In the News

The Hill

Jul 27, 2021

In Congress, I’m focused on supporting family farmers, investing in rural communities and addressing the generational challenges we face as a nation, including tools to address climate change. That’s exactly why I’m a supporter of biofuels. Biofuels offer predictability for farmers, drive economic growth and investment in rural America and decrease the carbon intensity of our transportation sector. These benefits are why I am pushing for immediate policy and budget changes to ensure that biofuels remain a key part of this country’s transition to renewable energy. 

Minnesota is no stranger to renewable fuels like ethanol and is the fourth-largest producer of corn in the United States. Right now, more than half of the district I represent is covered by corn and soybeans. With 19 ethanol plants  in our state, this activity contributes between $1 and $2 billion  to Minnesota’s GDP annually and last year supported nearly 14,500 full-time jobs.  Over the past several years, biofuels like ethanol and biodiesel have helped keep our family farms afloat — even as growers and producers across the country have struggled with overseas trade uncertainty, volatile markets and a global pandemic that disrupted supply chains around the world.

The benefits of renewable biofuels go far beyond their economic impact on rural communities. They are also a key tool in our fight against climate change. Recent studies — including one from EH&E, Harvard and Tufts — show that renewable fuels like ethanol cut carbon emissions by 46 percent or greater  compared to traditional fossil fuels. The reduction of greenhouse gas emissions achieved by a transition to higher ethanol blends like E15 — a 15 percent ethanol blend — is equivalent to taking nearly 3.85 million cars off the roads.  In Minnesota alone, a shift to E15 has the power to reduce greenhouse emissions by 332,000 metric tons. And in California, where a low carbon fuel standard creates a market for renewable fuel credits to decarbonize the transportation sector, it’s biofuels that are playing the biggest role  in reducing transportation sector carbon emissions.  

Right now, this country and the world are experiencing the severe and devastating consequences of a changing climate. More than 70 percent of my state is experiencing drought conditions. It has never been more important that we identify and embrace innovative solutions that can help to reduce our carbon emissions and reverse this dangerous trend. I am strongly supportive of the inclusion of electric vehicles in the conversation due to their potential for emissions reductions. But given the scale and severity of this crisis, it is vital that we pursue impactful policies that can be implemented immediately. Unlike the longer-term timeline of electric vehicles, we can take advantage of the significant benefits of biofuels today. That’s why in Washington, I am committed to fight for immediate action on key legislation in this space. 

Earlier this year, I introduced the Renewable Fuel Standard Integrity Act,  bipartisan legislation to create transparency in the small refinery exemption (SRE) process and offer more certainty to the renewable fuel marketplace. I have also co-sponsored the Renewable Fuels Infrastructure Investment and Market Expansion Act,  a critical piece of legislation to invest in biofuels infrastructure across the country. And in July, I introduced the Year-Round Fuel Choice Act, a bill to ensure that Americans can buy E15 throughout the entire year. 

By acting quickly to pass these key pieces of legislation, Congress and the Biden administration can make a long-lasting and transformative impact for rural America and our collective effort to combat climate change. I was disappointed not to see biofuels included in the initial bipartisan infrastructure framework, but rest assured that as conversations in Washington continue to focus on infrastructure investments and efforts to address climate change, I will continue to fight to ensure renewable fuels have a seat at the table. After all, they are road-ready solutions to support family farmers, generate economic growth in rural America, and tackle climate change. Now is the time to make sure they are part of the mix. If not, we will have missed an important opportunity as a nation to reduce carbon emissions immediately.

Read the original column here.

Renewable Fuels Association

Jul 27, 2021

In  a letter sent today  to President Joe Biden, Renewable Fuels Association members from across the country memorialized their commitment to ensuring ethanol achieves a net-zero carbon footprint, on average, by 2050 or sooner. Ethanol is already cutting greenhouse gas emissions by half compared to gasoline, the letter says, but “we can—and must—do more” to decarbonize transportation fuels and combat climate change in the decades ahead. The letter comes after RFA’s board of directors met last week in St. Louis and adopted a resolution outlining their carbon performance goals for 2030 and 2050.

