Year Round E15 Bill Hits Roadblock

Cindy Zimmerman

Sen. Deb Fischer (R-NE) told members of the American Coalition for Ethanol (ACE) meeting in Washington D.C. this week that her bill to allow year-round sales of E15 has hit a roadblock, in the form of Sen. Tom Carper (D-DE).

“Senator Carper, as you know, is chair of the Environment and Public Works Committee,” said Fischer. “We’ve reached out to him to try and do a markup of the bill…but I don’t think we are getting anywhere on that.”

Fischer says Carper is concerned about a refinery in his state and she considers it a “rather odd position” for him to take, considering the Nationwide Consumer and Fuel Retailer Choice Act of 2023 has the support of not only the agriculture and ethanol industries, but also retailers and even Big Oil. “Would you have ever thought Big Oil was going to step up and get on a Fischer E15 bill? Never.”

Listen to Fischer’s remarks here:
ACE DC 24 remarks from Sen. Deb Fischer 18:35

2024 ACE DC Fly-in Photo Album

ACE, E15, Ethanol, Ethanol News

New EPA Ag Office Head Addresses ACE Fly-in

Cindy Zimmerman

The head of EPA’s new Office of Agriculture and Rural Affairs Rod Snyder addressed the 13th American Coalition for Ethanol DC Fly-in Thursday and had a lot to talk about of interest to ethanol stakeholders, not the least of which was updates to the GREET model for implementation of Inflation Reduction Act tax credits.

“It’s better to do something right than do to something fast,” said Snyder. “We’re looking at ways we can integrate additional greenhouse gas reducing activities as part of that modeling so I think for everyone in the room who is interested in getting this right and providing as many pathways as possible for qualification of the tax credit, this extra time is I think good news.”

Snyder said they still expect to have that guidance, as Secretary Vilsack said at Commodity Classic, within “weeks, not months” but ultimately the decision will be made by the Treasury Department.

Regarding retail sales of E15 this summer, “It is too early for me to speculate on what we can or should do for 2024 but I want to reassure you we are already talking with the Department of Energy about market conditions and how they compare to prior years and what sort of case can be made for what needs to be done for summer of 2024.”

Listen to Snyder’s comments here:
ACE DC 24 remarks from Rod Snyder, EPA 31:24

2024 ACE DC Fly-in Photo Album

ACE, EPA, Ethanol, Ethanol News

Record E85 Sales Save California Drivers $99 Million

Cindy Zimmerman

The record use of E85 (up to 85% ethanol fuel) in California last year saved the state’s drivers $99 million in 2023, while cutting greenhouse gas emissions by nearly 370,000 metric tons, according to a new analysis from the Renewable Fuels Association.

A record 118.5 million gallons of E85 were sold last year, up 14 percent over 2022 and nearly double the volume of 2021. According to E85prices.com, the average retail price of E85 in California in 2023 was $3.17 per gallon, compared to an average price of $5.01 per gallon for E10 gasoline—an average price discount of 37 percent. With 1.34 million FFVs on the road in California, the average FFV owner saved $74 on their annual fuel bill.

“E85 continues to be an increasingly popular fuel option for the Golden State,” said RFA Senior Vice President for Industry Relations and Market Development Robert White. “Thanks to the efforts of leading fuel marketers like Pearson Fuels and Propel Fuels, more Californians are taking advantage of the lowest-cost fuel available in the marketplace. By choosing E85, these drivers are making a positive impact on their communities by reducing carbon emissions and slashing the harmful tailpipe pollution that causes air quality and health concerns.”

The RFA analysis also found that E85 use in California last year resulted in the avoidance of 369,518 metric tons of greenhouse gas emissions — equivalent to removing more than 82,000 gasoline-powered passenger vehicles from the road for the entire year.

E85, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Lawmakers Push for Year Round E15

Cindy Zimmerman

More than 30 members of the U.S. House of Representatives this week sent a letter to House leadership requesting a legislative solution to allow the voluntary sale of E15 year-round nationwide.

Reps. Mariannette Miller-Meeks (R-IA), Nikki Budzinski (D-IL), Adrian Smith (R-NE), and Mark Pocan (D-WI) led the letter to Speaker Johnson, Leader Jeffries, Chair McMorris Rodgers, and Ranking Member Pallone. “We write to express our support for swift passage of a legislative solution which would allow motor vehicle fuel containing 15 percent ethanol (E15) to be voluntarily sold year-round throughout the country,” they wrote. “In light of the recent Environmental Protection Agency (EPA) final rule allowing the year-round sale of E15 in eight Midwestern states beginning in 2025, governors, agriculture producers, ethanol refiners, oil refiners, retailers, and the automotive industry have all recognized the need for permanent law which provides needed certainty for producers and consumers in every state.”

