In the News
Aug 10, 2021
The U.S. Energy Information Administration increased its forecast for 2022 ethanol production in its latest Short-Term Energy Outlook, released Aug. 10. The forecasts for 2021 ethanol production and 2021 and 2022 ethanol blending were maintained.
The EIA currently predicts fuel ethanol production will average 970,000 barrels per day this year, up from 910,000 barrels per day in 2020. In 2022, ethanol production is currently expected to average 1.01 million barrels per day, up slightly from the agency’s forecast of 1 million barrels per day made in the July STEO.
On a quarterly basis, ethanol production is expected to average 1.01 million barrels per day during the third quarter of this year, falling to 980,000 barrels per day in the fourth quarter. In 2022, ethanol production is expected to average 980,000 barrels per day in the first quarter, 1.02 million barrels per day in the second quarter, 1.03 million barrels per day in the third quarter, and 1.02 million barrels per day in the fourth quarter.
Ethanol blending is currently expected to average 900,000 barrels per day in 2021, up from 820,000 barrels per day in 2020. Moving into 2020, ethanol blending is expected to increase to an average of 920,000 barrels per day.
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Aug 9, 2021
Growth Energy, Renewable Fuels Association, National Biodiesel Board, National Corn Growers Association, National Farmers Union and American Farm Bureau Federation are urging federal lawmakers to ensure any future tax credit for sustainable aviation fuel (SAF) is based on accurate carbon accounting lifecycle analysis led by the U.S. Department of Energy.
The six biofuel and ag groups on Aug. 6 sent a letter to the U.S. Senate Committee on Finance and the U.S. House of Representatives Committee on Ways and Means outlining recommendations for a sound and effective SAF tax credit.
“As the Senate and House of Representatives consider new legislation to establish a tax credit for sustainable aviation fuel (SAF) this year, we respectfully request this tax credit be based on the most updated and accurate science-based lifecycle carbon assessment (LCA) methods,” the groups wrote. “Without a sound LCA as its basis, a SAF tax credit will be significantly less effective in driving investment in new fuels and reducing aviation emissions.
“Numerous members of our respective organizations are poised to produce SAF or sustainable feedstocks for SAF,” they continued. “Many others are looking to work toward participation in the full value chain in the relatively near future. We recognize the importance of decarbonizing the aviation sector with low carbon liquid fuels. Because biomass feedstocks are essential SAF sources, it is imperative that the tax credit properly account for the lifecycle emissions of these sources and the petroleum products these new fuels will replace.”
The ag and biofuel groups ask lawmakers to make the DOE the lead agency in establishing a regularly updated LCA for any SAF credit. “Across our federal government, DOE has the best resources, expertise, and current ability to assess lifecycle emissions fairly and scientifically,” the groups wrote. “At minimum, the DOE should be a full and equal partner in this role with the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Agriculture (USDA).”
The letter explains that current legislation relies heavily on LCA modeling from the International Civil Aviation Organization. That modeling, the groups explain, does not use the most comprehensive model approaches or most recent data for some important SAF pathways. As a result, “carbon intensity estimates under ICAO for some SAF pathways are inaccurate and inappropriately penalized,” the groups said.
The letter also points to potential problems with the use of EPA modeling. “Unlike the DOE, EPA does not maintain a regularly updated LCA model or methodology for biofuels,” the groups wrote. “Notably EPA’s most recent comprehensive analysis for biofuels was conducted in 2009. EPA’s analysis does not reflect or capture the continuous improvement that has been witnessed over the past decade in biomass production or the technology and efficiency improvements in fuel production. As climate-smart agriculture practices continue to improve and expand and as new fuel production technologies for SAF are developed and scaled to market, a regularly updated LCA is essential to the success of a SAF tax credit and its ability to incentivize new fuels and reduce emissions.”
In addition, the biofuel and ag groups ask lawmakers to ensure LCA for petroleum jet fuels be based on the most recent and accurate data and recommend Congress designate a baseline carbon intensity value for fossil jet fuel.
