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.

Choose an option to subscribe

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

Rep. Craig Hopes EPA Will Allow Year Round E15

Cindy Zimmerman

Last week, Rep. Angie Craig (D-MN) and several of her colleagues introduced the bipartisan Home Front Energy Independence Act, in an effort to expand the production and availability of American biofuels and lower energy costs for working families.

“At the gas pump this past weekend E15 was anywhere from 30 cents to 50 cents (less), and we found one gas station in a town called Cottage Grove offering E15 at 80 cents less a gallon compared to regular unleaded,” said Craig in an interview Monday. “You’re talking about 20 bucks off the cost of filling your tank!”

Rep. Craig’s bill, along with the companion bill in the Senate, would expand the availability of E15 year-round after a July 2021 D.C. Circuit Court ruling which rejected the volatility waiver for E15 created by EPA in 2019. But she admits it would be easier to make that happen administratively rather than legislatively. “I’m holding out hope that the administration and the EPA does the right thing here,” she said, mainly because it just makes sense. “This is such a win-win. It’s going to help us lower prices at the pump. It’s going to help accelerate the role that biofuels play in our effort to decarbonize the transportation sector to tackle climate change and drive economic growth.”

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

Audio, biofuels, Ethanol, Ethanol News

E85 Sales Shatter Records in California

Cindy Zimmerman

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 new data released by the California Air Resources Board (CARB).

Last year, California drivers purchased nearly 62.5 million gallons (mg) of E85 flex fuel, up from about 40 mg in both 2019 and 2020, and 33.8 mg in 2018, according to CARB data. The surge in California E85 sales is continuing here in the first few months of 2022, as record-high prices for regular E10 gasoline are driving greater demand. In recent weeks, E85 has typically been priced 30-50 percent below gasoline at stations across the state.

“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,” said Greg Jones, Director of Business Development at Pearson Fuels, California’s largest provider of E85. “We always want to encourage motorists to check their gas caps to see if they’re driving a flex-fuel vehicle, and we are seeing more and more Californians taking advantage of our website and mobile app to find E85 stations near them. Drivers are seeing a real difference and saving quite a bit of money. In addition to that, we’re focusing on blending our E85 with renewable naphtha, resulting in a nearly 100 percent renewable fuel that is 60 percent lower in greenhouse gas emissions compared to unleaded gasoline. We believe E85 can play an important role for decades and has the opportunity to become a low carbon fuel option for the millions of drivers who own these vehicles.”

Renewable Fuels Association President and CEO Geoff Cooper said it is safe to assume that California now leads the nation in consumption of low-carbon flex fuels. “During this time of record-high gas prices and heightened concerns about climate change, California drivers are seeking out options at the pump that are both more affordable and better for the environment,” Cooper said. “E85 satisfies both of those consumer demands.”

Data from the California Energy Commission show that the number of FFVs on California roadways was nearly double the amount of electric vehicles at the end of 2020.

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

Clean Fuels Participates in Ag Day on the Mall

Cindy Zimmerman

The Association of Equipment Manufacturers (AEM) and over three dozen partner organizations, including Clean Fuels Alliance America, hosted the inaugural Celebration of Modern Agriculture on the National Mall outside the United States Department of Agriculture (USDA) headquarters this week, highlighting America’s agriculture innovators.

More than 16,000 visitors attended the two-day festival and engaged with hands-on educational displays about modern agriculture. U.S. Secretary of Agriculture Tom Vilsack celebrated Ag Day at the festival and delivered remarks to the audience. President Joe Biden’s proclamation for National Ag Day recognized farmers’ and ranchers’ “tireless efforts growing crops, raising livestock, and distributing food, fuel, and fiber sustain America and the entire world.”

Vilsack delivered remarks at the event, invoking President Abraham Lincoln who created the USDA in 1862. “I think he (Lincoln) would be pleased that we’re expanding the notion of agriculture,” Vilsack said. “The idea that it just doesn’t have to happen in a rural area – it can happen in a big city, too. It can happen on a rooftop. It can happen in a building. It can happen in the lab.”

