In the News
May 4, 2023
March U.S. ethanol exports vaulted 27% to a ten-month high of 132.3 million gallons (mg). Canada was our largest destination for the 24th consecutive month given its 43% share of March exports, including 72% of all denatured shipments. Our neighbor’s imports of 56.6 mg, a 34% bump over February, represent the largest monthly volume of U.S. ethanol exports to a single country to date. Other major global customers in March included India (22.8 mg, up from zero to a 13-month high), the European Union (12.8 mg, +104%), the United Kingdom (8.7 mg, -11%), Peru (7.9 mg, +89% to an 11-month high), and Mexico (5.9 mg, +9%). Notably, exports considerably curbed to South Korea (5.2 mg, -50%), the Philippines (2.2 mg, -62%), and Jamaica (2.1 mg, -67%), while Brazil again remained essentially absent from the market with a 16% tariff on U.S. ethanol in place. Year-to-date U.S. ethanol exports total 354.1 mg, lagging 10% behind last year at this time and marking the smallest first-quarter exports since 2016.
The U.S. did not log any meaningful imports of ethanol for the third consecutive month.
March U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, swung 17% higher to 898,086 metric tons (mt) upon elevated volumes in our larger markets. Mexico remained our top customer for the ninth consecutive month, with imports tallying 209,812 mt, a 23% leap over February volumes and a ten-month high. Mexico, South Korea (127,685, +7%), and Turkey (103,346 mt, +153%) together captured half of our global market in March. Indonesia (68,832 mt, +43%), Vietnam (53,259 mt, up a tick), and Canada (48,360 mt, +4%) imported sizeable volumes as well. Year-to-date DDGS exports total 2.43 million mt, coming in 16% below last year at this time and representing the smallest first-quarter exports since 2019.
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May 3, 2023
U.S. EPA Administrator Michael Regan fielded questions on the availability E15 and carbon capture and storage (CCS) permitting during a May 3 hearing held by the U.S. Senate Committee on Appropriations.
Sen. Deb Fischer, R-Neb., applauded the U.S. EPA’s April 28 announcement that it will issue emergency waivers allowing E15 sales to continue nationwide during the summer 2023 driving season and asked Regan to support effort to enact a legislative fix allowing permanent access to year-round E15 in the U.S.
“Providing access to E15 helps families save money at the gas pump, it’s better for the environment, and it boosts our nation’s energy security,” Fischer said. “While the emergency fuel waiver is a good thing, I believe we need a permanent fix and I have a bipartisan bill for that—the Consumer and Fuel Retailer Choice Act. It ensures nationwide permanent access to E15.” She asked Regan if he would commit to working with her on the legislative effort.
“The president has pledged that biofuels—especially advanced biofuels—would play a part in this economy as we move forward, so I look forward to partnering with you and your staff with technical assistance to be sure that we can make E15 more accessible,” Regan said in response.
Members of the committee also questioned Regan on permitting for Class VI CCS injection wells and states’ efforts to achieve primary regulatory authority (primacy) over Class VI injection wells located within their states. Under current regulations, the EPA is the acting regulatory authority with regard to Class VI wells in all states except those that have been granted primacy. States must apply for primacy and prove that their Class VI regulations are at least as stringent as federal standards. North Dakota became the first state to be granted primacy in 2018, followed by Wyoming in 2020. The EPA on April 28 announced its intent to grant primacy to Louisiana as well.
Sen. Shelley Moore Capito, R-W.V., noted that at approximately 70 individual permit applications are currently pending with the EPA for Class VI injection wells. She asked Regan what measures the agency is taking to ensure those permits are prioritized and processed in a timely manner, noting that states that have been issued primacy are able to move through the Class VI permitting process much more quickly.
Regan confirmed that Class VI well application are a priority for the EPA. “I think the president has indicated that CCS is something that this administration supports,” he said. “We’ve learned a lot of lessons from state’s like North Dakota,” he added, noting that Louisiana’s primacy will serve as a model for other states that choose to move forward with that process. He said uniformity ensuring states submit similar applications will allow for expedited processing.
A full replay of the hearing is available on the Senate Appropriations Committee website.
Read the original story here.
May 2, 2023
U.S. operable biofuels production capacity increased in February, with gains for ethanol, biodiesel and renewable diesel and associated fuels, according to data released by the U.S. Energy Information Administration on April 28. Total feedstock consumption was up slightly when compared to February 2022.
Total biofuels capacity reached 22.718 billion gallons per year in February, up 509 MMgy when compared to the 22.209 billion gallons per year of capacity in place the previous month and up 1.595 billion gallon per year when compared to the 21.123 billion gallons per year of capacity in place as of February 2022.
