EPA Denies Waivers But Still Gives Refiners a Break

Cindy Zimmerman

The Environmental Protection Agency Thursday announced the denial of 36 small refinery exemptions (SRE) for the 2018 compliance year. The petitions were remanded to EPA by the U.S. Court of Appeals.

At the same time, EPA announced an “alternate compliance approach” that allows 31 of those small refineries to meet their new 2018 compliance obligations “without purchasing or redeeming additional RFS credits.”

Pro-biofuel organizations are disappointed with the novel approach being taken by the agency.

“While today’s decision is an important step in reversing past abuse of refinery exemptions, the decision fails to remedy the economic harms the improperly granted 2018 SREs have already caused,” said a joint statement from the Renewable Fuels Association, Growth Energy, National Corn Growers Association, Clean Fuels Alliance America, American Coalition for Ethanol, and National Farmers Union.

“EPA’s readiness to excuse individual refineries from their obligations to comply with 2018 blending requirements comes at the expense of our biofuels producers, farmers, and American consumers.”

Biofuel and farm advocates had challenged the exemptions in the D.C. Circuit Court of Appeals, forcing the agency to reevaluate its approval for select oil refiners to avoid their obligations under the Renewable Fuel Standard (RFS). Last August, when EPA filed a motion to remand the SREs without vacatur, the D.C. Circuit remanded the exemptions back to EPA, but required the agency to make new determinations on the contested SREs no later than April 7, 2022.

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

USDA Says Ethanol COVID Payments Coming Soon

Cindy Zimmerman

Two years ago ethanol producers were in the middle of the worst downturn in the industry’s history as the new COVID-19 pandemic put the country at a standstill and production dropped by 50 percent in a month. Under the CARES Act, $700 million was approved to help make up for those losses to producers, but that money has yet to be distributed.

USDA Undersecretary for Rural Development Xochitl Torres Small told a House Agriculture Committee hearing this week that those payments will be coming soon. “We’ve been working to get the money out the door, we took some time to get it right,” Small said. “We are expecting payments to go out in late spring or early summer.”

Small explained that the agency had to “pivot” in its determination of payments based on feedback they received. Karama Neal, administrator of USDA’s Rural Business-Cooperative Service, said they needed to take into account that ethanol producers also sell animal feed in the form of distillers dried grains (DDGS) or CO2 as a co-product. “They had contracts to do that and wanted to meet those obligations so they were operating, but they were operating at a loss,” said Neal. That amendment was published in January and applications closed in February.

Listen to Reps. Randy Feenstra (R-IA) and Rodney Davis (R-IL) question Small.
House Ag hearing rural development (9:59)

Audio, biofuels, Ethanol, Ethanol News, USDA

Senators Press EPA Administrator on E15

Cindy Zimmerman

Environmental Protection Agency (EPA) Administrator Michael Regan appeared before the Environment and Public Works Committee Wednesday to talk about the agency’s budget request, but some senators wanted to know what he was going to do and when he was going to do it to make E15 (15% ethanol fuel) available in the summer months this year.

Both Sens. Joni Ernst (R-IA) and Tammy Duckworth (D-IL) pressed Regan on the issue, since without any administrative action sales will cease starting June 1 until September 15. “Are you going to allow E15 to be sold this summer as it has over the past three summers?” asked Ernst. “We are currently evaluating what flexibilities we have around E15. This is a conversation that I and Secretary Vilsack have been having quite a bit,” said Regan.

“I do believe E15 can provide a less expensive option based on the data that we’ve seen as of late,” Regan responded to Sen. Duckworth when she asked about using our “readily available strategic reserve of ethanol” to help lower record high gas prices as a result of the conflict in Ukraine.

Listen:
Senators question EPA admin Regan (3:14)

Audio, EPA, Ethanol, Ethanol News

Gevo Testifies at House Ag Committee Hearing

Cindy Zimmerman

Gevo CEO Patrick Gruber presented testimony before the House Agriculture Committee this week on the future of climate smart crops and sustainable aviation fuels (SAF) with updated carbon accounting and a system that rewards farmers for sustainable practices.

“Net zero hydrocarbon drop in fuels are what the marketplace is interested in,” Gruber told the committee, outlining Gevo’s concept of a Net-Zero manufacturing plant for SAF they hope to be operational by 2025. The plant would use 35 million bushels of “climate smart” corn to produce feed products, oil, net-zero jet fuel, gasoline, and diesel, all while being “off the grid” with a wind farm, and water-treatment plant that produces enough biogas to offset the need for fossil-based natural gas.

Gruber says what they are learning can apply to existing ethanol plants. “If we can decarbonize their energy, we can add jet fuel and hydrocarbon production to those facilities as well,” and the way Gevo believes net zero can be achieved is by updating our lifecycle carbon accounting method to the Argonne GREET model. “There’s lots of carbon accounting models used around the world and we need to use the best, that’s the Argonne GREET model, it’s the gold standard, it’s the foundation for others.”

