In the News
Apr 22, 2024
CoBank is predicting a positive outlook for ethanol in 2024 as plants capitalize on lower corn prices and improved margins, according to the company’s latest Quarterly Research Report, released April 11.
Ethanol production in January, however, was down. Only 434 million bushels of corn went to fuel alcohol production during the first month of the year, down 10% when compared to the previous month, and down 2% when compared to January 2023.
According to CoBank, reports indicate that improved ethanol demand has encouraged some marginal plants to come back online. These restarted plants are pushing ethanol supplies higher and could create minimal oversupply.
Within the report, CoBank explains that ethanol producers are optimistic that higher blends and sustainable aviation fuel (SAF) will offset the impact of electric vehicles (EVs). “Rising E15 and E85 blending enables the ethanol industry to hold the line in an otherwise declining gasoline market,” CoBank said in the report. “Every 1 million new battery-only EVs sold reduces ethanol demand by 45 million gallons per year.”
While the U.S. Department of Treasury has set to release the revised 40BSAF-GREET model which will be used to calculate greenhouse gas (GHG) emissions reductions for the purposes of the SAF tax credit, CoBank estimates that ethanol producers will need to reduce carbon intensity (CI) by 25 to 30% to qualify. Those reductions could come from sourcing lower CI grains or utilizing carbon capture and storage (CCS) technology, the company said in the report. The 40BSAF-GREET model will also set the tone for implementation of the 45Z clean fuel production tax credit, which is scheduled to go into effect on Jan. 1, 2025, CoBank added.
The report also briefly discusses the impact of lower renewable identification numbers (RINs), which CoBank said may reduce biofuel plant utilization and could force producers to slow or shelve plans to expand renewable diesel capacity.
A full copy of CoBank’s latest Quarterly Research Report is available on the company’s website.
Read the original story here.
A joint statement issued by President Joe Biden and Japanese Prime Minster KISHIDA Fumio on April 10 outlines the intentions of the two countries to cooperate on expanding the availability sustainable aviation fuel (SAF), including SAF made from ethanol.
Kishida last week made an official visit to the White House, where he and Biden celebrated a new era of U.S.-Japanese strategic cooperation. The statement outlines cooperation initiatives in the areas of defense and security; space exploration; innovation, economic security and climate action; global diplomacy and development; and fortifying people-to-people ties.
Regarding actions in innovation, economic security and climate action, Biden and Kishida discussed efforts to cooperate on the development and deployment of next generation clean technologies, including SAF.
“We intend to advance widespread adoption of innovative new clean energy technologies, and seek to increase the globally available supply of sustainable aviation fuel or feedstock, including those that are ethanol-based, that show promise in reducing emissions,” they said in the joint statement.
A fact sheet released by the White House indicates the U.S. and Japan have reaffirmed their joint aim of decarbonizing the aviation industry, including the goal of net-zero emissions by 2050. The two countries also recognize the importance of realizing the U.S. Sustainable Aviation Fuel Grand Challenge 2030 goal of 3 billion gallons of SAF. Similarly, Japan has set a goal to replace 10% of the fuel consumed by Japanese airlines with SAF by 2030.
“To support achieving these goals, the United States pledges to seek to support the increase of globally available supplies of SAFs or feedstocks, including those that are ethanol-based, and commit to working in ICAO to identify solutions that accurately measure and actively reduce the carbon intensity of global SAF feedstocks and products,” the White House said in the fact sheet. “Simultaneously, Japan commits to advancing R&D efforts to develop and commercialize SAF technologies, including Alcohol-to-Jet (ATJ), through support measures by Japan’s Ministry of Economy, Trade and Industry.”
The Renewable Fuels Association, Growth Energy and the U.S. Grains Council on April 16 issued a joint statement expressing gratitude that the two countries are recognizing the importance of ethanol as a SAF feedstock.
