In the News
Mar 31, 2022
Three in four American voters support expanding the availability of E15 as a way to replace petroleum imports from Russia, and more than 80 percent support increasing domestic renewable fuel production as a way to lower record-high gas prices, according to a recent nationwide survey conducted by Morning Consult.
With national average gas prices hovering above $4 per gallon, 83 percent of the registered voters surveyed said they support increasing the domestic production of renewable fuels like ethanol as a way to bring down fuel prices, with 52 percent saying they “strongly support” such action. Since the beginning of March, ethanol prices have been nearly $1 per gallon lower than gasoline prices at wholesale terminals where gasoline is blended. Accordingly, blending higher levels of ethanol into gasoline brings down the price of the fuel sold to consumers at the pump.
Meanwhile, 72 percent of the survey respondents said they support increasing the availability of E15 as a way to replace oil imports from Russia. If E15 replaced just 30 percent of the E10 currently being sold in the United States, the nation could entirely replace the amount of gasoline supplied annually from Russian petroleum imports.
“These results shouldn’t come as a surprise to anyone, as E15 and other higher-ethanol blends are the lowest-cost fuels available anywhere in the market today,” said RFA President and CEO Geoff Cooper. “But unless the Biden administration acts immediately to allow summertime sales of E15, the cheapest fuel available at the pump will disappear on June 1 and Americans will be faced with another price hike. As this survey clearly shows, voters understand that using more American-made ethanol can immediately help bring pump prices down and enhance our nation’s energy security. At the same time, higher blends of ethanol reduce greenhouse gas emissions and tailpipe pollutants linked to cancer, heart disease, respiratory illness, and other health concerns.”
Voters also expressed support for increasing the production of flex-fuel vehicles (FFVs), which can run on fuel containing up to 85 percent ethanol (E85), with 69 percent saying it is important for the U.S. government to incentivize automakers to increase FFV output. Flex fuels like E85 are currently selling at a 30-50 percent discount to regular gasoline, providing FFV drivers with an incredible opportunity to save money at the pump.
The poll showed that voters prefer increased domestic renewable fuel use to lower pump prices over increased domestic production or importation of crude oil. In fact, more than half of the survey respondents who expressed an opinion opposed increasing crude oil imports to lower pump prices.
“The implications of this polling data are clear: voters across the country want our nation’s leaders to act immediately to increase the production and use of low-cost, low-carbon renewable fuels like ethanol to bring down pump prices and help the environment,” Cooper said.
Finally, the Morning Consult survey showed that two-thirds of voters support the Renewable Fuel Standard, which requires renewable fuels to comprise an increasing share of the nation’s fuel supply each year.
Read the original story here.
Mar 31, 2022
WASHINGTON, D.C. — Today, U.S. Representative Angie Craig led the six bipartisan Co-chairs of the Congressional Biofuels Caucus and 23 additional Members of Congress in a letter to President Joe Biden urging him to prioritize homegrown, renewable biofuels as a replacement for Russian energy sources. The letter comes after Congress banned the importation of Russian oil earlier this month. In their letter, the Members applauded the decision to ban imports of Russian oil and natural gas into the United States and argued that a renewed emphasis on renewable fuels would lower fuel prices for American consumers by more than $12 billion annually, generate substantial economic growth in rural communities and significantly decrease American dependence on foreign oil producers like Russia.
The letter asks the President to consider directing the Environmental Protection Agency (EPA) to allow the summer sales of E15 this year and to direct the EPA to reverse course on proposed retroactive reductions to 2020 and 2021 Renewable Volume Obligations. As of today – and barring any action by Congress or the President – the summer sales of E15 in Minnesota and other states will be prohibited beginning on June 1, 2022 due to a D.C. Circuit Court decision on the Clean Air Act in July of 2021.
“To ensure that this ban – and future actions that the U.S. may need to take to defeat Russian aggression – is economically sustainable for the American economy and American people, we urge you to consider the following actions that would prioritize homegrown and renewable biofuels,” the Members wrote. “Taken together, these actions would significantly increase U.S. energy independence, lower prices at the pump and ensure the continued success of our sanctions on the Russian economy.”
Actions to increase U.S. energy independence in light of Russian aggression are overwhelmingly supported by the American public. A recent Morning Consult poll indicated that 72% of Americans support increasing the availability of E15 as a way to replace Russian oil imports, and 83% of Americans support increasing domestic renewable fuel production – which includes renewable biofuels like ethanol and biodiesel – in the U.S. as a strategy to lower fuel prices.
“We thank these House members for encouraging President Biden to embrace domestic renewable fuels as a lower-cost, lower-carbon alternative to Russian oil imports,” said Renewable Fuels Association President and CEO Geoff Cooper. “E15 is typically selling for 20-30 cents per gallon less than regular gasoline right now; and as revealed by a new nationwide survey, three out of four voters support increasing the availability of E15 as a strategy for reducing pump prices and providing relief to American families. If the Biden administration fails to act on the straightforward request made by these Representatives, the lowest-cost fuel available at the pump today will disappear on June 1 and drivers will face another unnecessary price hike.”