“Today’s grain-based ethanol is already a low-carbon fuel that is helping to clean up our nation’s transportation fuels,” RFA members wrote, highlighting  a recent analysis  from the Department of Energy’s Argonne National Laboratory that shows today’s typical corn ethanol reduces GHG emissions by 52 percent when directly compared to gasoline. “But with smart policy measures, ethanol can do even more. It can serve as an affordable zero-emissions fuel for light-duty cars and trucks, while also helping to decarbonize medium- and heavy-duty vehicles, aviation, marine, and stationary power generation.”

Specifically, RFA’s board of directors—which is exclusively composed of renewable fuel producers—committed to the following goals during their meeting last week:

  • By 2030, ensure that ethanol reduces GHG emissions by at least 70 percent, on average, when compared directly to gasoline. 
  • By 2050, ensure that ethanol achieves net-zero lifecycle GHG emissions, on average. 

“Complex challenges call for leadership and innovative solutions,” said RFA Chairperson Jeanne McCaherty, Chief Executive Officer of Guardian Energy Management LLC. “The carbon reduction goals announced by RFA today mark a bold commitment to innovation, investment, and continuous improvement in the renewable fuels sector. Ethanol producers are already producing America’s top low-carbon fuel and are eager to do their part to decarbonize our transportation sector and move our nation toward net-zero emissions. I look forward to working with RFA’s membership, policymakers, and the entire renewable fuels industry to make this vision a reality.”

Commenting on the letter, RFA President and CEO Geoff Cooper said, “Ethanol is a low-cost solution for reducing GHG emissions that is available here and now, but our industry is on the cusp of providing even bigger and better GHG reductions in the years ahead. Our member companies firmly believe that ethanol can achieve a net-zero carbon footprint by mid-century, if not well before, as the supply chain adopts carbon capture, utilization and sequestration (CCUS) technologies; uses more renewable electricity and biogas to power biorefineries; and expands carbon-efficient agricultural feedstock production practices. I applaud RFA’s members for stepping up to the plate and putting their decarbonization commitments on paper for the whole world to see, and I have no doubt that zero-carbon corn ethanol is just around the bend.”

To support the achievement of its goals, RFA encouraged the administration to move forward with several key policy initiatives: development of a national Clean Fuel Standard, support for CCUS, and deployment of more flex-fuel vehicles.

The letter was signed by ethanol producers from California, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Nebraska, New York, North Dakota, Ohio, Oregon, South Dakota, and Wisconsin.  

Click here for the RFA “Net Zero by 2050” explainer.

Read the original news release here.

Governors' Biofuels Coalition

Jul 25, 2021

The U.S. Department of Energy on July 19 released its 2021 U.S. Energy Employment Report, which shows fuel ethanol employment fell slightly last year, but at a much lower rate than the overall U.S. fuels sector. Corn ethanol employment is expected to rebound this year.

The overall U.S. fuel sector lost 211,201 jobs in 2020, an 18.4 decline. Oil and gas experienced the steepest declines, at nearly 21 percent. The DOE estimates that corn ethanol employment fell by about 4 percent or 1,360 jobs last year, with employment at approximately 33,506.

Of those 33,506 jobs, the report shows approximately 15,589 are in agriculture, 9,005 are in manufacturing, 6,158 are in wholesale trade, 2,656 are in professional services, and 97 are in other services.

In 2020, 93 percent of employers in corn ethanol reported that hiring was either somewhat or very difficult. In addition, 81 percent of professional business services employers reported that hiring new workers was somewhat difficult or very difficult in 2020.

Employers in the corn ethanol fuels industry expect 9 percent growth in 2020. Much of that growth is anticipated by employers in the manufacturing and professional services sectors who expect 11 percent and 17 percent growth, respectively.

A full copy of the report can be downloaded from the DOE  website.

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Governors' Biofuels Coalition

Jul 22, 2021

Today, Minnesota Governor Tim Walz and South Dakota Governor Kristi Noem sent a letter  to the Biden Administration pointing out the role that higher-octane ethanol could play in meeting the Administration’s climate and public health goals. Governor Walz is the chair and Governor Noem is the vice chair of the Governors’ Biofuels Coalition.

