In the News

Renewable Fuels Association

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

Congresswoman Angie Craig

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

MinnPost

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.

Renewable Fuels Association

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

Ethanol Producer Magazine

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.

Read the original story here.

Senator Amy Klobuchar

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:

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

Renewable Fuels Association

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.

Read the original story here