“The message on both sides of the aisle remains loud and clear: to immediately offer relief at the pump and move toward a more secure energy sector, the Biden Administration must increase access to homegrown, low-carbon biofuels,” said Growth Energy CEO Emily Skor. “As gas prices hit their peak, higher blends of biofuels like E15 were selling for more than 50 cents cheaper per gallon at the pump in some areas of the country. Increasing access to lower-cost biofuels, through year-round E15 and robust RVOs, would offer these savings to more drivers and reduce our country’s dependence on foreign oil.”
“ACE members are incredibly grateful for the leadership being demonstrated by Rep. Angie Craig to spearhead this bipartisan letter urging the President to act now to allow E15 year-round and get the Renewable Fuel Standard back on track,” said Brian Jennings, American Coalition for Ethanol (ACE) CEO.“Ensuring year-round access to domestically-produced E15 for all parts of the country is the quickest way to address pain at the pump and make the U.S. more energy secure.”
“Corn farmers appreciate the bipartisan leadership of the House Biofuels Caucus and the 29 House Members who joined this letter asking President Biden to prioritize renewable fuels, like ethanol, when it comes to lowering prices for drivers and increasing our domestic energy supply,” said National Corn Growers Association (NCGA) President Chris Edgington. “Throughout this month, E15 has been priced around 10 to 40 cents less per gallon than regular, or E10, making ethanol the low-cost and low-emission solution the country needs now. However, unless the Biden administration or Congress act soon, drivers will lose retail access to lower-cost E15 on June 1. We urge continued bipartisan cooperation to keep this money-saving choice available.”
“Over the last two years, the more than 65,000 U.S. workers in the biodiesel and renewable diesel industry worked hard to maintain fuel supplies and provide value to consumers,” said Kurt Kovarik, Vice President of Federal Affairs at Clean Fuels Alliance America.” Clean Fuels and its members thank the members of the Biofuels Caucus – and especially Representatives Angie Craig, Rodney Davis, Cindy Axne, Dusty Johnson, Mark Pocan, and Adrian Smith – for prioritizing homegrown, clean fuels to boost America’s energy independence.”
You can find the full text of the letter here and below.
March 31, 2022
The Honorable Joseph R. Biden, Jr.
President of the United States
The White House
1600 Pennsylvania Avenue, NW
Washington, D.C. 20500
Dear President Biden:
Russia’s unjustified and brutal attack on Ukrainian sovereignty and Ukrainian citizens demands the type of unified domestic and international response that the United States has led over the past month. Given the Russian economy’s reliance on petroleum exports, banning the importation of Russian oil and natural gas into the United States was the right decision.
To ensure that this ban – and future actions that the U.S. may need to take to defeat Russian aggression – is economically sustainable for the American economy and American people, we urge you to consider the following actions that would prioritize homegrown and renewable biofuels. Taken together, these actions would significantly increase U.S. energy independence, lower prices at the pump and ensure the continued success of our sanctions on the Russian economy.
- Permanently reinstate the year-round availability of E15 by directing the Environmental Protection Agency (EPA) to use its authority pursuant to Section 211(c)(4)(C)(ii) of the Clean Air Act or by taking executive action to respond to a potential energy crisis triggered by Russian aggression on the international stage.
- Support ethanol and biodiesel by directing the EPA to reverse its course on the proposed retroactive reduction to 2020 and 2021 Renewable Volume Obligations (RVOs) and adhere to the Renewable Fuel Standard’s (RFS) statutory obligations.
Upholding the RFS and permanently reinstating the year-round availability of E-15 would lower fuel prices for hardworking Americans. Ethanol, biodiesel, and renewable diesel add to the nation’s fuel supply, lowering prices at the pump for nearly every consumer good that moves along the supply chain. Over the last decade, wholesale ethanol has saved consumers 17% when compared to wholesale gasoline. A recent report indicated that a nationwide shift to E15 could collectively save U.S. consumers more than $12 billion annually. And according to a recent World Agricultural Economic and Environmental Services (WAEES) study, availability of biodiesel and renewable diesel has saved consumers an average of 31 cents per gallon at the pump over the last ten years.
These actions would generate economic growth in rural communities that would reduce the impact of inflation on Americans’ pocketbooks. For example, ensuring the year-round availability of E15 would support an additional 182,600 jobs and generate an additional $17.8 billion in economic activity. Because ethanol production involves U.S. farmers and processing plants located in rural communities, these benefits would be most directly felt in rural America.
Finally, these actions would significantly increase U.S. energy independence and lessen the domestic impact of our ban on Russian energy imports by replacing them with U.S. biofuels. For example, about 8% of U.S. imports of oil and refined petroleum products come from Russia. Ensuring the year-round sale of E15 would potentially replace up to 5% of the liquid petroleum-based gasoline in the U.S. transportation sector with homegrown biofuels. Protecting the RFS from retroactive reductions will ensure that biodiesel can fill liquid energy deficiencies created by trade and market instability.
The American people and this Congress stand united in our resolve to support the Ukrainian people in the face of Russian aggression and imperialism. We will take the actions necessary to ensure democracy in Ukraine endures. Increasing domestic energy production is an important part of our effort to sustain sanctions on the Russian economy, and we urge you to increase U.S. energy independence and decrease
Read the original press release here.
