In the News
Mar 3, 2022
As part of ongoing market development efforts in Chile, Guatemala and Mexico, and to increase ethanol use in Colombia, the U.S. Grains Council (USGC) hosted a delegation comprised of key government and industry representatives last week. The group attended the National Ethanol Conference in New Orleans before visiting the Denver area on a trade mission.
The time the delegation spent in the United States was meant to facilitate technical conversations to allow the team to learn about the economic benefits and best practices for blending ethanol. Additionally, this interaction allowed the group to familiarize themselves with the U.S. ethanol industry and make connections with counterparts in the U.S. as they seek to establish blend policies in their own countries.
The Council hosted a private educational session for the delegation while in New Orleans, providing an overview of the U.S. ethanol industry and a look at the operations of ethanol blending. The session offered an opportunity for participants to interact with Volkswagen (VW) Latin America and discuss VW’s vision for how ethanol can help achieve net-zero carbon emissions by 2050 or sooner. In addition, the group learned how low carbon ethanol plays a role in the transport sector decarbonization process.
In Denver, the group heard from Bob McCormick, a senior research fellow at the National Renewable Energy Laboratory, on the lab’s recent Global Ethanol-Blended-Fuel Vehicle Compatibility Study, that demonstrates vehicle compatibility with higher-level ethanol blends. The participants were able to visit a local ethanol plant, as well as a fuel terminal, giving participants a first-hand experience of the U.S. ethanol industry and demonstrating the industry’s reliability as a trade partner.
“This mission was instrumental in showcasing the U.S. ethanol industry – how it has evolved, and what has contributed to its success. For producer delegates, it was critical for building trust and an understanding that will facilitate partnerships to complement local production in their various countries,” said Carlos Suarez, USGC regional ethanol consultant for Latin America.
As the Council looks to further develop these markets for U.S. ethanol, trade education is just one of the ways the organization helps fulfill its mission of developing markets, enabling trade and improving lives.
Read the original story here.
Mar 4, 2022
To provide relief at the pump in response to the ongoing Russia-Ukraine crisis while simultaneously reducing carbon emissions from the transportation sector, six farm and biofuel organizations wrote to President Biden urging his administration to use existing authority to allow for the year-round sale of gasoline blended with up to 15 percent ethanol (E15).
In a letter to the White House, the Renewable Fuels Association, American Farm Bureau Federation, Growth Energy, National Corn Growers Association, National Farmers Union and National Sorghum Producers explained that an immediate move to restore year-round sales of E15 can ease the impact of oil market disruptions and surging gas prices caused by Russia’s invasion of Ukraine.
“As American families continue to confront skyrocketing gas prices, we write today to urge the Administration to take a simple action that can provide immediate relief at the pump while simultaneously reducing carbon emissions from the transportation sector,” wrote the organizations. “Specifically, we request that the Administration use its authority to authorize the year-round sale of gasoline blended with up to 15 percent ethanol (E15) in response to surging oil prices and expected fuel supply disruptions caused by Russia’s invasion of Ukraine.
“As Russia’s harmful actions in Ukraine continue and further sanctions are potentially imposed against Russia, oil prices will likely continue to rise, creating still higher consumer costs and threatening U.S. energy and economic security. Expanding the volume of American-made ethanol in the U.S. fuel supply can help alleviate these issues, as ethanol is currently priced 70-80 cents per gallon lower than gasoline. And, by displacing imported petroleum, increased ethanol use will enhance U.S. energy security and independence, while reducing emissions and supporting America’s farmers and rural economies.”
The full letter is available here.
Read the original press release here.
Mar 1, 2022
Data released Monday by the U.S. Energy Information Administration show that ethanol comprised a record share of America’s gasoline in 2021, averaging 10.34 percent of every gallon sold. The final EIA data for 2021 also confirmed a significant rebound in both ethanol production and consumption after COVID-related shutdowns ravaged the fuel market in 2020. The Renewable Fuels Association said the EIA data also underscore ethanol’s ability to diversify the domestic fuel supply and keep pump prices in check.
EIA’s data show that the U.S. ethanol industry produced 15.02 billion gallons (bg) in 2021, an 8 percent increase over 2020 and the largest annual volume growth since 2010. Domestic ethanol consumption grew even faster, jumping 1.26 bg over 2020 levels—a 10 percent increase. Meanwhile, U.S. ethanol exports dipped slightly from 2020 levels, but still registered as the fifth highest on record.
RFA President and CEO Geoff Cooper said the data underscore the resilience of the U.S. ethanol industry and highlight the fact that the so-called “E10 blend wall” continues to crumble.
“Ethanol’s share of our nation’s gasoline continues to rise, as consumers are increasingly drawn to lower-cost, lower-carbon options like E15 and E85,” Cooper said. “Based on the EIA data, we estimate that 600-700 million gallons of ethanol were consumed in blends other than E10, proving that the oil industry’s so-called ‘blend wall’ is nothing but a figment of their imagination. As war in eastern Europe destabilizes global petroleum markets and crude oil prices continue to rise, our nation’s leaders should be taking steps to increase the use of cleaner-burning, homegrown ethanol. We have enough unused production capacity in the ethanol industry to entirely replace U.S. crude oil imports from Russia.”
