RFA CEO Honored as Patriotic Employer

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Renewable Fuels Association (RFA) President and CEO Geoff Cooper, an Army veteran, was honored this week by the Department of Defense Employer Support of the Guard and Reserve office “for contributing to national security and protecting liberty and freedom by supporting employee participation in America’s national guard and reserve force.”

Under Cooper’s leadership, RFA last year founded Veterans for Renewable Fuels to provide veteran employees in the ethanol industry opportunities to come together and support each other in their careers and personal lives. According to a Department of Energy report, the percentage of ethanol industry workers who are veterans is 15 percent, which is triple that of the national workforce and higher than the petroleum fuels and general energy workforce.

“When women and men in uniform leave the military and start searching for jobs, they want more than a paycheck,” says Cooper. “Thousands of veterans have found exactly what they’re looking for in the ethanol industry, and we are truly honored to have them in our midst.”

Ethanol, Ethanol News, Renewable Fuels Association, RFA

SAF Stakeholders Call for Farm Bill Provisions

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Industry stakeholders representing nearly the entire supply chain for Sustainable Aviation Fuel (SAF) are calling on House and Senate Agriculture Committee leaders to include provisions in the Farm Bill to boost the role of American farms in fueling low-carbon aviation.

“SAF, which can be produced from renewable biomass and agriculture-based feedstocks, presents an opportunity to expand U.S. markets for agricultural goods, bolster our nation’s rural economy and provide a renewable, low-emission domestic energy supply for the aviation sector,” they said in a letter. “Due to wide bipartisan, bicameral support in Congress, as well as benefits to U.S. farmers, biofuel producers and the aviation industry, we ask that you include meaningful SAF provisions, such as the Farm to Fly Act, in the Farm Bill to strengthen American agriculture and help leverage this key resource.”

The letter was signed by the Aerospace Industries Association, Airlines for America, Airbus, Alaska Airlines, American Airlines, the American Soybean Association, Atlas Air Worldwide Holdings, Inc., Boeing, the Cargo Airline Association, Clean Fuels Alliance America, Delta Air Lines, FedEx Express, Fuels America, GE Aerospace, US, the General Aviation Manufacturers Association, Gevo, Inc., Growth Energy, Hawaiian Airlines, JetBlue Airways, the Kansas Corn Growers Association, the Kansas Grain Sorghum Association, the Kansas Soybean Association, Marquis Sustainable Aviation Fuel, the National Air Carrier Association, the National Air Transportation Association, the National Business Aviation Association, the National Corn Growers Association, Novonesis, the Ohio Corn & Wheat Growers Association, the Ohio Soybean Association, POET, LLC, the Renewable Fuels Association, Southwest Airlines, United Airlines, United Parcel Service, and Vertical Aviation International.

Ag group, aviation biofuels, Biodiesel, biofuels, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Nebraska Governor Signs SAF Tax Credit Bill

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Nebraska Gov. Jim Pillen has signed into law the establishment of a production tax credit for sustainable aviation fuel (SAF) in Nebraska.

The SAF tax credit (LB937) will provide a $0.75 per gallon tax credit for the production of aviation fuel that reduces lifecycle emissions by at least 50 percent, which may be calculated based on the most recent version of Argonne National Laboratory’s GREET model.

“We are excited and encouraged by this landmark SAF legislation, and Gov. Pillen’s signing of the bill,” Nebraska Ethanol Board (NEB) Executive Director Reid Wagner said. “This bill creates a first-in-the-Midwest tax credit for SAF to be produced right here in Nebraska. We thank Sens. Dungan and Bostar for helping develop SAF production, which represents a tremendous opportunity for our state moving forward.”

Ethanol and oils from corn and soybean processing serve as low-carbon, low-cost feedstocks for the production of SAF, which can reduce emissions by more than 50% compared to conventional jet fuel. LB937 establishes an income tax credit for the production of SAF beginning in 2027.

aviation biofuels, Ethanol, Ethanol News, SAF

Indigo Ag and Red Trail Energy Partner for Low CI Corn

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Sustainable agriculture company Indigo Ag and North Dakota bioethanol producer Red Trail Energy (RTE) have announced a collaboration to source low carbon intensity (CI) corn to support farmers using sustainable practices and benefit from emerging clean fuels market tax credit programs.

Utilizing Indigo’s proven measurement, reporting and verification (MRV) and remote sensing capabilities, RTE will work with Indigo Ag to measure field level carbon intensity (CI) and identify, enroll and verify farmers with the highest potential to produce low CI feedstock. Indigo Ag will produce the data required for tax credit compliance, including data collection, verification and analysis of eligible practices in GREET and other clean fuel calculators. This level of data collection will enable RTE to maximize benefits from clean fuel markets across the U.S. and Canada, starting with the 45Z tax credit in January 2025.

