USDA Announces New American Biofuels Trade Outlook

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The U.S. Department of Agriculture this week released the American Biofuels Trade Outlook, a plan that builds upon 2025’s record U.S. ethanol export performance, removes restrictions to American biofuels, and secures new market opportunities for U.S. farmers.

“American farmers are fueling the future, and the American Biofuel Trade Outlook outlines the USDA’s exact plan to ensure that success continues, and America’s producers continue to prosper,” said Secretary of Agriculture Brooke Rollins.

The outlook includes four points – increase on-road ethanol blending, reduce restrictions on crop-based biofuels, reach untapped markets, and accelerate opportunities with international organizations.

Specific actions USDA intends to accelerate include addressing implementation challenges in markets like Vietnam, and working with the 20 countries at E10 to fully implement their blending polices; increase technical engagement to help encourage Mexico to adopt increased ethanol blending to expand U.S. ethanol exports; invest in research, outreach, technical work to maximize international market opportunities; and continue engagement at the U.N. International Civil Aviation Organization (ICAO) and the U.N. International Maritime Organization (IMO) to supports the inclusion and competitiveness of U.S. biofuels so that other countries.

aviation biofuels, biofuels, Ethanol, Ethanol News, Exports, USDA

Farm Bill with E15 Reported Out of Senate Ag Committee

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The Senate Agriculture Committee met Wednesday for the first time in over a month to re-vote on the Agriculture Act of 2026 – the farm bill, including E15 – and pass it along party lines by a vote of 12 to 11. Republicans prevailed on the vote this time with the presence of both Sen. Mitch McConnell (R-KY) and Sen. Tom Tuberville (R-AL) who were absent during the last meeting. The action was applauded by all major farm and biofuel organizations.

Renewable Fuels Association President and CEO Geoff Cooper called it an important step toward finally securing nationwide, year-round E15. “As expressed throughout the farm bill process, there is broad bipartisan support for making lower-cost E15 available to consumers all year long—especially at a time when pump prices are on the rise and fuel supplies are tightening. Now, we urge the full Senate to pass year-round E15 legislation as quickly as possible, reconcile the language with the House, and get a viable solution to President Trump’s desk for his signature.”

It is clear that the path forward with the farm bill on the Senate floor will hinge on SNAP and the Democrats demand for a a two-year delay of the SNAP cost share, but Sen. Amy Klobuchar (D-MN) stressed the need for getting the bill passed. “This bill has many other bipartisan provisions, including the year-round E15 that we’re really we’ve been working on – and I’m looking at Senator Ernst, Senator Fisher, Senator Grassley, Senator Thune, Senator Moran – for so long, and a stronger farm and ranch stress assistant network. All of this shows that there’s a lot we agree on this bill and that we really can’t afford to not get this done by the end of the year,” said Klobuchar.

Senate Majority Leader John Thune (R-SD) agreed. “Our farmers need certainty. And one of the things that’s included in here is E15, which is something I think a lot of us have fought long and hard for, and which is really important to a lot of producers across this country, and I would argue to help lower gas prices.”

Listen to the committee meeting proceedings here:
Senate ag committee farm bill vote 40:14

Audio, E15, Ethanol, Ethanol News, Renewable Fuels Association, RFA

CARB Gets E15 Comments Ahead of Hearing

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Ethanol stakeholders provided comments this week to the California Air Resources Board (CARB) ahead of a public hearing next week to consider proposed amendments to the state’s reformulated gasoline regulations to support the voluntary sale of gasoline containing up to 15 percent ethanol.

Comments from the Renewable Fuels Association urge CARB to move quickly to finalize proposed regulations allowing the sale of lower-cost E15 as Californians continue to face the highest fuel prices in the country at more than $6 per gallon.

“Expanding access to E15 will provide consumers with another gasoline option, expand the pool of available fuel supply, and utilize ethanol’s value as a low-carbon, high-octane, cost-competitive blending component,” wrote Maddie Jenks, RFA director of regulatory affairs. “A workable E15 framework can therefore provide both consumer savings and greater flexibility in California’s gasoline supply. Prompt finalization will provide suppliers, terminals, marketers, and retailers with the regulatory certainty necessary to make supply and investment decisions and will allow E15 to reach California consumers as soon as practicable.”