Cooper touched on many of these themes in his State of the Industry address at last week’s National Ethanol Conference.
Read the original press release here.
Feb 24, 2022
U.S. fuel ethanol production expanded by nearly 2 percent the week ending Feb. 18, according to data released by the U.S. Energy Information Administration on Feb. 24. Stocks of fuel ethanol were up slightly.
Ethanol production averaged 1.024 million barrels per day the week ending Feb. 18, up 15,000 barrels per day when compared to the 1.009 million barrels per day of production reported for the previous week. When compared to the same week of last year, production for the week ending Feb. 18 was up 366,000 barrels per day.
Ending stocks of fuel ethanol expanded to 25.507 million barrels the week ending Feb. 18, up 24,000 barrels when compared to the 25.483 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending Feb. 18 were up 2.722 million barrels.
Read the original story here.
Feb 23, 2022
The U.S. secretary of agriculture on Wednesday touted the importance lower-carbon biofuels will have in meeting the Biden administration's targets for reducing carbon emissions.
Agriculture Secretary Tom Vilsack spoke of the administration's support for biofuels -- including lower-carbon aviation fuel, which can be made from plant oils and animal fat.
His speech, at the National Ethanol Conference in New Orleans, took place as the industry eagerly awaits final rulemakings from the Biden administration around the nation's biofuel blending law, the Renewable Fuel Standard.
The administration has taken a number of steps to support renewable fuels, Vilsack said in a video message at the conference.
One of those is a program that authorizes Vilsack to make payments to U.S. biofuel producers to offset unexpected market losses from the COVID-19 pandemic. Up to $700 million in payments to eligible biofuel producers is available, according to the U.S. Department of Agriculture's website.
Read the original story here.
Feb 21, 2022
Following a pledge by members of the Renewable Fuels Association to achieve net-zero carbon emissions, on average, by 2050 or sooner, a new report released today shows that new and emerging technologies and practices could help the industry achieve this vision well before mid-century.
“Last summer, RFA’s member companies adopted a bold vision to achieve a net-zero carbon footprint for ethanol by 2050 or sooner. This new study shows that, with the right policy and investment signals in place, we can reach that objective sooner than 2050 and could even be producing carbon-negative ethanol by mid-century,” said RFA President and CEO Geoff Cooper. “The ethanol industry is already halfway down the road to net-zero emissions, as today’s corn ethanol cuts GHG emissions by about 50 percent compared to gasoline. This study provides the roadmap for completing the second half our journey to carbon neutrality.”
The new report, Pathways to Net-Zero Ethanol: Scenarios for Ethanol Producers to Achieve Carbon Neutrality by 2050, was prepared by lifecycle analysis expert Isaac Emery, Ph.D., of Informed Sustainability Consulting LLC.
“By surveying over two dozen potential emissions reduction actions throughout the corn ethanol supply chain and prioritizing them by technical feasibility, scale of emissions reduction, and cost, this study presents a series of pathways to net-zero CI [carbon intensity] corn ethanol by 2050,” Emery writes. “Updated lifecycle emissions forecasts of corn ethanol from 2020 through 2050 show that the industry can achieve net-negative CI ethanol by adopting near-term technologies and expanding best practices in corn farming.”
The report identified several actions that would constitute a “core pathway” to net-zero emissions:
- Renewable energy use by corn and ethanol producers;
- Expanded adoption of corn kernel fiber fermentation at dry mills;
- ‘Better-than-business-as-usual’ industry-wide efficiency improvements and ethanol yields;
- Carbon capture and sequestration by ethanol facilities; and
- Expansion of conservation tillage and other low-carbon practices by corn growers.
Altogether, the study identifies five distinct pathways to net-zero corn ethanol by 2050, based on a set of 28 emissions reduction actions that were considered. The roadmap will be featured and discussed by Emery and others at this week’s National Ethanol Conference, taking place Feb. 21-23 in New Orleans.
The new study can be accessed here.
Read the original story here.
Feb 16, 2022
WASHINGTON—With the Biden administration continuing to go back on its word with a biofuel agenda amounting to ‘promises made, promises broken,’ U.S. Senator Joni Ernst (R-Iowa), a relentless and longtime defender of biofuel, this morning stuck up for Iowa farmers and laid out the facts as to why the Renewable Fuel Standard (RFS) is critical to America’s national security and for consumer access to affordable, homegrown, clean-burning biofuel today and in the future.
At today’s Senate Environment and Public Works (EPW) Committee hearing, Ernst began her portion by asking the witnesses about the high cost of fuel and whether the RFS is the cause, to which one witness, Emily Skor of Growth Energy, clarified that it is not the cause. Ernst agreed the RFS is not the cause of high fuel costs, saying “I reject that.” Ernst set the record straight when it comes to liquid fuel and how important it continues to be for American families and businesses and why biofuel needs to be a part of the conversation, stating: “As much as the Biden administration dreams of an all-electric world, the reality is liquid fuels are here to stay.”
She also pointed out the fact that the RFS was created in part “to help reduce America’s dependence on foreign nations.” She emphasized: “I firmly believe energy security is national security. And while President Biden claims to support America’s clean energy economy, he is turning his back on the RFS in favor of electric vehicles, which will only make us more dependent on China.”
