In the News

Senator Amy Klobuchar

Jun 30, 2021

WASHINGTON – U.S. Senator Amy Klobuchar (D-MN) announced the introduction of a new package of bipartisan bills to expand the availability of low-carbon renewable fuels, incentivize the use of higher blends of biofuels, and reduce greenhouse gas emissions. 

"Diversifying our fuel supply, introducing higher blends of biofuels to the market, and making sure retailers have the right equipment to take advantage of these blends will promote clean energy and support our rural economies,” said Senator Klobuchar.  “This biofuels infrastructure package will make cleaner fuels more accessible – ultimately benefiting both the economy and the environment.”

“Increasing access to biofuel is critical to our rural economies in Iowa, and across the Midwest, and offers cleaner and more affordable choices for consumers. These bills build on our bipartisan work to support farmers and the biofuel industry who feed and fuel the world,”  said Senator Ernst. 

“Homegrown biofuels, especially higher-octane blends like E15, offer readily available emissions reductions that are mistakenly being overlooked in the current energy debate,”  said Senator Thune.  “Biofuels not only support a critical market for our farmers and deepen American energy security, but they offer a lower-carbon fuel for domestic use and export without the unresolved costs, labor issues, and resource constraints of the all-in push for vehicle electrification. This bill will help further expand consumer access to E15, building off the long-soug ht ability to sell the fuel year-round, which was secured in 2019.”

Co-led by Senator Joni Ernst (R-IA), the  Biofuel Infrastructure and Agricultural Product Market Expansion Act  would expand the availability of low-carbon renewable fuels in the marketplace, resulting in cleaner air, lower fuel process, and rural economic vitality. This legislation would provide for federal investment in renewable fuel infrastructure like blender pumps and storage tanks, allowing small businesses across the nation to provide cleaner and more affordable options to American drivers.

Building on this effort to diversify the use of renewable fuels in the automotive industry, the Clean Fuels Vehicle Act –  also co-led by Ernst – would incentivize the manufacture of Flex Fuel Vehicles (FFVs) capable of utilizing higher blends of clean fuels. The bill would create a $200 refundable tax credit for each FFV manufactured for the light duty vehicle market. The credit would be made available to Original Equipment Manufacturers (OEMs) and sunset after a period of 10 years. 

The  Low Carbon Biofuel Credit Act,  co-led by Senator John Thune (R-SD), would create a tax credit for each gallon of fuel containing 15 percent or greater ethanol content (E15). The bill would allow an ethanol blender or fuel retailer to claim a 5-cent tax credit for each gallon of E15 blended or sold and a 10-cent tax credit for each gallon greater than E15 blended or sold.  This legislation would also allow the credit to be fully refundable and transferable for small retailers. 

Read the original press release here

Representative Angie Craig

Jun 25, 2021

WASHINGTON, DC – Today, the co-chairs of the bipartisan House Biofuels Caucus—Rep. Angie Craig (MN-02), Rep. Cindy Axne (IA-03), Rep. Rodney Davis (IL-13), Rep. Dusty Johnson (SD-AL), Rep. Mark Pocan (WI-02), and Rep. Adrian Smith (NE-03)—released the following statement after the Supreme Court weakened the RFS at the expense of family farmers and biofuels producers in rural America in HollyFrontier Cheyenne Refining, LLC v. Renewable Fuels Association: 

“We are concerned with the potential consequences of today’s Supreme Court’s decision, which could have a devastating impact on farmers and producers who are still fighting to recover from the volatile markets, unpredictable weather, and trade instability of the past several years. However, we are encouraged that the Environmental Protection Agency had reversed its position on small refinery exemptions prior to the Supreme Court’s final opinion, and we urge the Administration to apply the same logic in deciding not to grant future waivers. Today’s decision underscores the importance of the RFS Integrity Act; we will continue to fight for the enactment of this legislation to support family farmers and the clean biofuels industry.” 

The Renewable Fuel Standard is a federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels by mandating that oil refiners blend billions of gallons of ethanol and other biofuels into their fuel each year or buy credits from those that do. Under the previous Administration, the EPA greatly expanded the number of small refinery waivers that were issued while undermining transparency and accountability in the SRE process. By issuing dozens of waivers between 2016 and 2020, the EPA saved the oil industry hundreds of millions of dollars while threatening rural economies and harming the biofuels industry at large. 