Ethanol capacity reached 17.395 billion gallons per year in February, up 176 MMgy when compared to the previous month, but down 28 MMgy when compared to the same month of last year.
Biodiesel capacity was at 2.063 billion gallons per year in February, up 12 MMgy when compared to January, but down 169 MMgy when compared to February 2022.
Capacity for renewable diesel and associated fuels, including renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline and other biofuels and biointermediates, reached 3.26 billion gallons per year in February, up 321 MMgy when compared to the previous month and up 1.792 billion gallons per year when compared to February 2022.
U.S. biofuel producers consumed 24.537 billion pounds of feedstock in February, down from 27.154 billion pounds in January, but up from 24.348 billion pounds consumed in February of the previous year.
An estimated 22.33 billion pounds of corn was consumed by U.S. biofuel producers in February, down from both 24.694 billion pounds consumed in January and 22.74 billion pounds consumed in February of last year. Grain sorghum consumption was at 208 million pounds in February, down from 264 million pounds the previous month, but up from 133 million pounds in February 2022.
Total soybean oil consumption reached 910 million pounds in February, with 536 million pounds consumed by biodiesel plants and 374 million pounds consumed by renewable diesel facilities. Total soybean oil consumption was at 941 million pounds in January, including 557 million pounds consumed at biodiesel plant and 384 million pounds consumed at renewable diesel facilities. Soybean oil consumption was at 741 million pounds in February 2022, including 519 million pounds consumed by biodiesel plants and 222 million pounds consumed by renewable diesel facilities.
U.S. biofuel producers consumed 207 million pounds of corn oil in February, down from 289 million pounds in January, but up from 188 million pounds in February of the previous year. Canola oil consumption was at 168 million pounds in February, down from 242 million pounds the previous month. The EIA withheld the volume of canola oil that went to biofuel production in February 2022 in order to avoid disclosure of individual company data.
According to EIA, biofuel producers consumed 404 million pounds of yellow grease, 192 million pounds of beef tallow, 33 million pounds of white grease and 22 million pounds of poultry fat in February. Consumption was at 404 million pounds, 199 million pounds, 41 million pounds, and 15 million pounds, respectively, in January; and at 306 million pounds, 130 million pounds, 38 million pounds, and 13 million pounds, respectively, in February 2022. The EIA withheld data on other types of waste oils, fats and greases consumed in order to avoid disclosure of individual company data.
An additional 63 million pounds of feedstock classified as “other” recycled feeds and wastes went to biofuel production in February, compared to 65 million pounds in January and 59 million pounds in February 2022. The EIA withheld data on yard and food waste feedstock and feedstock classified as “other” to avoid disclosure of individual company data.
Additional data is available on the EIA website.
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Apr 27, 2023
Novozymes released first quarter financial results on April 26, reporting that bioenergy sales were up 28 percent during the three-month period. Overall company sales were up 5 percent for the quarter.
According to Novozymes, the strong growth in bioenergy sales came in well ahead of expectations after a very strong ending to the quarter. The company said growth was partly driven by the timing of orders and more supportive market conditions. “The strong underlying performance was driven by the continued penetration of the broad and innovative solution toolbox allowing for higher yields, throughput, and byproduct value-capture for producers in a market environment that turned more favorable towards the end of the quarter,” Novozymes said in a statement.
The North American market experienced strong developments during the quarter despite an estimated 2 percent decrease in U.S. ethanol production. Novozymes said performance was also strong outside of North America, driven by innovation, capacity expansion of corn-based ethanol production in Latin America, and supported by growth in solutions for biodiesel production. Sales of enzymes used in second-generation biofuels production also contributed. Overall, growth was positively impacted by pricing, Novozymes added.
Bioenergy accounted for 23 percent of total company sales during the first quarter. Household care; food, beverages and human health; grain and tech processing; and agriculture, animal health and nutrition accounted for 27 percent, 22 percent, 13 percent and 15 percent of first quarter sales, respectively.
Total sales for the quarter were up 5 percent, with gains for bioenergy; household care; and agriculture, animal health and nutrition.
Read the original story here.
Apr 14, 2023
WASHINGTON - U.S. Senators Amy Klobuchar (D-MN) and Chuck Grassley (R-IA) and a bipartisan group of 14 colleagues urged the Environmental Protection Agency (EPA) to strengthen the Renewable Fuel Standard (RFS) by maintaining the blending requirements for 2023; denying all pending Small Refinery Exemptions (SREs); eliminating proposed retroactive cuts to the renewable volume obligations (RVOs); and setting RFS volumes at the statutory levels.
