NEC 2027

DOE Updates Process for 45Z Fuel Production Credit

Cindy Zimmerman Leave a Comment

Energy Secretary Chris Wright (center) with RFA’s Tad Hapner and Justin Schultz in Nebraska

The U.S. Department of Energy (DOE) Wednesday announced the Emissions Value Request (EVR) process for the 45Z Clean Fuel Production Tax Credit which provides a production incentive for certain feedstocks produced in the United States, Mexico, or Canada.

Transportation fuel producers seeking to claim the tax credit must obtain the life cycle greenhouse gas emissions rate of their transportation fuel using the applicable rate table for Section 45Z. If the fuel’s type, primary feedstock, or pathway is not included in the rate table, fuel producers must petition the Secretary of Treasury for a provisional emission rate (PER). The 45Z EVR process is the route through which fuel producers can obtain a rate value from DOE and petition U.S. Treasury for a PER.

Renewable Fuels Association (RFA) Vice President for Strategy and Innovation Tad Hepner welcomed the announcement while at an event in Nebraska with Energy Secretary Chris Wright. “We welcome the Department of Energy’s new guidance, which provides greater clarity and certainty for producers seeking a provisional emission rate, and represents an important step toward ensuring emerging technologies and fuel pathways not currently reflected in the emissions rate table have a mechanism for recognition under 45Z,” said Hepner. “Looking forward, we will continue working with DOE in hopes of further refining the process to better accommodate existing commercial ethanol facilities.”

The proposed process essentially allows for fuel producers to petition for an individual evaluation of their fuel production pathways when they are not covered by existing default carbon intensity (CI) rate tables. Because a plant’s CI score directly impacts its potential 45Z Clean Fuel Production Tax Credit, the process creates an opportunity for producers to demonstrate how investments and innovations at their facilities are improving efficiencies and lowering CI scores.

biofuels, Energy, Ethanol, Ethanol News, RFA

SIRE Acquires GreenAmerica Biofuels

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Southwest Iowa Renewable Energy (SIRE) has acquired the GreenAmerica Biofuels ethanol plant in Ord, Nebraska, a subsidiary of Pilot Travel Centers.

The acquisition is part of SIRE’s growth strategy to expand its production base, strengthen its scale, and create new opportunities for value-added agriculture by acquiring high-quality assets with strong operating track records, reliable feedstock supply and access to diverse markets. Upon closing, SIRE’s combined production capacity will grow to approximately 230 million gallons of ethanol per year across two plants in Iowa and Nebraska.

“Our strategy is simple and disciplined: grow by investing in Council Bluffs and acquiring quality assets that make SIRE stronger for our members, our farmers and our customers,” said Eric Fobes, President and CEO of SIRE. “The Ord plant fits that standard. It is a well-maintained facility with an experienced team, located in the heart of one of the most productive corn regions in the country. We see it as a strong complement to our Council Bluffs operation, and we’re excited to welcome the Ord employees to the SIRE team.”

The Ord facility sits in central Nebraska’s corn belt, giving SIRE a second origination region, added scale in marketing ethanol, distillers grains and corn oil, and greater operational diversity across its asset base. SIRE plans to retain the plant’s workforce and continue local grain purchasing, maintaining the facility’s role as a key market for area farmers.

The transaction closed October 9, 2026. Financial details of the transaction have not been disclosed and remain confidential. SIRE was advised by Omaha, NE based law firm McGrath North Mullin & Kratz PC LLO.

Ethanol, Ethanol News

Biofuels Industry Reacts to EPA Reallocation Proposal

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Biofuels and agricultural stakeholders were pleased to see the U.S. Environmental Protection Agency (EPA) propose reallocating 100 percent of the Renewable Fuel Standard (RFS) volumes recently waived by the agency through Small Refinery Exemptions (SREs) for the 2025 compliance year. However, some also expressed reservations about the continuation of the exemption process going forward and its impact on increasing demand for biofuels.

“The integrity of the RFS depends on ensuring the volumes established under the program translate into real-world renewable fuel demand. Farmers and ethanol producers need certainty that RFS requirements will not be eroded after the fact by exemptions,” said American Coalition for Ethanol (ACE) CEO Brian Jennings. “While this proposed reallocation is an important step, the debate over SREs has held up adoption of year-round E15. Congress must act to provide greater certainty and expand opportunities for ethanol by passing nationwide E15 legislation before the end of the year.”

The proposal follows EPA’s August 31 announcement on 34 pending 2025 SRE petitions, which resulted in 1.76 billion RINs being exempted for 29 small refineries. EPA had previously projected approximately 990 million RINs would be exempted for 2025. EPA has proposed reallocating 100% of that difference to the 2026 and 2027 RFS obligations.