In 2018, the Renewable Fuels Association and other groups filed a lawsuit challenging the Administration’s issuance of small refinery exemptions to three refineries in Oklahoma, Wyoming and Utah. Last year, the 10th Circuit Court of Appeals ruled in favor of the RFS groups, declaring that the Environmental Protection Agency did not have the authority to extend an economic hardship waiver to any refinery that had not maintained a continuous string of annual waivers from the start of the RFS program. The court also held that in granting the waivers, EPA ignored its own studies that found refiners are largely able to pass through to customers their cost of acquiring Renewable Identification Number (RIN) compliance credits. Last year, several refineries, including HollyFrontier Cheyenne Refining appealed the original ruling to the Supreme Court.

Read the original press release here

Ethanol Producer Magazine

Jun 21, 2021

The Minnesota House of Representatives on June 19 voted 112 to 20 to pass an omnibus agriculture bill that includes $6 million to support the development of biofuel infrastructure to supply E15 blends of fuel.

The bill aims to allocate $3 million in 2022 and $3 million in 2023 for grants to upgrade retail petroleum dispensers, fuel storage tanks and other equipment that does not have the ability to be certified for use with E25. Grants would be offered for up to $200,000 per station, not to exceed 65 percent of costs.

In a  statement  released on June 18, State Rep. Paul Anderson said the funding will help building out Minnesota’s infrastructure for the expanded use of biofuels. “We hear a lot about using more electric cars to improve air quality in the future, but biofuels can have a much more immediate impact and this appropriation to aid in the transition will be helpful in that regard,” he said.

The legislation is now being considered by the Minnesota Senate.

Read the original story here.

Senator Amy Klobuchar

Jun 16, 2021

WASHINGTON – U.S. Senator Amy Klobuchar (D-MN) led a letter with 15 bicameral colleagues – including Senator Tina Smith (D-MN) – to the Environmental Protection Agency (EPA) and National Economic Council (NEC) expressing concern about reports that the Biden administration is considering several options to exempt oil refiners of their obligations under the Clean Air Act’s Renewable Fuel Standard (RFS). The legislators noted that these proposals “all unjustifiably waive Clean Air Act compliance requirements for a small group of refiners that the EPA has repeatedly determined are not negatively impacted by the RFS.” They proceed to recognize the consequence of such actions, writing, “Exempting refiners of their obligations to blend biofuel would mean increased reliance on oil and more carbon emissions – a result this country cannot afford if we are to meet our new commitment under the Paris Agreement to reduce emissions by 50 – 52 percent by 2030.”

“Rather than exempting refiners of their obligations under the Clean Air Act, the Administration should provide additional certainty and stability to the renewable fuels marketplace that will create jobs, drive investment, and cut carbon emissions from the existing vehicle fleet. We encourage your Administration to swiftly issue a proposed rule for the 2021 and 2022 Renewable Volume Obligations (RVOs) with strong blending targets and respond to the 2017 Court remand in Americans for Clean Energy, et al., v. Environmental Protection Agency to reinstate 500 million gallons of blending requirements inappropriately waived from the 2016 blending targets,” the legislators wrote.

The letter was signed by Senators Tammy Baldwin (D-WI), Tammy Duckworth (D-IL), Richard Durbin (D-IL), Tina Smith (D-MN), Debbie Stabenow (D-MI), and Ron Wyden (D-OR), and Representatives Cheri Bustos (D-IL), Cindy Axne (D-IA), Angie Craig (D-MN)  Mark Pocan (D-WI), Ron Kind (D-WI), David Scott (D-GA), Lauren Underwood (D-IL), Raja Krishnamoorthi (D-IL), and Ruben Gallego (D-AZ).

Full text of the letter can be found below and  HERE.

Dear Administrator Regan and Director Deese:

We write with significant concern about recent reports that the Administration is considering several options to exempt oil refiners of their obligations under the Clean Air Act’s Renewable Fuel Standard (RFS). We support your efforts to address climate change, but we are concerned that rolling back the RFS obligation for refiners directly contradicts this work. Following through on the actions reportedly under discussion would directly undermine your commitment to address climate change and restore integrity to the RFS and we urge you to reject them.