“The RFS creates competition in the marketplace, keeping fuel costs low for consumers while bringing down carbon emissions,”the senators wrote to EPA Administrator Michael Regan.“By taking the steps enumerated above, EPA can set the RFS on a path that provides stability and growth for the U.S. biofuel sector. In doing so, it can guarantee this essential program continues to function as intended—as a mechanism for reducing emissions, driving economic growth in rural communities, keeping gas prices low, and bolstering national security by promoting an essential homegrown energy source.”
In addition to Klobuchar and Grassley, the letter was also signed by Senators Tammy Duckworth (D-IL), John Thune (R-SD), Debbie Stabenow (D-MI), Deb Fischer (R-NE), Tina Smith (D-MN), Pete Ricketts (R-NE), Dick Durbin (D-IL), Joni Ernst (R-IA), Tammy Baldwin (D-WI), Roger Marshall (R-KS), Gary Peters (D-MI), Mike Rounds (R-SD), Sherrod Brown (D-OH), and Jerry Moran (R-KS).
Klobuchar has long been a strong advocate for investing in renewable fuel infrastructure, increasing American biofuel production, and upholding the Clean Air Act’s Renewable Fuel Standard (RFS). In March, she and Fischer reintroduced bipartisan legislation to make E15 available year round. TheConsumer and Fuel Retailer Choice Act of 2023would enable the year-round, nationwide sale of ethanol blends higher than 10 percent, helping to lower fuel prices and provide certainty in fuel markets for farmers and consumers.
Last July, Klobuchar introduced bipartisan legislation to lower fuel prices and improve vehicle efficiency. TheNext Generation Fuels Actwould allow the sale of fuels with higher-octane levels and greater amounts of ethanol.
Last April, Klobuchar led a bipartisan group of colleagues in pushing the Biden administration to expand American biofuel availability.
In March 2022, she and Ernst introduced theHome Front Energy Independence Act, bipartisan legislation to expand the availability and production of American biofuel, following President Biden’s ban on importing Russian oil.
Klobuchar and Grassley also introduced bipartisan legislation in December 2021 to provide certainty to biofuel producers by preventing the EPA from retroactively reducing RVO levels once finalized.
Full text of the letter is available here.
Read the original press release here.
Apr 17, 2023
Despite seasonally lower ethanol demand, U.S ethanol production and profitability were in line with long-term averages during the first quarter of 2023, according to CoBank Knowledge Exchange’s latest quarterly report, released April 6.
CoBank said the ethanol industry had a slow start in January, but finished the quarter strongly. Production during the three-month period averaged 15.4 billion gallons on an annualized basis, down slightly from 2022’s average of 15.5 billion gallons.
Pretax margins averaged only 7 cents per gallon at the start of the quarter, but increased to long-term average levels of 28 cents per gallon by the end of the period. According to CoBank, margins benefited from lower corn prices and natural gas energy costs at the close of the quarter.
CoBank also highlighted policy developments that took place during the quarter, including the reintroduction of the Next Generation Fuels Act by Sen. Chuck Grassley, R-Iowa. That bill aims to create a high-octane fuel standard and require automakers to manufacture vehicles that can use high-octane fuels.
A full copy of the quarterly report is available on CoBank’s website.
Read the original story here.
Apr 6, 2023
On Sunday, members of OPEC+, a consortium of the Organization of the Petroleum Exporting Countries and allied nations, announced further reductions in oil output through the end of the year totaling more than 1 million barrels per day (bpd). Additionally, Russia, which is part of the group, indicated that it would extend its previously announced 500,000 bpd production cut through year-end. In response, oil futures prices surged more than 6% on Monday, and well-known energy market analysts expect prices to continue to rise as global supplies tighten in the coming months.
Bad Timing
The OPEC+ announcement could hardly have come at a worse time. According to the Energy Information Administration (EIA), total U.S. inventories of crude oil and petroleum products are 6% below this time last year and are at a 19-year low seasonally. The Strategic Petroleum Reserve is at its lowest level in 40 years, rendering it difficult to use to balance supplies as was done last year in the aftermath of the Russian invasion of Ukraine. Gasoline inventories are 7% below year-ago levels and are at a 9-year low seasonally. And, the summer driving season—a time when gasoline demand and prices are at their highest—is just around the corner.
What the Analysts Are Saying
According to The Hill, Andrew Lipow “thinks that in the coming weeks, gasoline prices, which stood at about $3.50 per gallon on Monday, will rise between 12 and 16 cents per gallon.” Similarly, Tom Kloza of Oil Price Information Service “predicted an ‘immediate increase’ of 10 to 12 cents per gallon, and added that the cuts also have the potential to contribute to further increases later in the year.”
Bloomberg quoted Francisco Blanch of Bank of America as saying, “Any unexpected 1 million barrel per day change in supply or demand conditions over the course of a year can impact prices between $20 and $25 per barrel.” That would imply crude oil prices rising to around $100 per barrel (bbl).
