given that we now have a 3-year track record where it worked, we have a good argument to make and a bunch of moving bills to put it on.”
She suggests the circuit court decision is not a disaster for E15 because the judges found that EPA just needs to better support its RVP waiver authority.
Read the original story here.
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Jul 6, 2021
Mason City, IA – Whitefox Technologies is excited to announce that Golden Grain Energy LLC will install a Whitefox ICE® membrane dehydration system at its 120 million gallons per year (mmgy) plant in Mason City, Iowa.
The plant, located in north central Iowa, is dedicated to adding value to the local community by turning locally grown corn into clean-burning ethanol and animal feed. Golden Grain is a key player in the regional economy and a long-standing leader in Iowa’s ethanol industry.
With a firm commitment to sustainable and energy efficient ethanol production, Golden Grain was one of the first Midwest plants certified under California’s Low Carbon Fuel Standard program. The plant has continued to take significant steps through innovative technology and operations to increase its efficiency and lower its carbon intensity (CI) score. Installing Whitefox’s energy-efficient membrane technology will further improve its efficiency and competitive advantage.
Chad Kuhlers, CEO of Golden Grain Energy, said, "We’ve been in discussions with Whitefox and watching the technology continue to advance for a few years now, and we felt the time was right to adopt membrane dehydration as part of our operational future. Whitefox systems have been verified in 24/7 operations at several other plants. With the other yield and operational improvements Golden Grain has implemented, Whitefox is a good solution for our plant to debottleneck existing process units and we expect additional benefits in plant maintenance and overall operational efficiency.”
Whitefox Technologies CEO, Gillian Harrison, said, “It’s great to be working with the team at Golden Grain, and to help improve their already impressive operational efficiency. They are a long-time leader of the Iowa ethanol industry, and their chairman Dave Sovereign has been a real champion for the industry as a whole. We look forward to working together to ensuring a successful project, which is intended to be the first step in further expansion with membrane dehydration at the plant. This installation will take Whitefox to over 150 mmgy of installed membrane capacity in the U.S., which is an exciting milestone.”
Paul Kamp, Whitefox Technologies VP North America, adds, "Golden Grain has been an ethanol innovator since their early days. Some of the operational and equipment changes made first in Mason City have been widely adopted across the industry. Whitefox knows the project had to pass disciplined assessments of technology fit and project economics. We’re pleased to be moving ahead with the project and helping Golden Grain achieve their longer-term objectives, and to partner with KFI / McGough on project execution.”
About Golden Grain
Golden Grain Energy is a privately held company that annually purchases approximately 42 million bushels of corn and produces over 120 million gallons of ethanol, distiller’s grains and non-food grade corn oil at their plant in Mason City, Iowa. Golden Grain strives to meet the growing demand for domestically produced biofuels and reducing carbon emissions in transportation, while helping to improve air quality around the country. Owned by more than 900 members, the majority of whom are Iowa farmers, Golden Grain Energy is committed to being a strong partner in the local community, a key player in the regional economy, and a leader in Iowa’s ethanol industry. www.ggecorn.com
About Whitefox Technologies Limited
Whitefox specializes in technology development and process integration based on its proprietary membrane solutions. Whitefox ICE® (Integrated Cartridge Efficiency) is a bolt-on solution developed for the ethanol industry. With a small footprint, it is designed to de-bottleneck distillation and dehydration, which boosts output, improves CI scores by reducing energy and water consumption and reduces operation & maintenance costs by simplifying operations. Whitefox provides solutions for all types of alcohols, biofuels, and renewable chemicals in the U.S., Canada, Europe, and South America.
Website: www.whitefox.com
Twitter: @WhitefoxTech
Jul 2, 2021
WASHINGTON, DC – Today, U.S. Representatives Angie Craig (D-MN) and Randy Feenstra (R-IA-04) introduced the Small Refinery Exemption Clarification Act of 2021. The bipartisan legislation would clarify that only oil refineries that have been continuously receiving small refinery exemptions (SREs) since 2011 would be eligible to petition for extensions of renewable fuel blending requirement exemptions. Craig and Feenstra introduced the bipartisan bill following last week’s Supreme Court decision that could negatively impact the biofuels industry by making it easier for oil refineries to avoid renewable fuel standard blending requirements.
