Nominations Sought for Ethanol Awards

Cindy Zimmerman

Awarding of the annual High Octane Award and Award of Excellence is a tradition for the Fuel Ethanol Workshop, coming up next month in Minneapolis. Nominations for the awards are being accepted through May 6.

The Award of Excellence, established by BBI International in 2000, recognizes individuals who have made significant contributions to the fuel ethanol industry through their research, technical advisory and/or development activities.

The High Octane Award acknowledges a person who has helped the ethanol industry mature and progress over the years. This award, established in 2000 by BBI International, recognizes a person whose passion and unstoppable pursuits have significantly benefited the ethanol industry. The High Octane Award honors a person for his or her passion and unstoppable pursuits that just seem to drive their daily routines and commitments.

Ethanol, Ethanol News, FEW

EPA Issues Emergency Fuel Waiver for E15 Sales

Cindy Zimmerman

The U.S. Environmental Protection Agency (EPA) is issuing an emergency fuel waiver to allow E15 gasoline—gasoline that uses a 15 percent ethanol blend—to be sold during the summer driving season.

EPA’s emergency fuel waiver will go into effect on May 1 when terminal operators would otherwise no longer be able to sell E15 in the effected regions of the country and will last for the statutory maximum of 20 days. EPA will continue to monitor the supply with industry and federal partners, and the Agency expects to issue new waivers effectively extending the emergency fuel waiver until such time as the extreme and unusual fuel supply circumstances due to the war in Ukraine are no longer present.

“We commend Administrator Regan and his team at EPA for acting quickly and decisively to implement the emergency fuel waiver announced recently by President Biden,” said Renewable Fuels Association President and CEO Geoff Cooper. “Today’s emergency waiver will ensure cost-conscious drivers across the country will continue to have access to more affordable E15 all summer long. The E15 blend has typically been priced 20-30 cents per gallon below regular gasoline in recent months, offering an important measure of relief to consumers during this time of surging inflation.”

American Coalition for Ethanol (ACE) CEO Brian Jennings said, “While we are grateful EPA intends to issue new waivers effectively covering the 2022 summer season, a permanent remedy to expand consumer access for E15 long term is still necessary. That’s why we encourage Administrator Regan to respond to the formal request by the bipartisan group of governors to allow year-round E15 access in their states, and work with Congress on a legislative fix.”

The waiver follows an April 12 announcement from President Biden at an Iowa ethanol plant that the administration would take that action to help increase the fuel supply and provide consumers more choices at the pump.

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

Ethanol Report on E15 Action & Energy Analysis

Cindy Zimmerman

Good news for the ethanol industry continues this week as governors from eight Midwest states take action to allow the year-round sale of lower-carbon, lower-cost E15 in their states. And a new analysis from the Renewable Fuels Association (RFA) shows that corn ethanol’s energy balance keep getting better.

In this edition of The Ethanol Report podcast, we talk with RFA Vice President of Industry Relations Robert White about the governors’ move and the latest on increasing availability of higher blends. Then RFA chief economist Scott Richman discusses how today’s corn ethanol now provides nearly three times the energy used to produce it and it keeps improving.

Ethanol Report 4-29-22 (22:13)

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

Eight Midwest States Request Permanent E15 Waiver

Cindy Zimmerman

Iowa Gov. Kim Reynolds and seven other Midwest Governors sent a joint letter to EPA Administrator Michael Regan Thursday formally requesting a permanent Reid Vapor Pressure (RVP) waiver that will allow each state to continue selling E15 year-round without restriction. The federal Clean Air Act gives governors the specific authority to make this formal request.

Joining Gov. Reynolds were Pete Ricketts of Nebraska; JB Pritzker of Illinois; Laura Kelly of Kansas; Tim Walz of Minnesota; Doug Burgum of North Dakota; Kristi Noem of South Dakota; and Tony Evers, Wisconsin. The eight states account for over 10 percent of U.S. gasoline use – a market larger than California.

“These governors should be applauded for pursuing a simple regulatory solution that will allow consumers in their states to benefit from E15’s lower cost and lower emissions 365 days a year,” said Renewable Fuels Association President and CEO Geoff Cooper. “Once this notification is approved by EPA, it will mean lower pump prices for drivers in these eight states, lower tailpipe pollution, a more secure energy supply, and a more vibrant rural economy. These states have guided the way forward on E15, and we call on other states and the EPA to follow their lead, so that the benefits of E15 can be permanently enjoyed by drivers across the nation.”

The recent announcement suspending allowing summer sales of E15 only applies to the 2022 summer driving season so this action would create a permanent waiver for year-round sales of E15 in perpetuity for those eight states.