RTE will be amongst the first ethanol producers to take advantage of the Clean Fuel Production Credit, or 45Z, in January 2025, utilizing 2024 crops. 45Z will pay 2 cents per gallon for every carbon intensity (CI) point reduction below the minimum threshold, and will be the first clean fuels program to enable the generation of credits from lower CI agricultural feedstock in a meaningful way. Sustainable farming practices like cover crops or no till have the potential to lower ethanol CI scores by more than 20 points.

Carbon, corn, Ethanol, Ethanol News

USDA Awards $43 Million in HBIIP Grants

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Agriculture Deputy Secretary Xochitl Torres Small traveled to Erie, Pennsylvania this week to announce that USDA is awarding more than $43 million in grants through the Higher Blends Infrastructure Incentive Program (HBIIP) to business owners to increase the availability of domestic biofuels in 15 states and give Americans cleaner, more affordable fuel options.

HBIIP provides grants to fueling station and distribution facility owners, including marine, rail, and home heating oil facilities, to help expand access to domestic biofuels, a clean and affordable source of energy. These investments help business owners install and upgrade infrastructure such as fuel pumps, dispensers and storage tanks.

USDA is making the HBIIP awards in California, Florida, Illinois, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, New York, Oklahoma, Pennsylvania, South Dakota, Texas and Wisconsin.

Some examples include:

In Pennsylvania, Clyde S. Walton Inc. will use a grant of more than $810,000 to install a 30,000-gallon biodiesel storage tank and loading equipment at its home heating oil distribution facility in Lansdale. This project is expected to increase the amount of biodiesel sold by more than 5 million gallons per year.

In Kansas, Blue River Valley LLC will use a $3 million grant to rebuild a pair of 2-million-gallon ethanol storage tanks and other equipment at a fuel distribution facility in Potwin. This project is expected to increase the amount of ethanol sold by more than 238 million gallons per year.

In Minnesota, Twin Cities Auto Repair & Gas LTD will use a $402,000 grant to install four E15 dispensers and two ethanol storage tanks at a fueling station in Burnsville. This project is expected to increase the amount of ethanol sold by 996,000 gallons per year.

USDA has invested approximately $135 million in the past three years to increase access to biofuels at fueling stations.USDA continues to accept applications for funding to expand access to domestic biofuels quarterly through Sept. 30, 2024.

Ethanol, Ethanol News, USDA

Ethanol Report on EPA E15 Waiver

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The emergency fuel waiver issued by the Environmental Protection Agency to allow sales of E15 this summer will help American consumers save money at the pump, while also cutting greenhouse gas emissions and harmful tailpipe pollution, but the Renewable Fuels Association says a permanent legislative solution is still necessary. The emergency waiver issued Friday follows a concerted effort by RFA and its allies and will make the sixth year that some type of EPA action has allowed sales of 15% ethanol fuel in conventional gasoline areas during the summer.

In this edition of The Ethanol Report, RFA Senior VP for Government & Public Affairs Troy Bredenkamp and Chief Economist Scott Richman discuss the E15 waiver and why it was necessary, and why the Nationwide Consumer and Fuel Retailer Choice Act of 2023 is more important than ever.

Ethanol Report 4-19-24 28:13

2024 National Ethanol Conference Virtual Newsroom

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.

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Ethanol Industry Pleased EPA Issues Summer E15 Waiver

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The Environmental Protection Agency today issued a waiver to allow E15 (15 percent ethanol fuel) to continue to be sold this summer. The temporary waiver under the Clean Air Act was issued “to address extreme and unusual fuel supply circumstances caused by a confluence of events, including the ongoing war in Ukraine and conflict in the Middle East, that are affecting all regions of the Nation.”

Ethanol organizations and stakeholders welcomed the action, which the Renewable Fuels Association says will help American consumers save money at the pump this summer, while also cutting greenhouse gas emissions and harmful tailpipe pollution. However, RFA Senior VP for Government & Public Affairs Troy Bredenkamp says the ultimate goal is to find a permanent solution to allow E15 sales in the summer. “We are certainly seeking some sort of legislative solution to solve this long term so we don’t have to keep begging and pleading to make sure that E15 does not disappear during the summer.”

RFA Summer E15 waiver reaction - Troy Bredenkamp (2:51)

American Coalition for Ethanol (ACE) CEO Brian Jennings said he was grateful to see the administration respond to the industry’s requests. “Earlier this year, the Biden administration finally confirmed E15 can permanently be offered in eight Midwest states, but postponed year-round access in those states until the summer of 2025. Today’s action is an important reminder that higher ethanol blends play a critical part in our nation’s energy security as well as contribute significant climate and air quality benefits. A permanent solution to year-round E15 will ensure these benefits aren’t left to the whim of ad hoc agency decision making in the future.”