Because achieving net zero begins with sustainable farming practices, Gevo has just signed an agreement with digital agriculture company Farmers Edge to work together on a new type of carbon inset management program. “We think farmers should be paid for their corn and then be rewarded for the benefit they provide all of us in capturing carbon,” said Gruber.

Here is Gruber’s opening statement to the committee:
GEVO CEO Testifies at House Ag Hearing (4:55)

Audio, aviation biofuels, biofuels, carbon capture, corn, Ethanol, Ethanol News

E15 Sales Reach Record Levels in 2021

Cindy Zimmerman

Sales of E15 (15% ethanol fuel) hit a record 814 million gallons in 2021, according to a new analysis from the Renewable Fuels Association.

The 2021 volume represents a 62 percent increase over 2020 and was nearly double pre-pandemic sales volumes in 2019. The analysis is based on recently released data for Minnesota and Iowa that show sales of E15 surged to record levels in 2021. Minnesota and Iowa account for nearly one-third of the retail stations in the United States offering E15.

RFA cites three likely factors leading to the record volume for 2021: an increase in the number of stations that offer the blend; the recovery in overall fuel consumption toward pre-pandemic levels starting in the late spring; and a rebound in the price of credits used to show compliance with the federal Renewable Fuel Standard.

However, the analysis notes that if summertime E15 sales are restricted again this year as they were prior to 2019, that growth in demand will slow at the same time the country is facing higher prices at the pump due to the continuing conflict in Ukraine. “Expanded use of ethanol in E15 could go a long way toward replacing the gasoline from Russian imports, but if restrictions on E15 return this summer as scheduled, sales could go into reverse, further tightening fuel supplies and putting upward pressure on gasoline prices.”

Learn more in this interview with RFA VP of Industry Relations Robert White.
Interview with Robert White, RFA (1:13)

Audio, Ethanol, Ethanol News, RFA

RFA Issues ‘Pump Up the Savings’ Challenge

Cindy Zimmerman

Snap a photo of lower-priced, higher-ethanol blends at the pump could get you some free fuel.

The Renewable Fuels Association has kicked off a new “Pump Up the Savings” sweepstakes encouraging consumers to share pictures of fuel prices when they fill up at the pump, showing the savings associated with ethanol blends like E15 and E85. Qualifying entries will be entered into a weekly drawing for a $50 fuel card, from now until Labor Day.

“We’re seeing a lot of pictures on social media and elsewhere from drivers who are thrilled by the savings they’re getting at the pump when they choose higher ethanol blends like E15 and E85,” said RFA Vice President for Industry Relations Robert White. “We know there are a lot of great examples out there, and we’re always looking for ways to share the good news: Lower-cost, lower-carbon ethanol saves drivers every single time they fill up their tank, while making our country more energy secure.”

Prices vary by market, but E15 is saving some drivers up to nearly $0.50 per gallon over E10, according to pump prices reported on e85prices.com. With flex fuels like E85, drivers can save up to $1 a gallon on average recently, and more than $2 per gallon in states like California.

Here are the rules:

In order to qualify for the weekly drawing, the picture must be shared on Twitter and include prices for regular unleaded (E10) and E15 and/or E85. If ethanol-free gasoline (E0) is available, please include that too, if possible. These pictures can be of the fuel dispenser or price sign/marquee. Entrants must name the station, city and state, and date of picture, and tag @ethanolRFA. Images also must be shared with social media hashtags: #ethanol #E15 #E85 and #fuelprices, unless those words are already mentioned in the tweet. Drivers are also encouraged to tag @POTUS and @EPA to make sure government leaders take notice and take action.

Participants can post as many pictures as they want, but only one entry per day per account will be entered into the weekly drawing. One random weekly winner will be drawn for a $50 gift card, with winners named weekly. Gift cards are sent out at the end of each month.

Robert White talks about the new contest here:
RFA Pump up Savings Contest (1:34)

Audio, E15, E85, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Senator Says Administration is Considering E15 Year Round

Cindy Zimmerman

Sen. Chuck Grassley (R-IA) gave hope to the ethanol industry that sales of 15% ethanol blends may yet be able to continue in the summer months despite last year’s devastating court ruling.

“The Biden administration is considering summertime sales of E15. Praise the Lord!” said the senator during his weekly call with agricultural reporters on Tuesday. “The president needs to act soon before this lower cost fuel option is halted by EPA.”

Sen. Grassley also talked about joining Sens. John Thune (R-SD) and Amy Klobuchar (D-MN) this week in urging the Environmental Protection Agency (EPA) to update its greenhouse gas (GHG) modeling for biofuels and adopt the Argonne National Lab’s GREET model.