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

New Study Shows Impact of RFS on Biofuels Production

Cindy Zimmerman

Purdue University recently released the first comprehensive study on the impact of the Renewable Fuel Standard (RFS) on the expansion of biofuels production in the U.S. The RFS was established in 2005, and was expanded and extended by the Energy Independence and Security Act of 2007.

Purdue agricultural economist Farzad Taheripour led the study which examined the economic impact of individual drivers separately. “We found that RFS played a critical role in reducing uncertainties in commodity markets, and its most significant impact was to help farmers use their resources more efficiently. With producing more corn and soybeans, over time the farmers were able to bring fallow land that had been unused back to production, and U.S. annual farm incomes increased by $8.3 billion between 2004 and 2011, with an extra additional annual income of $2.3 billion between 2011 and 2016.”

Taheripour collaborated with Harry Baumes, a member of the National Center for Food and Agriculture Policy in Washington, D.C., and the late, great Wally Tyner, Professor of Agricultural Economics at Purdue who passed away in 2019.

A paper detailing the team’s work is available in the journal Frontiers in Energy Research.

corn, Ethanol, Ethanol News

Rail Disruptions Impacting Ag and Biofuels

Cindy Zimmerman

The Surface Transportation Board (STB) heard about how agricultural and biofuels producers are being impacted by rail service challenges during a two-day hearing this week.

USDA Deputy Secretary Dr. Jewel Bronaugh told the board how rail disruptions are impacting farmers, ranchers and consumers. “Elevators are full and therefore cannot purchase more grain from farmers, and livestock operations are unable to receive the grain they need for feed,” said Bronaugh. “At the same time, ethanol and biodiesel facilities report numerous slowdowns and even shutdowns due to delays in their outbound train service—delays which permeate through the entire supply chain from farmers selling grain to customers buying fuel.”
STB hearing-USDA Deputy Bronaugh (7:37)

National Grain and Feed Association (NGFA) President and CEO Mike Seyfert testified before the board, listing several examples of rail service failures experienced by grain shippers across the country and outlining recommended actions for the STB.

“Almost every shipment made by an NGFA member via rail will be used for either human food, animal food or fuel production,” said Seyfert. “Grain and oilseeds processors, such as flour mills, crushing and biofuels facilities have experienced rail challenges on the inbound and outbound.”
STB hearing-NGFA CEO Seyfert (4:23)

Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley testified on how disruptions have impacted the biofuels industry, including extreme delays in unit traffic and getting loaded trains offsite. “Nearly 70 percent of all ethanol is shipped by rail with 377,000 carloads in 2018 alone,” said Bliley. “Rail service is vital to get ethanol from our biorefineries in the Midwest to American consumers from coast to coast. It is perhaps even more important today with drivers facing high gasoline prices and ethanol continuing to trade 80 cents to a dollar less per gallon than wholesale gasoline.”
STB hearing-Chris Bliley, Growth Energy (3:22)

Audio, Biodiesel, corn, Ethanol, Ethanol News, Growth Energy, transportation

Iowa Biofuels Access Bill Heads to Governor

Cindy Zimmerman

The Iowa legislature yesterday passed the Iowa Biofuels Access Bill, sending it to Governor Kim Reynolds for signing. Gov. Reynolds originally proposed the bill this year to increase consumer access to higher biofuel blends like E15 and B20.

Iowa Renewable Fuels Association Executive Director Monte Shaw called it a victory for consumers in the state. “Every person in Iowa deserves the choice of higher blends like E15 and B20. It’s also a victory for Iowa leadership as this legislation is already being looked at by other states as a model for how to promote access to lower-cost, cleaner-burning fuels. We would not be here today if not for Governor Kim Reynolds crafting this bill and pushing it over the finish line. Lots of legislators and other groups played major roles, but Gov. Reynolds started the process and saw it through to the end.”

The Iowa Soybean Association (ISA) and Iowa Biodiesel Board (IBB) praised the biodiesel portion of the bill which increases the Biodiesel Production Tax Credit from 2 to 4 cents per gallon; maintains the current Biodiesel Fuel Tax Differential, but applies this to blends of 20% biodiesel (B20) rather than B11; extends fuel retailer tax credits for B11 and higher, while introducing new credits for higher blends like B20 and expanding statewide funding for the state’s Renewable Fuel Infrastructure Program.

Biodiesel, biofuels, Ethanol, Ethanol News

Nebraska Incentivizes Higher Ethanol Blends for Retailers

Cindy Zimmerman

Nebraska Governor Pete Ricketts last week signed into law a bill that will provide incentives to retailers who sell higher blends of ethanol.

