AgriMarketing

December 28, 2015

By Convenience Store News

Just a few years ago, some convenience store retailers and consumers alike were hesitant to sell and purchase E15 fuel, respectively, due to misfueling concerns and allegations that the blend of 15-percent ethanol and 85-percent gasoline could cause damage to vehicle engines. Today, the thought process about E15 has clearly changed, according to a new consumer survey conducted by Carbonview Research, a sister company of Convenience Store News.

During the Convenience Store News 2015 Fuels and Tech Summit, held earlier this week, Randi Etzkin, manager of client research for Carbonview, shared the results of its survey of 942 fuel decisionmakers aged 18-64 in eight Midwest cities ripe with E15 expansion. The research revealed:
•55 percent of respondents want to find out more about E15;
•44 percent find E15 "appealing;"
•35 percent want to use E15 for their car; and
•34 percent said E15 is "believable."

Etzkin acknowledged that price (cited by 71 percent of respondents) is the biggest factor consumers use to determine whether to purchase E15. If E15 - which carries an 88 octane - was sold at the pump at the same price as traditional E10 petroleum, 38 percent of those surveyed said they would likely buy the alternative fuel.

If E15 is priced 5 cents less than E10, 49 percent said they would likely buy E15, while a 10-cent difference would entice 60 percent of consumers to purchase E15 over E10.

Consumers also said they would be more likely to be loyal to the gas station that sold them E15. Fifty-seven percent of respondents said they would likely use the same gas station for their next fillup.

"People familiar with E15 think it is appealing, intriguing and a quality product," Etzkin said during her presentation.

On the flip side, those who said they would not purchase E15 cited performance and interest/need as the biggest reasons for not doing so.

The Carbonview executive did stress that the best way to advance the growth of E15 is by retailers educating consumers about the alternative fuel in any way possible.

E15 is currently offered in 175 locations throughout 19 states. It is approved for use in cars manufactured in the model year 2001 and newer.

The Convenience Store News Fuels & Tech Summit took place Dec. 7-8 at the Palm Beach Marriott Singer Island Beach Resort & Spa in Riviera Beach. The event was sponsored by Growth Energy, Warren Rogers and ZipLine.

Read the original story: Study Shows Consumers, Fuel Retailers More Positive on Ethanol

Renewable Fuels Association

December 21, 2015

An analysis of 2016 model year (MY)  warranty statements and owner’s manuals conducted by the Renewable Fuels Association (RFA) shows that auto manufacturers explicitly approve E15 (15 percent ethanol 85 percent gasoline) use in more than 70 percent of new vehicles. This is up from 2015, when just over 60 percent of MY 2015 automobiles were clearly approved for E15.

RFA’s analysis shows that, for the first time, Fiat Chrysler Automobiles (FCA Group) has approved the use of E15 in its MY 2016 Chrysler/Fiat, Jeep, Dodge, and Ram vehicles. FCA’s decision means it joins the other members of the “Detroit Three” (General Motors and Ford) in unequivocally allowing E15. Other key points from RFA’s analysis include:

GM started approving the use of E15 with its MY 2012 vehicles, while Ford joined a year later with its MY 2013 vehicles.

More than 45 percent of the vehicles sold in the United States this year have been produced by the Detroit Three, according to industry data.

Other automakers offering explicit approval of E15 in MY 2016 vehicles include Toyota/Lexus, Audi/Porsche/Volkswagen, Honda/Acura, Jaguar, and Land Rover. Together with the Detroit Three, these manufactures have produced approximately 72 percent of the vehicles sold in 2015.

When flex-fuel vehicles (FFVs) produced by Nissan and Mercedes-Benz are included, RFA estimates the percentage of MY 2016 automobiles explicitly approved by manufacturers to use E15 is even larger (FFVs are approved to use up to 85 percent ethanol blends).

