Ethanol Industry Supports Trade Investigation of Brazil

Cindy Zimmerman Leave a Comment

Members of the Renewable Fuels Association meeting with lawmakers and administration officials this week in Washington D.C. support the U.S. Trade Representative’s decision to open an investigation into Brazil’s trade practices, including its tariff on the import of U.S. ethanol.

“We applaud the Trump administration for this important action,” said RFA President and CEO Geoff Cooper in a statement. “For almost a decade now, we have spent precious time and resources fighting back against an unfair and unjustified tariff regime imposed by Brazil’s government on U.S. ethanol imports. What’s more ironic is that these tariff barriers have been erected against U.S. ethanol imports while our country has openly accepted—and even encouraged and incentivized—ethanol imports from Brazil.”

U.S. Trade Ambassador Jamieson Greer announced the action Tuesday. “At President Trump’s direction, I am launching a Section 301 investigation into Brazil’s attacks on American social media companies as well as other unfair trading practices that harm American companies, workers, farmers, and technology innovators,” said Ambassador Greer. “USTR has detailed Brazil’s unfair trade practices that restrict the ability of U.S. exporters to access its market for decades in the annual National Trade Estimate (NTE) Report. After consulting with other government agencies, cleared advisers, and Congress, I have determined that Brazil’s tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action.”

The USTR detailed a number of trading practices under investigation, including the 18% tariff on imports of U.S. ethanol, stating that “Brazil has walked away from its willingness to provide virtually duty-free treatment for U.S. ethanol and instead now applies a substantially higher tariff on U.S. ethanol exports.”

USTR will hold a hearing in connection with this investigation on September 3, 2025. To be assured of consideration, interested persons should submit written comments, requests to appear at the hearing, along with a summary of the testimony, by August 18, 2025.

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

Ethanol Report on FSMA Training Course

Cindy Zimmerman

Each year, U.S. ethanol plants produce millions of tons of distillers grains, a valuable co-product used around the world to feed all types of livestock. Under the regulatory oversight of the U.S. Food & Drug Administration, ethanol plants are required to comply with preventive controls requirements as mandated by the Food Safety Modernization Act, known as FSMA.

To help producers comply with the requirements, the Renewable Fuels Association is offering an in-person training course in Sioux Falls, South Dakota next month led by RFA’s Director of Environment, Health & Safety Justin Schultz. In this edition of “The Ethanol Report” podcast, Schultz discusses the importance of this training and why RFA has made it a priority to provide for the ethanol industry.

Ethanol Report 7-9-25 13:07

The 2½-day, in-person training course will be held August 26-28 in Sioux Falls, South Dakota using standardized curriculum developed by the Food Safety Preventive Controls Alliance (FSPCA). Participants will receive Certificates of Completion following 20 hours of training by an FSPCA Lead Instructor familiar with the ethanol industry.

To learn more about the training course and to register, click here.

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, Distillers Grains, Ethanol, Ethanol News, Ethanol Report, Feed, livestock, livestock feed, safety

EPA Holds Hearing on Proposed RFS for 2026 and 2027

Cindy Zimmerman

The Environmental Protection Agency today held a virtual public hearing on the proposed rule released last month to establish required Renewable Fuel Standard volumes and percentage standards for 2026 and 2027, as well as to partially waive the 2025 cellulosic biofuel volume requirement and revise the associated percentage standard due to a shortfall in cellulosic biofuel production.

In his testimony, Renewable Fuels Association President and CEO Geoff Cooper expressed strong support for the proposed renewable volume obligations.

“RFA fully supports the proposed implied conventional renewable fuel volumes of 15 billion gallons for both 2026 and 2027,” Cooper said. “This will provide the ethanol industry with room for growth as E15 continues to gain momentum in the marketplace.”

While RFA applauded EPA’s decision to prospectively reallocate any renewable fuel volumes lost to small refinery exemptions (SREs) in the final rule, Cooper cautioned that EPA must be “extremely judicious” in determining whether any refiners have truly suffered, or will suffer, “disproportionate economic hardship” related to compliance with the Renewable Fuel Standard, adding that “it is critically important that EPA accurately estimate exempted volumes in the final rule to ensure that the volume requirements that are actually implemented in 2026 and 2027 match those that are published in the rule.”

American Coalition for Ethanol (ACE) CEO Brian Jennings welcomed EPA’s “Set 2” proposal, noting it can “expand domestic ethanol use, support U.S. farmers, strengthen energy security, and lower pump prices.”