The RFS was designed to reduce greenhouse gas emissions from the vehicle transportation sector, diversify our fuel supply, strengthen our national security, and drive economic opportunity. When allowed to work as Congress intended, the RFS has delivered on these goals while serving as the economic engine behind a growing biobased manufacturing sector across rural America and a biofuel industry with a 100 percent U.S. supply chain and a higher union density than the national average.

The proposals identified in media reports as options under consideration by the Environmental Protection Agency (EPA) have one thing in common: they all unjustifiably waive Clean Air Act compliance requirements for a small group of refiners that the EPA has repeatedly determined are not negatively impacted by the RFS. If adopted, greenhouse gas emissions will increase, our reliance on oil will increase, consumers will pay more at the pump, and the U.S. economy will be harmed.

Rather than exempting refiners of their obligations under the Clean Air Act, the Administration should provide additional certainty and stability to the renewable fuels marketplace that will create jobs, drive investment, and cut carbon emissions from the existing vehicle fleet. We encourage your Administration to swiftly issue a proposed rule for the 2021 and 2022 Renewable Volume Obligations (RVOs) with strong blending targets and respond to the 2017 Court remand in Americans for Clean Energy, et al., v. Environmental Protection Agency to reinstate 500 million gallons of blending requirements inappropriately waived from the 2016 blending targets. 

As your Administration continues to push for meaningful and rapid climate action, biofuels can and should play an important role in decarbonizing vehicle emissions. Recent studies demonstrate that using ethanol in place of gasoline reduces greenhouse gas emissions by almost half while biodiesel cuts greenhouse gas emissions by an average of 74 percent. Exempting refiners of their obligations to blend biofuel would mean increased reliance on oil and more carbon emissions – a result this country cannot afford if we are to meet our new commitment under the Paris Agreement to reduce emissions by 50 – 52 percent by 2030.

We urge you to reject any actions under discussion to exempt oil refiners of their obligations under the RFS and uphold your commitment to combatting climate change and supporting our nation’s farmers.

Read the original press release here.

United States Department of Agriculture

Jun 15, 2021

WASHINGTON, June 15, 2021 — Agriculture Secretary Tom Vilsack announced today additional aid to agricultural producers and businesses as part of the USDA Pandemic Assistance for Producers initiative. Earlier this year, Secretary Vilsack announced plans to use available pandemic assistance funds to address a number of gaps and disparities in previous rounds of aid. As part of the Pandemic Assistance initiative announced in March, USDA pledged to continue Coronavirus Food Assistance Program (CFAP) payments and to provide aid to producers and businesses left behind. Implementation of the assistance announced today will continue within 60 days to include support to timber harvesters, biofuels, dairy farmers and processors, livestock farmers and contract growers of poultry, assistance for organic cost share, and grants for PPE.

“USDA is honoring its commitment to get financial assistance to producers and critical agricultural businesses, especially those left out or underserved by previous COVID aid,” said Secretary Vilsack. “These investments through USDA Pandemic Assistance will help our food, agriculture and forestry sectors get back on track and plan for the future. Since January, USDA has provided more than $11 billion of assistance directly to producers and food and agriculture business.”

In March, USDA announced $6 billion (see Part 1) in available funds through Pandemic Assistance to support a number of new programs or to modify existing efforts. The following programming is planned for implementation within 60 days, which will continue to be focused on filling gaps in previous rounds of assistance and helping beginning, socially disadvantaged and small and medium sized producers that need support most:

  • $200 million: Small, family-owned timber harvesting and hauling businesses
  • $700 million: Biofuels producers
  • Support for dairy farmers and processors:
    • $400 million: The new Dairy Donation Program to address food insecurity and mitigate food waste and loss
    • Additional pandemic payments targeted to dairy farmers that have demonstrated losses that have not been covered by previous pandemic assistance
    • Approximately $580 million: Supplemental Dairy Margin Coverage for small and medium farms
  • Assistance for poultry and livestock producers left out of previous rounds of pandemic assistance:
    • Contract growers of poultry
    • Livestock and poultry producers forced to euthanize animals during the pandemic (March 1, 2020 through December 26, 2020)
  • $700 million: Pandemic Response and Safety Grants for PPE and other protective measures to help specialty crop growers, meat packers and processors, seafood industry workers, among others
  • Up to $20 million: Additional organic cost share assistance, including for producers who are transitioning to organic