RFA’s comments also encouraged CARB to work closely with the state fire marshal to address the E15 compatibility of vapor recovery equipment, which is the final marketplace impediment preventing retailers from offering the fuel.

Comments from the American Coalition for Ethanol (ACE) stressed the option of allowing retailers to blend E15 at the pump, which could expand the availability of both E15 and E85 as well as dramatically reduce the cost of infrastructure for offering E15.

“Blending at the pump will also require being able to meter the actual gallons sold by product, to properly tax pump-blended E15 fuel made with fully taxed E10 and E85 which is taxed at a lower rate. Allocating sales properly is also necessary to avoid overstating E85 sales which could exceed current sales limits on the fuel,” said ACE chief strategy officer Ron Lamberty in written comments.

ACE also touched on the limits of E85 sales, suggesting that limits should be removed in order to allow Californians to fully benefit from the pollution reductions and cost savings that E85 provides, writing, “both of which are highly beneficial to drivers’ pocketbooks while protecting the state environment and public health.”

CARB will hold a hearing on September 24 to vote on the adoption of the E15 regulation.

ACE, E15, Ethanol, Ethanol News, Renewable Fuels Association, RFA

USDA Report Highlights Ethanol Export Wildcards

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USDA FAS Chart

U.S. ethanol exports set new volume and value records over the past two calendar years and are ahead of last year’s record pace through June of this year, but a new USDA report indicates there are a handful of wildcards that could greatly impact exports throughout the rest of the year.

According to a new report from USDA’s Foreign Agriculture Service (FAS), record ethanol exports in 2024 and 2025 were fueled by growing global ethanol import demand and reduced competition from Brazil, with top ethanol-importing markets like Canada, the European Union (EU), the United Kingdom (UK), India, Colombia, and the Philippines increasing their ethanol consumption and driving global import demand higher. At the same time, strong domestic fuel ethanol demand in Brazil reduced exportable supplies and raised domestic prices, allowing the United States to increase export share to a growing market.

Through June 2026, U.S. ethanol exports are running ahead of last year’s record pace, 12 percent by volume and 21 percent by value. Among the unknowns USDA is watching for the rest of this year include supply side wildcards such as whether Brazil will be able to regain lost export market share and if the 45Z tax credit will result in higher profitability for U.S. ethanol producers to increase production and create more competitive pricing in the export market.

On the demand side, the biggest wildcards are changes to policy, especially in response to high energy prices caused by the conflict in the Middle East and the closure of the Strait of Hormuz. Countries have announced intentions to increase biofuel blending mandates or speed up the implementation of planned blending increases in the face of high energy prices. In Brazil, the mandatory blend rate for Gasoline C was temporarily increased to 32 percent for 180 days in July 2026. If realized, this will create even greater ethanol consumption, reducing exportable supplies during the back half of 2026.

Recent trade negotiations have also yielded greater market opportunities for U.S. ethanol in 2026, including to Guatemala and Vietnam.

Read more from USDA.

Ethanol, Ethanol News, Exports, USDA

ACE Welcomes Ben Rhodes to Team with Ron Lamberty

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Ben Rhodes

The American Coalition for Ethanol (ACE) has announced that Ben Rhodes, currently serving as executive director of the Nebraska Ethanol Board (NEB), will become chief marketing officer (CMO) for ACE beginning September 28. At the same time, ACE’s current CMO Ron Lamberty, who has served the organization for more than 25 years, will take on the new title of Chief Strategy Officer and work with Rhodes to intensify the organization’s efforts to develop new domestic and international markets for ethanol.

“I’m excited to be joining ACE at such a transformative time in the ethanol industry,” Rhodes said. “With so many new and expanded markets on the imminent horizon, my vision as CMO is to help lead those conversations moving forward. I’ve long respected the great work ACE does to deliver results for ethanol producers and add value to agriculture. I want to thank Brian, Ron, and the ACE Board of Directors for this opportunity, and I can’t wait to get started.”