Mar 29, 2022
A bipartisan group of lawmakers is urging the administration to allow year-round sales of E15 to help combat rising domestic energy costs and reduce reliance on foreign energy sources.
Senator Sherrod Brown says “the best lesson here is we have to broaden our energy production and that means more E15 fuel.”
The Ohio democrat tells Brownfield it’s critical to expand the availability of U.S. biofuels following the import ban on Russian oil.
“We have a lot of opportunities to broaden our energy inputs, which will stabilize prices and, frankly, will finally push Russian oil more off the world market,” he says.
Brown, a senior member of the Senate Agriculture Committee, co-sponsored the recent letter to President Biden.
The senators say American biofuels are a clean and reliable energy solution that will help drive down fuel costs for consumers.
The letter was signed by a bipartisan group of senators including John Thune of South Dakota, Dick Durbin of Illinois, Tammy Baldwin of Wisconsin, Tammy Duckworth of Illinois, Joni Ernst of Iowa, Deb Fischer of Nebraska, Chuck Grassley of Iowa, Amy Klobuchar of Minnesota, Roger Marshall of Kansas, Jerry Moran of Kansas, Mike Rounds of South Dakota, Ben Sasse of Nebraska, Tina Smith of Minnesota, Debbie Stabenow of Michigan, and Kevin Cramer of North Dakota.
Read the original story here.
Mar 28, 2022
Sales of E85 flex fuel in California surged to a new record in 2021, jumping 55 percent over 2020 levels and nearly doubling since 2018, according to new data released by the California Air Resources Board (CARB). Last year, California drivers purchased nearly 62.5 million gallons (mg) of E85 flex fuel, a blend containing up to 85 percent ethanol and 15 percent gasoline, for use in flex-fuel vehicles (FFVs). That’s up from about 40 mg in both 2019 and 2020, and 33.8 mg in 2018.
The surge in California E85 sales has accelerated further in 2022, as record-high prices for regular E10 gasoline are driving greater demand for lower-cost, lower-carbon alternatives. In recent weeks, E85 has typically been priced 30-50 percent below gasoline at stations across the Golden State.
California is one of just a handful of states that reports annual E85 sales volumes, but Renewable Fuels Association President and CEO Geoff Cooper said it is safe to assume that California now leads the nation in consumption of low-carbon flex fuels.
“During this time of record-high gas prices and heightened concerns about climate change, California drivers are seeking out options at the pump that are both more affordable and better for the environment,” Cooper said. “E85 satisfies both of those consumer demands. This new data show that when the fuel is made available and marketed properly, FFV drivers will absolutely respond. The combination of the California Low Carbon Fuel Standard, federal Renewable Fuel Standard, and a concerted promotional campaign by innovative retailers proves that the so-called ‘ethanol blend wall’ is a fictional barrier that can be eradicated with smart policy and marketing efforts.”
California’s largest provider of E85 noted that the momentum witnessed in 2021 has continued to build in 2022. “Demand for E85 has been on the rise this year, with increases of over 20 percent from January to February, and we expect to see the same for March,” said Greg Jones, Director of Business Development at Pearson Fuels. “We always want to encourage motorists to check their gas caps to see if they're driving a flex-fuel vehicle, and we are seeing more and more Californians taking advantage of our website and mobile app to find E85 stations near them. Drivers are seeing a real difference and saving quite a bit of money. In addition to that, we're focusing on blending our E85 with renewable naphtha, resulting in a nearly 100 percent renewable fuel that is 60 percent lower in greenhouse gas emissions compared to unleaded gasoline. We believe E85 can play an important role for decades and has the opportunity to become a low carbon fuel option for the millions of drivers who own these vehicles.”
Data from the California Energy Commission show that the number of FFVs on California roadways was nearly double the amount of electric vehicles at the end of 2020.
Read the original story here.
Mar 23, 2022
Legislation introduced in the Minnesota House of Representatives on March 17 aims to create a reimbursement program that would help fuel retailers install equipment compatible with higher blends of ethanol and biodiesel. The bill, tilted the Liquid Fuel Modernization Act, or HF 4328, is supported by the Minnesota Corn Growers Association.
Beginning on July 1, 2022, the bill would impose a liquid fuel modernization fee on the use of tanks that contain petroleum products. The rate of the fee would be set at $13 per 1,000 gallons, which equates to 1.3 cents per gallon. The fee would be in place through June 30, 2023.
Proceeds from the liquid fuel modernization fee would be used to reimburse eligible entities for a portion of the costs to acquire and install eligible fuel infrastructure. Reimbursements would be limited to 65 percent of total reasonable equipment and labor costs, with a cap of $800,000 per eligible entity each year. Applicants must use the eligible fuel infrastructure to offer higher blends of biofuel for sale at the retail fueling site or to store higher blends of biofuel at the bulk plant. Higher blends of biofuel are defined as gasoline blends containing more than 10 percent ethanol and diesel blends containing more than 20 percent biodiesel.
MCGA has spoken out in support of the bill, noting it aims to provide the resources needed for infrastructure improvements enabling every fuel retailer in Minnesota to offer higher ethanol blends within the next decade. According to MCGA, the program would aim to reimburse $52 million annually for equipment replacements at fuel retailers.
A full copy of HF 4328 is available on the Minnesota Legislature website.
