Apply Now for National Ethanol Conference Scholarships

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Applications are now being accepted by the Renewable Fuels Foundation for scholarships to attend the annual National Ethanol Conference, taking place Feb. 17-19 in Nashville, Tenn. College students and members of RFA’s Young Professionals Network are eligible for the scholarships that cover the convention registration fee, hotel, and up to $500 in airfare.

Now in its 16th year, the program is named in honor of Robert “Bob” Sather, an educator who helped found RFA member company Ace Ethanol in Wisconsin. Sather was a past Chair of the Renewable Fuels Foundation. The aim of the Bob Sather Memorial Scholarship is to reach young adults aspiring to a career related to ethanol and open doors and present new perspectives on ethanol’s place in our world today and beyond. The program provides eligible applicants with opportunities to hear from, and engage with, top industry leaders, policymakers, and academic and technical experts.

“We’re happy to be able to again provide scholarships to help introduce a new generation to the ethanol industry via time spent at the country’s top ethanol industry event,” said Neal Kemmet, chairman of the Renewable Fuels Foundation and president and general manager for Ace Ethanol. “Students and young professionals will have an excellent opportunity to learn and network as they prepare for meaningful careers tied to renewable fuels. We strongly recommend this program to any student studying in ethanol-related fields, and to any young professional in the industry.”

A limited number of scholarships will be awarded. Interested college students are asked to submit a 500-word essay explaining how their attendance at the NEC will help them achieve future goals. They should also submit a letter of recommendation and an up-to-date resume. Interested members of YPN need to complete the application questions and provide a resume and letter of recommendation from a supervisor or someone else familiar with their qualifications. YPN scholarships are limited to one per company.

Click here for complete application details and to apply. Applications are due January 9.

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

CoBank Report Studies Future for SAF

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CoBank image

A new CoBank Knowledge Exchange report on Charting the Path Forward for SAF finds sustainable aviation fuel provides great opportunity for growth in U.S. biofuels production from agricultural feedstocks, as long as the market and regulatory incentives are there for farmers and the wider biofuels industry.

According to the report, the anticipated guidance for the 45Z tax credit, also known as the Clean Fuel Production Credit, will be the major determining factor for the extent of agriculture’s role in SAF production, replacing the 40B tax credit for SAF production.

“The 40B tax credit guidance for SAF fell short in effectively incentivizing farmers to adopt the prescribed set of on-farm conservation practices required to be eligible for the credit,” said Jacqui Fatka, farm supply and biofuels economist with CoBank. “Farmers are hoping the new guidance offers more flexibility to employ practices that are applicable to their individual operations. The 40B guidance reflected a one-size-fits-all approach, which is certainly not the case for farms spanning the entire country.”

While the 45Z tax credit is set to take effect on Jan. 1, 2025, the final guidance has yet to be issued causing uncertainty for farmers, biofuel producers and other market participants. “Biofuel producers are unlikely to move forward on any expansion plans until the new guidance is published,” said Fatka. “And the delay creates more uncertainty for farmers as they make decisions about planting, input purchases and conservation programs for 2025.”

Read the report.

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California Governor Puts E15 in the Fast Lane

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California Governor Gavin Newsom on Friday gave a surprise boost to the ethanol industry by issuing a directive to the California Air Resources Board (CARB) to accelerate studying how California could increase ethanol blending in gasoline to allow the sales of E15.

“There’s massive potential for this to be a win-win for Californians: lowering gas prices by up to twenty cents per gallon while keeping our air clean. It builds on our efforts to keep gas prices low by holding Big Oil accountable and helping prevent price spikes at the pump,” said Newsom.

The Renewable Fuels Association immediately praised Gov. Newsom for taking this action since California is the only state in the country that bans the sale of lower-cost, lower-carbon E15. “Not only does E15 reduce greenhouse gas emissions and harmful tailpipe pollution, but it also delivers significant savings at the pump,” said RFA President and CEO Geoff Cooper. “Allowing the sale of E15 would provide economic relief to California families, while at the same time providing important environmental benefits.”