“In summary, our recommendation for a sound, sustainable, and effective SAF tax credit is to ensure the legislation allows a DOE-led LCA, unencumbered by ICAO, utilizing USDA expertise on agriculture feedstocks,” the groups wrote. “Furthermore, a date-certain, near-term transition to this DOE-led LCA methodology must be an integral part of any SAF tax credit legislation. Finally, we urge that you consider establishing or directing a clear baseline emissions value for petroleum-based aviation fuel, informed by the most recent science and data.
“Without these reforms, the federal government’s desire to promote and develop robust domestic SAF production capabilities as quickly as possible will be put at serious risk,” they continued. “Sustainable biomass use, with a proper, scientifically driven LCA, is essential to produce SAF here in America for domestic and international consumption. Our organizations could only support a SAF tax credit with a sound LCA as its basis.”
A full copy of the letter can be downloaded from the Growth Energy website.
Read the original story here.
Aug 5, 2021
August 5, 2021 — American exports of ethanol bounced back by 16% in June to 81.9 million gallons. Nearly three-fourths of all U.S. ethanol exports were shipped to just three countries, with Brazil and China markedly absent from the list. Exports to Canada—our largest customer—jumped 23% to 33.5 mg. South Korea imported 15.9 mg (up 76%) and Peru imported a record 9.4 mg (a seven-fold increase from May). Other substantial markets included Mexico (5.4 mg, up 68% to a ten-month high), the Netherlands (3.8 mg), Jamaica (3.3 mg), India (3.2 mg), and Sweden (2.0 mg). U.S. ethanol exports for the first half of 2021 totaled 664.2 mg, or 7% less than last year at this time.
The U.S. logged the first significant imports of foreign ethanol of the year. Brazil exported 12.6 mg of undenatured ethanol while a minimal volume of denatured ethanol arrived from France and Canada.
U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—eased 10% to 939,177 metric tons (mt). Mexico imported 232,786 mt (slipping 9%), representing a quarter of all U.S. DDGS exports in June, and remained our top customer for the ninth consecutive month. Sales to Vietnam were robust at 119,463 mt (up 11%) and New Zealand imported a record 66,612 mt. However, DDGS exports to South Korea dropped 28% to 72,857 mt for the lowest volume in a year. Other larger trade partners included Indonesia (61,148 mt, down 6%), Turkey (55,727 mt, down 29%), Canada (55,388 mt, up 45% to the largest volume in nearly two years), Japan (34,744 mt, down 35%), Israel (32,658 mt, up 19%), and Thailand (25,209 mt, down 52%). Total DDGS exports for the first half of the year totaled 5.42 million mt, or 10% ahead of last year.
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Jul 29, 2021
The U.S. Grains Council (USGC) brought members together in person Wednesday for the first time since the beginning of the pandemic, launching its summer annual meeting in Des Moines, Iowa, and online through a virtual meeting platform.
Joining for his first in-person meeting since taking on his role as U.S. Department of Agriculture Secretary, Tom Vilsack addressed attendees on the status and future of U.S. agricultural trade.
Vilsack began his remarks by calling the U.S. grains industry the “secret sauce” of trade, noting that its members understand the importance of partnership to growing export demand.
“We are in the process at USDA to build back better for trade,” Vilsack said. “We’ve been working on removing barriers to trade and are ready to engage more frequently and closely with our counterparts in other countries. American agriculture is at the center of that work because if something happens internationally, U.S. ag will feel that change. We are prepared and ready to look for more opportunities and diversity in trade partners.”
In addition, Vilsack emphasized the continued need for biofuels in the future, including for aviation and marine use.
“It will be a long time before we’re in the position where we won’t need biofuels. We need to take a look at creative ways that we can use bio-based products. If we can do this, I think we’ll see a bright future for American agriculture,” he said.