“Our organizations appreciate the dedication and support of USDA’s Foreign Agricultural Service (FAS), the U.S. Trade Representative and other U.S. government agencies advocating for grain-based ethanol in their international discussions,” the ethanol groups said in their statement. “These U.S. officials continue to highlight that ethanol is a readily available, low-carbon solution that can be used immediately as a carbon mitigation tool for the on-road, aviation, maritime and biochemical sectors.
“We thank the Biden Administration for its ongoing assistance in promoting U.S. ethanol abroad. Through our continued joint efforts to showcase U.S. ethanol benefits to the global community, we are collectively leading the transition to a low-carbon economy and supporting international climate commitments for a net-zero future.”
Read the original story here.
Apr 11, 2024
WASHINGTON, DC –U.S. Representative Angie Craig led a group of House Republicans and Democrats urging President Biden to take the steps necessary to permit the year-round sale of E15, a biofuel alternative cheaper than traditional gasoline.
In their letter, the Members urged the President to issue the emergency waiver needed to allow the year-round sale of E15 to occur. The Members argued that doing so would help bolster America's energy resilience, strengthen the supply chain, lower costs for Americans and provide reliable markets for our nation’s farmers.
“Home-grown, American biofuels are a straightforward, no-cost solution that strengthens our nation’s energy infrastructure, supports our farmers and reduces consumer costs. We request you expeditiously grant this emergency waiver for 2024,”they wrote.
Rep. Craig has long advocated to make the year-round sale of E15 permanent. Last year, Rep. Craig reintroduced the bipartisan, bicameralConsumer and Fuel Retailer Choice Act to allow for the year-round, nationwide sale of E15.
"The planet benefits and consumers save money when they can fill up their cars with E15. In the absence of a federal legislative fix, we need EPA to act now to provide an emergency waiver, so that retailers have enough time to ensure their supplies of this more affordable, earth-friendly fuel won't be interrupted this summer. We thank Representatives Craig, Smith, Pocan, and Johnson for leading the charge on this critical issue, and hope this letter spurs the EPA into taking action on behalf of American drivers,”said Emily Skor, CEO of Growth Energy.
“We thank Reps. Craig, Smith, Pocan, and Johnson along with a group of bipartisan House members for calling on the Biden Administration to quickly take action to allow the nationwide sale of E15 through the coming summer,” saidRFA President and CEO Geoff Cooper. “These Representatives understand that with current fuel supplies lower than the last two summer driving seasons and the market pressures of ongoing geopolitical conflicts, it is imperative that consumers have access to this American made supply of lower-cost, cleaner fuel.”
“Sales of E15 in Minnesota reached a record high last year, in part because consumers across the state were able to fill-up their tanks with the lowest-cost fuel all summer long. We applaud Representative Craig for fighting on behalf of Minnesota drivers who are at risk of losing the $0.16 per gallon average cost savings associated with E15 on June 1. We join her in urging the Biden administration to provide an emergency waiver for the sale of E15 during the 2024 summer driving season because of ongoing global energy supply chain challenges,”said Brian Werner, CEO of MN Biofuels.
A full copy of the letter can be found here.
Read the original press release here.
Apr 9, 2024
The U.S Energy Information Administration increased its forecast for 2024 fuel ethanol production in its latest Short-Term Energy Outlook, released April 9. The 2024 and 2025 forecasts for fuel ethanol blending were reduced.
The EIA currently predicts ethanol production will average 1.03 million barrels per day this year, up from last month’s forecast of 1.02 million barrels per day. The agency maintained its 2025 fuel ethanol production forecast at 1.03 million barrels per day. Production averaged 1.02 million barrels per day in 2023.
On a quarterly basis, fuel ethanol production was at 1.04 million barrels per day during the first quarter of this year and is expected to average 1.02 million barrels per day during the second and third quarters, partially rebounding to 1.03 million barrels per day in the fourth quarter. Moving into 2025, fuel ethanol production is expected to average 1.03 million barrels per day in the first and second quarters, 1.02 million barrels per day during the third quarter and 1.04 million barrels per day during the fourth quarter.