“This legislation will help ensure transparency and predictability for family farmers and biofuels producers in Minnesota and across the country as they make important decisions based on the Renewable Fuel Standard,” said Representative Craig. “I am grateful to Representative Feenstra for working alongside me on this critical issue, and I look forward to continuing our bipartisan work to ensure that the oil industry does not receive unnecessary assistance at the expense of family farmers. It is vital that we continue to support the clean biofuels industry as we reduce the carbon intensity of our transportation sector and make important investments across rural America.”
“The biofuels industry is an important driver of economic growth in Iowa, supporting hundreds of jobs and expanding market options for our corn and soybean growers,” said Representative Feenstra. “That is why we must erase ambiguities and ensure oil refineries are not able to take shortcuts when it comes to blending biofuels. I would like to thank Rep. Craig for joining me in this effort. As a cleaner and more affordable option for consumers, I will continue supporting efforts that will help bolster biofuels.”
The Renewable Fuel Standard is a federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels by mandating that oil refiners blend billions of gallons of biofuels into their fuel each year or buy credits from those that do. Under the previous Administration, the EPA greatly expanded the number of small refinery waivers that were issued while undermining transparency and accountability in the SRE process. By issuing dozens of waivers between 2016 and 2020, 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 Growth Energy, the National Corn Growers Association, the Renewable Fuels Association and the National Farmers Union.
Below are statements in support of the Members’ bipartisan legislation:
“The Small Refinery Exemption Clarification Act seeks to correct a flaw in the small refinery exemption (SRE) program regarding who is eligible. The RFS always intended to blend more low-carbon biofuels into our domestic fuel supply every year. We firmly believe that refiners have had 16 years to adjust their operations to comply with the RFS, and that EPA’s SRE authority was meant to steer them toward compliance rather than provide a never-ending excuse to avoiding their blending obligations,” said Emily Skor, CEO of Growth Energy. “Legislation like this will help stabilize demand in our industry, so we can continue to produce low-carbon biofuels, provide clean energy jobs in rural areas, and achieve our nation’s climate reduction goals. We are grateful to Representatives Randy Feenstra and Angie Craig for continuing to push to restore integrity to a program run amuck.”
“Corn growers thank Representatives Angie Craig and Randy Feenstra for taking the lead on helping close the door on RFS waiver abuse,” said National Corn Growers Association President John Linder. “With 70 waiver petitions pending, corn growers join Members of Congress in urging EPA to use the tools they do have from the Tenth Circuit Court decision and EPA’s stated support for the Court’s opinion to resolve those waivers and move forward with putting the RFS back on track with strong volume requirements.”
“As we argued before the Supreme Court, we believe Congress has always intended the small refinery exemption to be temporary in nature. We also continue to believe the statute only allows EPA to extend exemptions for refineries that were continuously exempt, but only if they can prove disproportionate economic hardship will be caused solely by RFS compliance,” said Geoff Cooper, President and CEO of Renewable Fuels Association. “We strongly agreed with Justices Barrett, Kagan, and Sotomayor that ‘EPA cannot ‘extend’ an exemption that a refinery no longer has,’ but unfortunately their six colleagues didn’t see it that way. Thus, we applaud Representative Craig for introducing this bill that would erase any lingering doubts about the intended meaning of ‘extension’ and clarify once and for all that exemptions were meant to be temporary.”
“Over the past several years, the lenient approach to granting exemptions for the Renewable Fuel Standards has undermined the intent of the program – which is to curtail greenhouse gas emissions, reduce our reliance on foreign oil, and create new opportunities for America's family farmers and rural economies,” said Rob Larew, National Farmers Union President. “By clarifying the eligibility criteria for exemptions, this bill will strengthen the RFS and help meet all its worthy objectives. We welcome the introduction of the Small Refinery Exemptions Clarification Act and thank Representatives Craig and Feenstra for their commitment to agricultural communities and environmental sustainability."
Read the original press release here.
Jun 30, 2021
WASHINGTON – U.S. Senator Amy Klobuchar (D-MN) announced the introduction of a new package of bipartisan bills to expand the availability of low-carbon renewable fuels, incentivize the use of higher blends of biofuels, and reduce greenhouse gas emissions.