USGC Chairman Jim Raben, a farmer from Illinois, began the 61st Annual Board of Delegates Meeting by thanking the industry for their perseverance during the global pandemic.
“Over the last year, our members provided customers around the world a virtual, behind-the-scenes look at their operations and ensured our global partners that the United States would continue to provide them a reliable, high-quality product, despite these uncertain times,” Raben said.
“Likewise, our staff – time and time again – have stepped up to the plate and trade has continued despite the pandemic keeping us at home and the technology challenges we’ve all encountered and had to overcome.”
USGC President and CEO Ryan LeGrand offered his assessment of where markets stand for U.S. corn, sorghum, barley, distiller’s dried grains with solubles (DDGS) and ethanol.
“During this time, we were challenged to think in new ways, figure out how we could use technology to keep servicing our customers and to keep markets open,” he said. “I can definitively say we have been successful. We’ve had record sales of U.S. corn and U.S. sorghum during this period. While it’s still a challenging trade horizon beyond our shores, it’s one that holds great promise.”
Nearly 400 in-person and online attendees also heard a recorded presentation by former World Trade Organization (WTO) Deputy Director-General Ambassador Alan Wolff and a live presentation by futurist Christopher Kent of Foresight Alliance, who shared his vision for what U.S. trade may look like in a post-COVID world.
World Food Prize winner, Ohio State University distinguished professor and soil scientist Dr. Rattan Lal spoke on the role of agriculture in sustainability as the world emerges from the global pandemic.
In the afternoon, attendees spent time in one or more of seven Council Advisory Team (A-Team) meetings. Each A-Team has a specific focus – including Asia, Ethanol, Innovation and Sustainability, Middle East/Africa/South Asia, Trade Policy, Value-Added and Western Hemisphere – allowing members the chance to offer input, set priorities and help determine the Council’s course of action over the coming year.
On Thursday, Council programming is scheduled to focus on selected markets around the world in which it works – including Latin America, the Middle East and Africa, South Asia, Mexico and China. The meeting will culminate on Friday with the Council’s Board of Delegates meeting, appointment of new A-Team leaders and election of members of the 2021/2022 Board of Directors.
More from the meeting is available on social media using the hashtag #grains21.
Read the original press release here.
Aug 2, 2021
ST. PAUL, MINN. (August 2, 2021) - CHS Inc., the nation’s leading agribusiness cooperative, will expand access to higher ethanol blend fuels by offering E15 through 19 additional fuel terminals starting in early August 2021.
CHS is registered with the U.S. Environmental Protection Agency (EPA) as an E15 manufacturer and sells E15 as an approved grade of fuel through its Cenex® brand retail locations.
CHS plans to offer E15 at the following Magellan terminals: Alexandria, Minnesota; Cheyenne, Wyoming; Columbia, Missouri; Des Moines, Iowa; Doniphan, Nebraska; Fargo, North Dakota; Grand Forks, North Dakota; Great Bend, Kansas; Mankato, Minnesota; Marshall, Minnesota; Mason City Iowa; Milford, Iowa; Minneapolis, Minnesota; Omaha, Nebraska; Rochester, Minnesota; Springfield, Missouri; Waterloo, Iowa. The fuel will also now be available through the Nustar terminal in Jamestown, North Dakota; as well as the CHS terminal in McPherson, Kansas.
In addition to these terminals, CHS already offers E15 at 10 Nustar terminals and one CHS terminal.
“As the nation’s leading farmer-owned cooperative, expanding options for ethanol blended fuel is important for our Cenex brand retailers and our farmer-owners,” says Akhtar Hussain, director of refined fuels marketing, CHS. “CHS has always been committed to offering ethanol blended flexible fuels throughout its network of 1,450 Cenex brand retail facilities. We continue to demonstrate this commitment by working with our terminal partners to offer higher ethanol blends in a broader geography across the Cenex retail network.”