The EIA currently predicts that fuel ethanol blending will average 930,000 barrels per day in both 2024 and 2025, down from the March STEO forecasts of 940,000 barrels per day. Fuel ethanol blending averaged 930,000 barrels per day last year.
Read the original story here.
Apr 4, 2024
February U.S. ethanol exports slipped 7% to a still-robust 139.0 million gallons (mg), largely influenced by fluctuations in our five largest markets (representing 77% of total shipments). Canada was our largest destination for the 35th consecutive month despite a 17% shave from January. Denatured fuel ethanol accounted for 93% of the 47.9 mg crossing the border. Exports surged to the United Kingdom (up 53% to 21.2 mg) and Colombia (up 93% to 15.0 mg) but volumes tempered to India (down 59% to 13.4 mg) and the European Union (down 39% to 9.7 mg). Escalating exports to other larger markets helped curb the slippage, including Singapore (6.0 mg, +501%), Mexico (5.8 mg, +5%), Peru (5.7 mg, +133%), and Jamaica (4.0 mg, +1040%). Notably, exports to Japan marked a 4-year high of 1.7 mg following concerted efforts to enlarge the market, while Brazil was again absent. Year-to-date ethanol exports totaled 289.0 mg, a whopping 30% ahead of last year at this time.
For the sixth consecutive month, the U.S. did not log any meaningful imports of foreign ethanol (Brazil shipped 70,282 gallons of undenatured fuel ethanol).
U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, rebounded 9% to 986,337 metric tons (mt) on mixed markets. Shipments to Mexico, our largest customer for the second straight month, climbed 4% to 259,658 mt—the nation’s second-largest monthly imports on record. South Korea imports of U.S. DDGS slipped 10% to 132,457 mt while volumes rallied to Indonesia, up 20% to 86,304 mt. The remaining half of February exports shipped to forty countries, including significant yet declining volumes to Vietnam (65,146 mt, down 8%), Japan (51,051 mt, down 11%), Canada (49,588 mt, down 24%), and Colombia (33,477 mt, down 26%). Year-to-date DDGS exports totaled 1.89 million mt, which is 23% more than last year at this time.
Read the original story here.
Apr 2, 2024
Aylmer, ON, Canada, April 2, 2024– Whitefox Technologies is pleased to announce that IGPC Ethanol Inc. has agreed to install the Whitefox ICE®membrane dehydration system at its ethanol plant located in Aylmer, Ontario. This is a landmark agreement as it represents Whitefox’s first opportunity in Canada. The installation project is anticipated to be completed during Q4 2024.
Paul Morin, P.Eng, IGPC Director of Operations said “We are very excited to have a Whitefox ICE system integrated into our distillation area. This system yields many benefits that align with our strategic goals. It will help us lower our CI all the while reducing the strain on our sieves and making a more user-friendly distillation system. I am very impressed with how custom-made Whitefox integrates with our system to maximize energy savings.”
The Whitefox ICE® system treats existing recycle streams to free up and debottleneck distillation-dehydration capacity, enabling IGPC Ethanol to lower natural gas use, cut carbon emissions, improve plant cooling, and increase potential production capacity depending on the system design. Whitefox ICE® is integrated into existing corn ethanol production plants with minimal disruption and a small footprint.
Jackie Hayes, Whitefox Business Development Manager North America, “We are delighted to have partnered with IGPC on this project and excited as this represents our first installation in Canada. Whitefox has had a strong presence in Canada for over 20 years, as it is home to our Engineering and R&D centers in Calgary. Once the Whitefox ICE® solution is installed, it will assist IGPC to achieve key strategic objectives of Canadian biofuels policy – to make more fuel ethanol gallons in Canada, with reduced carbon intensity – and do so with lower energy and operating costs. I would like to thank Kevin Norton, Paul Morin and the team at IGPC for their support and commitment to install Whitefox Membrane technology.”