"Diversifying our fuel supply, introducing higher blends of biofuels to the market, and making sure retailers have the right equipment to take advantage of these blends will promote clean energy and support our rural economies,” said Senator Klobuchar. “This biofuels infrastructure package will make cleaner fuels more accessible – ultimately benefiting both the economy and the environment.”
“Increasing access to biofuel is critical to our rural economies in Iowa, and across the Midwest, and offers cleaner and more affordable choices for consumers. These bills build on our bipartisan work to support farmers and the biofuel industry who feed and fuel the world,” said Senator Ernst.
“Homegrown biofuels, especially higher-octane blends like E15, offer readily available emissions reductions that are mistakenly being overlooked in the current energy debate,” said Senator Thune. “Biofuels not only support a critical market for our farmers and deepen American energy security, but they offer a lower-carbon fuel for domestic use and export without the unresolved costs, labor issues, and resource constraints of the all-in push for vehicle electrification. This bill will help further expand consumer access to E15, building off the long-soug ht ability to sell the fuel year-round, which was secured in 2019.”
Co-led by Senator Joni Ernst (R-IA), the Biofuel Infrastructure and Agricultural Product Market Expansion Act would expand the availability of low-carbon renewable fuels in the marketplace, resulting in cleaner air, lower fuel process, and rural economic vitality. This legislation would provide for federal investment in renewable fuel infrastructure like blender pumps and storage tanks, allowing small businesses across the nation to provide cleaner and more affordable options to American drivers.
Building on this effort to diversify the use of renewable fuels in the automotive industry, the Clean Fuels Vehicle Act – also co-led by Ernst – would incentivize the manufacture of Flex Fuel Vehicles (FFVs) capable of utilizing higher blends of clean fuels. The bill would create a $200 refundable tax credit for each FFV manufactured for the light duty vehicle market. The credit would be made available to Original Equipment Manufacturers (OEMs) and sunset after a period of 10 years.
The Low Carbon Biofuel Credit Act, co-led by Senator John Thune (R-SD), would create a tax credit for each gallon of fuel containing 15 percent or greater ethanol content (E15). The bill would allow an ethanol blender or fuel retailer to claim a 5-cent tax credit for each gallon of E15 blended or sold and a 10-cent tax credit for each gallon greater than E15 blended or sold. This legislation would also allow the credit to be fully refundable and transferable for small retailers.
Read the original press release here.
Jun 25, 2021
WASHINGTON, DC – Today, the co-chairs of the bipartisan House Biofuels Caucus—Rep. Angie Craig (MN-02), Rep. Cindy Axne (IA-03), Rep. Rodney Davis (IL-13), Rep. Dusty Johnson (SD-AL), Rep. Mark Pocan (WI-02), and Rep. Adrian Smith (NE-03)—released the following statement after the Supreme Court weakened the RFS at the expense of family farmers and biofuels producers in rural America in HollyFrontier Cheyenne Refining, LLC v. Renewable Fuels Association:
“We are concerned with the potential consequences of today’s Supreme Court’s decision, which could have a devastating impact on farmers and producers who are still fighting to recover from the volatile markets, unpredictable weather, and trade instability of the past several years. However, we are encouraged that the Environmental Protection Agency had reversed its position on small refinery exemptions prior to the Supreme Court’s final opinion, and we urge the Administration to apply the same logic in deciding not to grant future waivers. Today’s decision underscores the importance of the RFS Integrity Act; we will continue to fight for the enactment of this legislation to support family farmers and the clean biofuels industry.”
The Renewable Fuel Standard is a federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels by mandating that oil refiners blend billions of gallons of ethanol and other biofuels into their fuel each year or buy credits from those that do. Under the previous Administration, the EPA greatly expanded the number of small refinery waivers that were issued while undermining transparency and accountability in the SRE process. By issuing dozens of waivers between 2016 and 2020, the EPA saved the oil industry hundreds of millions of dollars while threatening rural economies and harming the biofuels industry at large.
In 2018, the Renewable Fuels Association and other groups filed a lawsuit challenging the Administration’s issuance of small refinery exemptions to three refineries in Oklahoma, Wyoming and Utah. Last year, the 10th Circuit Court of Appeals ruled in favor of the RFS groups, declaring that the Environmental Protection Agency did not have the authority to extend an economic hardship waiver to any refinery that had not maintained a continuous string of annual waivers from the start of the RFS program. The court also held that in granting the waivers, EPA ignored its own studies that found refiners are largely able to pass through to customers their cost of acquiring Renewable Identification Number (RIN) compliance credits. Last year, several refineries, including HollyFrontier Cheyenne Refining appealed the original ruling to the Supreme Court.