As the economy continues to gain strength after the Biden Administration’s historic vaccination and economic relief efforts, USDA is working with producers and agricultural businesses to ensure they have the resources and tools to thrive in 2021 and beyond. The funding associated with USDA Pandemic Assistance is meant to serve as a bridge from disruptions associated with the pandemic to longer-term investments to help build back a better food system. Through USDA’s Build Back Better initiative, USDA has already announced $5 billion in a mix of loans, grants and innovative financing to make meaningful investments to build a food system that is more resilient against shocks, delivers greater value to growers and workers, and offers consumers an affordable selection of healthy food produced and sourced locally and regionally by farmers and processors from diverse backgrounds.

“We have more work to do to build back a better food system, strengthen our supply chains, and make sure American agriculture gives our farming and ranching families every opportunity to earn a good living,” said Secretary Vilsack. “As the economy continues to bounce back, USDA will ensure American agriculture is ready to seize the moment.”

As USDA looks to long-term solutions to build back a better food system, the Department is committed to delivering financial assistance to farmers, ranchers, and agricultural producers and businesses who have been impacted by COVID-19 market disruptions.

Since USDA rolled out the Pandemic Assistance initiative in March, the Department has announced approximately $6.8 billion in assistance (Part II and III) to producers and agriculture entities through the following programs:

  • $6.295 billion: Coronavirus Food Assistance Program (CFAP) payments to farmers, ranchers and producers (March 24th)
  • $35 million: Value Added Producer Grants (March 5th)
  • $169.9 million: Specialty Crop Block Grants (April 13th)
  • $75 million: Gus Schumacher Nutrition Incentive Program (April 13th)
  • $37.5 million: Beginning Farmer and Rancher Development Program (April 13th)
  • $80 million: Payments to Domestic Users of Cotton (April 13th)
  • $92.2 million: Local Agriculture Market Program (May 5th)
  • Approximately $20 Million: Pandemic Cover Crop Program (June 1st)

Read the original press release here.

Ethanol Producer Magazine

Jun 14, 2021

Members of the House Biofuels Caucus sent a letter to Agriculture Secretary Tom Vilsack on June 9 urging the USDA to provide COVID-19 relief to biofuels producers under the agency’s Pandemic Assistance for Producers program.

Former President Donald Trump on Dec. 27, 2020,  signed the Consolidated Appropriations Act of 2021  into law. That bill, in part, provided for $11.2 billion in COVID-19 relief for agriculture. 

The USDA on March 24, 2021, provided guidance on how it intends to use a portion of those funds and announced its intent to provide pandemic relief to biofuel producers as part its USDA Pandemic Assistance for Producers Initiative, which the agency said aims to distribute relief resources more equitably. As part of that announcement, the agency announced plans to dedicated at least $6 billion towards new programs.

The letter authored by the House Biofuels Caucus urges Vilsack to use a portion of that $6 billion in funds to assist the biofuels industry. “Specifically, we respectfully request that you implement direct, per-gallon payments for biorefineries that were in normal operation in the first quarter of 2020 and with 2019 production year as a benchmark for providing relief,” members of the caucus wrote. “For advanced biofuels producers who operated at a market loss, we request that you implement direct payments to applicants utilizing an average net return over total costs difference between the pre and post pandemic production.”

The letter also addresses the need for USDA to invest in biofuels infrastructure. Members of the caucus applaud the  $18.4 million investments made through the Higher Blends Infrastructure Program in April  and urge further investments through the HBIIP. “Increased investments in this program will serve to help stabilize demand and bolster the ability of producers to sell into the market while expanding domestic energy production,” members of the caucus wrote.

“We continue to advocate for proactive approaches that complement COVID relief efforts to help rebuild the industry, and investments offered through the HBIIP, as well as clear and consistent labeling of higher biofuel blends including E-15 and B-20 or higher, are key for rural America to move forward with confidence,” they continued. “As markets continue to rebound, it is now more important than ever to quickly provide support, and bolster efforts that increase the demand for biofuels at home and abroad.”