To make E15 more accessible, CHS has removed barriers for its Cenex brand retail locations by establishing an EPA-approved misfueling mitigation plan – the only refiner to do so – and establishing E15 as a qualifying grade of fuel. CHS also owns two EPA-approved ethanol plants in Rochelle and Annawan, Illinois.
CHS Inc. (www.chsinc.com) is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, agronomy, grains and foods, CHS is committed to creating connections to empower agriculture, helping its farmer-owners, customers and other stakeholders grow their businesses through its domestic and global operations. CHS supplies energy, crop nutrients, seed, crop protection products, grain marketing services, production and agricultural services, animal nutrition products, foods and food ingredients, and risk management services. The company operates petroleum refineries and pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.
Read the original story here.
Juil 29, 2021
The USDA recently released its Grain Crushings and Co-Products Production report for July, reporting that corn use for fuel ethanol in May was up significantly from both the previous month and May 2020.
Total corn consumed for alcohol and other uses was at 503 million bushels in May, up 9 percent from the previous month and up 42 percent from May 2020. May 2021 usage included 91.2 percent for alcohol and 8.8 percent for other purposes.
Corn consumed for fuel alcohol reached 488 million bushels, up 10 percent from the previous month and up 49 percent when compared to May 2020. Corn consumed for dry milling fuel production and wet milling fuel production was 91.7 percent and 8.3 percent, respectively.
Approximately 182,000 hundredweight (cwt) (10,192 tons) of sorghum also went to fuel ethanol production in May, down from 2.047 million cwt in May 2020. The volume of sorghum used for fuel ethanol production in April 2021 was withheld by USDA to avoid disclosing data for individual operations.
At dry mills, condensed distillers with solubles production reached 95,299 tons, up from 86,074 tons in April and 80,971 tons in May 2020. Corn oil production reached 167,905 tons, up from 149,431 tons the previous month and 105,231 tons in May of the previous year. Distillers dried grains production increased to 380,620 tons, up from 342,870 tons in April and 205,750 tons in May 2020. Distillers dried grains with solubles production reached 1.94 million tons, up from 1.77 million tons the previous month and 1.24 million tons in May 2020. Wet distillers grains production reached 1.08 million tons, up slightly from the previous month and up significantly from 739,106 tons in May 2020. Modified distillers wet grains production was at 320,803 tons, down from 373,090 tons in April, but up from 242,365 tons the same month of last year.
At wet mills, corn germ meal production reached 64,607 tons, up from 63,568 tons in April and 64,200 tons in May 2020. Corn gluten feed production reached 299,123 tons, up from 291,558 tons the previous month and 291,064 tons in May of last year. Corn gluten meal production reached 114,135 tons, up from 113,905 tons in April and 91,013 tons in May 2020. Wet corn gluten feed production was at 208,575 tons, up from 202,491 tons in April, but down from 211,741 tons in May 2020.
At dry and wet mills, carbon dioxide captured reached 229,471 tons, up from 225,169 tons in April and 149,453 tons in May 2020.
Read the original story here.
Jul 27, 2021
In Congress, I’m focused on supporting family farmers, investing in rural communities and addressing the generational challenges we face as a nation, including tools to address climate change. That’s exactly why I’m a supporter of biofuels. Biofuels offer predictability for farmers, drive economic growth and investment in rural America and decrease the carbon intensity of our transportation sector. These benefits are why I am pushing for immediate policy and budget changes to ensure that biofuels remain a key part of this country’s transition to renewable energy.
Minnesota is no stranger to renewable fuels like ethanol and is the fourth-largest producer of corn in the United States. Right now, more than half of the district I represent is covered by corn and soybeans. With 19 ethanol plants in our state, this activity contributes between $1 and $2 billion to Minnesota’s GDP annually and last year supported nearly 14,500 full-time jobs. Over the past several years, biofuels like ethanol and biodiesel have helped keep our family farms afloat — even as growers and producers across the country have struggled with overseas trade uncertainty, volatile markets and a global pandemic that disrupted supply chains around the world.