Read the original story here.
Mar 22, 2022
Gevo Inc. has signed a take-or-pay agreement with Delta Air Lines Inc. to supply 75 million gallons of sustainable aviation fuel (SAF) per year for seven years. Based on current assumptions, including those around future pricing of commodities and the future values of certain environmental benefits, Gevo estimates that the agreement should generate approximately $2.8 billion of revenue, inclusive of the value from environmental benefits, for Gevo over the seven-year term of the agreement.
The agreement replaces the existing agreement signed with Delta in 2019 to purchase 10 million gallons per year and bolsters Delta’s commitment to incorporating SAF into its operations.
“On behalf of the entire team at Gevo, I want to congratulate our partners at Delta for their leadership in continuously pushing the aviation industry towards net-zero emissions. Delta makes for a great customer, recognizing that big change is needed. I also appreciate their faith in what we are doing at Gevo. Net-zero jet fuels matter. We expect production from our first Net-Zero plant to begin in 2025. To meet the demand that we now have under contract, we need to develop and build more than one Net-Zero plant. This is a happy problem to have,” said Patrick R. Gruber, Ph.D., Gevo’s CEO.
“Net-Zero Fuels are made by using low-carbon feedstocks produced with climate-smart agricultural practices and by eliminating fossil-based energy from the business system as much as possible. In addition, our customers depend on us to count carbon at every step of the process,” said Paul D. Bloom, Ph.D., Gevo’s chief carbon officer, and chief innovation officer. Bloom continued, “By accurately accounting for carbon emissions using Argonne National Laboratories GREET model along with our Verity Tracking platform we will provide confidence to our customers like Delta that scientifically robust and transparent methods are used to meet and measure their sustainability goals. We want to create a win-win value proposition for every participant in the SAF supply chain by tracking all carbon intensity benefits in our SAF.”
“SAF is a critically important lever we have available today to help our industry reduce the lifecycle carbon emissions from aviation fuel,” said Kelly Nodzak, Delta’s director of global jet fuel procurement. “That’s why we are working to develop the market and a broader understanding of the effectiveness of SAF, which can reduce lifecycle emissions up to 80 percent when used in pure form compared to fossil jet fuels.”
“With the right policies and incentives in place, we can unlock a future where sustainable aviation fuel is a viable climate solution that benefits air travel and beyond,” said Amelia DeLuca, Delta’s vice president of sustainability. “SAF production creates good-paying jobs in manufacturing, improves the environmental quality for all, and fosters rural economic opportunity for feedstocks and pathways. It will help us protect the planet we share and the places we call home.”
Gevo has remained focused on sustainability at every stage of production. Gevo has developed two alcohol-to-jet pathways that can utilize various low-carbon feedstocks grown using sustainable agriculture. These feedstocks can then be converted, in some cases, to high-value nutritional products and energy-dense liquid hydrocarbons, including SAF. Gevo’s production processes will incorporate renewable energy, including wind turbines, biogas, and combined heat and power systems (CHP) to increase efficiency and reduce carbon intensity to net-zero levels, which the customer can then pass on through the fuel.
The agreement is subject to certain conditions precedent, including Gevo developing, financing and constructing one or more production facilities to produce the SAF contemplated by the Agreement. A copy of the Agreement between Delta and Gevo has been filed with the U.S. Securities and Exchange Commission on Form 8-K.
Read the original story here.
Mar 22, 2022
An important new assessment published by experts from the Department of Energy’s Argonne National Laboratory, Purdue University, and the University of Illinois system found major flaws in a recent paper that made unfounded allegations about the greenhouse gas benefits of ethanol compared to gasoline.
Responding to the report Environmental Outcomes of the US Renewable Fuel Standard, which was led by Tyler Lark of the University of Wisconsin, the authors stated, “After a detailed technical review of the modeling practices and data used by Lark et al., we conclude that the results and conclusions provided by the authors are based on several questionable assumptions and a simple modeling approach that has resulted in overestimation of the GHG emissions of corn ethanol.”
Renewable Fuels Association President and CEO Geoff Cooper responded to the release of the assessment. “It has been well established that ethanol reduces greenhouse gas emissions by roughly half compared to gasoline. Unfortunately, a recently published report that attacked ethanol made headlines despite its obvious errors,” said Cooper. “Now that light has been shown on these flaws, we call on the news media to correct the record—particularly those who were so quick to report this now thoroughly debunked attack. Ethanol is a renewable, domestically produced fuel that is lower in cost and lower in carbon than gasoline. Today more than ever, it’s also vital for energy security.”
A number of problems with the study by Lark et al. were pointed out, including:
- The land-use changes identified by Lark et al. likely reflect the conversion of fallow or idle land to crops rather than permanent grasslands.
- Lark et al. likely overestimated soil organic carbon (SOC) loss by a factor of two to eight as a result of the incorrect application of carbon response functions. The authors noted that “the validation of the SOC emissions model used by Lark et al. … showed remarkably poor fit to measured SOC changes.” This is important, since a foundational assertion in the recent study was that emissions related to land-use change are higher than commonly recognized.
- Lark appeared to have double-counted the emissions of nitrous oxide—a greenhouse gas—from the use of fertilizer in corn production by adding them in while overlooking the fact that they are already included in the corn-farming-related emissions in the main lifecycle assessment models.