With a U.S. market share of 8.5 percent, Nissan Motor Company is the largest “hold-out” when it comes to approving the use of E15 in its vehicles. Nissan even goes as far as suggesting that “E-15 fuel will adversely affect the emission control devices and systems of the vehicle,” which raises questions about why Nissan is not able to provide the same quality of technology as automakers approving the use of E15. Curiously, Nissan also warns drivers that oxygenates like ethanol “can cause paint damage.”

Hyundai, Kia, and Subaru also continue to exclude E15 from their fuel recommendations. Together, these three foreign automakers account for about 11 percent of U.S. auto sales. While Subaru recommends that gasoline used in its vehicles contain “no more than 10% ethanol,” it allows the use of gasoline containing 15% MTBE—a toxic substance banned in dozens of states because of groundwater pollution concerns.

Interestingly, BMW’s MINI Hardtop appears to allow the use of 25% ethanol blends. The manufacturer states, “Fuels with a maximum ethanol content of 25%, i.e., E10 or E25, may be used for refueling.”

“This analysis should open some eyes and finally lay to rest the ridiculous myth that automakers do not allow the use of E15 in their vehicles,” said RFA President and CEO Bob Dinneen. “In fact, 2016 will be the fifth year in a row in which some auto manufacturers have explicitly included E15 in owners’ manuals and warranty statements as an approved fuel. With each passing year, more and more vehicles sold in the U.S. carry the manufacturer’s unequivocal approval for E15; and with each passing year, the auto warranty misinformation campaign undertaken by AAA and Big Oil fades further into irrelevance.”

Dinneen also noted the utter hypocrisy of statements made by AAA and the oil industry that using E15 may void auto warranties. “Ironically, not a single automaker approves the use of 85 octane gasoline, and the Department of Energy (DOE) warns that using such fuel may void warranties,” he said. “Yet, 85 octane gasoline continues to be sold all across the Rocky Mountain region and refiners are fighting tooth and nail to keep this inferior gasoline in the marketplace.”

While automakers began approving the use of E15 in their vehicles in 2012, approximately 6 million miles’ worth of testing by DOE and the Environmental Protection Agency (EPA) shows that the use of E15 is safe in all vehicles built since 2001. E15 waivers issued by EPA in 2010 and 2011 effectively approve  the use of E15 in all vehicles built since 2001; this means more than 85 percent of the total current U.S. vehicle fleet can safely and legally run on E15.

The RFA analysis can be found here.

Read the original story: RFA Analysis Shows Uptick in Number of Automakers Who Have Approved E15 for Use in New Vehicles

One News Now

December 21, 2015

By Chris Woodward

Voters in Iowa will choose their favorite presidential candidates in February, and while the economy and national security are big issues, Iowans also place importance on things like ethanol.

According to a new poll from the Des Moines Register, 77 percent of likely Iowa caucus-goers who identify as Democrats support the ethanol mandate, a 2007 law requiring increasing amounts of alternative fuels to be blended into gasoline. In addition, 61 percent of Republican caucus-goers support the ethanol mandate. Ethanol is an alternative fuel source made from corn and other plant materials.

Iowa just happens to be the nation's largest producer of corn and ethanol, which has big implications for presidential candidates from both parties. Regardless, Democrats and Republicans in recent years have expressed support for ethanol – and not just those in Iowa, but also on Capitol Hill and the campaign trail.

Bob Dinneen, president and CEO of the Renewable Fuels Association, contends that ethanol helps reduce the America's dependency on foreign oil.

"Ethanol is a stone-cold winner when it comes to the environment,” he says. “It is 30 percent to 40 percent better when compared to gasoline in terms of carbon emissions. It helps to address global climate change. But more than that, it is reducing tailpipe emissions that cause real health effects." 

Dan Kish, senior vice president for policy at the Institute for Energy Research, says ethanol does have certain good qualities, and acknowledges that production has gotten more efficient with some of the leftover product being used to feed certain livestock. Still, Kish says he would rather see a free-market scenario with ethanol.