The benefits of renewable biofuels go far beyond their economic impact on rural communities. They are also a key tool in our fight against climate change. Recent studies — including one from EH&E, Harvard and Tufts — show that renewable fuels like ethanol cut carbon emissions by 46 percent or greater compared to traditional fossil fuels. The reduction of greenhouse gas emissions achieved by a transition to higher ethanol blends like E15 — a 15 percent ethanol blend — is equivalent to taking nearly 3.85 million cars off the roads. In Minnesota alone, a shift to E15 has the power to reduce greenhouse emissions by 332,000 metric tons. And in California, where a low carbon fuel standard creates a market for renewable fuel credits to decarbonize the transportation sector, it’s biofuels that are playing the biggest role in reducing transportation sector carbon emissions.
Right now, this country and the world are experiencing the severe and devastating consequences of a changing climate. More than 70 percent of my state is experiencing drought conditions. It has never been more important that we identify and embrace innovative solutions that can help to reduce our carbon emissions and reverse this dangerous trend. I am strongly supportive of the inclusion of electric vehicles in the conversation due to their potential for emissions reductions. But given the scale and severity of this crisis, it is vital that we pursue impactful policies that can be implemented immediately. Unlike the longer-term timeline of electric vehicles, we can take advantage of the significant benefits of biofuels today. That’s why in Washington, I am committed to fight for immediate action on key legislation in this space.
Earlier this year, I introduced the Renewable Fuel Standard Integrity Act, bipartisan legislation to create transparency in the small refinery exemption (SRE) process and offer more certainty to the renewable fuel marketplace. I have also co-sponsored the Renewable Fuels Infrastructure Investment and Market Expansion Act, a critical piece of legislation to invest in biofuels infrastructure across the country. And in July, I introduced the Year-Round Fuel Choice Act, a bill to ensure that Americans can buy E15 throughout the entire year.
By acting quickly to pass these key pieces of legislation, Congress and the Biden administration can make a long-lasting and transformative impact for rural America and our collective effort to combat climate change. I was disappointed not to see biofuels included in the initial bipartisan infrastructure framework, but rest assured that as conversations in Washington continue to focus on infrastructure investments and efforts to address climate change, I will continue to fight to ensure renewable fuels have a seat at the table. After all, they are road-ready solutions to support family farmers, generate economic growth in rural America, and tackle climate change. Now is the time to make sure they are part of the mix. If not, we will have missed an important opportunity as a nation to reduce carbon emissions immediately.
Read the original column here.
Jul 27, 2021
In a letter sent today to President Joe Biden, Renewable Fuels Association members from across the country memorialized their commitment to ensuring ethanol achieves a net-zero carbon footprint, on average, by 2050 or sooner. Ethanol is already cutting greenhouse gas emissions by half compared to gasoline, the letter says, but “we can—and must—do more” to decarbonize transportation fuels and combat climate change in the decades ahead. The letter comes after RFA’s board of directors met last week in St. Louis and adopted a resolution outlining their carbon performance goals for 2030 and 2050.
“Today’s grain-based ethanol is already a low-carbon fuel that is helping to clean up our nation’s transportation fuels,” RFA members wrote, highlighting a recent analysis from the Department of Energy’s Argonne National Laboratory that shows today’s typical corn ethanol reduces GHG emissions by 52 percent when directly compared to gasoline. “But with smart policy measures, ethanol can do even more. It can serve as an affordable zero-emissions fuel for light-duty cars and trucks, while also helping to decarbonize medium- and heavy-duty vehicles, aviation, marine, and stationary power generation.”
Specifically, RFA’s board of directors—which is exclusively composed of renewable fuel producers—committed to the following goals during their meeting last week:
- By 2030, ensure that ethanol reduces GHG emissions by at least 70 percent, on average, when compared directly to gasoline.
- By 2050, ensure that ethanol achieves net-zero lifecycle GHG emissions, on average.