- Lark attributed 5.5 billion gallons of ethanol per year to the expanded Renewable Fuel Standard (RFS2) between 2008 and 2016 by comparing the volume under RFS2 and RFS1 without considering other significant drivers of ethanol production.
- The validity of picking the limited time period of 2006-2010 to assess price impacts associated with RFS2 is questionable. This does not align with the 2008-2016 timeframe for the study by Lark et al., and significant price increases occurred during this period.
When the Lark paper was first published, RFA posted a preliminary rebuttal of the effort and noted in a blog post that the association had tried to work with Lark, but to no avail. “We asked how we could work together to ensure their error-ridden satellite analysis of land-use changes was grounded in reality,” Cooper wrote. “We never heard back from them. RFA is always open to having an honest, fact-based discussion about the impacts of ethanol and the RFS on the environment and economy.”
Read the original story here.
Mar 21, 2022
WASHINGTON, DC — Today, U.S. Representatives Angie Craig (D-MN), Randy Feenstra (R-IA), Cheri Bustos (D-IL) and Ashley Hinson (R-IA) introduced the Home Front Energy Independence Act, which would expand the production and availability of American biofuels. In an effort to lower energy costs for working families and support economic growth in rural communities, Craig and Feenstra introduced the legislation following last week’s vote to ban imports of Russian energy products.
Specifically, the Home Front Energy Independence Act would:
- Make E15 available year-round
- Establish an E15 Tax Credit and Extend the Tax Credit for Biodiesel
- Direct the EPA to finalize their E15 labeling rule
- Provide for biofuel infrastructure and compatibility with retailers
U.S. Senators Amy Klobuchar (D-MN) and Joni Ernst (R-IA) introduced companion legislation in the Senate last week.
“E15 and higher blend biofuels can serve as a cheaper alternative for working families while helping to 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. “Especially as we work to lessen our dependence on foreign energy producers and hold Russia accountable for its unjustified invasion of Ukraine, our bipartisan legislation to prioritize home-grown domestic biofuels should be taken up without delay.”
“Iowans are paying the highest prices for gas in more than a decade, and there is no indication that the cost of fuel will decrease any time soon,” said Representative Feenstra. “Fortunately, higher blend biofuels and E15 can lower fuel prices and end our reliance on foreign energy, but we can only achieve these goals by making E-15 available year-round. I’m proud to co-lead this bipartisan legislation with my House colleagues to do just that and thank Senator Ernst and Senator Klobuchar for introducing this bill in the Senate. By cutting red tape and unleashing American energy production, we can lower gas prices, bolster biofuels production, and make our country energy independent once again.”
“Vladimir Putin’s invasion of Ukraine has brought to light the importance of energy independence and the value of domestic energy production here the United States. With the cost of this war hitting Americans at the gas pump, it’s time to bolster our fuel supply with home-grown biofuels,” said Representative Bustos. “Not only would this cut gas prices for consumers, but it would also reduce emissions and support our family farmers. I’m proud to join my colleagues on the bipartisan, bicameral Homefront Energy Independence Act to make E-15 available year-round.”
“The solution to the current energy affordability crisis that is squeezing working families across the country shouldn’t come from Russia, Iran, or Venezuela—it has to come from America,” said Representative Hinson. “The bipartisan Homefront Energy Independence Act will finally unleash the abundant domestic energy resources that we’ve been sitting on, including Iowa biofuels and allow the sale of E-15 year-round. This bipartisan solution will lower costs at the pump, bolster our fuel supply, and improve our national security.”
The bipartisan legislation will also codify into law full restrictions on U.S. purchases of Russian oil until the president determines Russia recognizes the sovereignty and territorial integrity of Ukraine. The current excess ethanol capacity domestically is nearly the same as the amount of Russian gas the U.S. had been importing – roughly 83 million barrels versus 87 million barrels.
The Home Front Energy Independence Act is supported by Growth Energy, the Renewable Fuels Association, Clean Fuels Alliance America and the National Corn Growers Association.
“We have an opportunity to lower prices at the pump today for American drivers by increasing access to E15 fuel,” said Growth Energy CEO Emily Skor. “As gas prices across the country hit historic highs, higher blends like E15 have been selling for, in some instances, more than 50 cents cheaper per gallon. The Home Front Energy Independence Act would increase access to these cost savings across the country and all year long. The war in Ukraine has also thrown America’s reliance on foreign oil, and the market uncertainty it creates, into the spotlight. The Home Front Energy Independence Act would boost U.S. energy security by increasing the supply of lower-cost, homegrown biofuels available to drivers.”
“The fastest way to put a lid on record-high gas prices is to empower greater use of low-cost renewable fuels, and that’s exactly what this bill would do. This commonsense legislation would bring immediate economic relief to American families who are experiencing unprecedented pain at the pump, while simultaneously reducing emissions of greenhouse gases and tailpipe pollutants linked to cancer, heart disease, and respiratory illnesses,” said Geoff Cooper, President and CEO of the Renewable Fuels Association. “Not only would the bill eliminate dependence on Russian oil imports, but it would also ensure that those imports are replaced by more affordable renewable fuels produced right here in America’s heartland. We applaud these House members for offering this smart solution.”