ABOUT BGW SP. Z O.O
Since its establishment in 2007, IGPC Ethanol is committed to contributing to both the Renewable Fuels Industry and Ontario’s agricultural sector for the better by supporting local farmers and promoting a clean environment through sustainable, renewable fuel production. As a division of Integrated Grain Processors Co-operative Inc, IGPC Ethanol Inc. has become a leader in Southwestern Ontario’s business community in supporting environmentally sustainable economic growth, so far producing 380 million litres of denatured fuel grade ethanol and 340,000 tonnes of distillers’ grains.
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:whitefox.com
Twitter:@WhitefoxTech
LinkedIn:Click Here
Read the original press release here.
Mar 26, 2024
Today, the Renewable Fuels Association, Growth Energy, National Corn Growers Association, American Farm Bureau Federation, National Farmers Union, and National Sorghum Producers sent a letter to the Environmental Protection Agency (EPA) calling on Administrator Michael Regan to act swiftly on an emergency waiver for E15 sales:
“New and ongoing conflicts across the globe continue to pose risks to the United States’ transportation energy supply. In addition to the conflict in Ukraine, now extending into its third year, the recent unrest and volatility in the Middle East present additional challenges to American energy security. In particular, attacks on shipping in the Red Sea have already had a disruptive effect on the transit of fuel in the region, raising the specter of constrained supply and increased gasoline prices at home,” wrote America’s top biofuel advocates.
To remedy the ongoing disruptions to global energy markets, stabilize gasoline prices for American consumers, and support domestic energy security, the authors urged EPA to quickly authorize the summer sale of gasoline blended with up to 15 percent ethanol.
“The consumer cost savings that result from allowing the year-round sale of E15, even on a temporary basis, are well-established. As a result of the emergency waivers issued in 2022 and 2023, consumers choosing E15 experienced average cost savings of 10-30 cents per gallon, with some locations offering over $1 off per gallon,” they added.
Read the original press release here.
Mar 21, 2024
WASHINGTON, D.C. – A multi-state coalition of biofuel and farm advocates called on President Biden’s Treasury Department to swiftly resolve any questions standing in the way of efforts to scale up U.S. production of Sustainable Aviation Fuel (SAF). Specifically, they urged the administration to quickly adopt the U.S. Department of Energy’s GREET model for the calculation of SAF tax credits (40B) under the Inflation Reduction Act – completing a process that was originally scheduled to conclude by March 1.
“We are disappointed that the administration did not fulfill its commitment to release a modified GREET model by March 1, but we appreciate the importance of getting the modeling right,” wrote 26 organizations across 13 states, including Clean Fuels Alliance America, Growth Energy, National Corn Growers Association, National Farmers Union, National Oilseed Processors Association, and the Renewable Fuels Association. “At the same time, we caution against contradictory changes to GREET that would stack unwarranted penalties on agricultural feedstocks, cut rural America out of a promising green energy market, and undermine any realistic path to achieving U.S. SAF goals.”
SAF advocates emphasized the availability of well-established methodologies for certifying climate smart agriculture (CSA) practices, in contrast to speculative and unverifiable penalties for indirect land use change (ILUC) favored by opponents of U.S. agriculture.
“Failing to value regenerative and CSA advancements, as well as the full suite of biorefining innovations cited in guidance to date, would leave substantial carbon emissions reductions on the table and represent a missed opportunity to energize these promising sectors,” they wrote. “A consistent approach to ILUC and CSA is a vital part of giving farmers and SAF producers a credible, durable, and predictable framework for making the commitments necessary to effectuate IRA and the SAF Grand Challenge.”
The full text of the letter and a list of signers can be found here.
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Mar 20, 2024
By failing to recognize and appropriately credit the benefits of ethanol, the 2027-2032 tailpipe emissions standards finalized today by the U.S. Environmental Protection Agency disregard an obvious near-term opportunity for achieving significant vehicle efficiency improvements and greenhouse gas emissions reductions, according to the Renewable Fuels Association.