If it were such a great idea, this would happen naturally in a free market, in a free country - not by dictates coming from the government," he states.

The Des Moines Register poll did ask likely Iowa caucus-goers if they support tax deductions for oil and gas exploration and development. Of Republicans, 59 percent say yes, compared to 26 percent of Democrats. When asked about these matters in recent years, Kish told OneNewsNow that these "are the same tax breaks that normal businesses get for investment."

Meanwhile, Dinneen has dimissed concerns that ethanol is bad for some, if not many, engines. He also dismissed concerns by restaurant groups and some environmentalists that ethanol has a negative impact on food prices and the environment.

Read the original story: Ethanol Will Factor in Big for Both Parties in Iowa

Boeing

December 16, 2015

Press Release

The Port of Seattle, Alaska Airlines [NYSE:ALK] and Boeing [NYSE:BA] are partnering to move toward a significant environmental goal: powering all flights by all airlines at Seattle-Tacoma International Airport with sustainable aviation biofuel. Sea-Tac is the first U.S. airport to lay out a long-term roadmap to incorporate aviation biofuel into its infrastructure in a cost-effective, efficient manner.

At the Sea-Tac fuel farm today, executives for the port, Alaska Airlines, and Boeing signed a Memorandum of Understanding (MOU) to launch a $250,000 Biofuel Infrastructure Feasibility Study that will assess costs and infrastructure necessary to deliver a blend of aviation biofuel and conventional jet fuel to aircraft at Sea-Tac, a crucial step toward routine biofuel use in the future.

“As leaders in aviation biofuels, this will send a signal to airlines and biofuel producers that Sea-Tac Airport will be ready to integrate commercial-scale use of aviation biofuels,” said Port of Seattle Commissioner John Creighton. “Biofuel infrastructure will make Sea-Tac Airport an attractive option for any airline committing to use biofuel, and will assist in attracting biofuel producers to the region as part of a longer-term market development strategy.”  

The partners’ longer-term plan is to incorporate significant quantities of biofuel into Sea-Tac’s fuel infrastructure, which is used by all 26 airlines and more than 380,000 flights annually at the airport. Sea-Tac is the 13^th busiest airport in the U.S. and will serve over 42 million domestic and international passengers this year.

Joe Sprague, senior vice president of communications and external relations for Alaska Airlines, Sea-Tac’s largest carrier and leader of the airport’s fueling consortium, said the airline wants to incorporate biofuel into flight operations at one or more of its hubs by 2020, with Sea-Tac as a first choice for the Seattle-based airline.

“Biofuel offers the greatest way to further reduce our emissions,” said Sprague. “This study is a critical step in advancing our environmental goals and stimulating aviation biofuel production in the Pacific Northwest.”

The Port of Seattle will manage the $250,000 study as the biofuel roadmapping process and, as Sea-Tac Airport’s governing authority, would handle the engineering and integration of biofuel infrastructure on Port property such as the airport’s fuel farm. An RFP for the infrastructure study will be issued in the spring of 2016, and the study is expected to be completed by late 2016.  Currently, aviation biofuels are not produced in Washington state and must be imported by truck, rail or barge. 

Boeing, which partners globally to develop and commercialize sustainable aviation biofuel, is providing expertise about approaches to develop a regional biofuel supply chain to serve the airport, including fuel types, fuel producers, processing technologies and integration with airplanes.

“Sustainable aviation biofuel will play a critical role in reducing aviation’s carbon emissions over the long term,” said Sheila Remes, Boeing Commercial Airplanes vice president of Strategy. “Boeing, Washington state’s largest employer, is proud to work with our customer Alaska Airlines and the Port of Seattle to power every plane at Sea-Tac with a biofuel blend and lead the way for other airports to do the same.”