"The more than 65,000 U.S. workers in the biodiesel and renewable diesel industry stand ready to meet the nation’s need for cleaner, better transportation fuels,” said Kurt Kovarik, Vice President of Federal Affairs at Clean Fuels Alliance America. “Over the past two years, biodiesel and renewable diesel producers worked hard to maintain fuel supplies and provide value to consumers. Clean Fuels and its members applaud the strong, bipartisan action that Representatives Craig, Feenstra, Bustos and Hinson are proposing to boost America’s energy independence.”
“Corn farmers appreciate the leadership of Representatives Craig, Feenstra, Bustos and Hinson, calling for expanded use of biofuels to lower fuel costs and improve our energy security,” said National Corn Growers Association President Chris Edgington. “Blending more ethanol is an immediate step to help lower fuel prices, and ensure drivers continue to have access to lower-cost and lower-emission E15. Renewable ethanol adds billions of gallons to our fuel supply every year, lowering demand for high-cost oil while increasing total fuel available to consumers.”
Read the original press release here.
More...
Mar 16, 2022
As the United States continues to recover from the COVID-19 pandemic, inflation is on the rise, and consumers everywhere are looking to stretch their dollars as far as possible.
That’s especially true in fuel markets, where turmoil in Ukraine offers another reminder why U.S. energy security is a pocketbook issue for American families. Fortunately, there are steps we can take to help diversify energy supplies, including the use of newer biofuel blends on offer by select retailers in the state of Minnesota.
In fact, the latest state Department of Commerce report shows that Minnesota outpaces every other state – including Iowa – in the sales of higher biofuel blends like Unleaded 88, containing 15 percent homegrown ethanol. Not only does Unleaded 88 offer greater octane, but it also allows drivers to save an extra 15 cents or more per gallon. And while lawmakers in St. Paul cannot control U.S. energy policy, they are actively considering legislation to help make E15 available statewide.
Those efforts would not only protect drivers by diversifying our fuel supply, but they could also support significant economic growth in Greater Minnesota, which is home to 19 ethanol plants. Currently, ethanol supports approximately 22,810 jobs Minnesota jobs and contributes $6.1 billion annually to our state’s economy.
Access to new markets for biofuel blends like E15 would expand that footprint. A recent study from ABF Economics found that statewide E15 would add $313 million in GDP to Minnesota’s economy and generate an added $27 million in tax revenues. Wider access to E15 also would greatly benefit our state’s corn farmers, resulting in demand for an additional 43 million bushels of corn annually.
At the same time, higher biofuel blends are a great option for motorists looking for a simple, affordable way to help reduce emissions. In fact, recent estimates show that statewide sales of E15 would reduce greenhouse emissions by 332,000 metric tons – equivalent to taking more than 72,600 vehicles off Minnesota roads each year.
That’s a win for everyone – from farmers to the environment – and the retail data shows that consumers are excited to make the switch. As Minnesota Corn Research and Promotion Council Chair Brandon Fast recently noted, “We have known for years that Unleaded 88 and other higher-blend biofuels are better for air quality, boost octane and cost less. It’s gratifying to see consumers responding by making that choice at the pump.”
Due to United States Supreme Court reversing year-round sales of E15/Unl 88, Minnesota retailers cannot even sell E15 from June 1 through Sept. 15. Hoping Governor Tim Walz and members of Congress can assist Minnesota fuel retailers, farmers and consumers this coming summer save money at the pump and sell a homegrown fuel from hometown fuel retailers.
Read the original story here.
Mar 17, 2022
More than 1,000 farmers, workers in the ethanol industry, and other biofuel supporters sent a clear message to President Biden today: The solution to record-high gas prices is to immediately allow broader use of lower-cost ethanol blends like E15.
“Simply allowing gasoline blenders to sell E15 year-round would instantly help moderate prices at the pump and deliver relief to American families,” the letter states. “Today, E15 is selling for 10-25 cents per gallon less than standard gasoline, meaning year-round use of the fuel would save the average American household at least $125-200 on its annual gasoline bill. Those savings would accrue immediately while also providing energy, environmental and economic benefits for the long-term.”
The letter, signed by farmers and biofuel supporters from 30 states, stated “Biofuels like ethanol are underutilized in today’s fuel market, largely because outdated government regulations handcuff market access and deny consumers choice at the pump.” The signers of the letter specifically urged President Biden to take emergency action to allow the uninterrupted sale of E15 throughout the upcoming summer.
“We stand ready to unleash the power of American agriculture to enhance our nation’s energy and environmental security,” the letter concluded.
The letter, which was delivered to the White House today, is available here.
Read the original presss release here.
National Association of Convenience Stores
Mar 11, 2022
ALEXANDRIA, Va.—NACS asked the Environmental Protection Agency (EPA) to authorize the year-round sale of gasoline blended with up to 15% ethanol (E15) to reduce the U.S.’s reliance on foreign energy sources.
“This common-sense step would provide much-needed price relief at the pump while enhancing America’s energy security and improving gasoline’s emissions characteristics,” wrote NACS, along with SIGMA, in a letter to the EPA.
