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

White House Fuel Price Plan Overlooks Biofuels

Cindy Zimmerman

Biofuel organizations are baffled by the White House “Plan to Respond to Putin’s Price Hike at the Pump” released Thursday that completely ignores increasing use of renewable fuels.

The plan to address higher fuel prices resulting from Russia’s invasion of Ukraine calls on petroleum companies to ramp up oil production and includes an unprecedented release of up to 180 million barrels of oil from the Strategic Petroleum Reserve. Biden also is authorizing the use of the Defense Production Act to support the extraction and processing of minerals and materials used for large-capacity batteries, such as lithium, nickel, cobalt, graphite, and manganese. But no mention of biofuels.

“It is baffling to us that President Biden continues to overlook ethanol, which is the most readily available, lowest-cost, and lowest-carbon option for extending our nation’s fuel supply,” said Renewable Fuels Association President and CEO Geoff Cooper. “Rather than draining our strategic petroleum reserve and scolding U.S. oil producers for failing to increase production, we believe the administration should be empowering farmers and ethanol producers. They are eager to do their part to deliver economic relief and energy security for their fellow Americans. Today, ethanol is selling for $1 per gallon less than gasoline and we are sitting on record ethanol inventories and ample spare capacity; yet access to the marketplace continues to be limited by decades-old regulatory barriers that never made sense.”

President Biden has been sent letters from members of Congress; agricultural and biofuel organizations; and even more than 1000 farmers and supporters over the past month urging him to unleash the power of higher blends of renewable fuels to lower prices at the pump. Specifically, simply allowing gasoline blenders to sell E15 year-round, which could be accomplished by administrative action.

Biodiesel, biofuels, Ethanol, Ethanol News, RFA

USDA Report Expects More Soybeans, Less Corn

Cindy Zimmerman

U.S. farmers expect to plant more soybeans and less corn acreage, according to the 2022 Prospective Plantings report released by USDA’s National Agricultural Statistics Service (NASS).

Producers surveyed say they intend to plant a record high 91.0 million acres of soybeans in 2022, up 4% from last year, at the same time decreasing corn acres by 4% to 89.5 million acres.

Planted acreage intentions for soybeans are up or unchanged in 24 of the 29 estimating states. The largest increases are expected in Illinois and Missouri, where producers in each state intend to plant 400,000 more acres than in 2021. If realized, the planted area of soybeans in Illinois, Kentucky, Michigan, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin will be the largest on record.

Corn acreage decreases from last year of 200,000 or more are expected in Illinois, Indiana, Iowa, Kansas, Minnesota, Nebraska, North Dakota, and Wisconsin. Record high corn acreage is expected in Nevada and South Dakota with record low acres expected in Connecticut, Massachusetts, and Rhode Island.

corn, Soybeans, USDA

Biofuels Caucus Members Press Biden on E15

Cindy Zimmerman

U.S. Rep. Angie Craig (D-MN) led the six bipartisan Co-chairs of the Congressional Biofuels Caucus and 23 additional Members of Congress in a letter to President Joe Biden Thursday urging him to prioritize homegrown renewable fuels as a replacement for Russian energy sources.

The letter specifically asks the President to direct EPA to both allow the summer sales of E15 this year and to reverse course on proposed retroactive reductions to 2020 and 2021 Renewable Volume Obligations. “Taken together, these actions would significantly increase U.S. energy independence, lower prices at the pump and ensure the continued success of our sanctions on the Russian economy.”

“This is one of the most simple and most environmentally friendly way to address the issue,” said Rep. Craig in an interview earlier this week.

Interview with Rep. Angie Craig (D-MN) (13:28)

Biofuels stakeholder organizations strongly support the House members’ request. “Ensuring year-round access to domestically-produced E15 for all parts of the country is the quickest way to address pain at the pump and make the U.S. more energy secure,” said Brian Jennings, American Coalition for Ethanol (ACE) CEO.

Renewable Fuels Association President and CEO Geoff Cooper says there is support in the general public as well, according to a new Morning Consult poll. “E15 is typically selling for 20-30 cents per gallon less than regular gasoline right now; and as revealed by a new nationwide survey, three out of four voters support increasing the availability of E15 as a strategy for reducing pump prices and providing relief to American families.”

RFA Senior Vice president of Government & Public Affairs Troy Bredenkamp talked about how higher blends of ethanol are lowering gas prices across the country in the latest Ethanol Report podcast.

Ethanol Report 3-29-22 (22:53)

ACE, Audio, biofuels, E15, Ethanol, Ethanol News

Americans Support Expanded E15 Use to Lower Gas Prices

Cindy Zimmerman

A new nationwide survey indicates Americans see the potential for ethanol to help lower gas prices at the pump, with the national average running above $4 per gallon.

The survey conducted by Morning Consult found that 72 percent of American voters support expanding the availability of E15 as a way to replace petroleum imports from Russia, and more than 80 percent support increasing domestic renewable fuel production as a way to lower record-high gas prices.

Renewable Fuels Association President and CEO Geoff Cooper notes that ethanol prices have been nearly $1 per gallon lower than gasoline prices at wholesale terminals where gasoline is blended which brings down the price of the fuel sold to consumers at the pump. If E15 replaced just 30 percent of the E10 currently being sold in the United States, the nation could entirely replace the amount of gasoline supplied annually from Russian petroleum imports.

Voters also expressed support for increasing the production of flex-fuel vehicles (FFVs), which can run on fuel containing up to 85 percent ethanol (E85), with 69 percent saying it is important for the U.S. government to incentivize automakers to increase FFV output. Finally, the Morning Consult survey showed that two-thirds of voters support the Renewable Fuel Standard, which requires renewable fuels to comprise an increasing share of the nation’s fuel supply each year.

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

Reps Question Lack of Biofuels in Budget

Cindy Zimmerman

Representatives from Iowa questioned Office of Management and Budget (OMB) Director Shalanda Young Tuesday on the lack of biofuels in the $6 trillion White House budget unveiled this week.

Reps. Randy Feenstra (R-IA) and Ashley Hinson (R-IA) both pressed Young on why there was no mention of biofuels in the budget. “I believe EPA will have more details when they talk about their biofuels work,” Young responded to Feenstra, adding that President Biden has released 60 million barrels of oil from the strategic reserve to deal with high gas prices.

Rep. Hinson gave Young a second chance to answer the question. “On the campaign trail, the President came to Iowa, and looked Iowans in the eye and said they could count on him for a new era of biofuels,” said Hinson. “So, why is it not in this budget?”

“This budget starts October 1 and many of the inflationary increases we’re seeing in gas have to do with the Russian-Ukraine situation, we have to deal with that fluid situation before this budget takes effect,” said Young. “We’ll also be looking at other things to bring down costs for Americans.”

Listen:
Reps. Feenstra and Hinson question OMB director (5:11)

Audio, biofuels, Ethanol, Ethanol News

Ethanol Report on How to Lower Gas Prices

Cindy Zimmerman

With E15 selling as much 50 cents less than regular unleaded gasoline, it seems obvious that higher blends of ethanol can help lower prices at the pump. But so far, nothing is being done on the national level to unleash the power of biofuels to ease the pain of high gas prices.

In this edition of The Ethanol Report podcast, we hear from Rep. Angie Craig (D-MN) about the recently introduced bipartisan Home Front Energy Independence Act, and Troy Bredenkamp, Senior Vice president of Government & Public Affairs for the Renewable Fuels Association, about the real difference ethanol can make.

Ethanol Report 3-29-22 (22:53)

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