Approved “drop-in” aviation biofuel is blended directly with regular petroleum-based jet fuel and used in airplanes without any changes to the aircraft or engines. Using sustainably produced biofuel reduces lifecycle carbon dioxide emissions by 50 to 80 percent compared to conventional petroleum fuel, according to the U.S. Department of Energy. Since 2011, when biofuel was approved for commercial aviation, airlines have conducted more than 2,000 passenger flights with a blend of biofuel and conventional petroleum jet fuel.

The Port’s Century Agenda Goal is to reduce aircraft-related carbon emissions at Sea-Tac Airport by 25% by 2037.  The key strategy to reduce these emissions is through aviation biofuel. Historically, the Port has been a leader in supporting research and development of aviation biofuels, and as models of other international airports and airlines using biofuel emerge, Sea-Tac is also developing a market-support role.

In the past five years, Alaska Airlines has become a leader in the pursuit of finding a sustainable supply of biofuels. In 2011, Alaska was the first airline to fly multiple flights using a 20 percent blend of sustainable aviation biofuel made from used cooking oil and waste animal fat.

In the next year, Alaska will partner with Gevo, Inc. to fly the first ever commercial flight on alcohol-to-jet fuel. In addition, as a partner in the Washington State University-led Northwest Advanced Renewable Alliance (NARA), Alaska plans to fly a demonstration flight next year using a new aviation biofuel made from forest-industry waste.  Fuel for both demonstration flights must first be independently certified.

As part of Boeing’s commitment to protect the environment and support long-term sustainable growth for commercial aviation, the company partners globally with airlines, governments, research institutions, fuel companies and others to develop sustainable aviation biofuel. Boeing has active biofuel projects in the U.S., Australia, Brazil, Canada, China, Europe, Japan, the Middle East, South Africa and Southeast Asia. More information: www.boeing.com/environment

Read the original release: Port of Seattle Partners with Alaska Airlines and Boeing on Plan to Supply Sustainable Aviation Biofuel at Sea-Tac Airport

Renewable Fuels Association

December 16, 2015

Communications Release

Last night congressional lawmakers reached an agreement on a $1.1 trillion spending bill that not only funds the government until 2016, but also contains a tax extenders package which includes several provisions of significant importance to the biofuels industry. The bill contains a two-year extension of the Second Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, and the Alternative Fuel Mixture Tax Credit. Bob Dinneen, president and CEO of the Renewable Fuels Association, released the following statement:

“By including these important tax incentives in the spending bill, congressional lawmakers sent a strong signal that they are interested in ensuring and encouraging the continued growth and innovation of our nation’s biofuels industry” said Dinneen. “These incentives are crucial for leveling the playing field in a tax code that is, unfortunately, overwhelmingly tilted toward the oil and gas industry. Oil companies have long benefited from billions in accelerated depreciation, intangible drilling expenses, and countless other tax breaks that are permanently imbedded in the tax code. Fundamental tax reform is critical to correct this imbalance.”

Lawmakers also included a repeal of Country of Origin Labeling (COOL) in the spending bill. COOL is a labeling law that requires retailers to notify their customers with information regarding the source of certain food and agricultural products. The World Trade Organization (WTO) had determined COOL violated trade agreements and recently ruled Canada and Mexico could seek up to $1 billion in retaliatory tariffs. Canada had previously threatened to place ethanol on a list of products that could be subject to retaliatory tariffs if the law was not repealed.

“The repeal of COOL removes a long-standing threat to the continued fair and free trade of ethanol with Canada. Its repeal will allow domestic producers to be able to trade ethanol in the global marketplace without fear of a retaliatory tariff from our largest ethanol export market,” said Dinneen.

Read the original story: RFA: Tax Incentives will Encourage Growth and Innovation in Nation’s Biofuels Industry

Ethanol Producer Magazine

December 14, 2015

By Erin Voegele 

The National Renewable Energy Laboratory has released its 2014 Data Book, showcasing increased use of renewable energy. According to the report, renewables accounted for approximately 11.1 percent of U.S. energy production in 2014. U.S. energy production totaled approximately 87 quadrillion Btu (quad) in 2014, with renewables accounting for 9.7 quad of that amount.