Congress has given the EPA the authority to allow E15 fuel to be sold year-round when there are extreme or unusual fuel or fuel additive supply circumstances. Oil prices are spiking in large part due to Russia’s attack on Ukraine, and in February ahead of the invasion, inflation rose to its highest level in 40 years. Neither of these trends is likely to dissipate in the coming months, according to NACS.
If there are additional, unforeseen developments, these challenges may be hard to overcome, says NACS.
“Fuel marketers and retailers could not have planned for these events. Allowing the year-round sale of E15 in all parts of the country would help enhance supply and lower prices for all American fuel consumers,” writes NACS. “This is a unique situation where the administration’s energy security and geopolitical objectives are fully aligned with its environmental priorities. Allowing year-round E15 would make the U.S. more energy secure, enhancing the nation’s geopolitical leverage, all the while improving gasoline’s emissions characteristics.”
U.S. Sens. John Thune (R-SD) and Dick Durbin (D-IL) are leading a bipartisan congressional group in urging President Biden to permit retailers to sell E15 fuel all year.
“As the United States joins global partners in seeking to hold accountable and isolate the Russian Federation for its unprovoked assault on Ukraine, we must deny Russia’s economic lifeblood of energy dominance,” the senators wrote in letter to the president. “This will require tapping every accessible contribution of American energy technology. As you know, American biofuels are one such readily available energy solution that offer consumers affordable and cleaner options at the pump.”
Read the original story here.
Mar 9, 2022
U.S. fuel ethanol production expanded by more than 3 percent the week ending March 4, according to data released by the U.S. Energy Information Administration on March 9. Ending stocks of fuel ethanol were up more than 1 percent.
U.S. ethanol production averaged 1.028 million barrels per day the week ending March 4, up 31,000 barrels per day when compared to the 997,000 barrels per day of production reported for the previous week. When compared to the same week of last year, production was up 90,000 barrels per day.
Weekly ending stocks for fuel ethanol expanded to 25.271 million barrels the week ending March 4, up 338,000 barrels when compared to the 24.933 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending March 4 were up 3.201 million barrels.
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Mar 9, 2022
WASHINGTON— U.S. Senators Amy Klobuchar (D-MN) and Joni Ernst (R-IA) introduced the Home Front Energy Independence Act to expand the availability and production of American biofuel, following President Biden’s ban on importing Russian oil.
“This legislation will help hold Putin accountable for Russia’s unprovoked invasion of Ukraine while investing in affordable, readily-available biofuels produced in the U.S. I have long pushed for pro-biofuel policies because they are good for drivers, farmers, and the environment. It’s time for Congress to take action by passing this bill immediately,” said Klobuchar.
Specifically, the Home Front Energy Independence Act will:
- Make E15 available year round
- Establish an E15 Tax Credit and Extend the Tax Credit for Biodiesel
- Direct EPA to finalize their E15 labeling rule
- Provide for biofuel infrastructure and compatibility with retailers.
The bipartisan legislation will also codify into law full restrictions on U.S. purchases of Russian oil until the president determines Russia recognizes the sovereignty and territorial integrity of Ukraine. The current excess ethanol capacity domestically is nearly the same as the amount of Russian gas the U.S. had been importing: roughly 83 million barrels versus 87 million barrels.
The bill combines elements from the following pieces of bipartisan legislation that Klobuchar leads:
- Consumer and Fuel Retailer Choice Act, which permits the year-round sale of E15.
- Low Carbon and Biofuel Credit Act, which creates a tax credit for selling and/or blending E15.
- Renewable Fuel Infrastructure Investment and Market Expansion Act, which expands the availability of low-carbon renewable fuels by providing grants for the installation of biofuel infrastructure.
In addition to Klobuchar and Ernst, the legislation was co-sponsored by Senators Chuck Grassley (R-IA), Tammy Duckworth (D-IL), Roger Marshall (R-KS), Tammy Baldwin (D-WI), and Deb Fischer (R-NE).
Klobuchar has been a strong advocate for investing in renewable fuel infrastructure and upholding the Clean Air Act’s Renewable Fuel Standard (RFS).
In February, she and Senator Chuck Grassley (R-IA) led a bipartisan letter urging the Environmental Protection Agency (EPA) to prioritize the Renewable Fuel Standard (RFS) by maintaining the blending requirements for 2022; denying all pending Small Refinery Exemptions (SREs); eliminating proposed retroactive cuts to the renewable volume obligations (RVOs); and setting 2021 RFS volumes at the statutory levels.
Klobuchar and Grassley also introduced bipartisan legislation in December to provide certainty to biofuel producers by preventing the EPA from retroactively reducing RVO levels once finalized.
Last June, Klobuchar led a letter with 15 colleagues to the EPA and National Economic Council (NEC) expressing concern about reports that the Biden administration was considering options to exempt oil refiners from their obligations under the RFS.
Read the original press release here.