“Complex challenges call for leadership and innovative solutions,” said RFA Chairperson Jeanne McCaherty, Chief Executive Officer of Guardian Energy Management LLC. “The carbon reduction goals announced by RFA today mark a bold commitment to innovation, investment, and continuous improvement in the renewable fuels sector. Ethanol producers are already producing America’s top low-carbon fuel and are eager to do their part to decarbonize our transportation sector and move our nation toward net-zero emissions. I look forward to working with RFA’s membership, policymakers, and the entire renewable fuels industry to make this vision a reality.”
Commenting on the letter, RFA President and CEO Geoff Cooper said, “Ethanol is a low-cost solution for reducing GHG emissions that is available here and now, but our industry is on the cusp of providing even bigger and better GHG reductions in the years ahead. Our member companies firmly believe that ethanol can achieve a net-zero carbon footprint by mid-century, if not well before, as the supply chain adopts carbon capture, utilization and sequestration (CCUS) technologies; uses more renewable electricity and biogas to power biorefineries; and expands carbon-efficient agricultural feedstock production practices. I applaud RFA’s members for stepping up to the plate and putting their decarbonization commitments on paper for the whole world to see, and I have no doubt that zero-carbon corn ethanol is just around the bend.”
To support the achievement of its goals, RFA encouraged the administration to move forward with several key policy initiatives: development of a national Clean Fuel Standard, support for CCUS, and deployment of more flex-fuel vehicles.
The letter was signed by ethanol producers from California, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Nebraska, New York, North Dakota, Ohio, Oregon, South Dakota, and Wisconsin.
Click here for the RFA “Net Zero by 2050” explainer.
Read the original news release here.
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Jul 25, 2021
The U.S. Department of Energy on July 19 released its 2021 U.S. Energy Employment Report, which shows fuel ethanol employment fell slightly last year, but at a much lower rate than the overall U.S. fuels sector. Corn ethanol employment is expected to rebound this year.
The overall U.S. fuel sector lost 211,201 jobs in 2020, an 18.4 decline. Oil and gas experienced the steepest declines, at nearly 21 percent. The DOE estimates that corn ethanol employment fell by about 4 percent or 1,360 jobs last year, with employment at approximately 33,506.
Of those 33,506 jobs, the report shows approximately 15,589 are in agriculture, 9,005 are in manufacturing, 6,158 are in wholesale trade, 2,656 are in professional services, and 97 are in other services.
In 2020, 93 percent of employers in corn ethanol reported that hiring was either somewhat or very difficult. In addition, 81 percent of professional business services employers reported that hiring new workers was somewhat difficult or very difficult in 2020.
Employers in the corn ethanol fuels industry expect 9 percent growth in 2020. Much of that growth is anticipated by employers in the manufacturing and professional services sectors who expect 11 percent and 17 percent growth, respectively.
A full copy of the report can be downloaded from the DOE website.
Read the original story here.
Jul 22, 2021
Today, Minnesota Governor Tim Walz and South Dakota Governor Kristi Noem sent a letter to the Biden Administration pointing out the role that higher-octane ethanol could play in meeting the Administration’s climate and public health goals. Governor Walz is the chair and Governor Noem is the vice chair of the Governors’ Biofuels Coalition.
The governors’ letter focuses on the timeliness of the expanded use of ethanol now: “As the Office of Management and Budget continues to review the Safe Affordable Fuel Efficient Vehicles (SAFE) rule, there is a great opportunity to meet the Administration’s goals to reduce greenhouse gas emissions and improve air quality while providing continued growth of the nation’s biofuels industry.”
The governors pointed out that a higher-octane requirement in the SAFE rule will allow “… automakers to increase engine efficiency and achieve the objectives of the proposed SAFE rule. The use of low carbon fuels such as ethanol will ensure … octane does not come from carcinogenic aromatics that release fine particulate emissions associated with respiratory diseases that affect all Americans, especially vulnerable populations and those living in urban areas.”