Natural gas accounted for 35 percent of U.S. energy production in 2014, with coal accounting for 23.3 percent. Crude oil accounted for 21 percent and nuclear accounted for 9.6 percent.

Biomass accounted for 5.6 percent of energy projection followed by hydropower at 2.8 percent, wind at 2 percent, solar at 0.5 percent and geothermal at 0.3 percent.

U.S. energy consumption reached 98.3 quad last year, with 35.4 percent of that volume coming from petroleum, 28 percent from natural gas, 18.2 percent from coal, 8.5 percent from nuclear and 9.8 percent from renewables. Biomass accounted for 4.9 percent, followed by 2.5 percent for hydropower, 1.8 percent from wind, 0.4 percent from solar, and 0.2 percent from geothermal.

Regarding ethanol, the report indicates U.S. production increased by nearly 7.6 percent in 2014, reaching 14.3 billion gallons. The increase was experienced despite sharp ethanol and gasoline price decreases. In comparison, only 1.622 billion gallons of ethanol was produced in 2000.

Last year, the U.S. produced an estimated 58 percent of the world’s ethanol. Brazil produced 25 percent, while the European Union produced 6 percent, China produced 3 percent and Canada produced 2 percent. On a global basis, ethanol production has increased from 10.77 billion gallons in 2004 to 24.57 billion gallons last year.

Of the 19,282 alternatively fueling stations in the U.S., NREL reports 15 percent supply E85. Approximately 57 percent supply electricity, while 15 supply propane, 8 percent supply compressed natural gas, 4 percent supply B20, 0.6 percent supply liquefied natural gas, and 0.3 percent supply hydrogen.

Iowa is the top state for ethanol production, with 3.99 billion gallons of capacity, followed by Nebraska with 1.99 billion gallons, Illinois with 1.43 billion gallons, Minnesota with 1.13 billion gallons and Indiana with 1.05 billion gallons.

The report also addresses biodiesel, reporting that the U.S. led the world in biodiesel production last year, followed by Germany, Brazil, Argentina, France and Indonesia. Globally, biodiesel production grew from 555 million gallons in 2004 to 7.85 billion gallons in 2014.

In the U.S., biodiesel production reached 1.8 billion gallons in 2013, falling to 1.75 billion gallons last year. In 2001, the U.S. produced only 5 million gallons of biodiesel.

A full copy of the report is available on NREL’s website.

Read the original story: NREL's 2014 Data Book Features Ethanol Statistics

One bushel of corn (remember one bushel is the equivalent of a laundry basket) produces 2.8 gallons of ethanol as well as 17-18 pounds of distillers dried grains with solubles (DDGS) In fact, under half of a bushel is processed for ethanol. The rest is processed for dried distillers grains (DDGS), corn oil and CO2.

Des Moines Register

December 8, 2015

By William Petroski

Supporters of the Renewable Fuels Standard, seen as key to the future of Iowa’s corn-based ethanol production, are ramping up criticism of Texas Sen. Ted Cruz, saying he’s the only presidential candidate from both parties who has refused to either tour a biofuels plant or meet with industry lobbyists.

Critics of Cruz, whose has been rising in polls in a crowded field of Republican candidates, held a news conference Tuesday at Lincolnway Energy in Nevada. They accused him of abandoning 75,000 Iowans employed in the renewable fuels industry while supporting subsidies for the oil industry.

“Every candidate, good or bad, has respected Iowans and the caucus process by sitting down with us and learning about the RFS, except for Ted Cruz,” said Eric Branstad, executive director of America’s Renewable Future, a pro-biofuels lobby group. The federal government's Renewable Fuels Standard requires renewable fuels like ethanol to be blended into transportation fuels like gasoline.