Reuters indicated that “Rystad Energy said it believed the cuts will add to tightness in the oil market and lift prices above $100 a barrel for the rest of year, possibly taking Brent as high as $110 this summer.” It also noted that UBS expects prices of Brent crude oil, the international benchmark, to hit $100/bbl by June and that Goldman Sachs raised its December forecast for Brent crude to $95/bbl. Other analysts are also calling for prices to gravitate toward $100/bbl during the second half of the year.
Implications for Retail Gasoline Prices
To determine how these oil price forecasts would translate to U.S. retail prices of gasoline, RFA conducted a straightforward regression analysis. This was based on the tight relationship between oil prices — particularly Brent — and gasoline prices.
Two approaches were used for the analysis. First, retail gasoline prices were regressed against Brent crude oil spot prices using monthly data for the past 20 years. The gasoline price that was utilized is the all-grades, all-formulations price reported by the EIA. The correlation coefficient between the two data series is 0.94 (1.00 would indicate perfect positive correlation). The R-squared statistic for the regression is 0.88, which in practical terms implies that 88% of the variation in the retail gasoline price is “explained” by changes in the crude oil price.
The statistics would be marginally higher by including monthly “dummy” variables as explanatory variables or by using the regular unleaded price instead of the all-grades, all-formulations price. However, dummy variables were not used since implications of the OPEC+ cut for gasoline prices were not assessed on a monthly/seasonal basis. It is also worth noting that retail gasoline prices include an additional margin beyond wholesale prices, which can affect the tightness of the relationship to crude oil.
The second approach that was used was to regress the change in the retail gasoline price against the change in Brent crude spot prices. This was done since fuel prices often exhibit a trend over periods of time.
The results from the two approaches are similar. If the price of Brent crude were to rise to $95/bbl as a result of the OPEC+ production cut, the average retail gasoline price would be predicted to increase by $0.34-0.38 per gallon (gal) compared to the price shortly before the announcement. If it were to rise to $100/bbl, the gasoline price would be expected to increase by $0.44-0.50/gal.
EIA reports gasoline prices weekly rather than daily. However, AAA reported that the national average price for regular gasoline was $3.48/gal late last week. This is consistent with the $3.50/gal average price of regular gasoline reported by EIA for the week ended April 3. For both that week and the year to date, the differential between the all-grades, all-formulations price and the price of regular has averaged $0.11/gal. This implies that the all-grades, all-formulations price late last week would have been approximately $3.59/gal.
If Brent crude oil rises to $100/bbl due to the OPEC+ production cuts, as many analysts are predicting, the U.S. average retail gasoline price would be expected to increase to more than $4.00/gal. If the production cuts were to last for a year, that would equate to an additional cost to U.S. consumers of $64 billion, or nearly $500 per household.
Ethanol Is Helping Hold Down Prices and Can Help More
According to a recent study conducted by energy economists from the University of California-Berkeley and the Czech Republic, the use of ethanol reduced the price paid by U.S. drivers for gasoline by an average of $0.77/gal between 2019 and 2022. That was based on ethanol being blended into gasoline predominantly at a 10% rate (E10).
Sales of a higher 15% ethanol blend (E15) have become increasingly popular over the last several years and hit 1 billion gallons for the first time in 2022. An RFA analysis found that the availability of additional E15 volumes saved American consumers approximately $60 million last summer, when it was $0.20-0.30/gallon less expensive than regular gasoline (E10). However, summertime sales would have been far smaller had the Biden administration not granted a series of waivers for E15 from an obsolete fuel requirement.
Whereas many retailers had previously found it difficult or impossible to offer E15 during the summer months in conventional gasoline areas, in 2019 the Environmental Protection Agency issued a regulation allowing E15 to be sold year-round.[1] Then, in 2021 the D.C. Circuit Court of Appeals vacated the regulation, ruling in favor of oil refiners. The restriction would have returned last year, but the EPA invoked its authority to issue emergency waivers when “extreme and unusual fuel or fuel additive supply circumstances exist,” as was the case following the Russian invasion of Ukraine.
If the administration does not take action within the next month, E15 sales will drop precipitously in most of the country this summer, as was the pattern in conventional gasoline areas prior to 2019. Yet, the issuance of waivers is at least as justified by market conditions now as it was last year, since inventories of gasoline (and petroleum overall) are even lower, as discussed above. Allowing E15 to continue to be sold in conventional gasoline areas this summer—just as it has the last four years—would benefit American consumers and the environment and strengthen energy security.