Read the original press release here.
Jun 21, 2021
The Minnesota House of Representatives on June 19 voted 112 to 20 to pass an omnibus agriculture bill that includes $6 million to support the development of biofuel infrastructure to supply E15 blends of fuel.
The bill aims to allocate $3 million in 2022 and $3 million in 2023 for grants to upgrade retail petroleum dispensers, fuel storage tanks and other equipment that does not have the ability to be certified for use with E25. Grants would be offered for up to $200,000 per station, not to exceed 65 percent of costs.
In a statement released on June 18, State Rep. Paul Anderson said the funding will help building out Minnesota’s infrastructure for the expanded use of biofuels. “We hear a lot about using more electric cars to improve air quality in the future, but biofuels can have a much more immediate impact and this appropriation to aid in the transition will be helpful in that regard,” he said.
The legislation is now being considered by the Minnesota Senate.
Read the original story here.
Jun 16, 2021
WASHINGTON – U.S. Senator Amy Klobuchar (D-MN) led a letter with 15 bicameral colleagues – including Senator Tina Smith (D-MN) – to the Environmental Protection Agency (EPA) and National Economic Council (NEC) expressing concern about reports that the Biden administration is considering several options to exempt oil refiners of their obligations under the Clean Air Act’s Renewable Fuel Standard (RFS). The legislators noted that these proposals “all unjustifiably waive Clean Air Act compliance requirements for a small group of refiners that the EPA has repeatedly determined are not negatively impacted by the RFS.” They proceed to recognize the consequence of such actions, writing, “Exempting refiners of their obligations to blend biofuel would mean increased reliance on oil and more carbon emissions – a result this country cannot afford if we are to meet our new commitment under the Paris Agreement to reduce emissions by 50 – 52 percent by 2030.”
“Rather than exempting refiners of their obligations under the Clean Air Act, the Administration should provide additional certainty and stability to the renewable fuels marketplace that will create jobs, drive investment, and cut carbon emissions from the existing vehicle fleet. We encourage your Administration to swiftly issue a proposed rule for the 2021 and 2022 Renewable Volume Obligations (RVOs) with strong blending targets and respond to the 2017 Court remand in Americans for Clean Energy, et al., v. Environmental Protection Agency to reinstate 500 million gallons of blending requirements inappropriately waived from the 2016 blending targets,” the legislators wrote.
The letter was signed by Senators Tammy Baldwin (D-WI), Tammy Duckworth (D-IL), Richard Durbin (D-IL), Tina Smith (D-MN), Debbie Stabenow (D-MI), and Ron Wyden (D-OR), and Representatives Cheri Bustos (D-IL), Cindy Axne (D-IA), Angie Craig (D-MN) Mark Pocan (D-WI), Ron Kind (D-WI), David Scott (D-GA), Lauren Underwood (D-IL), Raja Krishnamoorthi (D-IL), and Ruben Gallego (D-AZ).
Full text of the letter can be found below and HERE.
Dear Administrator Regan and Director Deese:
We write with significant concern about recent reports that the Administration is considering several options to exempt oil refiners of their obligations under the Clean Air Act’s Renewable Fuel Standard (RFS). We support your efforts to address climate change, but we are concerned that rolling back the RFS obligation for refiners directly contradicts this work. Following through on the actions reportedly under discussion would directly undermine your commitment to address climate change and restore integrity to the RFS and we urge you to reject them.
The RFS was designed to reduce greenhouse gas emissions from the vehicle transportation sector, diversify our fuel supply, strengthen our national security, and drive economic opportunity. When allowed to work as Congress intended, the RFS has delivered on these goals while serving as the economic engine behind a growing biobased manufacturing sector across rural America and a biofuel industry with a 100 percent U.S. supply chain and a higher union density than the national average.
The proposals identified in media reports as options under consideration by the Environmental Protection Agency (EPA) have one thing in common: they all unjustifiably waive Clean Air Act compliance requirements for a small group of refiners that the EPA has repeatedly determined are not negatively impacted by the RFS. If adopted, greenhouse gas emissions will increase, our reliance on oil will increase, consumers will pay more at the pump, and the U.S. economy will be harmed.