Ernst then laid out the facts that show biofuel is a cleaner solution for today and the future, stating: “Science is on our side here too.” She went on: “The latest research shows corn ethanol is 46% less carbon intensive than petroleum-based gasoline and biodiesel is 74% less carbon intensive than petroleum-based diesel. […] So, let’s follow the science and use biofuel as part of clean energy policy.”
Below are Ernst’s full remarks as prepared for delivery:
“As we look to 2023 and beyond, America’s farmers and biofuel sector are best positioned to work with the administration to put the Renewable Fuel Standard back on track and be part of the solution to secure a clean energy future.
“As much as the Biden administration dreams of an all-electric world, the reality is liquid fuels are here to stay. With 98 percent of cars and trucks today, and nearly 80 percent of new vehicle sales projected in 2050 running on gasoline or flex fuel, biofuel is the key pathway to decarbonizing the transportation sector – and the RFS is the policy engine that makes this possible.
“Congress passed the Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007, which mandated the RFS, in part, to help reduce America’s dependence on foreign nations.
“I firmly believe energy security is national security.
“And while President Biden claims to support America’s clean energy economy, he is turning his back on the RFS in favor of electric vehicles, which will only make us more dependent on China.
“Science is on our side here too.
“Biofuel has enabled the U.S. to cut emissions from the transportation sector for over a decade. Between 2008 and 2020, the RFS saved nearly 1 billion metric tons of carbon dioxide-equivalent greenhouse gas emissions and it’s only getting cleaner.
“The latest research shows corn ethanol is 46% less carbon intensive than petroleum-based gasoline and biodiesel is 74% less carbon intensive than petroleum-based diesel.
“Biofuel can further reduce greenhouse gas emissions with carbon capture and sequestration technologies and on farm conservation practices, which many Iowa farmers are already doing.
“So, let’s follow the science and use biofuel as part of clean energy policy.
“But it’s not only a clean energy source, biofuel is great for our economy and pocketbooks.
“Iowa corn and soybean farmers had record high crop yields in 2021. The biofuel industry accounts for over $5 billion of GDP, generates $2.6 billion of income for households, and supports nearly 46,000 jobs in Iowa.
“Ethanol is also the cheapest form of fuel for consumers right now—by about 50 cents—and certainly with record-high inflation it only makes sense to make this fuel source more readily available. That’s why I continue to urge the administration allow summertime sales of E15 as soon as possible. It will not only support our consumers, it’ll also support the nearly 300 retail stations in Iowa who want to provide a cleaner choice at the pump.
“Folks, the RFS is the law, and refiners have had over 15 years to come into compliance. Blend renewable fuels or buy RINs – it’s your choice. Any claim that RIN prices are increasing gas prices, is a bunch of hogwash.
“Refiners claim they need exemptions because RINs cost them money, but the last 3 administrations have said RIN prices do not cause harm to refiners. Small refinery exemptions go against congressional intent, and the Supreme Court reinforced this.
“A strong RFS supports rural America and increases consumer access to affordable, homegrown, clean-burning biofuel today, tomorrow, and for years to come.”
Read the original press release here.
Feb 14, 2022
By Geoff Cooper
RFA President and CEO
A new report published today in theProceedings of the National Academy of the Sciences, funded in part by the National Wildlife Federation, purports to examine the “environmental outcomes” of the Renewable Fuel Standard. In keeping with their previous “research” on biofuels and the RFS, the authors of this new paper precariously string together a series of worst-case assumptions, cherry-picked data, and disparate results from previously debunked studies to create a completely fictional and erroneous account of the environmental impacts of the Renewable Fuel Standard.
The claims in this report simply don’t align with reality and the facts on the ground, and the paper reads more like a fantasy novel than a genuine piece of academic literature. It should not be taken seriously.
In fact, when related research from some of the same authors was released several years ago, representatives from RFA and corn grower organizations met with this study’s lead author, Tyler Lark, at the University of Wisconsin, in an attempt to begin a constructive conversation about today’s ethanol industry and the real impacts of biofuels policy.
At that time, we shared data and information with Lark and his colleagues and asked how we could collaborate on research. We asked how we could work together to ensure their error-ridden satellite analysis of land-use changes was grounded in reality. We never heard back from them.
RFA is always open to having an honest, fact-based discussion about the impacts of ethanol and the RFS on the environment and economy. We have a great story to tell, and the data to back it up. Ethanol already reduced GHG emissions by roughly half compared to gasoline, and we are on a trajectory to achieve a net-zero emissions carbon footprint for ethanol by 2050 or sooner. Unfortunately, the authors appear more interested in slandering farmers and getting salacious headlines than examining the facts.
Click here for a more detailed rebuttal from RFA that offers key facts about ethanol’s environmental impacts that were purposely omitted from the paper.
Read the original story here.
More...
The U.S. exported 117.93 million gallons of ethanol and 933,882 metric tons of distillers grains in December according to data released by the USDA Foreign Agricultural Service on Feb. 8. Exports of both products were up when compared to December 2020.