“While we share the Biden administration’s vision for reducing carbon emissions and increasing energy efficiency, today’s final rule certainly isn’t the best way to accomplish that goal,” said RFA President and CEO Geoff Cooper. “Clearly, the substantive concerns raised by automakers, ethanol producers, fuel suppliers, consumer groups, and many others went unheard by the White House and EPA. Today’s final rule effectively forces automakers to produce more battery electric vehicles based on the false premise that they are ‘zero-emission vehicles.’ At the same time, the regulation would strongly discourage manufacturers from pursuing other technologies—like flex fuel vehicles and engines optimized to operate on high-octane, low-carbon ethanol—that could achieve superior environmental performance at a lower cost to American consumers.”
Throughout the rulemaking process, RFA strongly encouraged EPA to abandon its de facto EV mandate and instead adopt a technology-neutral, full lifecycle analysis approach for assessing the true greenhouse gas impacts of various transportation options. Unfortunately, EPA’s final rule continues to ignore the significant upstream emissions related to electricity generation, as well as the substantial emissions involved in battery mineral extraction and processing.
RFA initially urged EPA to reconsider its emissions standards proposal with testimony at a hearing in May 2023, and also took part in a joint letter to EPA Administrator Michael Regan in July. In its extensive comments submitted to EPA that month, RFA noted that multiple studies show ethanol significantly reduces greenhouse gas emissions and is on the way to net-zero carbon emissions by 2050 or sooner.
“If our nation is to reach its goal of net-zero GHG emissions by mid-century, we’ll need both cleaner, more efficient cars and cleaner, more efficient fuels,” RFA said in those comments. “And we’ll need to account for their emissions honestly using a full lifecycle approach. Focusing only on emissions from the vehicle—while ignoring emissions related to the extraction and production of the fuel used to power the vehicle—will almost certainly result in falling far short of the administration’s overall climate goals.”
RFA noted that voters are expressing increased concerns about the potential impact of EPA’s tailpipe regulations on future vehicle choices and prices. In a nationwide survey of 1,991 registered voters conducted last week, 68 percent said they oppose policies that mandate EVs, up from 63 percent when the same question was asked in September 2023. Meanwhile, more than two-thirds of voters responding support policies that expand the availability of high-octane mid-level ethanol blends and flex fuel vehicles.
Read the original story here.
Mar 8, 2024
NATSO, representing truck stops and travel plazas, SIGMA: America's Leading Fuel Marketers, and the National Association of Convenience Stores (NACS) on March 7 urged the U.S. EPA to authorize the summer sale of gasoline blended with up to 15 percent ethanol, or E15, to ensure lower fuel costs for consumers and fewer emissions from gasoline.
NATSO, SIGMA and NACS, which collectively represent 90 percent of the motor fuel sales in the United States, said in a letter to EPA that the geopolitical factors that necessitated action from EPA during the 2022 and 2023 summer driving seasons continue to persist. Circumstances emanating from the war in Ukraine coupled with recent unrest in the Middle East risk generating shipping disruptions, which will lead to a volatile fuel supply market.
"These circumstances create ongoing supply chain challenges, including a volatile fuel supply market," the fuel retail industry said. "None of these circumstances appear likely to dissipate in the coming months. This will result in continued, increasing pressure on transportation fuel markets that will make it challenging to ensure consistent, reasonably priced gasoline supply across the nation."
Access to summertime E15 sales will help to insulate the United States from these geopolitical threats by allowing additional, domestically produced biofuels to be blended into the fuel supply.
While current fuel supplies are adequate to meet demand, Americans drive much more during the summer months. Allowing E15 to be sold during this peak driving season will help to ensure the nation does not experience disruptions in the fuel supply or higher costs for consumers should unforeseen circumstances tighten supplies.
Read the original story here.
