Busy Week on Capitol Hill for RFA

Cindy Zimmerman

RFA chair Erik Huschitt, EPA administrator Michael Regan, and RFA CEO Geoff Cooper

It was an eventful and historic week in Washington D.C. for many reasons, and members of the Renewable Fuels Association had a very busy and productive annual board meeting in the middle of everything else happening.

The event included meetings with EPA Administrator Michael Regan and USDA Deputy Secretary Xochitl Torres Small, as well as Capitol Hill visits to the offices of lawmakers, including many of ethanol’s strongest advocates. Just to name a few – Sens. Tammy Duckworth (D-IL), Joni Ernst (R-IA), Amy Klobuchar (D-MN), Deb Fischer (R-NE), and U.S. Reps. Angie Craig (D-MN), Randy Feenstra (R-IA), Zach Nunn (R-IA), Glenn Grothman (R-WI), Sharice Davids (D-KS), Bryan Steil (R-WI), Eric Sorenson (D-IL), Ashley Hinson (R-IA), among others.

RFA DC Board Meeting Photo Album

RFA members visit Sen. Tammy Duckworth of Illinois

Sen. Duckworth was pleased to share her support for ethanol with RFA members.

“America has always relied on our nation’s farmers to produce the food and fuel we need, and I’m proud to be their biggest advocate on the national and international stage,” Duckworth said. “When we prioritize homegrown biofuels, we’re encouraging job growth, prioritizing our national security, reducing gas prices, protecting our environment and securing Illinois’s leadership in the energy sector for years to come.”

The senator shared that she traveled to Vietnam last week for an official Senate visit that included meetings with government and trade officials to highlight the benefits of increasing imports of corn and soy ethanol from Illinois.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

USDA Gets Climate Smart Farming Feedback

Cindy Zimmerman

The U.S. Department of Agriculture received lots of input from biofuels groups this week on how to prove the impact of climate-smart farming practices on the greenhouse gas (GHG) net emissions estimates associated with the production of domestic agricultural commodities used as biofuel feedstocks, in response to a Federal Register request last month. The Request for Information is expected to inform the U.S. Treasury’s upcoming proposed rule for implementation of the Inflation Reduction Act’s clean fuel production credit, otherwise known as the “45Z credit.”

The Renewable Fuels Association urged the use of a “book-and-claim” accounting framework for tracking and transferring the greenhouse gas benefits of climate-smart agriculture (CSA) practices through the biofuels supply chain.

According to RFA’s comments, “Decoupling CSA attributes from the physical feedstock and allowing the renewable fuel producer to use book-and-claim accounting would encourage widespread adoption of CSA practices by growers and broad incorporation of CSA emissions improvements into biofuel lifecycle carbon intensity values. At the same time, book-and-claim accounting will allow the grain market to continue operating rationally and efficiently for all participants.”

The American Coalition for Ethanol (ACE) stressed the need to use the Department of Energy’s GREET model to quantify emissions and greenhouse gas (GHG) credits associated with the production of biofuel feedstocks.

ACE comments included progress that has been made to monetize CSA practices and ensure corn ethanol is part of the climate solution through its USDA-funded Regional Conservation Partnership Program (RCPP) projects, as well as soil organic carbon studies and a carbon intensity calculator tool.

Clean Fuels Alliance America submitted a highly detailed, technical response emphasizing “the need for immediate guidance and certainty before biodiesel, renewable diesel, and sustainable aviation fuel producers and their farmer partners transition to the credit in January.”

Clean Fuels recommends that USDA extend its analysis of climate smart agriculture practices to winter annual oilseeds and to all feedstocks that have approved pathways under the RFS. Clean Fuels also recommends that USDA consider other practices defined by USDA’s Natural Resources Conservation Service and create regional, practice-based carbon intensity credit tables using ERS’ Farm Resource Regions.

Finally, the Sustainable Aviation Fuel (SAF) Coalition, which represents all facets of the SAF value chain, urges USDA to consider four overarching principles during the rulemaking process:

• Ensure federal policies are science-based and data driven to unlock the full potential to develop and deploy SAF and build on Congressional directives provided by the 40B and 45Z tax credits;
• Ensure federal policies are technology and feedstock neutral with the aim of reducing carbon intensity in a realistic and verifiable way;
• Provide sufficient flexibility to accommodate new feedstocks and technologies;
• Ensure simple and clear administrative practices that are implementable and manageable.

ACE, aviation biofuels, Biodiesel, Clean Fuels Alliance, Ethanol, Ethanol News, Renewable Fuels Association, RFA, SAF, USDA

Corn Grower Testifies on Farm Financial Conditions

Cindy Zimmerman

The president of the Minnesota Corn Growers told the House Agriculture Committee Tuesday that farmers in her state and across the country need the support of a reauthorized and strengthened farm bill.

“Unless conditions change, I believe we’re heading into a perfect storm, a storm that I don’t think will be fully appreciated until early next year when farmers try to get loans but are unable to do so because they cannot demonstrate the ability to cash flow,” said Dana Allen-Tully, Ph.D., owner of a diversified family farm near Eyota, Minnesota, speaking on behalf of the National Corn Growers Association and state groups.