The governors’ letter focuses on the timeliness of the expanded use of ethanol now: “As the Office of Management and Budget continues to review the Safe Affordable Fuel Efficient Vehicles (SAFE) rule, there is a great opportunity to meet the Administration’s goals to reduce greenhouse gas emissions and improve air quality while providing continued growth of the nation’s biofuels industry.”

The governors pointed out that a higher-octane requirement in the SAFE rule will allow “… automakers to increase engine efficiency and achieve the objectives of the proposed SAFE rule.  The use of low carbon fuels such as ethanol will ensure … octane does not come from carcinogenic aromatics that release fine particulate emissions associated with respiratory diseases that affect all Americans, especially vulnerable populations and those living in urban areas.”  

As the U.S. Department of Energy’s Oak Ridge National Labpoints out, ethanol is a superior octane and is an environmentally safer substitute than oil-derived, benzene-based octane. The use of direct injection engines to improve fuel efficiency has increased emissions of the most dangerous ultrafine particles.  The use of high-octane low carbon fuels would reverse that trend.  But, the governors cautioned, “[t]he adoption of a revised SAFE rule that does not significantly reduce gasoline aromatics will be a missed opportunity to reduce fine particle pollution while maintaining the health and vibrancy of our rural communities.”

The governors concluded by emphasizing the potential win-win opportunity for both the ethanol industry and the nation.  “We have seen firsthand how the ethanol industry has transformed and revived rural communities while reducing harmful emissions.  A revised SAFE rule that provides an expanded market for high-octane ethanol is a means to reduce GHGs and harmful air emissions, provide much needed economic stability in rural America and provide countless health and economic benefits to all Americans.”

Read the original story here.

Ethanol Producer Magazine

Jul 21, 2021

The Renewable Fuels Association sent a letter to the U.S. EPA on July 15 urging the agency to exercise its enforcement discretion to continue allowing sales of E15 during the remainder of the 2021 summer driving season and announcing its intent to fight a recent court decision vacating the EPA’s 2019 rule allowing year-round E15 sales.

The letter, addressed to Lawrence Starfield, acting assistant administrator in the EPA’s Office of Enforcement and Compliance Assurance, provides an overview of efforts to secure year-round E15 sales, including a rule finalized by the EPA in 2019 that extended the 1-psi Reid vapor pressure (RVP) waiver to E15, allowing the fuel to be sold in most markets year-round. Prior to that rule, the RVP waiver was extended only to E10 blends.

The EPA’s 2019 E15 rule was challenged by oil interests. On July 2, 2021, the U.S. Court of Appeals for the D.C. Circuit vacated the EPA’s E15 rule, “finding that EPA’s interpretation of the statutory gasoline RVP restrictions and allowances exceeded its authority under the Clean Air Act,” according to the RFA in its letter. “The court ordered that issuance of its mandate, and therefore if official vacatur of the E15 rule, would be delayed until seven days after the disposition of any timely petition for rehearing or petition for rehearing en banc.”

In the letter, the RFA, which intervened ion behalf of EPA in the proceeding before the D.C. Circuit, announces its intent to file a petition for rehearing by Aug. 16. The group said it may also seek U.S. Supreme Court review. Co-intervenor Growth Energy may also do the same, according to the letter.

“Immediate vacatur of the E15 Rule would cause potentially drastic consequences for U.S. biofuels producers and the gasoline market as a whole,” said the RFA in the letter. “If E15 sales were required to cease immediately upon issuance of the D.C. Circuit’s mandate, summertime E15 sales would fall precipitously. Certain oil companies already are advising their downstream blenders to cease blending E15. Termination of E15 sales will result in significant financial losses for retailers who had planned to blend E15 throughout the volatility control season, higher prices for U.S. gasoline consumers, and elimination of the environmental benefits that come with higher ethanol blends.