The letter is signed by Reps. Rodney Davis, R-Ill.; Angie Craig, D-Minn.; Dusty Johnson, R-S.D.; Adrian Smith, R-Neb.; Cindy Axne, D-Iowa; Mark Pocan, D-Wisc.; Randy Feenstra, R-Iowa; Darin LaHood, R-Ill.; Ashley Hinson, R-Iowa; Mike Bost, R-Ill.; Mariannette Miller-Meeks, R-Iowa; Cheri Bustos, D-Ill.; Ron Kind, D-Wisc.; Tom Emmer, R-Minn.; Sam Graves, R-Mo.; Michelle Fischbach, R-Minn.; Don Bacon, R-Neb.; Ann Wagner, R-Mo.; Jim Hagedorn, R-Minn.; Adam Kinzinger, R-Ill.; James Baird, R-Ind.; and Jeff Fortenberry, R-Neb.

Read the original story here

Renewable Fuels Association

Jun 10, 2021

A recent poll found that voter support for the Renewable Fuel Standard (RFS) has hit its highest levels in at least five years.  Meanwhile, the tracking poll shows support for the use of biofuels like low-carbon ethanol has remained consistently high, with a bipartisan majority of voters expressing a favorable opinion.   The benchmark poll  was conducted at the end of May by Morning Consult, a Washington polling and news site, on behalf of the Renewable Fuel Association.

The poll found that 64 percent of respondents support the Renewable Fuel Standard, with 29 percent expressing “strong support.” This is the highest level of “strong support” for the RFS recorded since RFA began the tracking poll in 2016. It also marks the second-highest level of total support for the RFS, trailing only the two most recent polls (May 2020 and February 2021) that both found 66 percent support for the program.

“Even in times of political division and polarization, the need for cleaner, greener American-made fuels is a uniting issue,” said RFA President and CEO Geoff Cooper. “A bipartisan majority of voters support the RFS specifically and ethanol generally, and it is apparent that they want their elected officials to protect the integrity and longevity of the RFS program. Renewable fuels clearly are an area where we can find common ground and bridge broad divides.”

Among registered voters, 72 percent of Democrats, 63 percent of Republicans and 57 percent of Independents hold a favorable opinion of ethanol.  Similarly, the poll found that 76 percent of Democrats and 57 percent of Republicans supported the RFS, along with 57 percent of Independents.

The poll saw an uptick in respondents who reported a very favorable opinion of ethanol since last year, suggesting that more voters view themselves as champions and advocates for renewable fuels. Of those polled, 23 percent reported a very favorable opinion, compared to 13 percent in May 2020.

The desire for energy security is a key driver of support for biofuels. Among voters who have a favorable opinion of ethanol, being made in America was the attribute that contributed most to their favorable opinion of the fuel, of the options tested. Ethanol’s lower carbon footprint and affordability were the second and third most important attributes, respectively, according to the poll.

The poll was conducted from May 27 to 31, 2021, among a sample of 1,988 registered voters.

Read the original story here

Ethanol Producer Magazine

Jun 8, 2021

The U.S. Energy Information Administration maintained its forecasts for 2021 and 2022 ethanol production in its latest Short-Term Energy Outlook, released June 8. The outlook for 2021 and 2022 ethanol blending, however, was increased.

The EIA currently predicts U.S. fuel ethanol production will average 960,000 barrels per day in 2021, increasing to 990,000 barrels per day in 2022. Both forecasts were maintained from the  May STEO. Ethanol production averaged 910,000 barrels per day last year.

On a quarterly basis, ethanol production is expected to average 980,000 barrels per day during the second quarter of this year, increasing to 990,000 barrels per day in the third quarter, and falling slightly to 980,00 barrels per day in the fourth quarter. In 2022, ethanol production is expected to average 970,000 barrels per day in the first quarter, increase to 990,000 barrels per day in the second quarter, and reach 1 million barrels per day in the third and fourth quarters.

Ethanol blending is currently expected to average 900,000 barrels per day in 2021, and 920,000 barrels per day in 2022. Both forecasts were increased from the May STEO, which predicted ethanol blending to be at 890,000 barrels per day this year and 910,000 barrels per day next year. Ethanol blending was at 820,000 barrels per day in 2020.

Read the original story here