Listen to Vilsack’s remarks below – and be sure to check out the photo album. Thanks to Gary Crawford at USDA for the audio and Jamie Johansen for the photos.
Ag Day 2022 - Vilsack remarks (9:06)

advanced biofuels, Biodiesel, Clean Fuels Alliance

Nebraska Ethanol Forum Features ACE Experts

Cindy Zimmerman

American Coalition for Ethanol (ACE) CEO Brian Jennings and CMO Ron Lamberty, as well as ACE board members Brian Vasa, Ron Alverson, John Christianson and Scott McPheeters were among the speakers and moderators this week at the Nebraska Ethanol Board’s 16th Ethanol: Emerging Issues Forum in Omaha, Nebraska.

Jennings joined Chris Bliley, Growth Energy; Troy Bredenkamp, Renewable Fuels Association; and Brian Healy, U.S. Grains Council to talk about ethanol policy issues from exports to E15.

Alverson, representing Dakota Ethanol on ACE’s board, spoke to Forum attendees about the connection between corn farming carbon intensity (CI) and ethanol production for producers. Alverson rebutted the Lark et. al report that misrepresented environmental outcomes of the Renewable Fuel Standard. Joining Alverson on that panel was John Christianson of Christianson PLLP, Ryan Raguse of Bushel, and Mark Heckman of EcoEngineers in a discussion moderated by Scott McPheeters, a farmer on the ACE, NEB and KAAPA Ethanol boards.

Yet another panel on the event agenda featured a discussion on Midwest Clean Fuels Policy, an effort that ACE cofounded with the Great Plains Institute (GPI), and resulted in the 2020 policy blueprint white paper: A Clean Fuels Policy for the Midwest.

ACE was a proud supporting sponsor of NEB’s event and looking forward already to the 2022 ACE Annual Conference that will be taking place August 10-12 in Omaha.

ACE, Ethanol, Ethanol News

Brazil Suspends Ethanol Tariff Until End of Year

Cindy Zimmerman

The government of Brazil has announced it will suspend tariffs on U.S. ethanol starting March 23 until the end of 2022. The country is also suspending tariffs on six food products as a means of decreasing inflationary pressures.

The leaders of the Renewable Fuels Association, U.S. Grains Council, and Growth Energy issued a joint statement welcoming the move as an opportunity to make the 18% tariff cut more permanent.

“We welcome this decision and see it as an opportunity to continue discussions with Brazil to expand the global use of low-carbon ethanol, reduce barriers to trade and elevate its prominence in energy discussions. Our hope is that with this action, Brazil and the U.S. will share with third parties the vision of free and open global ethanol markets.

We will continue to pursue a long-term, open and mutually beneficial ethanol trading relationship with Brazil as we work to make this temporary reduction permanent. We look forward to continuing to work closely with USDA and USTR to return to a fair and reciprocal trading relationship with Brazil regarding ethanol.”

The tariff issue was brought up during a panel discussion on trade at the recent National Ethanol Conference which included Evandro Gussi, president and CEO of the Brazilian Sugarcane Industry Association (UNICA) and USDA Foreign Agricultural Service Administrator Daniel Whitley.

While the topic was avoided during the panel discussion, Gussi was asked directly by an audience member about what should be done about the tariff. “You are right and Brasilia isn’t wrong,” he began. “I’m not saying who is right.”

Gussi then explained that there are regional differences within Brazil and the U.S. tariff rate quota on sugar also plays a role. “It’s a political issue,” he says.

Whitley asked Gussi how that type of protectionism can work if Brazil is trying to open other markets to ethanol. “I am a partner to try to solve this problem,” Gussi said.

Listen to that segment and/or the full panel below:
NEC22 trade panel segment on Brazil tariffs (4:54)

NEC22 Outlook for Trade panel (1:13:25)

Audio, Brazil, Ethanol, Ethanol News, Exports

Argonne Debunks Recent Negative Ethanol Study

Cindy Zimmerman

Experts with the Department of Energy’s Argonne National Laboratory, Purdue University, and the University of Illinois system have just published an assessment finding major flaws in a recent paper that made unfounded allegations about the greenhouse gas benefits of ethanol compared to gasoline.