Rather than exempting refiners of their obligations under the Clean Air Act, the Administration should provide additional certainty and stability to the renewable fuels marketplace that will create jobs, drive investment, and cut carbon emissions from the existing vehicle fleet. We encourage your Administration to swiftly issue a proposed rule for the 2021 and 2022 Renewable Volume Obligations (RVOs) with strong blending targets and respond to the 2017 Court remand in Americans for Clean Energy, et al., v. Environmental Protection Agency to reinstate 500 million gallons of blending requirements inappropriately waived from the 2016 blending targets.
As your Administration continues to push for meaningful and rapid climate action, biofuels can and should play an important role in decarbonizing vehicle emissions. Recent studies demonstrate that using ethanol in place of gasoline reduces greenhouse gas emissions by almost half while biodiesel cuts greenhouse gas emissions by an average of 74 percent. Exempting refiners of their obligations to blend biofuel would mean increased reliance on oil and more carbon emissions – a result this country cannot afford if we are to meet our new commitment under the Paris Agreement to reduce emissions by 50 – 52 percent by 2030.
We urge you to reject any actions under discussion to exempt oil refiners of their obligations under the RFS and uphold your commitment to combatting climate change and supporting our nation’s farmers.
Read the original press release here.
United States Department of Agriculture
Jun 15, 2021
WASHINGTON, June 15, 2021 — Agriculture Secretary Tom Vilsack announced today additional aid to agricultural producers and businesses as part of the USDA Pandemic Assistance for Producers initiative. Earlier this year, Secretary Vilsack announced plans to use available pandemic assistance funds to address a number of gaps and disparities in previous rounds of aid. As part of the Pandemic Assistance initiative announced in March, USDA pledged to continue Coronavirus Food Assistance Program (CFAP) payments and to provide aid to producers and businesses left behind. Implementation of the assistance announced today will continue within 60 days to include support to timber harvesters, biofuels, dairy farmers and processors, livestock farmers and contract growers of poultry, assistance for organic cost share, and grants for PPE.
“USDA is honoring its commitment to get financial assistance to producers and critical agricultural businesses, especially those left out or underserved by previous COVID aid,” said Secretary Vilsack. “These investments through USDA Pandemic Assistance will help our food, agriculture and forestry sectors get back on track and plan for the future. Since January, USDA has provided more than $11 billion of assistance directly to producers and food and agriculture business.”
In March, USDA announced $6 billion (see Part 1) in available funds through Pandemic Assistance to support a number of new programs or to modify existing efforts. The following programming is planned for implementation within 60 days, which will continue to be focused on filling gaps in previous rounds of assistance and helping beginning, socially disadvantaged and small and medium sized producers that need support most:
- $200 million: Small, family-owned timber harvesting and hauling businesses
- $700 million: Biofuels producers
- Support for dairy farmers and processors:
- $400 million: The new Dairy Donation Program to address food insecurity and mitigate food waste and loss
- Additional pandemic payments targeted to dairy farmers that have demonstrated losses that have not been covered by previous pandemic assistance
- Approximately $580 million: Supplemental Dairy Margin Coverage for small and medium farms
- Assistance for poultry and livestock producers left out of previous rounds of pandemic assistance:
- Contract growers of poultry
- Livestock and poultry producers forced to euthanize animals during the pandemic (March 1, 2020 through December 26, 2020)
- $700 million: Pandemic Response and Safety Grants for PPE and other protective measures to help specialty crop growers, meat packers and processors, seafood industry workers, among others
- Up to $20 million: Additional organic cost share assistance, including for producers who are transitioning to organic
As the economy continues to gain strength after the Biden Administration’s historic vaccination and economic relief efforts, USDA is working with producers and agricultural businesses to ensure they have the resources and tools to thrive in 2021 and beyond. The funding associated with USDA Pandemic Assistance is meant to serve as a bridge from disruptions associated with the pandemic to longer-term investments to help build back a better food system. Through USDA’s Build Back Better initiative, USDA has already announced $5 billion in a mix of loans, grants and innovative financing to make meaningful investments to build a food system that is more resilient against shocks, delivers greater value to growers and workers, and offers consumers an affordable selection of healthy food produced and sourced locally and regionally by farmers and processors from diverse backgrounds.