“We have to have policies in place that reflect the realities of farming today,” Allen-Tully said. The stakes of farming are so incredibly high – higher than I ever remember them to be. We are putting everything we have on the line every single year for very thin and oftentimes negative margins.”

Allen-Tully said she is concerned about the opportunities for ethanol to be used for sustainable aviation fuel (SAF) being taken away from U.S. producers by Brazil and China. “The sustainable aviation fuel space is one of the most exciting thing we have coming as a corn farmer and right now how the Treasury has their guidance written it would exclude us,” she replied in answer to a question from Rep. Eric Sorenson (D-IL).

MN Corn Growers President Dana Allen-Tully 5:37

Rep. Sorenson and Allen-Tully 1:09

Audio, aviation biofuels, biofuels, corn, Ethanol, Ethanol News, SAF

RFA Files Briefs Supporting EPA Set Rule

Cindy Zimmerman

The Renewable Fuels Association has filed two joint briefs in the DC Circuit Court defending the Environmental Protection Agency’s “set rule” volumes.

The briefs were filed in the case of Center for Biological Diversity v. Environmental Protection Agency in which CBD and others, including oil refiners, are challenging EPA’s renewable volume obligations for the 2023-2025 compliance years. RFA and other biofuel groups have intervened on behalf EPA.

“For nearly 20 years, the Renewable Fuel Standard has served as the preeminent federal policy for ensuring growth in the supply of low-carbon, domestically produced renewable fuels,” said RFA President and CEO Geoff Cooper. “RFA will continue to defend this important policy against all challenges, whether they arise from the anti-agriculture environmental extremists or the fossil fuel industry. As RFA and our partners demonstrate in these briefs, EPA’s ‘set rule’ definitively adheres to Congressional intent and aligns with the original objectives of the policy. By continuing the RFS program’s growth trajectory and setting the highest volumes ever, EPA’s ‘set rule’ is providing unprecedented environmental and economic benefits.”

RFA’s board of directors is meeting this week in Washington where they are scheduled to visit with key lawmakers and administration officials.

EPA, Ethanol, Ethanol News, Renewable Fuels Association, RFA

ACE Announces Conference Agenda

Cindy Zimmerman

The American Coalition for Ethanol (ACE) has announced the agenda for the upcoming 37th annual event taking place August 14-16, at the Omaha Marriott Downtown at the Capitol District.

“Our conference agenda is packed with dynamic sessions, insightful speakers and networking opportunities, making it the premier destination for anyone passionate about advancing biofuels,” said Katie Muckenhirn, Vice President of Public Affairs. “You’ll see our conference theme ‘The Gold Standard’ reflected in the topics that showcase the ingenuity, productivity and bold innovation of this industry.”

Among the highlights of the two-and-a-half-day agenda:
– A keynote address on Creating New Opportunities for Agriculture, Ethanol and the Environment: CO2 Pipeline Project Update by Lee Blank, Summit Carbon Solutions
– Setting the Standard: The Current State of GHG Modeling and Unlocking New Markets and Tax Credits with Climate-Smart Agriculture – Jonathon Lehman, Cultivating Conservation; Ron Alverson, Dakota Ethanol; Tristan Peitz, Talus Renewables Inc.
– Fueling Market Growth: Ethanol Equipment Incentives and Ingenuity – Jeff Carpenter, U.S. Department of Energy Higher Blends Infrastructure Incentive Program; Randy Gard, Bosselman Enterprises
– Implementation of Key Inflation Reduction Act Incentives – Donna Funk, Pinion; RSM US LLP; Faith Larson, Mickelson & Company

Click here to see more information about the ACE Conference.

For a preview of the conference, listen to this interview with Katie Muckenhirn.
ACE annual conference preview - Katie Muckenhirn 5:20

ACE, ACE Ethanol Conference, Audio, Ethanol, Ethanol News

NREL Releases BQ-9000 Biodiesel Assessment for 2023

Cindy Zimmerman

The National Renewable Energy Laboratory (NREL) has released the seventh in a series of reports documenting the quality of biodiesel from North American producers participating in the BQ-9000 program based on monthly data collected throughout the calendar year 2023.

The 2023 report, authored by Robert L. McCormick, features significant advancements highlighting new parameters that offer a more comprehensive analysis on biodiesel quality and mineral content. New data includes kinematic viscosity, sulfated ash, distillation temperature, carbon residue, and cetane number, as well as individual levels of sodium, potassium, calcium and magnesium levels.

“The BQ-9000 program’s commitment to quality assurance is evident in the continued improvement and expansion of the parameters we assess,” said Scott Fenwick, Technical Director at Clean Fuels Alliance America. “This year’s report not only reinforces the high standards maintained by biodiesel producers but also provides valuable insights that can drive further advancements in the industry.”