[1] EPA limits the volatility of gasoline during the “high ozone season” every summer (Jun. 1-Sep. 15). Prior to EPA’s 2019 rule change, the practical volatility limit for E10 sold in conventional gasoline areas was 10 pounds per square inch (psi) Reid vapor pressure (RVP), but E15 was held to a 9-psi limit. EPA’s 2019 rule effectively extended the volatility limit for E15 to 10 psi, creating regulatory parity for E15 and E10.
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Apr 5, 2023
Biofuel and farm leaders today called on President Biden to get ahead of rising fuel costs by authorizing sales of E15 this summer. In a letter to the White House, six stakeholder groups noted that current conditions are analogous to those in place last summer, when President Biden waived outdated Reid Vapor Pressure (RVP) restrictions on E15. The move saved drivers up to nearly a dollar per gallon at the pump in some areas, and an average of 23 cents per gallon according to the Minnesota Department of Commerce.
“The ongoing conflict in Ukraine, now extending into its second year, continues to reverberate across global energy markets,” said the letter, whose signatories include the Renewable Fuels Association, Growth Energy, National Corn Growers Association, National Sorghum Producers, American Farm Bureau Federation and National Farmers Union. “At home, this conflict continues to cause fuel supply disruptions, high gasoline prices, and ongoing uncertainty for millions of Americans. To help remedy these disruptions, provide stability for American families, and support domestic energy and economic security, we urge the administration to authorize the summer sale of gasoline blended with up to 15 percent ethanol (E15).”
Advocates also outlined a range of “extreme and unusual” factors impacting the stability of U.S. fuel markets, including historically low domestic fuel inventories, record exports of U.S. fuel to allies overseas, and continued inflationary pressures on fuel consumers. Protecting summer access to E15 would help relieve pressure on U.S. fuel supplies, while reducing greenhouse gas emissions, lowering evaporative emissions, and supporting America’s farmers and rural economies, they argued.
“While a permanent solution that would allow E15 sales year-round remains an important necessity, we urge you to take action on a temporary, emergency RVP waiver as soon as possible to remedy current and expected supply challenges resulting from ongoing conflict in Ukraine,” concluded the letter.
Read the original story here.
More...
Mar 29, 2023
U.S. fuel ethanol production expanded by nearly 1 percent the week ending March 24, according to data released by the U.S. Energy Information Administration on March 29. Weekly ending stocks of fuel ethanol were down nearly 3 percent.
Fuel ethanol production averaged 1.003 million barrels per day the week ending March 24, up 6,000 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 for the week ending March 24 was down 33,000 barrels per day.
Weekly ending stocks of fuel ethanol fell to 25.527 million barrels the week ending March 24, down 661,000 barrels when compared to the 26.188 million barrels of stocks reported for the previous week. When compared to the same week of last year, stocks for the week ending March 24 were down 1.002 million barrels.
Read the original story here.
Mar 28, 2023
As the Biden administration and Congress consider taking action to allow continued sales of lower-cost E15 this summer, a new poll shows overwhelming support among voters for ensuring the popular fuel blend remains available year-round and nationwide.
With retail gas prices remaining elevated, 70 percent of poll respondents support increasing the availability of E15 to help lower fuel prices and support energy independence. Just 13 percent of those surveyed did not support expanded availability of E15. Meanwhile, 62 percent support recently introduced bipartisan legislation that would allow the lower-carbon E15 blend to be sold year-round nationwide. Only 15 percent of respondents do not support the legislation, while 23 percent had no opinion. Morning Consult polled 1,978 registered voters March 20-23, across all demographics, for the Renewable Fuels Association. Click here for the topline data.
“We are pleased to see these new poll results, but not surprised,” said RFA President and CEO Geoff Cooper. “They match what we observe every day; drivers continue to embrace an American-made fuel that is more affordable and lower in carbon emissions. Simply put, consumers want greater access to E15. Last summer, E15 sold for 20 to 30 cents per gallon less than regular gasoline, on average, saving American families three to five dollars every time they filled up. Those savings will disappear on June 1 unless our leaders in Washington take action. They need to act quickly to ensure that lower-cost E15 is available at the pump throughout the summer driving season.”
Additional results:
- Ethanol favorability and support for the Renewable Fuel Standard have reached record highs; 69 percent of respondents have a favorable opinion of ethanol, while 66 percent support the RFS. These are the highest numbers since RFA kicked off baseline polling in June 2016.
- The Next Generation Fuels Act, which would establish a high-octane, low-carbon fuel standard, is supported by 64 percent of respondents, an increase of four percentage points from December.
- 69 percent of respondents believe it is important for the U.S. government to promote the production and sale of flex-fuel vehicles in the United States.
- Voters strongly oppose government mandates related to their vehicle purchase options. Banning the sale of new liquid-fueled vehicles with internal combustion engines is opposed by 61 percent of respondents, while mandating that buyers purchase electric vehicles is opposed by 63 percent.