Other cosigners include: Reps. Mark Alford, Don Bacon, James Baird, Mike Bost, Stephanie Bice, Sharice Davids, Byron Donalds, Ron Estes, Randy Feenstra, Brad Finstad, Michelle Fischbach, Mike Flood, Ashley Hinson, Jonathan Jackson, Dusty Johnson, Marcy Kaptur, Mike Kelly, Darin LaHood, Greg Landsman, Jake LaTurner, Tracey Mann, Dan Meuser, Mary Miller, Max Miller, Zach Nunn, Derrick Van Orden, Ann Wagner.

Renewable Fuels Association President and CEO Geoff Cooper thanked the lawmakers for their support. “We urge Speaker Johnson to work with the bipartisan House Biofuels Caucus to move commonsense legislation forward quickly, so families on the road this summer can enjoy the economic and environmental benefits of E15,” said Cooper.

Members of the American Coalition for Ethanol will be heading to Capitol Hill on Thursday and ACE CEO Brian Jennings says year round E15 is the number one issue on their agenda. “E15 is going to be really the priority topic at the fly-in,” said Jennings.

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

California Sets Another E85 Record

Cindy Zimmerman

The state of California set another new record for use of E85 (up to 85% ethanol fuel) in 2023 at nearly 118.5 million gallons, up nearly 15% from 103.5 million in 2022, according to the latest data from the California Air Resources Board. California is the state with the largest consumption of E85 fuel, but is also the only state where retailers are unable to sell E15 at all.

The recent National Ethanol Conference was held in California and featured a panel on California’s E85 success story. Right in the middle of that story is Pearson Fuels, started in 2002 and located in San Diego with over 350 stations statewide. Jeff Wilkerson is Government Policy and Regulatory Affairs Manager for Pearson Fuels.

“We added 63 new sites last year… in terms of gallons, in 2023, I think we set another record, so that will be 16 records in 17 years… and I think ’24 will be another record as well,” said Wilkerson.

The key issue with E85 is that it can only be used by Flex Fuel Vehicles (FFV) and currently there are virtually no new FFVs being produced by car makers, but regular cars can be converted with a simple kit at a very affordable cost point at around $700, according to Juha Honkasalo with eFlexFuel. “It’s pretty simple, takes 1-2 hours to install…basically nothing is going to change, but you can use E85 and get more power,” said Honkasalo. “It’s pretty universal, available for all the cars out on the road on the US today and we also do motorcycles.”

Casey Laur, Manager of E85 Sales for The Andersons, says they sell E85 direct to retailers around the country from four plants in Michigan, Ohio, Indiana, and Iowa through eight terminals. “They get to buy direct from the ethanol producer in markets where there is not a plant,” said Laur.

Listen to their conversation moderated by Robert White, Renewable Fuels Association.

NEC24 California's E85 Success panel 51:30

2024 National Ethanol Conference Photo Album

Audio, E85, Ethanol, Ethanol News, National Ethanol Conference, Renewable Fuels Association, RFA

ACE Heads to The Hill This Week

Cindy Zimmerman

The American Coalition for Ethanol (ACE) is holding its 13th ACE DC Fly-in this week at the Hyatt Regency Washington on Capitol Hill.

As usual, ACE CEO Brian Jennings says there is plenty for them to talk about on the Hill. “On the very top of the list is E15 year round,” said Jennings in a recent interview. “So we’ll be pressing for the bipartisan legislation that’s pending.”

With the GREET update delayed by the administration, that will also be a major topic of discussion, as will legislation such as the Flex Fuel Fairness Act.

Listen to a preview with Jennings.
ACEDC 24 preview with Brian Jennings, ACE 4:52

ACE, ACE Ethanol Conference, Audio, Carbon, Ethanol

SD Paves Way for Pipeline Project

Cindy Zimmerman

Summit Carbon Solutions

The South Dakota Legislature this week gave a win to the proposed carbon pipeline projects in the state, passing a package of legislation that provides landowner protections and property tax relief to those affected, as well as preserves local zoning. The South Dakota Farm Bureau (SDFB), South Dakota Corn Growers Association, South Dakota Soybean Association, and South Dakota Ethanol Producers Association all gave their blessing to the nation’s first Landowner Bill of Rights.

“We applaud the South Dakota legislators who supported farmers, landowners, and ethanol with this compromise,” said Walt Wendland, SD Ethanol Producers Association Board President. “This legislation is pro-landowner, pro-business, pro-farmer, and pro-ethanol.”

Governor Kristi Noem has said she will sign the bill which will allow Summit Carbon Solutions to move forward with its multi-state carbon capture and sequestration (CCS) pipeline project.