The 117.93 million gallons of U.S. ethanol exported in December was down from 149.44 million gallons exported in November, but up when compared to the 112.87 million gallons exported in December 2020.
The U.S. exported ethanol to 40 countries in December. Canada was the top destination for U.S. ethanol at 36.33 million gallons, followed by India at 15.94 million gallons and South Korea at 14.3 million gallons.
The value of U.S. ethanol exports was at $334.91 million in December, down from $391.95 million the previous month, but up from $190.06 million in December 2020.
The U.S. exported a total of 1.24 billion gallons of ethanol last year at a value of $2.77 billion, compared to 1.31 billion gallons exported in 2020 at a value of $2.29 billion.
The 933,882 metric tons of distillers grains exported in December was down from 1.02 million metric tons in November, but up when compared to the 864,059 metric tons exported in December 2020.
The U.S. exported distllers grains to more than 30 countries in December. Mexico was the top destination at 166,756 metric tons, followed by South Korea at 130,754 metric tons and Vietnam at 103,518 metric tons.
The value of U.S. distillers grains exports increased to $248.85 million in December, up from $247.4 million the previous month and $202.7 million in December 2020.
Total U.S. distillers grains exports for 2021 reached 11.6 million metric tons at a value of nearly $3 billion, compared to 10.93 million metric tons exported in 2020 at a value of $2.33 billion.
Additional data is available on the USDA FAS website.
Read the original story here.
Feb 7, 2022
WASHINGTON, D.C. — Today, U.S. Representative Angie Craig led several co-chairs of the bipartisan Congressional Biofuels Caucus in urging the Biden Administration to take steps to protect and strengthen the Renewable Fuel Standard (RFS) as the Environmental Protection Agency (EPA) works to finalize its RFS rulemaking. In a letter addressed to EPA Administrator Michael Regan, Craig and her colleagues encouraged Regan to maintain the blending requirements for 2022, deny all pending Small Refinery Exemptions (SREs), reconsider proposed retroactive cuts to previously finalized 2020 RVOs and set 2021 RFS volumes at the statutory levels.
In the letter, the Members acknowledged positive steps taken by the Biden Administration to strengthen Renewable Volume Obligations (RVOs) and rein in the EPA’s SRE policy, which prioritized the oil industry at the expense of family farmers. But they also expressed concern with proposed retroactive reductions to RVO levels – and encouraged the EPA to reconsider changes that could negatively impact producers and restrict economic growth in rural communities.
“The benefits of renewable biofuels are clear. They play a key role in reducing carbon emissions from the transportation sector, generate economic growth and markets for family farmers across rural America, and reduce the cost of fuel at the pump for hardworking Americans,” wrote the Members.
The Members continued, “We are also concerned about the negative impact that other elements of the proposed rulemaking would have on family farmers, biofuels producers and consumers in our districts.”
Craig was joined in signing the letter by Representatives Cindy Axne (IA-03), Cheri Bustos (IL-17) Ron Kind (WI-03), Mark Pocan (WI-02) and David Scott (GA-13).
You can find the full text of the letter here and below.
February 7, 2022
The Honorable Michael S. Regan
Administrator
The Environmental Protection Agency
1200 Pennsylvania Avenue, NW
Washington, DC 20004
Dear Administrator Regan:
As the Environmental Protection Agency (EPA) works to finalize Renewable Fuel Standard (RFS) rulemaking for 2020, 2021, and 2022, we write to emphasize the importance of restoring and maintaining RFS integrity for family farmers and rural communities across our districts.
The benefits of renewable biofuels are clear. They play a key role in reducing carbon emissions from the transportation sector, generate economic growth and markets for family farmers across rural America, and reduce the cost of fuel at the pump for hardworking Americans. These clear benefits are why we are encouraged by the following elements of the EPA’s proposed RFS rulemaking:
- The proposed 2022 Renewable Volume Obligation (RVO) blending requirement. Setting the 2022 blending requirement for conventional biofuel at 20.77 billion gallons, including an implied 15 billion gallons for conventional biofuel, fulfills the statutory obligation of the RFS and creates market stability while enhancing the integrity of the RFS. We urge the EPA to finalize this proposed RVO as quickly as possible.
- The proposed restoration of 500 million gallons from the 2016 RVO. These gallons should never have been waived in the first place, and the proposal to restore 250 million gallons in 2022 and 250 million gallons in 2023 is the right one. We urge the EPA to finalize this restoration proposal.
- The proposed update to EPA’s Small Refinery Exemption (SRE) policy. The statutory language has always been clear: a small refinery must demonstrate “disproportionate economic hardship” to receive an exemption. We urge the EPA to finalize this proposal and ensure that the integrity of the RFS is not compromised by any future SRE abuse.
- The proposed denial of 65 pending SRE petitions. The SRE process was designed to provide assistance to small refineries in extraordinary circumstances, not to provide a loophole for regulatory relief. We urge the EPA to follow through on its proposed denial of 65 pending SRE petitions.