Ron Lamberty

“Ethanol’s value versus gasoline in today’s marketplace, coupled with the daily mention of E15 in fuel industry news and record E85 sales, is driving increasing interest in higher ethanol blends,” said Lamberty. “Ben’s addition to the ACE team gives us the ability to reach more prospective fuel retailers at this critical time and help them ‘do the math’ confirming the profit opportunity E15 and flex fuels provide, turning interest into new gallons. And as oil and electricity continue to increase in cost, Ben’s experience with E30 and helping expand E85 use while at NEB will help ACE maintain ethanol’s place in the low-carbon fuels discussion.”

Rhodes has served as the executive director of the Nebraska Ethanol Board since April 2025 and has led the organization’s operations, personnel and projects, including stewardship of the NEB’s groundbreaking E30 fuel demonstration in non-flex fuel vehicles. A Nebraska native, Rhodes holds a BA and an MBA from the University of Nebraska-Lincoln.

ACE, Ethanol, Ethanol News

RFA Providing E15 Education for California Retailers

Cindy Zimmerman

RFA providing E15 education for California retailers

The Renewable Fuels Association was in San Diego, California this week at the annual conference of the California Fuels and Convenience Alliance (CFCA) talking with retailers about the details of selling E15, now that a technicality in last year’s legislation to allow the lower cost fuel has been fixed.

RFA has been front-and-center at the CFCA trade show with an exhibit and a schedule of retailer E15 workshops at the event, with more than 1,500 attendees. “As the final roadblocks are removed, we’re working had to ensure E15 gets to the stations—and drivers’ gas tanks—as soon as possible. Working with CFCA has really helped us make the connections to move the fuel forward,” said Robert White, RFA Senior Vice President for Industry Relations and Market Development.

White explained the bill that California legislators unanimously passed last week fixes a technical issue regarding stage 2 vapor recovery equipment so retailers can get certified to sell the fuel. “This allows the OEMs that make the stage 2 vapor recovery equipment to submit statements of compatibility as a listing source. So instead of going to Underwriters Laboratories and spending millions of dollars and could be a year or two down the road, this allows them to self-certify,” said White in an interview at Farm Progress Show. “And all of their equipment was already tested on E15, so they’re all going to submit those statements of compatibility, which is very exciting to us because the retailers don’t have to add new equipment. They don’t have to shop for a different vendor. We’re talking about equipment that they already have.”

White says the fix will not go into effect until January 1, but that is just around the corner. “So we’ll be gearing folks up for the coming year, teaching them again about the economics and why in a state that’s so short of liquid fuel, so high of fuel prices, how E15 can help immediately.”

RFA kicked off its E15 for California education campaign at last year’s CFCA Summit, when lawmakers unanimously passed the bill to allow E15 to be sold in the state.

Learn more in this interview.
FPS26 Robert White, RFA 6:58

Audio, E15, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Study Says Gas Prices Would be Higher Without Ethanol

Cindy Zimmerman

Buc-ee’s gas pump in Arizona Labor Day weekend

Nationwide regular gasoline prices over Labor Day weekend 2026 set a new holiday record and crossed $4 per gallon for the first time on Labor Day, but they would be higher if not for ethanol, according to a new study just completed for the Renewable Fuels Association. Prepared by George Hoekstra, a 35-year veteran of the petroleum refining industry, the study concludes that the average E10 cost-savings advantage has been 38 cents per gallon since the war in Iran started at the end of February.

The Hoekstra report shows that E15’s economic benefit during the Iran conflict has been even greater, offering a lower cost of 57 cents per gallon. The study looks at three economically distinct sources of ethanol value: The value of replacing gasoline volume with lower-cost ethanol, the octane value of ethanol, and the value of Renewable Fuel Standard compliance credits called RINs. However, even when one leaves out the impact of RFS blending obligations and RINs, E10 still offered a 17.5 cents per gallon cost advantage compared to regular gasoline, showing that ethanol has substantial economic value even before counting the RIN credit value. Hoekstra also estimates that for the full year through early August, the non-RIN portion equated to overall savings of $18.7 billion.

RFA President and CEO Geoff Cooper says American-made ethanol is extending domestic fuel supplies by more than 1 million barrels per day and significantly lowering prices at the pump for consumers. “This report should serve as a compelling reminder to policymakers that the fastest way to lower fuel prices is to blend more—not less—ethanol into our gasoline,” said Cooper. “The findings underscore the urgent need for Congress to pass legislation allowing nationwide, year-round E15 as quickly as possible.”