An October 2022 analysis found that allowing E15 sales in the summer of 2022 saved American drivers nearly $60 million. For more information on E15, check out RFA’s updated fact sheet.
Read the original story here.
Mar 21, 2023
The Renewable Fuels Association today thanked a bipartisan group of governors who called on the U.S. Environmental Protection Agency to take swift action to ensure consumers in their states will have uninterrupted access to lower-cost E15 throughout the summer 2023 driving season. Signing onto today’s effort are Govs. Kim Reynolds (R-IA), Jim Pillen (R-NE), Tim Walz (D-MN) and Kristi Noem (R-SD).
“We applaud the efforts of these governors to secure year-round access to E15 for consumers in their states,” said RFA President and CEO Geoff Cooper. “We agree with the governors that EPA still has time to implement their petition in time for this summer. But if EPA fails to do that, the governors have made a strong case that EPA could and should use its authority to issue emergency waivers, just as it did last year. The governors’ letter underscores the point that year-round access to E15 saved consumers more than 20 cents per gallon last summer, or about $3 to $5 per fill-up. Those savings are in jeopardy this summer unless EPA acts quickly.”
The governors’ letter notes that if EPA fails to implement their petition before this summer, emergency waivers are justified by current conditions. “The market conditions that justified emergency action last summer still exist today; indeed, fuel supplies are even tighter than they were a year ago and there is greater risk of disruption heading into summer,” the governors wrote. “U.S. inventories of crude oil and petroleum products recently hit a 19-year low, and nationwide gasoline stocks are 3 percent lower than a year ago. Gasoline futures prices are up roughly 15 percent in just the last two weeks; and with a larger-than-usual amount of refining capacity offline for maintenance, supplies and prices could experience greater pressure as summer approaches. These are the same sort of circumstances that led EPA to issue emergency waivers last year.”
Earlier today at an EPA virtual hearing on the governors’ proposal, Cooper stressed that action needs to take place as soon as possible to ensure drivers can take advantage of E15 savings this summer. Even though EPA’s proposal is more than seven months late, there remains no economic, environmental, or legal justification for the agency to delay implementation by another year, Cooper said.
Read the original press release here.
Mar 14, 2023
WASHINGTON - U.S. Senators Amy Klobuchar (D-MN) and Deb Fischer (R-NE), both members of the Senate Agriculture Committee, reintroduced bipartisan legislation to make E15 available year-round. The Consumer and Fuel Retailer Choice Act of 2023 would enable the year-round, nationwide sale of ethanol blends higher than 10 percent, helping to lower fuel prices and provide certainty in fuel markets for farmers and consumers.
“I have long pushed to make E15 available year-round because investing in affordable, readily-available biofuels produced in the U.S. is good for drivers and farmers alike,”said Klobuchar.“By ensuring consumers can access E15 gasoline throughout the year, our bipartisan legislation will benefit our economy, decrease prices at the pump, and reduce our dependence on foreign oil. It’s critical that we diversify our fuel supply and invest in affordable energy solutions. I look forward to working with Senator Fischer to pass this bipartisan bill.”
“Our bipartisan legislation is the only permanent, nationwide solution to unleashing the power of year-round E15. It’s why we’ve been able to bring together a diverse group of stakeholders from the oil/gas, biofuel, ag, and transportation sectors to support our legislation. Negating the need for a patchwork of regulations will ensure all Americans can enjoy lower costs at the pump. With this unique coalition of support, I’m more optimistic than ever that we can make year-round E15 a reality,”said Fischer.
The Consumer and Retailer Choice Act of 2023 would allow for the year-round, nationwide sale of E15 by permanently extending Reid vapor pressure (RVP) volatility waiver to ethanol blends above 10 percent. The bill would also prohibit the removal of the 1-psi waiver for E10 ethanol, ensuring uniformity across fuel markets and preventing a patchwork of regulations from disrupting the national fuel supply chain.
In addition to Klobuchar and Fischer, the legislation is sponsored by Senators John Thune (R-SD), Pete Ricketts (R-NE), Tammy Baldwin (D-WI), Chuck Grassley (R-IA), Tina Smith (D-MN), Kevin Cramer (R-ND), Debbie Stabenow (D-MI), Mike Rounds (R-SD), Tammy Duckworth (D-IL), Jerry Moran (R-KS), Dick Durbin (D-IL), Roger Marshall (R-KS), Sherrod Brown (D-OH), Joni Ernst (R-IA), and John Hoeven (R-ND).
Companion legislation in the House of Representatives is led by Representatives Angie Craig (D-MN) and Adrian Smith (R-NE).