Mar 7, 2023
January U.S. ethanol exports ebbed 4% to a still-robust 150.0 million gallons (mg). Canada was our largest destination for the 34th consecutive month, hastened by a 32% jump in volume. Shipments totaled 57.7 mg and accounted for 38% of global sales. The U.S. exported 33.0 mg to India, up 61% to a three-year high. An elevated share of denatured fuel ethanol exports to both countries (totaling over 76 mg) helped mark January as the second-largest monthly denatured shipments on record. Other large and expanding ethanol export markets included South Korea (+32% to 11.0 mg), Colombia (+74% to 7.8 mg), and Mexico (+24% to 5.5 mg). However, declining volumes to the European Union (-2% to 15.9 mg, despite record volumes to Latvia) and the United Kingdom (-47% to 13.9 mg) put the brakes on the overall January total. Brazil again was notably absent from the market.
There were no U.S. imports on record in January, according to the monthly data.
U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, slipped 9% to 902,376 metric tons (mt) on mixed markets. Shipments mounted 57% to Mexico, helping our neighbor regain its role as our top DDGS customer on a 26-month high of 249,582 mt (equivalent to 28% of January exports). Exports also rallied to Vietnam (+11% to 70,718 mt), Japan (doubled to 57,401 mt), Colombia (doubled to 45,286 mt), and China (+10% to 25,105 mt). These gains were largely offset by lower shipments to several larger markets, including South Korea (-16% to 146,439 mt), Indonesia (-19% to 71,647 mt), Turkey (slight downtick to 65,238 mt), and Canada (-7% to 64,983 mt).
Read the original story here.
Feb 29, 2024
Agriculture Secretary Tom Vilsack expressed confidence that the U.S. EPA will issue an emergency waiver to allow E15 to remain available this summer and discussed the USDA’s ongoing efforts with regard to sustainable aviation fuel (SAF) during a Feb. 28 congressional hearing.
Vilsack appeared before the U.S. Senate Committee on Agriculture, Nutrition and Forestry on Feb. 28 during a hearing that was focused on USDA oversight and the upcoming Farm Bill.
During the hearing, Sen. Joni Ernst, R-Iowa, expressed support for the final rule issued by the EPA in February that will allow E15 to be available year-round in eight Midwest states starting with the 2025 summer driving season, but expressed disappoint that the EPA delayed implementation of the rule until next year. She cited previous comments made by Vilsack and asked if he is confident the Biden administration will issue a year-round waiver allowing E15 sales to continue during the 2024 summer driving season on a nationwide basis. Such emergency waivers were implemented by the EPA for the 2022 and 2023 summer driving seasons.
Vilsack indicated that he is confident that the EPA will issue an emergency waiver allowing E15 sales to continue nationwide this summer and said he expects that waiver to be issued in the same timeframe it was the past two years—likely in April. “I am pretty sure they will have the resources and the data necessary to make the decision and have the decision stick,” he said in reference to the emergency waiver.
Sen. Chuck Grassley, R-Iowa, questioned Vilsack on the USDA’s advocacy work related to SAF. Vilsack said he thinks the USDA has two primary roles to play in relation to SAF. The first is to advocate for a rule related to the Inflation Reduction Act tax credit that allows for a broad range of feedstocks, including the traditional feedstocks that are used to biofuels, to qualify for the tax credits and for the incentives. This includes the use of ethanol as a SAF feedstock.
“Part of my responsibility is to articulate the need [and] the science behind that,” Vilsack said. “I think we’ve been successful in getting the GREET model incorporated in this process.” He added that the agency is now in the process of talking about climate smart agriculture, and stressed “we’re going to continue to pound the table on that.”
The second responsibility is for the USDA to provide the science and the data behind the availability of the feedstock, the logistics for the supply chain, and how to accelerate adoption and commercialization of SAF, Vilsack said. He said he was in attendance at the recent opening of LanzaJet’s facility in Georgia and noted that the U.S. has set a goal to produce 36 billion gallons of SAF. The LanzaJet facility is a 10 MMgy plant. “Obviously, we have to accelerate dramatically the commercialization and availability [of SAF],” Vilsack said. “We have to figure out the tools we can use at USDA—our loan programs and so forth—to try to accelerate that.”