Among the Set 2 provisions ACE finds encouraging are:
Setting multi-year blending obligations, and, striving to get the RFS implementation schedule back on track, particularly for 2027;
Ensuring blending obligations will remain whole for 2026 and 2027, even if the Agency permits any Small Refinery Exemptions (SREs) for those compliance years;
Proposing the new import RIN reduction to support America’s farmers and rural communities; and
Setting strong RVOs.

Clean Fuels Alliance America CEO Donnell Rehagen also provided testimony today, together with several other Clean Fuels staff and member companies, thanking EPA Administrator Lee Zeldin and EPA staff for proposing a much-needed step-change in the RFS Biomass-Based Diesel obligations and encouraging the agency to maintain the proposed volumes as it addresses outstanding small refinery exemption petitions.

“Our industry has made substantial investments over the past several years in both biofuel production, feedstock supply, and distribution infrastructure. Domestic production of biodiesel and renewable diesel has doubled since 2020 and continues to grow. We supplied more than 5 billion gallons of biodiesel, renewable diesel and SAF to the U.S. market in 2024, and we are poised to deliver more in 2026,” Rehagen testified. “EPA’s acknowledgement of the industry’s investments in new capacity and intent to provide consistent RFS growth are greatly appreciated.”

ACE, Biodiesel, biofuels, Clean Fuels Alliance, EPA, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Big Beautiful Bill Boosts Biodiesel

Cindy Zimmerman

The big, beautiful bill is a big, beautiful relief for Iowa’s biodiesel industry which has been suffering this year.

“Countries around the world and many of our states are demanding ultra-low carbon fuels,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “The Big Beautiful Bill helps pave the way for the investments to produce those fuels – and to produce them from North America feedstocks.”

The biodiesel industry has struggled in 2025 from low Renewable Fuel Standard (RFS) blending levels and uncertainty around implementation of the original 45Z tax credit, leading several Iowa biodiesel plants to idle. The bill extends the §45Z Clean Fuel Production Credit through 2029 and provides for transferability of the credit, in addition to restorating the small biodiesel producer tax credit for 2025 and 2026.

“The revival of the Small Agri-Biodiesel Producer Credit through 2026—and increasing it to 20 cents-per-gallon—is a vital lifeline to small independent producers like those in Iowa. We thank Senator Chuck Grassley (R-IA) for championing the inclusion of that provision,” said Grant Kimberley, executive director of the Iowa Biodiesel Board (IBB).

“The ability for producers to transfer the credit, the appropriate prioritization of North American feedstocks, and the removal of arbitrary indirect land use change penalties all bode well for Iowa’s biodiesel industry and soybean farmers. For producers who have been idled or running at reduced capacity since the start of the year, this is a breath of relief and welcome signal for a bright future.”

Because many changes to the 45Z tax credit become effective in 2026, IBB urged prompt, clear rules and guidance from the U.S. Treasury implementing the tax credit both for 2025 and beyond.

In an unexpected move, the bill lowered the incentive for producing sustainable aviation fuel (SAF) from $1.75 to $1.00 and made technical changes which make it difficult for a SAF producer using ethanol as their feedstock to claim the credit. SAF has the potential to be a 100 billion gallon a year market by 2050.

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President Trump Celebrates Farmers in Iowa

Cindy Zimmerman

President Donald Trump celebrated the passage of his One Big Beautiful Bill and touted his plans for the 250th anniversary of our nation’s founding next year with an address at the Iowa State Fairgrounds focused on farmers.

“This bill rescues over two million family farms from the so-called estate tax or the death tax. In other words, before Trump, you were losing farms to the banks,” said Trump. “You pass away, you leave everything to your children, and they have to pay a big estate tax or a death tax as we call it, and they couldn’t do it. They go out and borrow money and all of a sudden the bank is foreclosing on the farm. Not going to happen. You have no more estate tax. You have no more death tax to pay.”

While noting how illegal immigration has dropped to zero, President Trump talked about a plan the administration is developing that would allow farmers to vouch for immigrants who help them. “Some of the farmers, you know, they’ve had people working for them for years, and we’re going to do something,” said Trump. “We’re going to sort of put the farmers in charge and if a farmer’s been with one of these people that worked so hard. If a farmer is willing to vouch for these people…I think we’re going to have to just say that’s going to be good.”