Gov. Newson cited a recent study conducted by the University of California, Berkeley and the United States Naval Academy, showing that just allowing the sale of E15 could lower gas prices in California by up to $0.20 per gallon and save Californians as much as $2.7 billion annually. That study was sponsored by the Renewable Fuel Association. “Consumers would save about $200 per household there,” said RFA Chief Economist Scott Richman who contributed to the study. “And it would be low income households that would benefit the most from this.”

Listen to an interview with Richman about the study:
RFA Chief Economist Scott Richman 6:38

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Bill Would Extend 45Z Tax Credit

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The 45Z clean fuel production tax credit would be extended by ten years under legislation introduced this week by Reps. Brad Schneider (D-IL), Dan Kildee (D-MI) and Julia Brownley (D-CA).

The tax credit, created under the Inflation Reduction Act, is slated to start in 2025 and expire in 2027, even though no rules have been developed for it yet. The Expanding Clean Fuel Production Act would extend the credit for transportation fuel with zero or low greenhouse gas emissions, including sustainable aviation fuel (SAF), through 2037.

“A ten-year extension would allow for sustained investment in production to accelerate the transition to cleaner fuels and to significantly cut greenhouse gas emissions from the aviation industry, in particular. We are already seeing the impact of the Inflation Reduction Act’s investments on U.S. production of sustainable fuels,” said Rep. Schneider who authored the tax credit for the production of SAF which was included in the Inflation Reduction Act in 2022 and aims to halve carbon emissions in the aviation sector.

The credit was inspired by a SAF credit included in the Sustainable Skies Act, which Rep. Schneider authored with Reps. Kildee and Brownley in 2021. The credit was ultimately enacted in the Inflation Reduction Act in 2022, will transition into the CFPC in 2025, and will expire in 2027. SAF producers are eligible for a tax credit of $1.25 to $1.75 per gallon.

Alison Graab, Executive Director of the SAF Coalition, said they look forward to working with Congress extending as well as strengthening the incentive. “Advancing sustainable aviation fuel demonstrates a clear commitment to the environmental and economic promises SAF holds, and incentives that are durable and attract investment are essential to unlocking that potential and driving the progress needed to sustain and grow the SAF industry.”

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Ethanol Report on Supply and Demand

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Despite California’s best efforts to work against low carbon ethanol by not allowing sales of E15 and proposing unworkable new sustainability requirements for the future, supply and demand for U.S. ethanol continues strong.

In this edition of The Ethanol Report podcast, Renewable Fuels Association Chief Economist Scott Richman discusses concerning proposed regulations to California’s Low Carbon Fuel Standard, strong supply and demand numbers for 2024, and surging exports of both ethanol and the co-product Distiller’s dried grains with solubles (DDGS).

Ethanol Report 10-23-24 21:24

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

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Supreme Court to Decide on EPA SRE Case Venue

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The Supreme Court will determine whether the D.C. Circuit Court of Appeals is the only proper court to litigate challenges to small refinery exemptions, a decision welcomed by biofuel advocates.

At issue is whether the venue for challenges by small oil refineries seeking exemptions from the requirements of the Clean Air Act’s Renewable Fuel Standard program lies exclusively in the U.S. Court of Appeals for the District of Columbia Circuit because the agency’s denial actions are “nationally applicable” or, alternatively, are “based on a determination of nationwide scope or effect.”

The Renewable Fuels Association and Growth Energy issued a statement saying, “The Fifth Circuit was clearly an improper venue to hear challenges on small refinery exemptions. Because the Fifth Circuit opinion set up a clear split with several other Circuit courts on the question of venue, this is precisely the sort of issue that the Supreme Court is meant to resolve. The Court has agreed, and we look forward to participating in the case and having this issue settled once and for all.”

“The refining community’s abuse of small refinery exemptions destroys demand for biofuels nationwide, which negatively impacts farmers and bioethanol producers regardless of where they operate. The economic and environmental impact of this abuse does not recognize state lines. The decision in this case should strengthen the RFS by giving biofuel producers and their farm partners the certainty they deserve.”

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

New Ethanol Infographics from Grains Council

Cindy Zimmerman

The U.S. Grains Council (USGC) has released a series of infographics to promote the benefits of biofuels, an explainer on various sustainability benchmarks for sustainable aviation fuel (SAF), and an update on global ethanol blending policies.