Branstad was joined by former U.S. Sen. Rick Santorum, a longtime supporter of the Renewable Fuels Standard who is seeking the GOP presidential nomination. Santorum claimed that Cruz is supporting the oil industry over Iowa’s biofuels industry.

“They don’t want a competing product coming in and getting market share. That is the bottom line,” Santorum told reporters after touring the Lincolnway Energy plant here. The plant produces 60 million gallons of ethanol annually.

Last week, Cruz asked Iowa radio stations to stop running an advertisement sponsored by America's Renewable Future. The 60-second ad, entitled “Hypocrite,” claims Cruz has $700,000 in personal oil investments and that pro-Cruz super PACs received $25 million in donations from oil companies.

Rick Tyler, a spokesman for the Texas U.S. senator, said in a statement to The Des Moines Register last week, "It is blatantly false to suggest that Sen. Cruz wants to end the Renewable Fuel Standard while maintaining subsidies for oil. Cruz has repeatedly stated that he would end all energy specific subsidies, both ethanol and oil among others."

Cruz’s campaign issued a statement Tuesday that the Texas senator looks forward to America’s Renewable Future endorsing Cruz’s flat tax plan that eliminates all loopholes, stops corporate welfare, and specifically allows every company, including ethanol producers, to immediately expense all of their capital costs, treating everyone fairly, without subsidy.

The Dallas Morning News reports that Cruz has at least $365,000 in oil and gas investments, according to a July personal finance disclosure. Three Texas energy billionaires donated $25 million in total to super PACs backing Cruz’s presidential bid, the newspaper reported.

U.S. Rep. Steve King, R-Kiron, a strong supporter of the Renewable Fuels Standard, endorsed Cruz’s presidential candidacy last month, calling him “the Constitutional conservative who can restore the soul of America.” King said he wanted to do everything he could to support Cruz’ campaign for the White House.

Branstad said Tuesday that King has been a powerful ally for the renewable fuels industry and he hopes the Iowa congressman is sharing information with Cruz. But he expressed disappointment that Cruz has ignored “invitation after invitation” to discuss renewable fuels issues.

“He came to Iowa with his allegiance already established the oil industry, not Iowans and not our caucus process,” Branstad said.

This list of presidential hopefuls who have met with biofuels industry supporters includes 12 Republican candidates, plus Democratic White House hopefuls Hillary Clinton, Martin O’Malley and Bernie Sanders.

Read the original story: RFS Supporters Ramp Up Cruz Criticism

Ethanol Producer Magazine

December 8, 2015

By Renewable Fuels Association

In a letter submitted Dec. 8 to the U.S. EPA, the Renewable Fuels Association urged the agency to take immediate administrative action to eliminate an arcane regulatory barrier that is impeding growth in the use of E15 and other higher-level ethanol blends.

“Many gasoline retailers have rejected E15 because EPA’s current gasoline volatility regulations make it nearly impossible for them to sell E15 to EPA-approved conventional automobiles year-round,” said Bob Dinneen, RFA President and CEO. “Most gas stations are unwilling to dedicate storage tanks and dispensing equipment to a fuel that they can only sell for part of the year.”

EPA’s current regulations, which grant a volatility waiver to E10 (referred to as the “1-psi RVP waiver”) but not to any other ethanol blends, have created an uneven playing field for E15 and other higher-level blends. According to the RFA letter, “The 1-psi RVP waiver—originally provided to expand the production and use of fuel ethanol—is now having the perverse effect of discouraging greater ethanol use in today’s gasoline market, and it is obstructing the successful implementation of important fuel and carbon reduction policies enacted since then, including the renewable fuel standard.”