“We are pleased to see that the administration has kept its pledge to protect farmers and biofuel producers while administering this critical program, and we appreciate that biofuel producers will be kept whole with the reallocation of all waived volumes,” said National Corn Growers Association president Matt Frostic. “We hope that the Renewable Fuel Standard and the small refinery exemption program are managed with certainty in the years to come.” 

Clean Fuels Alliance America Vice President of Federal Affairs Kurt Kovarik said, “Clean Fuels appreciates Administrator Lee Zeldin’s effort to keep the Renewable Fuel Standard volumes on track and to release this proposal earlier than originally promised. As a result of this year’s historic RFS proposal, the U.S. biodiesel, renewable diesel, and SAF industry has invested billions of dollars in rural America, created new job opportunities, and massively increased domestic production of fuel to secure America’s energy dominance.”

American Soybean Association Vice President Dave Walton said they support the proposal and urge EPA to finalize this supplemental rulemaking to reallocate biofuel volumes as quickly as possible. “Soybean farmers are navigating a tough farm economy, and the administration’s strong domestic biofuel policies will continue to drive much-needed market demand in the U.S. We are encouraged by today’s proposal and urge EPA to get it across the finish line quickly.”

ACE, Biodiesel, biofuels, Clean Fuels Alliance, corn, E15, Ethanol, Ethanol News, NCGA

EPA Proposes Full SRE Volume Reallocation

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EPA administrator Lee Zeldin (right) visits Iowa ethanol plant with Rep. Ashley Hinton and RFA CEO Geoff Cooper (left)

While visiting Iowa Tuesday, Environmental Protection Agency (EPA) Administrator Lee Zeldin announced revisions to the Renewable Fuel Standard (RFS) “Set 2” rule volumes, providing for 100 percent reallocation of the renewable fuel volume requirements to compensate for 29 small refinery exemptions announced at the end of August.

The agency is proposing two options for revisions, both of which would reallocate 100% of the difference between projected and actual exempted volumes for 2025 SREs.
One: EPA would divide the additional 2025 SRE volume equally between the 2026 and 2027 compliance years.
Two: EPA would reallocate all the additional 2025 SRE volume to the 2027 compliance year

“In each action taken, EPA works to deliver for all Americans. From our farmers to our energy workers, each has an important role to play in growing our economy and ensuring America’s energy independence,” said EPA Administrator Zeldin.

Zeldin visited Iowa ethanol plant Big River United Energy on Monday with Rep. Ashley Hinton and a number of other industry representatives, including Renewable Fuels Association President and CEO Geoff Cooper, who thanked him for honoring EPA’s commitment to fully restore the renewable fuel volumes lost to recent small refinery exemptions.

“While we believe most of the exemptions were unjustified, EPA’s reallocation plan—if finalized as proposed—will help offset the demand loss for ethanol producers and farmers,” said Cooper. “We look forward to this proposal being swiftly finalized so that renewable fuel producers, refiners, and our partners in agriculture have the certainty they need heading into 2027. With refiners enjoying record-high profit margins, gasoline supplies tightening, and drivers still paying too much at the pump, the Trump administration understands this is no time to undermine domestic biofuels with SREs.”

Cooper added that RFA continues its call for reform of the broken SRE program. “These exemptions were always meant to be a temporary measure to give truly small, independent refiners a little more time to come into compliance with the RFS program. Unfortunately, many so-called small refiners have viewed SREs as an entitlement program and have exploited this loophole for two decades, putting American consumers, farmers, and biofuel producers on the losing end.”

EPA will take public comments on the proposal until December 4, 2026.

Additionally, the proposed revision to the 2026 standards may extend the existing 2026 compliance reporting deadline of March 31, 2027. If finalized, this proposal will ensure that all the benefits of the “Set 2” rule will be realized for American farmers.

biofuels, EPA, Ethanol, Ethanol News, Renewable Fuels Association, RFA, RFS

Report Shows Ethanol’s Potential for Marine Fuel

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A new report shows the potential for ethanol to make maritime shipping fuel more environmentally-friendly.

“Ethanol as a marine fuel: exploring its usability” by the Maersk Mc-Kinney Møller Center examines ethanol’s potential as a low-carbon fuel for global maritime shipping and concludes that “ethanol is a promising drop-in option for methanol-fueled vessels.”