The Consumer and Retailer Choice Act of 2023 has been endorsed by the American Petroleum Institute, National Corn Growers Association, National Farmers Union, the American Farm Bureau Federation, National Council of Farmer Cooperatives, Renewable Fuels Association, Growth Energy, American Coalition for Ethanol, SIGMA, National Association of Truck Stop Operators, National Association of Convenience Stores.
In a letter to Congressional leadership, the coalition of agricultural, energy and transportation organizations urged the bill’s swift passage:“We urge Congress to act quickly to adopt legislation that will bring certainty and consistency to the fuel market, while also finally resolving long-standing differences among many stakeholders about fuel volatility regulations.”
Klobuchar has long been a strong advocate for investing in renewable fuel infrastructure, increasing American biofuel production, and upholding the Clean Air Act’s Renewable Fuel Standard (RFS). Last July, she introduced bipartisan legislation to lower fuel prices and improve vehicle efficiency. TheNext Generation Fuels Actwould allow the sale of fuels with higher-octane levels and greater amounts of ethanol.
Last April, Klobuchar led a bipartisan group of colleagues in pushing the Biden administration to expand American biofuel availability.
In March 2022, she and Ernst introduced theHome Front Energy Independence Act, bipartisan legislation to expand the availability and production of American biofuel, following President Biden’s ban on importing Russian oil.
In February 2022, she and Grassley 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 2021 to provide certainty to biofuel producers by preventing the EPA from retroactively reducing RVO levels once finalized.
Additionally, in July 2021, Klobuchar and Fischer introduced bipartisan, bicameral legislation, cosponsored by Smith, to permit the year-round sale of E15.
In June 2021, Klobuchar introduced a 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. Co-led by Ernst, the Biofuel Infrastructure and Agricultural Product Market Expansion Actwould expand the availability of low-carbon renewable fuels in the marketplace, resulting in cleaner air, lower fuel process, and rural economic vitality.
Read the original press release here.
Ethanol Producer Magazine
By Geoff Cooper
Mar 10, 2023
For more than a decade, the Renewable Fuels Association has worked with national polling groups to regularly survey American voters about their attitudes toward ethanol, the Renewable Fuel Standard, and other marketplace and policy issues important to our industry. Our most recent round of polling, in which Morning Consult surveyed 1,999 registered voters, showed that support for low-cost, low-carbon renewable fuels like ethanol continues to grow.
According to the survey, nearly 65 percent of the voters support the Renewable Fuel Standard, while only 15 percent expressed some level of opposition to the program. Meanwhile, 64 percent of respondents have a favorable opinion of ethanol, compared to just 18 percent unfavorable. When it comes to higher blends of ethanol, 68 percent support increasing the availability of E15 to help lower fuel prices and bolster energy independence, and 66 percent said it is important for the federal government to promote the production and sale of flex-fuel vehicles in the United States.
This round of polling also looked at some of the current policy debates and questions facing the industry, and the results are not surprising. The survey showed 60 percent of respondents support the Next Generation Fuels Act, which would drive the use of more efficient, lower-carbon liquid fuels like E25 or E30, compared to just 18 percent who oppose such legislation. And when it comes to electric vehicles, 77 percent of voters say it is important for automakers to disclose (to potential buyers) the emissions impacts of the electricity used to power electric vehicles, and 66 percent oppose policies that would ban the sale of new cars with traditional liquid-fueled engines.
RFA also conducted a round of focus groups in late January, held virtually with consumers in Ohio, Florida and California. These sessions provided a more qualitative assessment and a deeper look into how some people view these matters. While there was some ambivalence or misunderstanding about ethanol at first, a short discussion of ethanol’s benefits quickly led to more support; and we learned, again, that consumers are on our side. Over and over in both the Morning Consult polling and our focus groups, consumers say they want fuel options that are lower in cost, American-made, and better for air quality and carbon emissions. And there is still a lot of concern—even among voters in California—about moving too rapidly toward an all-EV future.
When you’re in the trenches fighting for ethanol every day, it’s easy to get distracted by the negative attacks and myths that continue to be hurled at our industry. But the conclusions we can draw from this public opinion work are clear. Americans strongly support expanded use of lower-cost, lower-carbon renewable fuels like ethanol, want greater access to higher ethanol blends, and strongly oppose policies that remove options at the gas pump or the auto dealership. It’s evident that voters understand and support the environmental advantages, energy security benefits, and affordability that renewable fuels like ethanol offer.