Turning to tariffs and trade deals, President Trump highlighted his deal with the United Kingdom. “I did get beef and I got ethanol into Europe. They didn’t want to do it, you know, they never took our beef and they never took our ethanol and we said you got to do it and they did and they were great. We made a wonderful trade deal with them, but we’re doing that all over,” said Trump. “Just yesterday we reached a historic trade agreement with Vietnam to open their markets to American exports with zero tariffs. They get zero tariffs. And you’re going to be giving them vast amounts of farm product including beef, pork, poultry, dairy, and pure Iowa ethanol…The golden age of America is upon us.”

President Trump also announced plans for the Great American State Fair on the National Mall in July 2026 as part of the celebration of America’s 250th Birthday.

Listen to part of President Trump’s remarks here:
President Trump in Iowa (4:36)

Audio, Ethanol, Ethanol News, Exports

Ethanol Groups React to Big Beautiful Bill Passage

Cindy Zimmerman

House Committee on Agriculture Chairman Glenn “GT” Thompson (R-PA) says the One Big Beautiful Bill passed by Congress Thursday is a “game-changer for America.”

“The One Big Beautiful Bill is a victory for rural America, making the largest investment in agriculture in decades, restoring integrity to SNAP, and saving millions of family farms from the death tax. This bill gives President Trump the tools he needs to keep America safe, strong, and free.”

Ethanol producer groups are pleased with the inclusion of several key tax provisions that will enhance the role of the U.S. ethanol industry in contributing to American energy security and innovation.

Renewable Fuels Association President and CEO Geoff Cooper says the bill provides more certainty for ethanol producers. “The extension and modifications to the 45Z clean fuel production credit, reinstatement of the Research and Development immediate expensing provisions, and improvement of the 45Q carbon sequestration and utilization credit will provide a growth-oriented tax policy climate that ethanol producers can count on, improving the role that renewable fuels can play in helping reach our nation’s energy independence goals.”

Specifically, the OBBBA includes the following improvements to the 45Z Clean Fuel tax provision:
Extends 45Z by two years, to the end of 2029.
Restricts eligibility for 45Z to fuels made from feedstocks grown in the U.S., Canada, and Mexico.
Retains full transferability throughout the term of the 45Z credit.
Harmonizes indirect land use change emissions with actual data and evidence, resulting in zero ILUC penalty for corn ethanol.

The American Coalition for Ethanol (ACE) CEO Brian Jennings says while it could have been better, they are pleased that the 45Z tax credit even made it into the final package.

“We’re grateful to our Congressional champions for their steadfast leadership to support and strengthen the 45Z credit, which is remarkable considering the fact most other IRA-era tax credits were limited or phased-out in the final package. While there were other improvements we had hoped to achieve in the final 45Z language, restoring transferability of the credit, removing indirect land use change (ILUC) penalties, and restricting feedstock eligibility to USMCA countries will strengthen the credit from its original version.”

President Trump will sign the One Big Beautiful Bill on Friday, the Fourth of July, which was his deadline to have the bill completed and on his desk.

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

New Study Shows Economic Power of U.S. Corn

Cindy Zimmerman

A new study released by the National Corn Growers Association (NCGA) shows corn farming is a major engine for the U.S. economy, generating $123 billion in total economic output last year, with an estimated contribution of $50 billion to the Gross Domestic Product (GDP). In 2024, U.S. corn farmers produced 14.9 billion bushels of corn for grain valued at $64.7 billion.

The study, entitled The Economic Value of Corn Farming in the United States for 2024, also shows that corn farming supported over 440,000 jobs and provided $29 billion in wages, strengthening communities in rural America and across the entire nation.

The contribution of corn farming and linkages extended across 506 different industry sectors in all 50 states. Even Hawaii and Alaska benefit from corn farming. The states with the least economic impact from corn are actually Rhode Island and Vermont with $6.4 and 7.3 million in economic output respectively. Not surprisingly, Illinois and Iowa are the top two states, with $18.5 and 19.2 billion.

“Corn farming’s economic value could be even greater if corn growers were able to fully contribute to the domestic fuel supply via increased ethanol blends and access to additional export markets,” said NCGA President Kenneth Hartman Jr.

Corn grower leaders have been advocating for Congress to pass legislation that would allow for the nationwide, year-round sale of fuel with a 15% ethanol blend. They have also worked to make an aviation fuel tax credit accessible so that ethanol and other biofuels could be used in the aviation sector. And NCGA has called on the administration and Congress to aggressively pursue new and expanded foreign markets for American corn exporters.

corn, Ethanol, NCGA

California Budget Includes E15 Funding

Cindy Zimmerman

California Governor Gavin Newsom signed a $321 billion budget on Friday that allocates dedicated resources to fund the rulemaking process needed to make E15 a legal fuel, ensuring that the California Air Resources Board (CARB) has the financial support necessary to finalize regulatory work related to E15 and help expand consumer access to the fuel across the state.