Both ACE and RFA support the bipartisan Nationwide Consumer and Fuel Retailer Choice Act (S. 2707) sponsored by Sen. Deb Fischer (R-NE) to ensure continuous access to E15 nationwide.

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

USTR Working on Brazil Market Access for U.S. Ethanol

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During a Senate Finance Committee hearing this week, Sen. Chuck Grassley (R-IA) asked U.S. Trade Representative (USTR) Ambassador Katherine Tai about the Biden administration’s “abdication of leadership on trade” and urged her to work on getting Brazil to lower tariffs on U.S. ethanol.

“The last time you appeared before this committee I urged you to negotiate lower tariffs on ethanol with Brazil,” said Grassley. “While I understand you are currently negotiating this matter, the results have been lackluster. Brazil increased its duties on ethanol this year from 16 to 18 percent and continues to enjoy importing its ethanol tariff-free. This ethanol competes with home grown ethanol in California’s low-carbon fuel standard, but also in sustainable aviation fuel.”

Tai said USTR coordinating with USDA and engaging with their counterparts in Brazil on market access barriers to U.S. ethanol. “Our objective is to ensure U.S. ethanol can, once again, compete on a level playing field with domestically produced ethanol in Brazil,” she said.

Senate Finance hearing Grassley-Tai (1:55)

Last week, the U.S. ethanol industry submitted comments within the Brazilian Chamber of Foreign Trade (CAMEX) urging the agency to “strongly consider the permanent reinstatement of the duty-free access for ethanol as a window of opportunity to strengthen the bilateral agenda and stimulate trade cooperation between Brazil and the United States.”

Audio, Brazil, Ethanol News, Exports, Trade

Year-Round E15 Act Introduced in House

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Rep. Zach Nunn (IA-R)

The Year-Round E15 Act was introduced this week in the U.S. House by Rep. Zach Nunn (R-IA) together with colleagues Adrian Smith (R-NE), Nikki Budzinski (D-IL), Brad Finstad (R-MN), Eric Sorensen (D-IL), and Don Bacon (R-NE). The legislation would allow for retail sales of E15 this summer across eight Midwestern states which EPA has approved for the Reid Vapor Pressure (RVP) volatility waiver starting in 2025.

“This bill wouldn’t be necessary if the Administration had just done the right thing to begin with, but this is a critical step to provide certainty for farmers, producers, and families who will benefit from less expensive fuel,” said Rep. Nunn.

“I was glad to see the Environmental Protection Agency take evidence-based action to allow the permanent sale of E15 in Illinois and across the Midwest, but this long-awaited action doesn’t take effect until 2025,” said Rep. Budzinski. “I’m proud to introduce bipartisan legislation with my friend, Congressman Zach Nunn, that will address this gap and allow for the sale of cheaper, cleaner fuel for Heartland consumers this summer.”

“The ethanol industry greatly appreciates Representative Nunn’s efforts to ensure Midwest drivers have continued access to lower-cost, cleaner-burning E15 this summer driving season,” said Renewable Fuels Association President and CEO Geoff Cooper.

The bipartisan Year-Round E15 Act would allow for the year-round sale of E15 in Iowa, Illinois, Missouri, Minnesota, Nebraska, Ohio, South Dakota, and Wisconsin for the summer of 2024.

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

Iowa Ag Secretary Urges EPA to Approve Summer E15

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Iowa Secretary of Agriculture Mike Naig this week sent a letter to Environmental Protection Agency (EPA) Administrator Michael Regan urging him to immediately sign an “emergency waiver” to allow summer sales of E15 (15% ethanol fuel) this year.

In February, the EPA approved a request by Governor Reynolds and seven other Midwest governors to allow the sale of E15 fuel year-round beginning in 2025. While the news was generally welcomed, the decision was more than a year late as required by law, Attorney General Brenna Bird had to file a lawsuit to force EPA to act, and the rule inexplicably did not apply to 2024.

Now, as the summer driving season quickly approaches, everyone from drivers to gas station owners are stuck in a state of limbo awaiting news if an “emergency waiver” will be put in place for this summer.

“With the summer driving season just weeks away, the Biden Administration must take immediate action to ensure that Iowa drivers do not lose access to lower cost E15,” said Secretary Naig. “At a time when inflation is running hot, oil prices are rising and global events are producing turmoil, year-round E15 would provide significant savings to consumers, help America be more energy independent and reduce emissions.”

Read the full letter to EPA Administrator Michael Regan.

E15, EPA, Ethanol, Ethanol News