The Council seeks to show international policymakers and industry stakeholders that U.S. ethanol is an affordable, abundant, compatible and sustainable way for countries to meet their carbon reduction commitments. The Council’s infographic reflecting these qualities serves as a simple yet effective reminder to customers about why U.S. ethanol is the right choice.

These infographics, along others related to commodity uses, export data from marketing year 2023/2024 and more, are available for download on the Council’s website.

biofuels, Ethanol, Ethanol News, SAF, USGC

Ethanol Sets New Export Record

Cindy Zimmerman

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The latest export data for marketing year 2023/2024 from USDA shows exports of U.S. ethanol set a record at 1,746,490,298 gallons sold internationally and a single-market record of 23.4 million metric tons (924 million bushels) shipped to Mexico. That helped sales of U.S. grains in all forms (GIAF) increased to more than $48 billion.

“We applaud U.S. farmers and producers for their outstanding efforts in increasing exports this marketing year, and especially to ethanol producers who continue their trajectory of outstanding growth to meet global market demands,” said Ryan LeGrand, U.S. Grains Council (USGC) president and CEO.

The new ethanol record does not include an estimated 140.5 million gallons of ethanol exported to Japan in the form of ethyl tert-butyl ether (ETBE), emphasizing the incredible accomplishments of the U.S. biofuels industry during the past year.

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RFA Calls New California LCFS Updates Fundamentally Flawed

Cindy Zimmerman

The Renewable Fuels Association says proposed regulations updating California’s Low Carbon Fuel Standard are “fundamentally flawed” and could significantly restrict the future use of low-carbon ethanol in the state.

In comments submitted last week to the California Air Resources Board (CARB), RFA Chief Economist Scott Richman asserts that renewable fuel producers and California consumers will both suffer if CARB moves ahead with its proposal for new “sustainability” requirements and an arbitrary new method for assigning hypothetical land use change penalties.

CARB says the onerous new sustainability requirements are necessary to mitigate the “rapid expansion of biofuel production and biofuel feedstock demand.” However, the data clearly show that there is no “rapid expansion” in U.S. corn ethanol production and historical growth has been accommodated with existing cropland and higher productivity. Applying the sustainability criteria to U.S. corn ethanol makes no sense in light of the hard evidence documenting the efficiency and sustainability associated with the industry’s growth, according to RFA’s comments. Moreover, the proposed changes are unworkable for U.S. farmers and ethanol producers, RFA said. The proposal includes overreaching language that appears to extend beyond CARB’s authority, along with unrealistic requirements for commodity traceability.

“CARB should seriously reconsider such a broad and sweeping mandate that could result in an invalidation of LCFS credits due to an unrelated violation that occurs outside of both a fuel provider’s control and CARB’s jurisdiction,” wrote Richman.

RFA also argues that the development and assignment of land use change penalties should be based on scientific data and modeling and must be subject to an appropriate public rulemaking process.

“If CARB had its thumb on the scale against ethanol before, now they are trying to give themselves the authority to put their whole fist on the scale,” said RFA President and CEO Geoff Cooper. “This proposal is completely disconnected from reality and, if finalized, will very likely result in shortages of low-carbon fuels and higher fuel prices for California consumers.”

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USDA Celebrates $3 Billion for Climate-Smart Commodities

Cindy Zimmerman

Secretary of Agriculture Tom Vilsack traveled to Pennsylvania last week to celebrate investing over $3 billion in 135 projects under the Partnerships for Climate-Smart Commodities since its creation in September 2022.

Vilsack highlighted the initiative’s success to date, including:

– Enrollment of over 3.2 million acres of working land into climate-smart practices that reduce greenhouse gas emissions and sequester carbon.
– Sequestered over 400,000 metric tons of carbon using a variety of direct measurement tools on the ground and testing nearly 50 different greenhouse gas models to verify results.
– Projects that have also produced low-carbon biofuels, including sustainable aviation fuel.

Among the projects Vilsack highlighted is the Iowa Soybean Association’s Midwest Climate-Smart Community Program, which now has over 1800 farms enrolled in climate-smart production. The resulting corn, soy, sugar beats and wheat supply insetting markets where corporate entities aim to reduce their greenhouse gas footprint.

Listen to Vilsack’s remarks:
Vilsack in Hershey, PA (26:41)

Audio, biofuels, Farming, SAF, Sustainability, USDA