Rather than asking EPA to extend the 1-psi RVP waiver to E15, RFA’s letter encourages the agency to take action to eliminate the relevancy of the waiver for E10 by requiring refiners to slightly lower the volatility of summertime conventional gasoline blendstock. This would ensure that retailers can freely offer E15 to conventional automobiles year-round. It would also clear the way for higher-level ethanol blends like E20 or E25 to meet applicable gasoline RVP requirements.

Anticipating familiar claims from the oil industry that such an administrative action would “raise gasoline prices,” RFA also submitted third-party analysis to EPA showing that lowering the volatility of gasoline blendstock by 1.0 psi in the summertime might be expected to add just $0.006 per gallon in refining costs. However, this cost would not likely be translated to retail prices because it would be offset by blending more ethanol (which, historically, has been priced well below gasoline blendstock at wholesale).

Moreover, reducing the volatility of gasoline blendstock to facilitate greater ethanol blending would have positive implications for air quality. A separate third-party analysis provided by RFA showed that lowering gasoline volatility by 1.0 psi would reduce emissions of carbon monoxide, nitrogen oxides, and volatile organic compounds.

In closing, the letter notes that “This action would improve air quality, remove arcane barriers to innovation and consumer choice in the retail fuel marketplace, simplify engineering of emissions control systems, and help facilitate compliance with renewable fuel standard requirements. In addition, removing the waiver would not noticeably affect refining costs.”

Read the full letter here.

Read the original story: RFA to EPA: New Gasoline Volatility Regulations Needed

Argus Leader

December 7, 2015

By Representative Kristi Noem

It might surprise many of us, but there are a lot of people out in D.C. who don’t seem to know the difference between South Dakota and North Dakota.

I know my counterpart in North Dakota often gets the question: “Is that the state with Mount Rushmore?” No, that’s South Dakota. For me, the question is: “Are you the state with all of that oil?” No, that’s North Dakota, but while North Dakota has all that oil, South Dakota’s corn and soybean production plays its own role in America’s energy security.

Every year, South Dakota harvests more than 400 million bushels of corn and 100 million bushels of soybeans. These commodities provide a pathway toward North American energy independence that can help boost our economy and our national security.

Today, about one-third of the petroleum used in the United States is imported from foreign countries, according to the U.S. Department of Energy. Most of this petroleum is refined into gas or diesel. Especially with conflicts arising in energy-rich areas of our world, the need to decrease our reliance on foreign fuels grows every single day. Now is the time to double down on domestic energy production, but unfortunately, the Environmental Protection Agency (EPA) is looking to let off the gas.

In early 2014, the EPA proposed new Renewable Fuel Standard (RFS) volumes. These volume requirements, which impact corn-based ethanol and biodiesel alike, tell refineries how many gallons of renewable fuels should be blended into our overall supply. This gives both farmers and consumers more certainty and greater price stability.

The EPA’s initial proposal was very disappointing, as the agency moved to significantly roll back our commitment to ethanol and biodiesel. Not only could this curb production, but the move would send the wrong message to investors, risk jobs, and threaten the creation of more developed biofuels.

I, along with a bipartisan group of 30 lawmakers, reached out to the EPA shortly after their announcement. It was important that they reverse course.

When the final numbers were announced in late November, the RFS remained beneath the levels I believe are appropriate. Nonetheless, the EPA did adjust the requirements at least slightly higher because of the pressure we put on them.

Especially at a time when the Middle East remains so volatile, our commitment to homegrown renewable fuels should not be in doubt. While the EPA is backing down, I am not. In recent weeks, I introduced an extension of the biodiesel tax credit. This legislation would ensure that domestically produced biodiesel was given a $1-per-gallon tax credit through the end of 2016. The legislation has bipartisan support and I’m hopeful it can be wrapped into an end-of-the-year tax extenders package.

My number one responsibility is to keep the American people safe – protecting economic opportunities comes in at a close second. By throwing our support behind homegrown fuels rather than foreign oil, we are accomplishing both and creating a nation that is fueled by South Dakota in the process.

Read the original story: Keeping America fueled by South Dakota