“Ethanol is emerging as a technically viable complementary fuel within the methanol pathway, supported by growing evidence that methanol dual-fuel engines can operate on ethanol with only limited adjustments,” the report states. “Ethanol’s combustion behavior, emissions profile, and material compatibility closely mirror those of methanol, while ethanol’s higher energy density reduces onboard storage needs.”

According to marine industry sources, more than 110 methanol-capable ships are already in operation worldwide, with roughly 300 more on order. Using ethanol blends in these ships could create an enormous new market opportunity for the global ethanol industry and farmers who grow biofuel feedstocks, while simultaneously helping to slash emissions from the maritime sector. RFA estimates that if the current fleet of methanol-capable ships used renewable ethanol instead, it would create new demand for more than 1 billion gallons.

Renewable Fuels Association president and CEO Geoff Cooper welcomed the findings of the report. “This new report from one of the world’s leading marine industry research institutes shows the tremendous potential for using ethanol in the maritime shipping sector,” said Cooper. “Ethanol is a global commodity that is broadly available at a low cost, it reduces GHG emissions by at least 50 percent compared to petroleum, and it offers numerous other attractive fuel and combustion properties.”

Read the report.

Boats, Ethanol, Ethanol News, maritime, Renewable Fuels Association, RFA

EPA on Track for Exempted Refinery Volumes Proposal

Cindy Zimmerman

The U.S. Environmental Protection Agency is on track to propose a plan to reallocate Renewable Fuel Standard (RFS) volumes lost due to 29 refinery exemptions granted in August.

EPA reportedly sent a proposed rule to the White House Office of Management and Budget (OMB) for review last week. The draft rule is expected to account for about 1.76 billion renewable identification numbers (RINs) affected by the 18 full and 11 partial exemptions granted by the agency on August 31. The EPA promised to deliver a proposal to reallocate 100 percent of the exempted volumes before the end of this month.

Iowa Renewable Fuels Association (IRFA) executive director Monte Shaw says it is important for EPA to get this proposal out on time. “Missing the October deadline would send the wrong message at the wrong moment,” said Shaw. “Earlier this year, the EPA’s robust RFS rule helped spur biofuels demand and prompted idled plants in Iowa to resume production. Any delay would create unnecessary uncertainty and call into question the reallocation commitment. We don’t want to see biofuels plants go back offline. We’re watching this closely and thank the EPA for moving forward.”

After the rule is cleared by OMB, it can be proposed as a draft rule by EPA, at which point it would receive public comment before being finalized sometime next year.

EPA, Ethanol, Ethanol News

US Ethanol and DDGS Exports Hot in August

Cindy Zimmerman

U.S. exports of ethanol and the co-product dried distillers grains (DDGS) were hot in August, with ethanol increasing six percent to a five-month high and DDGS up by a whopping 18% in August to the highest monthly volume since August 2015.

According to the latest Trade Monitor report from the Renewable Fuels Association, ethanol exports totaled 211.8 million gallons (mg) in August, supported by sizable gains across most major markets.

Canada remained the leading destination, with shipments climbing 14% to 84.8 mg, accounting for 40% of total U.S. ethanol exports and 58% of denatured fuel shipments. Exports to the European Union increased 2% to 51.6 mg, with most shipments entering through the Netherlands, while the EU remained the principal destination for undenatured fuel ethanol. Shipments to the United Kingdom jumped 52% to 19.5 mg, a 13-month high, and exports to Colombia surged 163% to 12.7 mg. Vietnam pulled back 44% to 10.4 mg following record-high shipments in July. Collectively, these five markets accounted for 85% of total U.S. ethanol exports in August. Other sizable destinations included Peru (8.0 mg), South Korea (6.7 mg), Mexico (5.7 mg), and Guatemala (4.8 mg). Brazil remained essentially absent from the market for the fifth consecutive month. Through August, U.S. ethanol exports totaled 1.62 billion gallons, running 12% ahead of the same period last year.

No U.S. ethanol imports were recorded in August, leaving year-to-date imports below 500,000 gallons.

DDGS exports totaled 1.30 million metric tons (mt) and Mexico remained the leading destination, with shipments rising 12% to 214,091 mt. Exports to Indonesia leapt 40% to a record 203,258 mt, while shipments to South Korea increased 13% to 155,816 mt. New Zealand also set a record, taking 143,066 mt. Exports to Vietnam declined 12% to 109,884 mt, while shipments to Turkey surged 234% to 80,820 mt. The remaining 30% of August DDGS exports were distributed across another 30 countries. Through August, U.S. DDGS exports totaled 8.57 million mt, 13% above the same period in 2025.