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Mar 8, 2023
January U.S. ethanol exports jumped 59% to an 8-month high of 117.8 million gallons (mg). Canada was our largest importer for the 22nd consecutive month with 47.5 mg of U.S. ethanol crossing the border (primarily denatured), representing 40% of total U.S. exports despite a 3% decline from December volumes. Shipments increased across the bulk of remaining markets, including the United Kingdom (17.9 mg, up from minimal volumes to the largest exports in over a decade), South Korea (14.5 mg, +271% to an 8-month high), European Union (11.7 mg, up from minimal volumes), India (8.5 mg, up from zero to an 8-month high), Colombia (5.0 mg, +398% to a 15-month high), and Mexico (4.8 mg, +20%).
January was the first time in four months that the U.S. did not log foreign ethanol imports.
U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, scaled back 13% to 770,344 metric tons (mt). Mexico remained our top customer for the 7th consecutive month despite dipping 9% to a 9-month low of 153,659 mt (equivalent to 20% of January exports). Shipments to South Korea declined 10% to 111,609 mt while the European Union boosted imports by 74% to a 4-month high of 70,774 mt (with the majority bound for Ireland). Other larger markets included Indonesia (53,591 mt, -5%), Vietnam (51,475 mt, -17% to the lowest volume since Sept. 2017), Canada (51,221 mt, -11% to a 20-month low), Japan (39,227 mt, -16%), and Colombia (36,841 mt, -43%). Notably, imports to China hit a 12-month high (32,550 mt, +16%).
In February, RFA released annual analyses of U.S. ethanol and co-products exports in 2022. Find these trade summaries and other RFA publications here.
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Mar 2, 2023
WASHINGTON - U.S. Senator Amy Klobuchar, a senior member of the Senate Agriculture Committee, released the following statement in response to the Environmental Protection Agency’s proposed E15 rule.
“Giving certain states, including Minnesota, the flexibility to use E15 in the summer starting in 2024 is a good first step, but we need action now. In order to boost our economy and decrease prices at the pump, we should be giving consumers access to E15 nationwide this summer to prevent a disruption in sales. This is why I joined Senators from both sides of the aisle to call on the Administration to remove barriers to E15 starting in summer 2023, and I’ll keep pushing to pass bipartisan legislation that I introduced to make E15 available year-round for all Americans.”
Klobuchar has long been a strong advocate for investing in renewable fuel infrastructure, increasing American biodiesel production, and upholding the Clean Air Act’s Renewable Fuel Standard (RFS).
She leads bipartisan legislation with Senator Deb Fischer (R-NE) to make E15 available year-round. TheConsumer and Fuel Retailer Choice Actwould enable the year-round, nationwide sale of ethanol blends higher than 10 percent, helping to lower fuel prices and provide certainty in fuel markets for farmers and consumers.
Read the original press release here.
Feb 27, 2023
Adding low-cost ethanol to the nation’s gasoline supply improves energy security and saves the average American household more than $750 per year, according to a new study conducted by energy economists from the University of California-Berkeley and leading universities in Brazil and the Czech Republic.
The analysis concluded that “adding ethanol to gasoline decreases the price paid by U.S. drivers at the pump. We estimate the average discount per gallon to be $0.77 between 2019 to 2022 and averaged across our models. …this would add up to total savings of $95.1 billion per year for U.S. consumers.”
Spread across 124 million U.S. households, this equates to an average annual savings of $767 per household. Adding ethanol to gasoline reduces demand for petroleum, which in turn puts downward pressure on prices for crude oil and refined products. In addition, ethanol is typically priced below other octane boosters and gasoline blendstocks at wholesale terminals where fuels are blended. The combination of ethanol’s lower cost and its ability to pressure oil prices by extending fuel supplies results in large savings for consumers. The authors of the new study attribute much of this benefit to the Renewable Fuel Standard.
“The accessibility of renewable fuels limits the bargaining power of the largest oil producers and brings about a higher degree of fuel security to the U.S.,” the study’s authors concluded. “We estimate that blending roughly 330 million barrels of ethanol into U.S. gasoline lowers global crude oil prices as well as retail gasoline prices. The main conclusion is that the RFS program has lowered the prices of gasoline at the pump at a statistically significant level.”
Renewable Fuels Association President and CEO Geoff Cooper said the study’s results come at a critical time for U.S. policymakers. “American consumers would be paying much higher prices at the pump if not for the inclusion of more than 14 billion gallons of low-cost, low-carbon ethanol in our nation’s gasoline supply each year,” Cooper said. “This new study confirms that adding ethanol to gasoline is a proven solution for significantly reducing gas prices and providing economic relief to American families. As war in Eastern Europe continues to wreak havoc on global energy markets, and as abnormally high inflation rates continue to bedevil the U.S. economy, the Biden administration and Congress should take note of this study’s findings. And they should act immediately to allow increased use of higher ethanol blends, like E15 and E85, year-round and nationwide.”
The new study, which was commissioned by the Renewable Fuels Association, is available here.
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