We are also concerned about the negative impact that other elements of the proposed rulemaking would have on family farmers, biofuels producers and consumers in our districts. Specifically, we believe that the following proposed actions would undermine the integrity of the RFS and create market uncertainty moving forward:
- The proposed retroactive reductions in the previously finalized 2020 RVO. These volumes were finalized in 2019, and any action to retroactively change them would be an unprecedented action that would deal a significant blow to the future integrity of the RFS. It would set a precedent that would call into question the reliability of future finalized RVO blending requirements, including the 2022 number. We urge the EPA to reverse course on this proposed retroactive reduction and consider the 2020 RVO final.
- The proposed 2021 RVO lookback and the rationale for doing so. The RFS establishes clear statutory guidance for blending requirements, and it is responsive to market conditions and fuel consumption trends. The 2021 RVO should adhere to those requirements, not reflect a retroactive lookback. We urge the EPA to reverse course on this proposed retroactive reduction and set 2021 RVOs at statutory levels.
We appreciate your continued engagement with Congress as the EPA implements the RFS. We look forward to future conversations with you and the Administration about the role of renewable biofuels in our collective effort to decarbonize the transportation sector, support family farmers and rural economies, and provide affordable fuel to all Americans.
Read the original press release here.
Feb 1, 2022
WASHINGTON – U.S. Senators Amy Klobuchar (D-MN) and Chuck Grassley (R-IA) led a bipartisan group of 12 colleagues in a letter urging the Environmental Protection Agency (EPA) to prioritize the Renewable Fuel Standard (RFS) by maintaining the blending requirements for 2022; denying all pending Small Refinery Exemptions (SREs); eliminating proposed retroactive cuts to the renewable volume obligations (RVOs); and setting 2021 RFS volumes at the statutory levels.
“The RFS is a significant tool for EPA to reduce the carbon footprint of our transportation sector,”the senators wrote.“By taking the above actions, the EPA can quickly restore integrity, stability, and growth to the RFS and the U.S. biofuel sector while ensuring that the program continues to reduce greenhouse gas emissions, diversify our fuels, drive down gas prices, strengthen our national security, and drive rural economic opportunity.”
The bipartisan letter to the EPA was also signed by U.S. Senators Tammy Duckworth (D-IL), Roger Marshall (R-KS), Tammy Baldwin (D-WI), Joni Ernst (R-IA), Dick Durbin (D-IL), Deb Fischer (R-NE), Tina Smith (D-MN), John Thune (R-SD), Debbie Stabenow (D-MI), Gary Peters (D-MI), Sherrod Brown (D-OH), and Roy Blunt (R-MO).
“We thank this bipartisan group of Senators for their efforts to protect and defend the Renewable Fuel Standard,”said Renewable Fuels Association President and CEO Geoff Cooper.“These Senators understand that the RFS is the most powerful and effective tool we have to immediately reduce greenhouse gas emissions from the transportation sector, keep consumer gas prices in check, and support a vibrant rural economy. RFA proudly stands with them in calling on the Biden administration to follow through on its commitments to put the RFS back on track.”
“The final versions of the recently proposed 2020, 2021, and 2020 RVOs will have an immense impact for years to come on not only the biofuels industry, but also on the environment as our nation works to achieve net-zero emissions,”said Growth Energy CEO Emily Skor.“We applaud our Senate champions for showing leadership in this bipartisan call for EPA to finalize strong RVO levels and eliminate any proposed retroactive cuts. By doing so, EPA would be making meaningful progress in the Biden Administration’s commitment to move toward more low carbon alternatives in our transportation sector while supporting farmers and biofuels producers.”
Klobuchar has been a strong advocate for investing in renewable fuel infrastructure and upholding theClean Air Act’s RFS.
In December, she and Grassley introduced the bipartisan, bicameral Defend the Blend Act, which would prohibit the EPA from retroactively reducing RVO levels once the annual rule is finalized.
In September, Klobuchar led a bicameral group of colleagues in urging the Biden administration to reject significant reductions in biofuel blending requirements.
In July, Klobuchar joined with Senator Deb Fischer (R-NE) to introduce the bipartisan Consumer and Fuel Retailer Choice Act, which would amend theClean Air Actto allow for the year-round sale of E15.
In June, Klobuchar introduced a 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.
Co-led by Senator Joni Ernst (R-IA), theBiofuel Infrastructure and Agricultural Product Market Expansion Actwould expand the availability of low-carbon renewable fuels in the marketplace, resulting in cleaner air, lower fuel process, and rural economic vitality.
Also in June, Klobuchar led a letter with 15 colleagues to the EPA and National Economic Council (NEC) expressing concern about reports that the Biden administration was considering options to exempt oil refiners from their obligations under the RFS.
Last April, Klobuchar also led a bipartisan letter with Senator Deb Fischer (R-NE) to EPA Administrator Regan calling on the EPA to reject requests to waive or reduce RVOs under the RFS.
In February, Klobuchar and Thune introduced the Adopt GREET Act to require the EPA to update its greenhouse gas modeling for ethanol and biodiesel. Klobuchar also led a letter with Grassley to the EPA highlighting the need to restore integrity to the RFS by reviewing small refinery waivers, swiftly issuing a proposed rule for the 2021 Renewable Volume Obligation, and advancing the proposed E15 streamlining proposal.