E15, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Bayer and Neste to Scale Canola for Biofuels

Cindy Zimmerman

Bayer has joined forces with Neste, a leading producer of renewable diesel and sustainable aviation fuel, to jointly scale Bayer’s newgold® winter canola for biofuels production.

The collaboration will enable Bayer to significantly expand acres of winter canola in the Southern Great Plains of the US, strengthening the oilseed supply potential of lower-carbon-intensity feedstocks to meet the growing global demand for biofuels such as renewable diesel and sustainable aviation fuel, which is estimated to increase almost threefold reaching approximately 40 billion gallons by 2040.1,2 The high protein meal from the winter canola grain will be sold into the feed market, offering additional feed sources for dairy and beef cattle, poultry and swine markets.

“In times of geopolitical tensions, the need for more energy security and resilience while decarbonizing the transportation sector leads to growing demand for renewable fuel. This agreement further underscores Bayer’s commitment to help scale biofuels production,” said Frank Terhorst, Head of Strategy and Sustainability for Bayer’s Crop Science division. “We see the Southern Great Plains as an untapped opportunity for winter canola. The launch of newgold® winter canola will provide farmers with a profitable rotational crop with wheat and improve land utilization, while offering the opportunity to participate in a growing biofuels market.”

Bayer and Neste are establishing a newgold® network with additional value chain partners, to support the expansion of winter canola and ensure an additional market for farmers.

Bayer, biofuels, canola, SAF

IRS Releases 45Z Tax Credit Guidance

Cindy Zimmerman

The Internal Revenue Service this week issued long-awaited guidance on the Section 45Z Clean Fuels Production Tax Credit.

The guidance includes the technical modeling updates to the 45ZCF-GREET model used to determine emissions rates required under the Working Families Tax Cuts (WFTC) amended and extended section 45Z and implements additional changes including addressing how the annual emissions rate tables work and which table and models a producer should use to determine the emissions rate of a particular fuel.

National Corn Growers Association President Jed Bower says the guidance will give safe harbor to previously recognized “on farm” practices in reducing the carbon intensity of qualifying fuels. “This guidance also codifies positive changes to the credit regarding indirect land use change. We look forward to working with the Treasury Department this fall as it looks to issue a final rule by November. NCGA would also like to see ‘book and claim’ acknowledged as a viable chain of custody methodology in the final rule.” Book and claim allows farmers to sell the environmental value of their low-carbon corn directly to biofuel producers digitally, eliminating the need to physically segregate and transport those crops to a specific facility.

Rebecca Johnson, Christianson PLLP, (right) at the recent ACE Conference

Biofuel producers and farmers have been working to prepare for the 45Z tax credit since 2022 when it was first created by the Inflation Reduction Act, then changed under the One Big Beautiful Bill Act last year. The tax credit was a big topic at the recent ACE Annual Conference where CPA Rebecca Johnson of Christianson PLLP talked about how they have been working with producers to help them prepare.

“Documentation is going to be the key,” said Johnson. “So farmers have to do things from keeping receipts or keeping packaging from fertilizer to getting geo-coordinates to getting pictures of the fields, what they looked like to prove that they didn’t do things like no-till. And it’s definitely a lot that they haven’t had to do in the past. And so just education and making sure they’re ready to go is going to be key.”

Learn more in this interview:
Rebecca Johnson, Christianson PLLP 4:10

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E15 Could be Iowa’s Top-Selling Fuel in 2026

Cindy Zimmerman

The Iowa Renewable Fuels Association is projecting that E15 will top E10 to be the number one fuel in Iowa by the end of this year.

“It will be close, but E15 is on track to become Iowa’s top-selling fuel for 2026,” said Iowa Renewable Fuels Association Executive Director Monte Shaw. “With 46 million gallons in August, Iowa drivers are sending a clear message: they want E15. As more Iowa retailers have given drivers the chance to buy E15, the numbers are impossible to ignore.”

According to the latest monthly fuel tax data released by the Iowa Department of Revenue, Iowa fuel terminals distributed more than 46 million gallons of E15 during August, the second highest amount on record and total E15 sales in the state for August were just behind the record 48 million gallons sold in May, continuing a strong year of growth for the ethanol blend.

E15, Ethanol, Ethanol News