Regarding USDA’s advocacy in updating the GREET model, Vilsack said he thinks the people USDA worked with appreciate ethe fact that he is a strong advocate and that the team at USDA is very thoughtful and provides the scientific data to back up what they are saying. He said the agency isn’t just advocating for SAF because it would be good for farmers, USDA is advocating for SAF because the science supports it. He noted that USDA’s advocacy work helped some folks who were skeptical of the GREET model embrace it. The agency is now in the process of educating those folks on climate-smart agriculture so that they understand the benefits of cover crops, efficient fertilizer, no-till, and other things of that nature—and understand that you can calculate the benefits of those climate-smart ag practices and that those benefits should be incorporated into SAF calculations.
Vilsack also touched on the importance of domestically producing SAF feedstocks. “If you can’t domestically produce the feedstocks for this fuel, then you’re going to have to import them,” he said. “Why would be do that?”
A full replay of the hearing is available on the Senate Committee on Agriculture, Nutrition and Forestry website.
Read the original story here.
Feb 23, 2024
Governor Tim Walz today applauded the federal government’s approval of his request to allow year-round sales of E15, beginning in 2025. This decision applies to eight Midwestern states, including Minnesota. The Governor will continue to push for an E15 waiver for 2024 and urges Congress to take action and pass legislation that would fix the issue nationally.
“Providing year-round sales of E15 is the permanent solution that was needed to provide long-term economic relief and certainty in the fuel market. This action means lower emissions and lower-cost choices for drivers,” said Governor Walz. “I’m grateful for the Biden Administration’s shared commitment to increasing consumer access to our nation’s homegrown biofuels – and we will continue to urge the White House to grant a waiver for 2024.”
In April 2022, Governor Walz wrote to EPA Administrator Reagan, requesting a permanent solution allowing the year-round sale of E15.
Read the original statement here.
Feb 27, 2024
By U.S. Rep. Brad Finstad
Last week, the Environmental Protection Agency (EPA) announced the long-overdue decision to allow the year-round sale of higher ethanol blends, such as E15. The good news: the summertime ban on sales of E15 will be lifted in Minnesota, along with 7 other Midwestern states. Unfortunately, due to the Biden Administration dragging their feet, farmers, families, and fuel retailers won’t be able to take advantage of its availability until summer 2025.
According to a recent study conducted by the University of Minnesota, the ethanol industry is a driver for Minnesota’s economy, generating over $6.6 billion in economic activity, and supporting over 200,000 jobs. As many of us in Minnesota know, American-produced ethanol and biofuels like E15 are a more efficient, cost-effective, and cleaner source of energy and promotes competition for businesses.
Last week’s decision by EPA comes nearly two years since eight governors first asked the Biden Administration to open the door for the year-round sale of these fuel options in Minnesota, Iowa, Illinois, Kansas, Nebraska, Missouri, North Dakota, Ohio, South Dakota, and Wisconsin.
The administration ignored that request and allowed the 90-day statutory deadline to pass. In response to their inaction, I led my colleagues in writing not one – but two letters requesting that the EPA and Office of Management and Budget (OMB) act on the request made by the Midwest governors in April of 2022.
In true bureaucratic fashion, it took over 650 days for the EPA to issue a decision regarding the initial request. Due to their inaction, the EPA is delaying the year-round sale of E15 to 2025 – leaving the American people to shoulder the burden of their irresponsibility.
While I’m happy to see a favorable outcome, the decision to delay until 2025 continues to be a disruption for our farmers, producers, and families at the pump.
Minnesota families depend on biofuels like E15 as a low-cost fuel option. Amidst growing inflation and rising gas prices, the White House could lower gas prices immediately by making E15 available for the 2024 summer driving season – yet the administration seems intent on prolonging the strain on family pocketbooks.