The full text of the letter is available HERE and below:
Dear Administrator Regan:
We write to you regarding the December 2021 release of two Environmental Protection Agency (EPA) proposed rules relating to the Renewable Fuel Standard (RFS).
By taking the actions below you can ensure farmers and biofuel producers have confidence that you are making the RFS a priority. We support your efforts to bring more transparency and consistency in the program’s implementation. While there are aspects of these rules that support our homegrown energy future, our constituents need to see improvements to the proposal.
The RFS is a significant tool for EPA to reduce the carbon footprint of our transportation sector, and we urge you to take the following actions when finalizing these rules:
1. Maintain the blending requirements for 2022, including the 250 million gallon remand. We support the Administration’s proposed volumes for 2022 across all categories of renewable fuel, including the requirement of 15 billion gallons for conventional biofuel and the restoration of the first 250 million gallons illegally waived from the 2016 RVO, as well as the commitment to provide for the final 250 million gallons in 2023. It is past time that EPA finally addressed the U.S. Court of Appeals for the District of Columbia’s July 2017 remand of the 2014-2016 RVO in Americans for Clean Energy v. EPA and restored the 500 million gallons that were improperly waived. We urge you to maintain the strong blending requirements for 2022 and finalize the supplemental volume of 250 million gallons in 2022.
2. Deny all pending Small Refinery Exemptions (SREs). Following several years of EPA undermining the total volumes in the RFS through the issuance of 88 Small Refinery Exemptions (SRE), we support the Administration’s proposal to deny all SRE petitions pending before the agency. Denying these pending petitions would be a positive step toward bringing integrity and transparency back to the RFS.
More importantly, we urge EPA to finalize its proposed change in approach to SRE eligibility, which notes that “small refineries fully recover the costs of RFS compliance through higher prices on sales of gasoline and diesel, and that as a result they do not suffer economic hardship due to the RFS.” The January 2020 Tenth Circuit decision in Renewable Fuels Association v. EPA found that EPA may only grant relief when the agency finds that a small refinery would suffer disproportionate economic hardship due to compliance with the RFS program. Applying this standard nationwide would help prevent future misuse of the SRE authority.
3. Eliminate the proposed retroactive cuts to the 2020 RVOs. We are extremely concerned about the proposal to retroactively waive 2.96 billion gallons of renewable fuel from the 2020 RVOs. These biofuel volumes were finalized over two years ago in December 2019, and adjusting them downward after the fact would set a troubling precedent and negatively impact the entire agriculture and fuel supply chain.
You have stated that the goal of EPA with respect to the RFS is to get the program “back on track” and provide “more certainty in the decisions that we’ve made.” Re-opening RVOs that have already been finalized while setting a precedent that future Administrations and EPA Administrators may retroactively lower previously finalized RVOs does the opposite of providing more certainty in the program. It would undermine confidence in any finalized RVO by rendering them a moving target at best—and irrelevant at worst.
Moving forward with these retroactive cuts fails to consider the self-correcting mechanism built-in to the RFS that adjusts biofuel blending to reflect lower gasoline usage. We urge you to eliminate the proposed retroactive cuts to the 2020 volumes and require obligated parties to comply with the 2020 standards that were finalized in 2019.
4. Set 2021 volumes at the statutory levels. We are also concerned that EPA has proposed to use reset authority retroactively to establish RVOs for 2021 that are equal to actual and projected volumes of renewable fuel used in the U.S. last year. The Administration cannot meet its ambitious climate goals without providing for growth and certainty in the RFS.
Finally, we request that EPA finalize this rule as quickly as possible. By taking the above actions, EPA can quickly restore integrity, stability, and growth to the RFS and the U.S. biofuel sector while ensuring that the program continues to reduce greenhouse gas emissions, diversify our fuels, drive down gas prices, strengthen our national security, and drive rural economic opportunity.
Thank you for your consideration.
Read the original press release here.
Minnesota Department of Agriculture
Jan 31, 2022
A new Minnesota Department of Agriculture (MDA) grant will help Minnesota service stations who want to offer customers more and greener options at the pump.
The Agricultural Growth, Research, and Innovation (AGRI) Biofuels Infrastructure Grant Program will award up to $6.6 million to offset the cost of investing in retail petroleum dispensers, fuel storage tanks, and other equipment certified as compatible with blends of motor fuel containing at least 25% ethanol.
“Encouraging stations to offer higher biofuels blends to customers is an immediate step we can take to lower carbon emissions,” Agriculture Commissioner Thom Petersen said. “It not only will help us meet Minnesota’s climate goals, but also strengthens our agricultural and rural economies, and the state’s as a whole.”
Applicants may request up to $199,000 for an individual project, and a minimum of $5,000. Grants may be expended over a three-year period, for projects with a start date between June 2022 and June 2023.
The MDA will award grants for equipment that is compatible with fuel blends of 25% ethanol or higher, including the installation of such equipment. Applicants must be a retail petroleum dispenser in Minnesota with no more than 10 sites, regardless of location. Separate applications must be submitted for each site in Minnesota seeking funding.
Additional consideration will be given to businesses owned by women, members of the BIPOC community, veterans, and projects that serve communities of color, Native American Tribal communities, socio-economically disadvantaged communities, and communities where access to biofuels is limited.