Responding to the report Environmental Outcomes of the US Renewable Fuel Standard, which was led by Tyler Lark of the University of Wisconsin, the authors stated, “After a detailed technical review of the modeling practices and data used by Lark et al., we conclude that the results and conclusions provided by the authors are based on several questionable assumptions and a simple modeling approach that has resulted in overestimation of the GHG emissions of corn ethanol.”

Among the “questionable assumptions” in the disputed report:
The land-use changes identified by Lark et al. likely reflect the conversion of fallow or idle land to crops rather than permanent grasslands.
Lark et al. likely overestimated soil organic carbon (SOC) loss by a factor of two to eight as a result of the incorrect application of carbon response functions. The authors noted that “the validation of the SOC emissions model used by Lark et al. … showed remarkably poor fit to measured SOC changes.” This is important, since a foundational assertion in the recent study was that emissions related to land-use change are higher than commonly recognized.
Lark appeared to have double-counted the emissions of nitrous oxide—a greenhouse gas—from the use of fertilizer in corn production by adding them in while overlooking the fact that they are already included in the corn-farming-related emissions in the main lifecycle assessment models.

Renewable Fuels Association President and CEO Geoff Cooper said it is unfortunate that such a flawed report about ethanol made headlines despite its obvious errors. “Now that light has been shown on these flaws, we call on the news media to correct the record—particularly those who were so quick to report this now thoroughly debunked attack. Ethanol is a renewable, domestically produced fuel that is lower in cost and lower in carbon than gasoline. Today more than ever, it’s also vital for energy security.”

Ethanol, Ethanol News, RFA

Home Front Energy Bill Would Boost E15

Cindy Zimmerman

A bipartisan bill introduced by members of the U.S. House would expand the production and availability of American biofuels.

The Home Front Energy Independence Act, introduced by Reps. Angie Craig (D-MN), Randy Feenstra (R-IA), Cheri Bustos (D-IL) and Ashley Hinson (R-IA), would make E15 available year-round, establish an E15 tax credit and extend the tax credit for biodiesel, and direct the EPA to finalize their E15 labeling rule. U.S. Senators Amy Klobuchar (D-MN) and Joni Ernst (R-IA) introduced companion legislation in the Senate last week.

The bipartisan legislation will also codify into law full restrictions on U.S. purchases of Russian oil until the president determines Russia recognizes the sovereignty and territorial integrity of Ukraine. The current excess ethanol capacity domestically is nearly the same as the amount of Russian gas the U.S. had been importing – roughly 83 million barrels versus 87 million barrels.

“This commonsense legislation would bring immediate economic relief to American families who are experiencing unprecedented pain at the pump, while simultaneously reducing emissions of greenhouse gases and tailpipe pollutants linked to cancer, heart disease, and respiratory illnesses,” said Geoff Cooper, President and CEO of the Renewable Fuels Association. “Not only would the bill eliminate dependence on Russian oil imports, but it would also ensure that those imports are replaced by more affordable renewable fuels produced right here in America’s heartland.”

Biodiesel, E15, Ethanol, Ethanol News

1000 Biofuel Supporters Sign Letter to White House

Cindy Zimmerman

The Renewable Fuels Association (RFA) is sending a letter to the White House today signed by more than 1,000 farmers, workers in the ethanol industry, and other biofuel supporters asking President Biden to help lower gas prices immediately by allowing broader use of lower-cost ethanol blends like E15.

“Simply allowing gasoline blenders to sell E15 year-round would instantly help moderate prices at the pump and deliver relief to American families,” the letter states. “Today, E15 is selling for 10-25 cents per gallon less than standard gasoline, meaning year-round use of the fuel would save the average American household at least $125-200 on its annual gasoline bill. Those savings would accrue immediately while also providing energy, environmental and economic benefits for the long-term.”

The letter was signed at the 2022 Commodity Classic by farmers and biofuel supporters from 30 states who specifically urge President Biden to take emergency action to allow the uninterrupted sale of E15 throughout the upcoming summer.

Ethanol, Ethanol News, Renewable Fuels Association, RFA