“We have more work to do to build back a better food system, strengthen our supply chains, and make sure American agriculture gives our farming and ranching families every opportunity to earn a good living,” said Secretary Vilsack. “As the economy continues to bounce back, USDA will ensure American agriculture is ready to seize the moment.”
As USDA looks to long-term solutions to build back a better food system, the Department is committed to delivering financial assistance to farmers, ranchers, and agricultural producers and businesses who have been impacted by COVID-19 market disruptions.
Since USDA rolled out the Pandemic Assistance initiative in March, the Department has announced approximately $6.8 billion in assistance (Part II and III) to producers and agriculture entities through the following programs:
- $6.295 billion: Coronavirus Food Assistance Program (CFAP) payments to farmers, ranchers and producers (March 24th)
- $35 million: Value Added Producer Grants (March 5th)
- $169.9 million: Specialty Crop Block Grants (April 13th)
- $75 million: Gus Schumacher Nutrition Incentive Program (April 13th)
- $37.5 million: Beginning Farmer and Rancher Development Program (April 13th)
- $80 million: Payments to Domestic Users of Cotton (April 13th)
- $92.2 million: Local Agriculture Market Program (May 5th)
- Approximately $20 Million: Pandemic Cover Crop Program (June 1st)
Read the original press release here.
Jun 14, 2021
Members of the House Biofuels Caucus sent a letter to Agriculture Secretary Tom Vilsack on June 9 urging the USDA to provide COVID-19 relief to biofuels producers under the agency’s Pandemic Assistance for Producers program.
Former President Donald Trump on Dec. 27, 2020, signed the Consolidated Appropriations Act of 2021 into law. That bill, in part, provided for $11.2 billion in COVID-19 relief for agriculture.
The USDA on March 24, 2021, provided guidance on how it intends to use a portion of those funds and announced its intent to provide pandemic relief to biofuel producers as part its USDA Pandemic Assistance for Producers Initiative, which the agency said aims to distribute relief resources more equitably. As part of that announcement, the agency announced plans to dedicated at least $6 billion towards new programs.
The letter authored by the House Biofuels Caucus urges Vilsack to use a portion of that $6 billion in funds to assist the biofuels industry. “Specifically, we respectfully request that you implement direct, per-gallon payments for biorefineries that were in normal operation in the first quarter of 2020 and with 2019 production year as a benchmark for providing relief,” members of the caucus wrote. “For advanced biofuels producers who operated at a market loss, we request that you implement direct payments to applicants utilizing an average net return over total costs difference between the pre and post pandemic production.”
The letter also addresses the need for USDA to invest in biofuels infrastructure. Members of the caucus applaud the $18.4 million investments made through the Higher Blends Infrastructure Program in April and urge further investments through the HBIIP. “Increased investments in this program will serve to help stabilize demand and bolster the ability of producers to sell into the market while expanding domestic energy production,” members of the caucus wrote.
“We continue to advocate for proactive approaches that complement COVID relief efforts to help rebuild the industry, and investments offered through the HBIIP, as well as clear and consistent labeling of higher biofuel blends including E-15 and B-20 or higher, are key for rural America to move forward with confidence,” they continued. “As markets continue to rebound, it is now more important than ever to quickly provide support, and bolster efforts that increase the demand for biofuels at home and abroad.”
The letter is signed by Reps. Rodney Davis, R-Ill.; Angie Craig, D-Minn.; Dusty Johnson, R-S.D.; Adrian Smith, R-Neb.; Cindy Axne, D-Iowa; Mark Pocan, D-Wisc.; Randy Feenstra, R-Iowa; Darin LaHood, R-Ill.; Ashley Hinson, R-Iowa; Mike Bost, R-Ill.; Mariannette Miller-Meeks, R-Iowa; Cheri Bustos, D-Ill.; Ron Kind, D-Wisc.; Tom Emmer, R-Minn.; Sam Graves, R-Mo.; Michelle Fischbach, R-Minn.; Don Bacon, R-Neb.; Ann Wagner, R-Mo.; Jim Hagedorn, R-Minn.; Adam Kinzinger, R-Ill.; James Baird, R-Ind.; and Jeff Fortenberry, R-Neb.
Read the original story here.