Funding for this program is made available through a legislative appropriation for the AGRI Program, which administers grants to farmers, agribusinesses, schools, and more throughout the state of Minnesota. The AGRI Program exists to advance Minnesota’s agricultural and renewable energy sectors. An additional $1 million in funding has been provided by the Minnesota Corn Growers Association.
Applications must be received by 4 p.m. Thursday, March 17, 2022 to be considered for funding. Visit the MDA’s AGRI Biofuels Infrastructure Grant webpage for information on how to apply.
Read the original story here.
Jan 25, 2022
Global grain trader Archer-Daniels-Midland Co (ADM.N) reported a record fourth-quarter profit on Tuesday and said it would continue to cash in on strong demand for crops and biofuel in 2022.
Chicago-based ADM's earnings jumped nearly 14% in the quarter as rising biofuel demand and strong ethanol margins doubled operating profit at its carbohydrate solutions division.
High energy and grain costs, however, clipped earnings at the corn-processing unit, as well as its core ag services and oilseeds segment, where operating profit fell from the same quarter a year earlier.
Shares were down about 2.2% in midmorning trading.
ADM's results offered a look into how the world's biggest grain traders are weathering shifts in food and fuel demand triggered by the pandemic and soaring inflation.
ADM and rival agribusinesses have benefited from rising demand for food and renewable fuel as economies reopen.
"As we look forward in 2022, we see a positive demand environment across our portfolio," said CEO Juan Luciano.
U.S. demand for ethanol is likely to return to pre-COVID levels this year and ADM's dry mills that churn out the corn-based biofuel have resumed production after pandemic-related closures in 2020, company executives said.
Surging prices for the grain and oilseeds ADM buys, sells, processes and ships around the globe have presented a challenge.
Adverse crop weather in South America and the crisis between Russia and Ukraine, a major global grain supplier, may keep crop prices elevated "well into probably 2023," Luciano said.
ADM's net earnings rose to $782 million, or $1.38 per share, in the quarter ended Dec. 31, from $687 million, or $1.22 per share, a year earlier.
Excluding one-time items, earnings of $1.50 a share, a record for the quarter, topped the consensus analyst estimate of $1.37, according to Refinitiv Eikon data.
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Jan 20, 2022
Agriculture Secretary Tom Vilsack discussed the important role biofuels and biobased manufacturing play in the rural economy and highlighted the agency’s efforts to support those industries during a Jan. 20 hearing held by the House Agriculture Committee.
In his opening statement, Vilsack focused on the phrase “an extraction economy" and the need to create a circular economy where wealth is created and stays in rural areas. He explained that many of the raw resources produced by the ag economy are currently transported long distances, and value-added at some other location. As a result, opportunities and jobs are created in areas other than rural America. “I think it’s going to be important to us as we look forward to try to develop what is called a circular economy, in which the wealth is created and stays in rural areas," he said.
Vilsack offered several examples of a circular economy, including biobased manufacturing. “Biofuels is one example, but there are a multitude of ways in which we can convert agricultural waste products into a wide variety of things beyond renewable energy and fuel, to include chemicals, materials, fabrics, fibers—again creating opportunities for farmers and additional income sources as well as rural jobs.”
He also stressed that climate change creates an opportunity for the ag sector. “As we look at ways in which rural lands can be used to sequester carbon—as we embrace climate smart agricultural practices—it opens up a whole new vista of opportunity for farmers to essentially be paid for the carbon sequestration that they are currently doing and will do in the future,” Vilsack said.
Vilsack also field several questions related to biofuels, the Renewable Fuel Standard, E15 and electric vehicles during the hearing.
Rep. Vicky Hartzler, R-Mo., referenced recent media reports that the Biden administration is considering lowering its proposed 2022 renewable volume obligation (RVO) and asked Vilsack to comment on those rumors.
In response, Vilsack stressed that the proposed RVO for 2022 is the highest in the history of the RFS program. He also discussed the $700 million in COVID-19 relief for biofuels and the $100 million in biofuel infrastructure funds that the USDA has announced it will distribute this year and highlighted the importance of the U.S. EPA’s proposal to deny more than 65 small refinery exemption (SRE) petitions.
Rep. Cheri Bustos, D-Ill., also questioned Vilsack on the importance of biofuels and the Biden administration’s support for the industry.
Vilsack outlined four primary benefits of the biofuels industry. He said the industry supports stability in farm income, increases jobs in rural areas, provides consumers with choice at the pump, and benefits the environment. “That’s why it’s important for the industry to have stability,” he said. “And, stability comes not just from setting a [strong RVO], but from making sure that number is real.” He discussed the Trump administration’s overuse of SRE waivers, noting that RVOs finalized by Trump’s EPA were not real, rather they were greatly dissipated by the granting of SREs. The current administration plans to deny more than 65 pending SRE petitions, which will result in a “real” RVO. “I think the stability is going to be very helpful to this industry,” he said.
Rep. Mary Miller, R-Ill., said her constituents are concerned about the Biden administration’s focus on electric vehicles and questioned if the administration has shown sufficient support for biofuels.
