Diesel Would Be Higher Without Bio and Renewable

Cindy Zimmerman

The national average for diesel fuel hit another record $5.54 a gallon Monday but a new study released by Clean Fuels Alliance America shows prices would be four percent higher without current U.S. biodiesel and renewable diesel production.

The study, “The Offsetting Impact of Expanded Biomass Based Diesel Production on Diesel Prices,” was prepared by World Agricultural Economic and Environmental Services (WAEES). It finds that U.S. production of biodiesel and renewable diesel consistently reduces distillate fuel prices by increasing the supply and the price impact increased to a 4% benefit in 2020 and 2021.

“Biodiesel and renewable diesel meet more than 6 percent of the nation’s need for diesel fuel, and the industry increased production and supply even during the economic emergency of the last few years,” said Kurt Kovarik, vice president of federal affairs for Clean Fuels. “With mounting inflation and environmental concerns, as well as the need to increase energy security and reduce reliance on oil from unstable countries, it’s more important now than ever before to maintain U.S. biodiesel and renewable diesel production.”

The WAEES study notes that even small changes in the supply of diesel fuel will result in relatively larger changes in the diesel fuel price.

“Today’s study shows that U.S. biodiesel and renewable diesel production generates a 4 percent decrease in the price of diesel fuel,” Kovarik continued. “At today’s national average price for diesel fuel, the savings is equal to about 22 cents per gallon. That price benefit flows through the entire economy. Diesel fuel keeps essential items, like food and commodities, as well as other retail goods moving across the country. With the current shortage and cost of diesel fuel, a price increase associated with the reduction of biodiesel and renewable diesel production would be passed along to consumers in the costs of numerous indispensable items.”
Read the study.

Biodiesel, biofuels, Clean Fuels Alliance, renewable diesel

EPA Administrator Regan on Agri-Pulse Newsmakers

Cindy Zimmerman

The latest episode of Agri-Pulse Newsmakers is out and the featured interview is with EPA Administrator Michael Regan.

EPA sent its proposed biofuel blending requirements under the Renewable Fuel Standard to the White House Office of Management and Budget for final review this week in an effort to get those finalized by June 3. Agri-Pulse host Spencer Chase asked Regan if biofuels groups will be pleased with the final result.

“We want to get the program back on track,” said Regan. “So, yes, we believe the industry will see the strategy in getting the program back on track and looking at 2022 as that jump off point.”

Asked what the agency would do going forward to keep the program on track, Regan said, “Doing what we are currently doing which is taking it more seriously than previous administrations ever have,” said Regan. “We’re already focused on 2023 and beyond.”

Regan was also asked about a permanent fix for E15. Watch the whole interview below.

Newsmakers is also available as a podcast and/or you can sign up to get free access to Newsmakers.


Agri-Pulse, EPA, Ethanol, Ethanol News

RFA Celebrates Safety Recognition Milestone

Cindy Zimmerman

The Renewable Fuels Association has received its 10th consecutive TRANSCAER National Achievement Award for training first responders and others in ethanol emergency response and safety, marking a decade of leadership in the area of ethanol industry safety.

The award recognizes RFA’s work in 2021, when more than 1,500 attendees received hands-on instruction via 35 training opportunities supported by the association. Since its inception in 2010, RFA’s award-winning safety program is responsible for training over 15,000 individuals via more than 370 training sessions and events. RFA has trained individuals from all 50 U.S. states and 39 other countries. In addition, RFA in 2021 updated eight training modules, recording videos to go along with each module, and posted the refreshed training materials on TRANSCAER’s LMS system.

RFA Director of Safety and Technical Programs Missy Ruff has served on the TRANSCAER executive committee and as chair of the National TRANSCAER Task Group, winning an Individual Recognition Award from TRANSCAER for 2021.

The TRANSCAER initiative is a national outreach effort focused on assisting communities prepare for and respond to possible hazardous material transportation incidents. RFA currently offers online ethanol safety training programs and “train the trainer” sessions.

Ethanol, Ethanol News, RFA, safety

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.

Choose an option to subscribe

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