Summit Carbon CEO Lee Blank called it a win-win scenario for all involved. “We appreciate the attention and engagement from so many South Dakotans, especially our partners and agricultural leaders,” said Blank. “We are excited to have a path forward that establishes best practices we are committed to following in South Dakota and across our entire project.”

Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw was pleased that both sides came together in South Dakota to find a path forward for carbon capture and sequestration projects. “It is our view that with a workable path forward in South Dakota and the regulatory process well on its way in Iowa and North Dakota, we can now see light at the end of the tunnel. Carbon capture and sequestration (CCS) cuts Iowa ethanol’s carbon score by more than half,” said Shaw.

Carbon, Ethanol, Ethanol News

RFA Announces Staff Addition and Changes

Cindy Zimmerman

The Renewable Fuels Association announces Kendra Coulson will be the new marketing and membership manager to promote the association’s mission and the benefits of ethanol, membership outreach and retention efforts, and cultivating partnerships with key stakeholders.

Prior to joining RFA, Coulson served as communications and public relations manager for Navigator CO2, where she played a key role in shaping the company’s branding and communication strategies. Prior to that, she worked for Navigator Energy Services, where she managed a variety of organizational projects. Coulson holds a bachelor’s degree in political science from Texas Woman’s University in Denton, Texas.

RFA is also pleased to announce promotions for two key staff members. Mary Giglio is being promoted to Vice President, Events and Initiatives. Giglio, who has worked in various capacities for RFA since 1996, oversees the annual National Ethanol Conference, RFA board meetings, other industry events, and a broad array of special initiatives and strategic programs. In her new role, she will also serve as the staff lead for the Renewable Fuels Foundation.

Robert White will now serve as Senior Vice President, Industry Relations and Market Development. In this capacity, White leads RFA’s various consumer education and marketing efforts, while also working with fuel marketers and retailers, state and federal agencies, commercial fleets, and individual consumers to increase awareness about the benefits of ethanol and encourage greater use of renewable fuels.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Carbon Reduction Panel at #NEC24

Cindy Zimmerman

Carbon reduction is the single biggest focus for the ethanol industry right now and it was top of mind at the recent National Ethanol Conference with a panel on Collaborating for Carbon Reduction.

The ultimate goal is to lower the carbon intensity of ethanol as much as possible, so every segment of the supply chain could possibly contribute. Renewable Fuels Association Vice President, Strategy and Innovation, Tad Hepner moderated the discussion with Lee Blank, Summit Carbon Solutions; Mitchell Hora, Continuum Ag; Kristine Clark, CF Industries; and Mark Heckman, EcoEngineers.

NEC24 Collaborating for Carbon Reduction panel 1:16:00

EcoEngineers works with ethanol plants, like North Dakota’s Red Trail Energy which just entered the voluntary carbon market, to do what works best for them. “Our team can perform full life cycle assessment of what takes place in the facility, in their distribution system, are they using renewable power..and then we can break it down to the farm level and how that kernel of corn flows from where it was produced all the way through to the fuel pump,” said Heckman.

Like the theme of the NEC, Heckman stressed the need for partnerships for the ethanol industry to get where it wants to go. “If you want to go fast, you go alone, but if you want to go far and solve really big problems, you go together.”

Listen to this interview from the National Ethanol Conference.
NEC24 Mark Heckman, EcoEngineers 15:52

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Coalition Urges EPA to Reject Petition

Cindy Zimmerman

A coalition representing farmers, ethanol producers, fuel retailers and fuel distribution companies is urging the Environmental Protection Agency to reject a recent petition by CVR Energy to alter the Renewable Fuel Standard’s credit trading program, which they say would ultimately lead to higher prices for consumers.

The organizations include the Renewable Fuels Association; National Association of Convenience Stores (NACS); NATSO, Representing America’s Travel Centers and Truckstops; SIGMA: America’s Leading Fuel Marketers; and the National Farmers Union. CVR Energy petitioned EPA in December 2023 to prohibit many businesses from possessing and trading Renewable Identification Numbers (RINs).

“The existing RIN market structure, which has been in place since EPA finalized ‘RFS2’ regulations nearly 14 years ago, has worked effectively and efficiently to facilitate compliance with annual renewable volume obligations,” the organizations wrote. “Altering the structure of the RIN system would have disastrous impacts on renewable fuel producers, fuel marketers and retailers, obligated parties, and consumers in the form of higher prices at the pump. It would also significantly undermine the statutory purpose of the RFS.”

Among other reasons, the organizations argue that CVR’s petition should be denied because its “desired structure of the RIN market is contrary to the RFS’s policy objectives, untenable in practice, and legally unmoored from any objective reading of the enabling statute.”

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