Sen. Grassley talks E15 and GREET model (6:07)

Grassley also had the opportunity to discuss E15 during an interview on Fox Business with Neil Cavuto, who seemed to be unaware that ethanol is already playing a large role in our nation’s transportation fuel sector. “Already, at least 10% of the gasoline…used in the United States have ethanol mixed with it for the benefit of cleaning up the environment,” said Grassley. “We can do a lot more through ethanol. Our plants aren’t running at full scale. This administration, if they want to get down the price of gasoline, just move us from 10% of the ethanol in gasoline being mandated to not mandating it at 15% but give every opportunity to use 15% year-round.”

Sen. Grassley talks ethanol on Fox Business (2:04)

Audio, E15, Ethanol, Ethanol News

ACE Ready for Intense 35th Annual Conference

Cindy Zimmerman

The American Coalition for Ethanol (ACE) has opened registration for its 35th annual conference taking place August 10-12 in Omaha, and it is going to be intense.

As the biofuels industry focuses on driving down carbon intensity scores, this year’s ACE conference theme, “intensity,” not only embodies this efficiency quest, but also how the industry is concentrating on new markets and growth opportunities.

The conference provides two days of general sessions, including updates from ACE leadership, and this year, event coverage will feature topics like new uses and markets for ethanol producers, the ethanol retail marketplace, farm-to-biofuel carbon market opportunities, and trade developments. The conference also offers breakout sessions with subjects covering the latest in technology updates, strategic planning advice, as well as ways for ethanol plants to lower their carbon score and raise profitability. ACE welcomes technical expertise and insight from biofuel professionals, and speaker abstracts can be submitted through April 15.

For 35 years, the ACE conference has focused on the people of the ethanol industry and their priorities — an event where ethanol producers meet with retailers, policymakers, researchers, and other industry members. Visit ethanol.org/events/conference for more information.

ACE, ACE Ethanol Conference, Ethanol, Ethanol News

Groups Urge EPA to Use GREET Model

Cindy Zimmerman

Ethanol organizations submitting feedback to the the Environmental Protection Agency’s (EPA) request for comment on the current scientific understanding of greenhouse gas (GHG) are asking for an update.

Both the Renewable Fuels Association and the American Coalition for Ethanol (ACE) recommend the agency adopt the Argonne National Laboratory GREET model, calling it the “gold standard” of lifecycle models.

“The Agency’s last analysis of the GHG emissions associated with corn ethanol was conducted in 2010, as part of the rulemaking process for the RFS after it was revised by the Energy Independence and Security Act of 2007,” said RFA President and CEO Geoff Cooper. “Over the ensuing 12 years, the RFA has consistently urged the EPA to update its analysis to reflect the efficiencies that have been gained in ethanol production and the advances that have been made in lifecycle analysis.”

RFA used this comment opportunity to provide a thorough rebuttal to a recent paper by the University of Wisconsin’s Tyler Lark and others in the Proceedings of the National Academy of Sciences, titled “Environmental Outcomes of the U.S. Renewable Fuel Standard.”

ACE CEO Brian Jennings and ACE Board Director Ron Alverson both contributed to the feedback on why EPA must update the methodology it uses to account for the lifecycle GHG emissions of ethanol and other biofuels to properly credit their GHG benefits to meet climate goals. “Unlike EPA’s badly outdated 2010 assessment, the assumptions and estimates used by Argonne scientists in GREET are under constant peer review and updates to the model occur annually,” the feedback stated. “Not only do more than 40,000 users around the world depend upon GREET to help determine the lifecycle GHG impacts of certain fuel technologies, but the model is the basis for the assessments used under the California Low Carbon Fuel Standard and Oregon Clean Fuels Program.”

Read RFA’s comments.
Read ACE’s comments.

ACE, corn, EPA, Ethanol, Ethanol News, RFA

Pearson Fuels Meeting Demand for E85 in California

Cindy Zimmerman

Sales of E85 (85 percent ethanol blended fuel) are soaring to new heights in California as drivers of flex fuel vehicles are finding out they can pay a lot less for a fill up.

“People are looking for a lower-priced, low carbon fuel and they have that with E85,” said Greg Jones, Director of Business Development at Pearson Fuels, which opened its 250th retail E85 flex fuel station in California earlier this year. “Demand for E85 has been on the rise this year, with increases of over 20 percent from January to February, and we expect to see the same for March,”

Sales of E85 flex fuel in California hit a new record last year, soaring 55 percent over 2020 levels and nearly doubling since 2018, according to the latest data from the California Air Resources Board (CARB). Pearson is planning to open at least another 50 new E85 stations this year, funded in part by corn grower checkoff groups in Nebraska, Kansas, and Missouri.

California has nearly 1.3 million flex fuel vehicles (FFVs) on the road today and Jones says they always encourage motorists to check for a yellow gas caps to see if they’re driving a flex-fuel vehicle, and they are seeing more and more new customers.

In this interview, Jones talks about the goals of Pearson Fuels, the low carbon benefits of E85, and how Californians are benefiting from lower ethanol prices compared to gasoline.
Interview with Greg Jones, Pearson Fuels (11:56)

Audio, E85, Ethanol, Ethanol News