As the U.S. Department of Energy’s Oak Ridge National Labpoints out, ethanol is a superior octane and is an environmentally safer substitute than oil-derived, benzene-based octane. The use of direct injection engines to improve fuel efficiency has increased emissions of the most dangerous ultrafine particles. The use of high-octane low carbon fuels would reverse that trend. But, the governors cautioned, “[t]he adoption of a revised SAFE rule that does not significantly reduce gasoline aromatics will be a missed opportunity to reduce fine particle pollution while maintaining the health and vibrancy of our rural communities.”
The governors concluded by emphasizing the potential win-win opportunity for both the ethanol industry and the nation. “We have seen firsthand how the ethanol industry has transformed and revived rural communities while reducing harmful emissions. A revised SAFE rule that provides an expanded market for high-octane ethanol is a means to reduce GHGs and harmful air emissions, provide much needed economic stability in rural America and provide countless health and economic benefits to all Americans.”
Read the original story here.
Jul 21, 2021
The Renewable Fuels Association sent a letter to the U.S. EPA on July 15 urging the agency to exercise its enforcement discretion to continue allowing sales of E15 during the remainder of the 2021 summer driving season and announcing its intent to fight a recent court decision vacating the EPA’s 2019 rule allowing year-round E15 sales.
The letter, addressed to Lawrence Starfield, acting assistant administrator in the EPA’s Office of Enforcement and Compliance Assurance, provides an overview of efforts to secure year-round E15 sales, including a rule finalized by the EPA in 2019 that extended the 1-psi Reid vapor pressure (RVP) waiver to E15, allowing the fuel to be sold in most markets year-round. Prior to that rule, the RVP waiver was extended only to E10 blends.
The EPA’s 2019 E15 rule was challenged by oil interests. On July 2, 2021, the U.S. Court of Appeals for the D.C. Circuit vacated the EPA’s E15 rule, “finding that EPA’s interpretation of the statutory gasoline RVP restrictions and allowances exceeded its authority under the Clean Air Act,” according to the RFA in its letter. “The court ordered that issuance of its mandate, and therefore if official vacatur of the E15 rule, would be delayed until seven days after the disposition of any timely petition for rehearing or petition for rehearing en banc.”
In the letter, the RFA, which intervened ion behalf of EPA in the proceeding before the D.C. Circuit, announces its intent to file a petition for rehearing by Aug. 16. The group said it may also seek U.S. Supreme Court review. Co-intervenor Growth Energy may also do the same, according to the letter.
“Immediate vacatur of the E15 Rule would cause potentially drastic consequences for U.S. biofuels producers and the gasoline market as a whole,” said the RFA in the letter. “If E15 sales were required to cease immediately upon issuance of the D.C. Circuit’s mandate, summertime E15 sales would fall precipitously. Certain oil companies already are advising their downstream blenders to cease blending E15. Termination of E15 sales will result in significant financial losses for retailers who had planned to blend E15 throughout the volatility control season, higher prices for U.S. gasoline consumers, and elimination of the environmental benefits that come with higher ethanol blends.
“Enforcement discretion under these circumstances would be consistent with the Agency’s practice of letting the time for all appeals run prior to implementing a decision that could ultimately be overturned,” the RFA continued. “For instance, EPA recently delayed implementation of the Tenth Circuit’s January 2020 decision restricting EPA’s authority to grant small refinery exemptions under the Renewable Fuel Standard program until after all appeals—including requests for rehearing and Supreme Court review—were exhausted. Here, the parties to the D.C. Circuit proceeding will have 90 days from the date of the D.C. Circuit’s decision on any petitions for rehearing to file a petition for a writ of certiorari with the United States Supreme Court. It would be reasonable for EPA to refrain from enforcing vacatur of the E15 Rule until the time for filing such a petition has run, and if a petition is filed, until resolution of the Supreme Court proceedings.”
In the meantime, the RFA is urging the EPA to work toward development of an alternative solution to allowing year-round E15 sales.
Read the original story here.
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.