California remains the only state where E15 is not yet legally available, and Renewable Fuels Association President and CEO Geoff Cooper says this is a positive step toward expanding access to the lower-carbon, lower-cost fuel option. “With this funding in place, California will finally be positioned to join the rest of the country in offering drivers a cleaner, more affordable choice at the pump,” said Cooper.

At the same time, California Assembly Bill 30, known as the Ethanol Blend Implementation Act, awaits action in state senate where it will need a two-thirds majority vote to pass. AB 30 would allow gasoline blends containing up to 15% ethanol by volume to be sold in California for use as a transportation fuel, bypassing existing restrictions and taking effect immediately upon passage, as the bill is designated as an urgency statute to address high gasoline prices.

In a recent Ethanol Report podcast, Cooper talked about what passage of that legislation could mean for California drivers in low prices, for retailers already equipped to sell E15, and for the ethanol industry which stands to increase demand by as much as 700 million gallons long term.

Listen to Cooper’s comments here:
RFA CEO Geoff Cooper on California E15 potential 3:45

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Ethanol Helps Lower Summer Gas Prices

Cindy Zimmerman

According to the White House, Americans are seeing the cheapest summertime gas prices since 2021 — more than 20 cents less than last year at this time – and a new study shows ethanol is helping to keep gas prices lower.

The study was done by energy researcher George Hoekstra of Hoekstra Trading who analyzed the economics of substituting ethanol for refinery-derived gasoline, considering the effects on both octane value and energy content and estimating the cost of refinery-derived octane to be 4.5 times higher than that of ethanol-derived octane.

Hoekstra concludes, “The energy equivalent substitution to a level of 10 percent ethanol implies that ethanol is adding a net of 39 cents/gal worth of octane to the U.S. E10 gasoline pool. To say this another way, if ethanol was removed from the U.S. gasoline pool, replacing its current octane contribution with refinery octane would increase refining cost and the wholesale cost of gasoline by 39 cents per gallon or $54 billion/year.”

Hoekstra also estimated that the cost savings per gallon of finished gasoline increase as ethanol content increases. The study found that using blends like E15, which are becoming more widely available in the U.S. market, results in even larger savings. The study was commissioned by the Renewable Fuels Association (RFA). “As our nation again prepares to celebrate its freedom on July Fourth, this report demonstrates the enormous value of American-made ethanol in promoting energy independence,” said RFA President and CEO Geoff Cooper. “Blending low-cost ethanol into gasoline is a proven strategy for reducing fuel prices and strengthening the U.S. market’s resilience against global supply chain disruptions.”

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

Senate Urged to Adopt House 45Z Provisions

Cindy Zimmerman

Biofuel interests are urging the Senate to adopt the House approach when it comes to the 45Z clean fuel production tax credit.

The legislation released by the Senate Finance Committee last week would extend the 45Z credit, which the industry supports, but at the same time would allow imported feedstocks to qualify for up to 80% of the credit, after the House version prohibited foreign feedstocks outside of North America from qualifying.

Renewable Fuels Association President and CEO Geoff Cooper says they are concerned this would allow potentially fraudulent feedstocks, such as used cooking oil (UCO) from China that may include palm oil. “So we are encouraging the Senate to really just follow what the House did on how to address foreign feedstocks,” said Cooper in the latest Ethanol Report podcast. “We’re not saying you can’t import UCO and make it into renewable fuel, we’re just saying that fuel should not qualify for a U.S. tax payer-supported program.”

Cooper thinks it’s “highly unlikely” the One, Big, Beautiful Bill will be finished by the stated July 4 deadline. “We think there’s a long way to go before we see a final bill,” Cooper said. “Sometime in July, before August recess, seems more likely, but even that’s really going to put Congress under that gun to get agreement on some of the more controversial issues.”

Like the House bill, the Senate Finance Committee version includes an extension of the tax credit from 2027 to 2031, but it also includes a provision that cuts the maximum rate of the 45Z credit for sustainable aviation fuel (SAF) from $1.75 per gallon to $1 per gallon, which could impact SAF growth.

aviation biofuels, biofuels, Ethanol, Ethanol News, SAF