“Enforcement discretion under these circumstances would be consistent with the Agency’s practice of letting the time for all appeals run prior to implementing a decision that could ultimately be overturned,” the RFA continued. “For instance, EPA recently delayed implementation of the Tenth Circuit’s January 2020 decision restricting EPA’s authority to grant small refinery exemptions under the Renewable Fuel Standard program until after all appeals—including requests for rehearing and Supreme Court review—were exhausted. Here, the parties to the D.C. Circuit proceeding will have 90 days from the date of the D.C. Circuit’s decision on any petitions for rehearing to file a petition for a writ of certiorari with the United States Supreme Court. It would be reasonable for EPA to refrain from enforcing vacatur of the E15 Rule until the time for filing such a petition has run, and if a petition is filed, until resolution of the Supreme Court proceedings.”

In the meantime, the RFA is urging the EPA to work toward development of an alternative solution to allowing year-round E15 sales.

Read the original story here

Senator Deb Fischer

Jul 19, 2021

As we emerge from the pandemic and the economy begins to rebound, I’m focused on ensuring the industries that provide Nebraska jobs can continue to grow and thrive. 

The ethanol industry is one of those. Nationwide, it provides tens of thousands of Americans with good-paying jobs, and it indirectly supports at least 200,000 more. In Nebraska alone, the 25 ethanol plants spread across our state are able to produce more than two billion gallons a year, making us the second-largest producer of this renewable fuel.

Higher ethanol blends are also far better for the environment than traditional gasoline. Study after study has shown that the more ethanol you blend into your gas, the cleaner it burns. Any plan to reduce emissions has to make ethanol part of the solution.

But last month, the U.S. Court of Appeals for the D.C. Circuit struck down an Environmental Protection Agency rule that allowed E15 – fuel that is 15 percent ethanol – to be sold year-round. Without this rule, E15 can only be sold from September to May in most areas of the country, leaving consumers with fewer choices during the busy summer months.

In their decision, the D.C. Circuit said that Congress didn’t intend for the EPA to apply this rule to E15. I recently introduced a bill to make it clear that we do.

The Consumer and Fuel Retailer Choice Act, which I reintroduced with Senator Amy Klobuchar in response to the ruling, offers a common-sense solution to this problem. Our bill would reinstate the waiver that allowed high-ethanol blends like E15 to be sold all year. This would give consumers a wider array of options at the pump and provide ethanol producers with the certainty they need to do their jobs.

I have been working to bring this certainty to our producers for many years. In 2019, I traveled on Air Force One with President Trump to Iowa, where he announced the waiver that our bipartisan bill would reestablish. The president’s announcement came after he and I had several conversations where I highlighted the importance of year-round E15 to rural America. It also followed a hearing I pushed for in the Senate Environment and Public Works Committee, where senators were able to talk about how year-round E15 would benefit their states.

From the Nebraska Farm Bureau to the Renewable Fuels Association, there is significant support for this bill. That is because it wouldn’t do anything radical, or even anything new. It would simply restore year-round E15.

However, there is one group who opposes reinstating this waiver: the oil industry. E15 is lower in carbon and easier on Americans’ wallets than regular gas, so it is no surprise that they want to prevent it from gaining too much market share. And after a separate Supreme Court ruling in June that threatens the integrity of the Renewable Fuel Standard, the main federal rule that promotes the use of ethanol, our producers can’t afford to suffer another setback. 

I introduced the Consumer and Fuel Retailer Choice Act to let ethanol producers in Nebraska and across the country know that Congress has their back. Truly bipartisan wins for the environment, our producers, and consumers don’t come around often, and this is one of them. 

Thank you for participating in the democratic process. I look forward to visiting with you again next week.

Read the original column here.

Ethanol Producer Magazine

Jul 13, 2021

CoBank’s Knowledge Exchange released its second quarter report on July 8, reporting that the U.S. fuel ethanol sector outperformed expectations during the three-month period and is well positioned for the second half of 2021.

According to CoBank, several key demand drivers underpin its outlook for ethanol, including general economic growth, seasonal summer driving, and more people driving as they return to offices and classrooms. These factors helped increase fuel ethanol production in the second quarter, with production recently trending above 16 billion gallons, CoBank said. The report also states that average daily operating margins more than doubled during the second quarter, reaching 26 cents.