Gov. Ricketts says the legislation will help to grow Nebraska agriculture and attract investment in our rural communities. “Increasing the use of ethanol saves drivers money at the pump, cleans up our environment, and creates opportunities for our farmers and ranchers.”

The legislation allows for a five cent credit on each gallon of E15 sold and 8 cents per gallon of E25 or higher blends sold, making ethanol more affordable for retailers who are helping keep fuel prices down for its patrons. Retailers can apply to the Nebraska Department of Revenue for the credits.

“At the retail level, very simply put, E15 is better fuel and it costs less,” said Randy Gard, chief operating officer of Bosselman Enterprises and secretary of the Nebraska Ethanol Board. “We are excited about the passing of LB596 and what it can do for our customers. If you are a retailer, there is now nothing standing in your way today to make the transition from E10, the standard fuel most people use today, to joining this mass conversion to E15. There are incentives with LB596, there’s consumer demand, there are certainly price pressures, and increased availability at the terminals. This is a win for everybody…retailers, legislators, farmers and ranchers, and especially users of ethanol who support Nebraska’s economy, help the environment, and save money every time they fill up.”

Listen to comments from Gov. Ricketts and Randy Gard at the bill signing ceremony.
Nebraska ethanol blends credit bill signing (8:15)

Audio, Ethanol, Ethanol News

Glacial Lakes Energy Calls for E30 Approval

Cindy Zimmerman

As the battle to get E15 (15% ethanol blended fuel) fully approved for year round sales continues, one South Dakota ethanol producer is calling on Congress to double the blend and move up to E30.

Opening the door to 30% ethanol blends would save consumers billions of dollars at the gas pump and reduce imported oil by as much as one billion barrels per year, according to officials at Glacial Lakes Energy.

In a letter to the South Dakota Congressional delegation, GLE CEO Jim Seurer said 30% ethanol blends are providing significant price savings and that a national E30 program would far surpass the equivalent amount of oil the Biden Administration is proposing to release from the Strategic Petroleum Reserve. Moreover, it would offset the lost imports of Russian oil, and establish a more sustainable energy strategy. And, at the height of the gasoline price run up, 94 octane E30 was selling at 40 cents less than even 10% blends, and more than one dollar less than premium.

“As champions of the domestic ethanol industry, we hope you can support our call for an expanded ethanol program that would potentially triple what the SPR drawdown would provide and unlike such a drawdown, it would be replenished every year,” according to the letter. “Nationwide E30, rather than just E15, represents a reduction in imported oil of one billion barrels annually.”

“While all of us in the ethanol industry want to take that first step with 15% blends year-round, the higher the ethanol blend the more the benefits”, said Seurer. “Despite the announcement that EPA will allow E15 to be used this summer, it is a temporary measure still requiring a long-term solution.”

Since E30 does not increase vapor pressure, GLE argues there is no legal prohibition to an E30 blend. The letter asks their members of Congress to help break down regulatory barriers by first demanding EPA conduct a cost benefit analysis for increasing ethanol blends which they have not done in decades.

Read the letter.

Ethanol, Ethanol News

Illinois Governor Signs Biodiesel Use Bill Into Law

Cindy Zimmerman

Illinois Governor J.B. Pritzker this week signed into law a bill that incentivizes increasing blends of biodiesel by extending the current B10 sales tax exemption until 2023 and then increasing the biodiesel blend level subject to the tax exemption to B13 in 2024, B15 in 2025 and B19 in 2026.

The legislation was spearheaded and guided through the legislative process by the Illinois Soybean Association (ISA) with support from Clean Fuels Alliance America and several of its member companies, including REG and ADM. Clean Fuels CEO Donnell Rehagen applauded the effort and the collaborative nature of the work by those involved.

“This law continues to build on the biodiesel leadership that Illinois, through ISA, has demonstrated in the past,” Rehagen said. “This innovative tax exemption program in Illinois, which has been in place since 2003, has drawn hundreds of millions of gallons of biodiesel into the state.”

“The successful passage of our biodiesel legislation is a proud accomplishment for the Illinois Soybean Growers (ISG) and the 43,000 soybean producers in our state,” said Illinois Soybean Association Chairman, Steve Pitstick.

Illinois is currently fourth in biodiesel production and third in consumption with 160 million gallons consumed annually. Efforts to pass this legislation were aided by the Trinity Health Benefits Study that included the city of Chicago which found that switching to B100 would decrease diesel particular matter-related cancer risks by up to nearly 1,600 cases and result in over 31,000 fewer or lessened asthma attacks per year and save over $677 million per year in avoided health care costs.

Biodiesel, Clean Fuels Alliance