Mar 8, 2022
American exports of U.S. ethanol picked up at the start of 2022 with shipments of 123.8 million gallons (mg), reflecting a 5% increase over December volumes. However, January exports were 25% lower than the record-high volumes in Jan. 2021. Canada remained the top destination for U.S. ethanol for the tenth consecutive month with imports of 36.4 mg, reflecting a slight uptick (+0.3%) from December. Trade fluctuations were mixed among our larger partners with exports expanding in India (19.0 mg, +19%), Mexico (11.6 mg, +76% to a 21-month high), and the Philippines (10.5 mg, up from essentially zero to the largest volume in a year) but scaling back in South Korea (11.7 mg, -18%), Brazil (8.9 mg, -31%), and the Netherlands (6.2 mg, -22%). Substantial and improved volumes of U.S. ethanol exports also landed in the United Kingdom, Peru, Jamaica, the United Arab Emirates, and Saudi Arabia. China remained essentially absent from our export market for the eighth consecutive month.
The U.S. logged its first significant imports of foreign ethanol in three months with 10.5 mg of Brazilian undenatured ethanol entering our borders in January.
U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—shifted 16% higher in January to 1.09 million metric tons (mt). This marked the largest volume of DDGS exports recorded in the month of January. Market distribution was more varied than in recent months, with our larger customers accounting for smaller shares of the total volume shipped. U.S. DDGS exports to Mexico perked up by 19% to 197,972 mt. While equivalent to just 18% of the American export market, this was sufficient to secure a foothold as our top customer, a position Mexico has maintained since Oct. 2020. Shipments eased to South Korea (127,844 mt, -2%), Canada (87,977 mt, -5%), Indonesia (71,754 mt, -14%), Vietnam (67,773 mt, -35%), and China (65,543 mt, -4%) but expanded to Turkey (80,846 mt, nearly twice the December volume), Spain (78,254 mt, up from zero), and Morocco (45,145 mt, +251%). The remaining quarter of U.S. DDGS exports were dispersed among another 28 countries.
In February, RFA released trade summaries for the U.S. ethanol industry in 2021. You can find these publications in our online library.
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Mar 3, 2022
As part of ongoing market development efforts in Chile, Guatemala and Mexico, and to increase ethanol use in Colombia, the U.S. Grains Council (USGC) hosted a delegation comprised of key government and industry representatives last week. The group attended the National Ethanol Conference in New Orleans before visiting the Denver area on a trade mission.
The time the delegation spent in the United States was meant to facilitate technical conversations to allow the team to learn about the economic benefits and best practices for blending ethanol. Additionally, this interaction allowed the group to familiarize themselves with the U.S. ethanol industry and make connections with counterparts in the U.S. as they seek to establish blend policies in their own countries.
The Council hosted a private educational session for the delegation while in New Orleans, providing an overview of the U.S. ethanol industry and a look at the operations of ethanol blending. The session offered an opportunity for participants to interact with Volkswagen (VW) Latin America and discuss VW’s vision for how ethanol can help achieve net-zero carbon emissions by 2050 or sooner. In addition, the group learned how low carbon ethanol plays a role in the transport sector decarbonization process.
In Denver, the group heard from Bob McCormick, a senior research fellow at the National Renewable Energy Laboratory, on the lab’s recent Global Ethanol-Blended-Fuel Vehicle Compatibility Study, that demonstrates vehicle compatibility with higher-level ethanol blends. The participants were able to visit a local ethanol plant, as well as a fuel terminal, giving participants a first-hand experience of the U.S. ethanol industry and demonstrating the industry’s reliability as a trade partner.
“This mission was instrumental in showcasing the U.S. ethanol industry – how it has evolved, and what has contributed to its success. For producer delegates, it was critical for building trust and an understanding that will facilitate partnerships to complement local production in their various countries,” said Carlos Suarez, USGC regional ethanol consultant for Latin America.
As the Council looks to further develop these markets for U.S. ethanol, trade education is just one of the ways the organization helps fulfill its mission of developing markets, enabling trade and improving lives.
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Mar 4, 2022
To provide relief at the pump in response to the ongoing Russia-Ukraine crisis while simultaneously reducing carbon emissions from the transportation sector, six farm and biofuel organizations wrote to President Biden urging his administration to use existing authority to allow for the year-round sale of gasoline blended with up to 15 percent ethanol (E15).
In a letter to the White House, the Renewable Fuels Association, American Farm Bureau Federation, Growth Energy, National Corn Growers Association, National Farmers Union and National Sorghum Producers explained that an immediate move to restore year-round sales of E15 can ease the impact of oil market disruptions and surging gas prices caused by Russia’s invasion of Ukraine.
“As American families continue to confront skyrocketing gas prices, we write today to urge the Administration to take a simple action that can provide immediate relief at the pump while simultaneously reducing carbon emissions from the transportation sector,” wrote the organizations. “Specifically, we request that the Administration use its authority to authorize the year-round sale of gasoline blended with up to 15 percent ethanol (E15) in response to surging oil prices and expected fuel supply disruptions caused by Russia’s invasion of Ukraine.
“As Russia’s harmful actions in Ukraine continue and further sanctions are potentially imposed against Russia, oil prices will likely continue to rise, creating still higher consumer costs and threatening U.S. energy and economic security. Expanding the volume of American-made ethanol in the U.S. fuel supply can help alleviate these issues, as ethanol is currently priced 70-80 cents per gallon lower than gasoline. And, by displacing imported petroleum, increased ethanol use will enhance U.S. energy security and independence, while reducing emissions and supporting America’s farmers and rural economies.”
The full letter is available here.
Read the original press release here.