Regarding E15, CoBank’s report indicates that 48 states have now enacted legislation allowing for the sale of gasoline containing up to 15 percent ethanol. The report, however, does not discuss the expected impact of the D.C. Circuit Court of Appeal’s July 2 reversal of the U.S. EPA’s 2019 E15 rule.

The report does note that biofuel policy continues to be a major area of friction in Washington and between ethanol producers and fossil fuel refineries. CoBank said its unclear where biofuels, fossil fuels, and electric-powered vehicles will fit in under a final infrastructure package. The report also cites the U.S. Supreme Court’s recent ruling on small refinery exemptions (SREs)  as a negative development for the ethanol industry.

In addition, CoBank said that electric vehicle adoption, a long-term threat to ethanol, is powering ahead.

Grain prices will also continue to impact ethanol producers, according to report. CoBank said corn prices hit a nine-year high during the second quarter. Moving forward, elevated price volatility is expected to continue.

Additional information, including a full copy of the report, is available on the CoBank website.

Read the original story here.

Ethanol Producer Magazine

Jul 13, 2021

Members of the High Octane Low Carbon Alliance and nearly two dozen other ag and biofuel groups sent a letter to President Biden on July 11 calling on the U.S. EPA to propose a higher octane gasoline standard in its upcoming rulemaking on light-duty vehicle greenhouse gas (GHG) emissions standards (SAFE-2 rule).

The SAFE-2 rule was delivered to the White House Office of Management and Budget on June 24 and is currently undergoing review. OMB review marks a final step before a proposed rule is released for public comment.

The upcoming rulemaking is expected to revise the  SAFE Vehicles Rule  finalized by the Trump administration in March 2020. That rule replaced CAFE and GHG emissions standards put in place by the Obama administration. The EPA and U.S. Department of Transportation’s National Highway Traffic Safety Administration are set to further revise those CAFE and GHG emission standards as part of a review the agencies were directed to complete under an  executive order  issued by Biden on January 2021. That executive order directed all executive departments and federal agencies to immediately review, and as appropriate and consistent with applicable law, take action to address the promulgation of federal regulations and other actions taken during the Trump administration that conflict the national objectives outlined in the executive order, and to immediately commence work to confront the climate crisis.

In the letter, the biofuel and ag groups emphasize the importance of including a higher octane gasoline standard in the SAFE-2 Rule and ask Biden to urge EPA Administrator Michael Regan to request public comments on the role high-octane, low-carbon fuels can play in advancing the administration’s climate, environmental justice, public health, economic revitalization, and energy security objectives.

“High octane, low carbon fuels, including higher-level blends of ethanol, hold so much potential – and we should be doing everything we can to realize that potential,” said Rob Larew, president of the National Farmers Union, a member of the High Octane Low Carbon Alliance. “These fuels improve vehicle and fuel efficiency, which in turn can reduce greenhouse gas emissions, improve air quality, conserve oil, and strengthen energy security. That alone should be plenty of justification for the EPA to introduce a higher octane fuel standard. But the benefits go far beyond that – high octane fuels also drive economic growth and create new jobs in rural communities, slash pump prices for drivers, and open new markets for farmers. Given these many advantages, there’s really no reason the administration shouldn’t increase octane levels in fuel.”

Several groups are scheduled to meet with the OMB regarding the SAFE-2 Rule this month, including a meeting with the High Octane Low Carbon Alliance that was scheduled for the morning of July 13. The EPA is expected to release a notice of proposed rulemaking for public comment later this month, with a final rule scheduled to be issued in December.

In addition to NFU, members of the High Octane Low Carbon Alliance include the Clean Fuels Development Coalition, National Corn Growers Association, and Renewable Fuels Association. The letter is also signed by a variety of other biofuel and ag groups, including the Governors Biofuel Coalition, the Iowa Renewable Fuels Association, the Nebraska Ethanol Board, Renewable Fuels Nebraska, the Urban Air Initiative and the American Coalition for Ethanol. A full copy of the letter can be downloaded from the NFU  website.

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