In response, Vilsack reiterated the importance of the $700 million in pandemic relief and $100 million in infrastructure support that the USDA is offering to the biofuels industry, along with the impact of the EPA’s decision to reign in the SRE program. He also stressed that the Biden administration has also set an ambitious goal for sustainable aviation fuel (SAF). “I think it’s very unfair to suggest that this administration has not been supportive of the biofuel industry,” he said.
Rep. Angie Craig, D-Minn., also questioned Vilsack regarding the focus on electric vehicles. “There is a lot of conversation about electric cars,” Vilsack said, but stressed that cars with internal combustion engines will continue to remain on the road for the foreseeable future and will require the use of biofuels. Liquid biofuels will also continue to be necessary for aviation and marine transport. “We won’t see the elimination of [the biofuels industry]—we’ll see an expansion of it,” Vilsack said. “I’m excited about this industry and think the future is bright.”
Rep. Michelle Fischbach, R-Minn., expressed concern that the fact that biofuels reduce emissions is getting lost in the conversion on climate change, and asked about the agency’s support for biofuels. “I am confidence that I am one of the most ardent proponents of biofuels anywhere in this country and have been for years—decades,” Vilsack said in response, assuring the committee that biobased fuels remain a priority for the current administration.
Rep. Ro Khanna, D-Calif., said Vilsack has long championed efforts to expand biomanufacturing and asked about the impact recently allocated funding will have that sector.
Vilsack explained that a Congress allocated a relatively small amount of funds the agency in a recent infrastructure bill to look at the issue of biobased manufacturing. That funding, he said, could have a profound impact on rural America. Biobased manufacturing provides a market for a variety of agricultural waste products, Vilsack said. Those materials can be used to produce not only fuels, but also chemicals, materials, fabrics, fibers and renewable energy—all of which creates a circular economy, creates new income sources for farmers, and helps avoid some of the environmental challenges associated with some ag industries. He potential, he said, is unlimited and “rural America is ripe for this opportunity.”
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Jan 19, 2022
A press conference in the run-up to the 19th International Conference on Renewable Mobility Fuels of the Future 2022 addressed the contribution that sustainable renewable fuels has already made to mitigating climate change.
That means an additional saving of almost 4 million tonnes of CO2 emissions were achieved that year, compared with the previous 12 months.
“This success is due to raising the greenhouse gas reduction quota (GHG quota) to 6% for 2020 (4% in 2019) and shows that the GHG quota and the ensuing competition for greenhouse gas efficiency are having an impact,” said Artur Auernhammer, chairman of the board, German Bioenergy Association (BBE). Sustainable biofuels played an indispensable part in effective climate protection in the transport sector and will continue to do so in future, he added.
“Biofuels outperform the minimum requirements on climate protection stipulated in the current EU Directive, notching up average greenhouse gas savings of 81% for biodiesel, 90.5% for biomethane and 92% for bioethanol compared to fossil fuels. The GHG quota rewards use of biofuels that ensure the highest possible greenhouse gas savings."
The German Bundestag’s decision to continue raising the GHG quotas means greater climate protection in the transport sector, while at the same time offering planning security for manufacturers of renewable fuels and feedstock producers.
Specifically, the GHG quota will increase from 6% in 2021 to 7% in 2022, subsequently rising step-by-step to 25% in 2030. “We assume that the increased GHG reduction quota will save a total of around 175 million t CO2 in the transport industry by 2030.
He explained: “Sustainable biofuels will contribute 110 million t CO2 of these overall savings. That makes clear that there is no alternative to commercially available biofuels if climate protection targets are to be achieved, despite the potential of electromobility and fuel cells.”
It is already apparent that the vast bulk of the vehicle fleet will still be powered by internal combustion engines in 2030, even if the ambitious electromobility targets are met by that deadline. Those vehicles will also need to make a growing contribution to climate protection. As a minimum, it will be appropriate to safeguard the contribution that commercially available biofuels make to climate protection of biofuels, while supplementing this by continuing to develop advanced biofuels and ultimately also synthetic fuels.”
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Jan 17, 2021
The ethanol industry entered 2022 with considerable momentum after profit margins rose to all-time records during the fourth quarter, according to CoBank’s latest Quarterly Research Report, released in January. Several risks, however, are expected to emerge during the first half of 2022.
The report shows that ethanol production surged above pre-COVID levels during the fourth quarter of 2021, delivering a massive profit margin surge. CoBank said strong consumer demand, higher ethanol prices, and sharply falling natural gas prices offset a modest rise in corn prices during the quarter, noting that fourth quarter profit margins rose to all-time records, currently averaging $1.34 per gallon. Daily operating margins peaked at $1.55 per gallon in late November, according to CoBank.
Despite the momentum with which the ethanol industry has entered 2022, CoBank said it sees several risks emerging over the next six months, including overproduction prompted by current extreme profitability, higher financing costs as the Federal Reserve raises benchmark interest rate targets, and possible economic shocks and/or demand volatility from the omicron variant. In addition, the global transition toward electric vehicles, urbanization, ride-sharing and remote work were identified as long-term challenges that collectively decrease fuel vehicle miles driven.
A full copy of the report is available on the CoBank website.
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