To the Minnesotans I represent, E15 is a no-brainer. American-produced ethanol creates jobs, generates markets for agricultural products, and lowers the price at the pump for consumers. The fact that this Administration took nearly two years to come to this conclusion speaks volumes about its misaligned policies on domestic energy production.
In Congress, I will always work toward sensible solutions that lower gas prices while helping to end our reliance on foreign countries for our energy needs, which is why I’ve proudly supported proposals like the Fuel Choice Retailer Act and the Next Generation Fuels Act.
Read the original story here.
Feb 23, 2024
The U.S. Environmental Protection Agency finalized a new rule this week allowing year-round sales of E15, a blend of ethanol and gasoline, at gas pumps across Minnesota and several corn-growing Midwestern states starting next year.
Historically, E15 has been banned during summer months for fears it produces smog. In 2022, the governors of eight states, from the Dakotas east to Ohio, disputed the smog concerns and requested permanent sales of the fuel blend, which is produced partially from corn starch grown by American farmers.
On Thursday, the EPA delivered the governors a favorable ruling. But the agency's effective date isn't until 2025, frustrating farmers and the ethanol industry.
"While this is welcome news," said Brian Werner, executive director of the Minnesota Bio-Fuels Association, "the EPA's delay in finalizing this action means that it won't go into effect until summer 2025, and Minnesotans won't have access to the lowest-cost fuel at the pump this summer."
In announcing the ruling, the EPA described "concerns over insufficient fuel supply" as a reason they'd pushed the effective date back to the summer after next.
In a statement, U.S. Sen. Amy Klobuchar said the use of higher blends in fuel is "good for our farmers, our economy and our national security." The Minnesota Democrat has sponsored a bill with Nebraska Republican Sen. Deb Fischer to bring year-round E15 to the entire country.
Read the original story here.
Feb 19, 2024
As inflationary pressures eased and demand boomed for low-carbon ethanol and its co-products, the ethanol industry’s contribution to the U.S. economy remained strong in 2023, according to an annual economic impact analysis conducted for the Renewable Fuels Association by ABF Economics.
In 2023, more than 72,400 U.S. jobs were directly associated with the ethanol industry, with an additional 322,000 indirect and induced jobs supported across all sectors of the economy. The industry created $32.5 billion in household income and contributed just over $54.2 billion to the nation’s gross domestic product—the second-highest GDP contribution ever. As a result, an estimated $10.4 billion in tax revenue was generated for federal, state and local governments. Returns over operating costs averaged an estimated $0.47 per gallon, almost doubling the average operating margin from 2022, according to the report.
“The U.S. ethanol industry is proud of the enormous contribution it makes to our nation’s economic vitality and environmental well-being,” said RFA President and CEO Geoff Cooper. “After dealing with surging inflation and a global energy crisis in 2022, the ethanol industry saw far more stability in 2023—both in the marketplace and across the policy and regulatory landscape. As we look ahead to new markets and new opportunities, we know the industry’s positive impact on the economy and environment will only continue to expand.”
The 2023 report also shows that the industry spent nearly $39 billion on raw materials, other inputs, and goods and services to produce ethanol last year, with corn purchases alone accounting for nearly $32 billion. The study also provides a breakdown of the industry’s economic impacts in major ethanol-producing states in 2023. Notably, in Iowa, which accounts for roughly one-quarter of U.S. ethanol capacity, the industry supported over 100,000 jobs.
“The ethanol industry continued to make a significant contribution to the economy in terms of GDP, job creation, generation of tax revenue, and displacement of crude oil and petroleum products in 2023,” the report concludes. “The importance of the ethanol industry to agriculture and rural economies is particularly notable. Growth and expansion of the ethanol industry as it applies new technologies and addresses new markets will enhance the industry’s position as the original creator of green jobs and will enable America to make further strides toward reducing greenhouse gas emissions and positively dealing with climate change.”
Read the original story here.