Ethanol, Ethanol News, Exports, Renewable Fuels Association, RFA

Small Agri-Biodiesel Producer Credit Extension Sought

Cindy Zimmerman

Sens. Chuck Grassley (R-IA) and Amy Klobuchar (D-MN) introduced legislation this week to extend the Small Agri-Biodiesel Producer Credit through 2029. The credit of $0.20 per gallon on the first 15 million gallons of production for producers using crop oils and animal fats is set to expire on December 31 this year unless Congress adopts the extension.

Clean Fuels Alliance America supports the move to provide certainty for small biodiesel producers across the country. “Small biodiesel producers are making an outsized contribution to America’s energy security right now, producing lower-cost, drop-in distillate fuel that’s needed to keep the economy moving,” said Kurt Kovarik, Clean Fuels’ Vice President of Federal Affairs. “These companies are investing in rural communities, creating and preserving jobs, and running full out to provide cleaner, better, more affordable fuel to meet today’s demand.”

The extension is particularly important to small producers in Minnesota and Iowa, according to Monte Shaw, executive director of the Iowa Renewable Fuels Association. “This extension gives Iowa producers the runway they need to keep turning Iowa-grown feedstocks into homegrown fuel, supporting farmers and strengthening rural communities,” says Shaw. The extension would provide additional certainty for Iowa’s small biodiesel producers as the industry transitions to the §45Z Clean Fuels Production Credit.

Biodiesel, Clean Fuels Alliance, Iowa RFA

RFA Holds Annual Membership Meeting in KC

Cindy Zimmerman

L-R: RFA Chair Derek Peine and Vice Chair Thomas Hardwood

The Renewable Fuels Association is holding its annual membership meeting this week in Kansas City, Missouri, where they elected officers and board of directors for the 2027 fiscal year. Derek Peine, CEO of Western Plains Energy in Oakley, Kan., was re-elected chairman and Thomas Harwood, CEO of Al-Corn Clean Fuel in Claremont, Minn., won re-election as vice chairman.

Peine has spent the last 25 years working in production, technical, and management roles within the agricultural processing and renewable fuels sectors. He also serves on the board of directors for the Renew Kansas biofuels association and the Collaborative Sorghum Marketing Transformation Program.

“I’m honored to be re-elected chairman of the Renewable Fuels Association and grateful for the continued trust of our members,” Peine said. “We’ve made important progress over the past year, but there is much more work to do. As I begin my second year as chairman, I’m focused on building on that momentum—expanding the next wave of opportunities for biofuels, strengthening rural economies, providing affordable fuel choices and advancing America’s energy security. I look forward to working with our members and partners to deliver results and make the most of the opportunities ahead.”

RFA board members also elected Tim Winters, president and CEO of Western New York Energy, as board treasurer; and Tom Paitrick, CEO of Heartland Corn Products, as board secretary.

Re-elected to leadership of the Renewable Fuels Foundation for 2027 were Chairman Neal Kemmet, Ace Ethanol; Vice Chairman Eric Baukol, Redfield Energy; and Treasurer Wayne Garrett, Chief Ethanol Fuels. The foundation is dedicated to meeting the education, research and strategic planning needs of the U.S. fuel ethanol industry.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Ethanol Report on 45Z Opportunities

Cindy Zimmerman

U.S. ethanol producers are finally getting the chance to take full advantage of the Section 45Z Clean Fuel Production Tax Credit, which was first created under the Inflation Reduction Act of 2022, then extended and modified in the One Big Beautiful Bill of 2025, and is in the last stages of a final rule.

Earlier this month, the IRS published the 2026 emissions-rate table, a 2025 safe harbor, transition rules, and integration of USDA’s Feedstock-Carbon Intensity Calculator so regenerative-ag practices can reduce feedstock carbon intensity. The credit specifically rewards biofuel producers based on the carbon intensity of their fuels, encouraging the use of cleaner technologies and feedstocks, which can lead to reduced greenhouse gas emissions.

The Renewable Fuels Association has been actively helping ethanol producers understand the requirements and opportunities of the 45Z tax credit. In this edition of the Ethanol Report podcast, past RFA chairman Jeff Oestmann, who has served as CEO for several biorefineries and now is with G37 Ventures, provides some insight for plant operators who want to make the most out of 45Z.

Ethanol Report 9-29-26 18:29

The Ethanol Report is a podcast about the latest news and information in the ethanol industry that has been sponsored by the Renewable Fuels Association since 2008.

Choose an option to subscribe

Audio, Ethanol, Ethanol News, Ethanol Report, Renewable Fuels Association, RFS