Biodiesel, Clean Fuels Alliance

Clean Fuels Intends to Sue EPA Over RFS Rule Delay

Cindy Zimmerman

Clean Fuels Alliance America this week delivered a formal notice of intent to sue the Environmental Protection Agency for its failure to issue timely 2026 Renewable Fuel Standards.

By statute, EPA is required to finalize volumes 14 months before the start of the compliance year; for 2026, that deadline would come at the end of October this year. On June 28, the White House Office of Management and Budget released the Spring 2024 Unified Agenda of Regulatory and Deregulatory Actions, setting out a timeline for EPA to propose the 2026 RFS volumes by March 2025 and finalize the rule by December 2025.

Clean Fuels stated in the letter, “EPA’s failure to timely issue the 2026 RFS volumes compounds another issue: EPA set the volumes for 2023 through 2025 too low….While EPA can and should reconsider and revise its 2024 and 2025 volumes, it should at a minimum set a timely 2026 volume.”

“The biodiesel, renewable diesel, and SAF industry needs EPA to get the program back on track to support our growth,” said Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels Alliance America. “Clean Fuels provided EPA a great deal of data on our growth to support our petition to revise the 2024 and 2025 RFS volumes for biomass-based diesel and advanced biofuels. There isn’t any practical reason that would prevent the agency from meeting the legal deadline for the 2026 RFS rule.”

Biodiesel, biofuels, Clean Fuels Alliance, EPA, renewable diesel, SAF

Chevron Reversal Could Impact EPA Clean Air Rules

Cindy Zimmerman

One of the federal agencies likely to be most impacted by the recent Supreme Court decision that reversed the Chevron deference is the Environmental Protection Agency, which was the one responsible for the original case decision in 1984.

Renewable Fuels Association president and CEO Geoff Cooper says it’s still too early to tell exactly what the reversal could mean for the ethanol industry, but EPA’s tailpipe emissions standards are a good example of why the case was brought in the first place.

“We were arguing long before this Supreme Court decision that EPA stepped over its bounds by a long shot and grossly exceeded its authority with these tailpipe standards,” said Cooper. “There’s no law on the books anywhere from Congress that directs EPA to use tailpipe emission standards to effectively create a mandate for electric vehicles….So we do think that that’s one particular regulation that that is likely to come under fire, given this new decision from the Supreme Court.”

Cooper says the ruling means “Congress needs to be far more prescriptive and and far more detailed and far more thorough in the legislation that they hand over to to the agency” but failing that, the courts still have the final say about the intentions of the law. “Any challenges to Clean Air Act programs, including the RFS, must go through the DC Circuit Court of Appeals….which historically has been pretty deferential and and respectful of EPA’s decision making process and EPA’s expertise,” said Cooper. “And so we’ll see if that continues or exactly how this is going to go moving forward.”

Listen to Cooper’s comments from a recent interview here.
RFA's Cooper comments on Chevron reversal 3:16

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

Agency Seeks Tech to Lower Emissions for Ethanol

Cindy Zimmerman

The Energy Department is looking for ways to cut the carbon intensity of ethanol production in half by lowering use of synthetic nitrogen (N) fertilizer on crops, and they are putting up $36 million to develop the technologies to do that.

DOE’s Advanced Research Projects Agency-Energy (ARPA-E) announced the funding in the effort to lower nitrous oxide (N2O) emissions by 50% from the cultivation of corn and sorghum used for United States ethanol production.

The Technologies to Emend and Obviate SYnthetic Nitrogen’s Toll on Emissions (TEOSYNTE) program will emphasize strategies that lower the application of synthetic nitrogen (N) fertilizer on corn and sorghum fields. Lowering the application of synthetic N fertilizer would reduce greenhouse gas emissions as well as significantly lower farmers’ operating costs while maintaining crop yields.

There are various categories of projects under the funding opportunity that are designed to work toward:

Reduce imports of foreign synthetic N fertilizer by reducing the N fertilizer usage in U.S. agriculture;
Improve efficiency by saving billions in operational cost for U.S. farmers, and reduce carbon intensity for ethanol and ethanol-derived sustainable aviation fuel (SAF); and
Lower emissions of CO2 generated during N fertilizer production and N2O after N fertilizer application.

According to the ARPA-E Exchange the “Concept Paper Submission Deadline” is August 13, 2024 while the “Full Application Submission Deadline” is TBD.

aviation biofuels, biofuels, biojet fuel, corn, Ethanol, Ethanol News

Ethanol Report on California and E15

Cindy Zimmerman

It has been nearly 15 years since the Environmental Protection Agency approved the sale of 15% ethanol blended fuel (E15) for 2001 model year cars and older, and nearly every state in the nation now sells it, often at a discount to regular gasoline. The only state that bans the sale of E15 is California, despite the fact that the Golden State sells more E85 than any other state, and suffers from the highest gas prices in the country.

The Renewable Fuels Association just released a new study, conducted by economists at UC Berkeley and the U.S. Naval Academy, that found California drivers could expect to save 20 cents per gallon if the state allowed sales of E15 – and the potential savings for California consumers could reach $2.7 billion a year.

In this edition of the Ethanol Report, RFA Chief Economist Scott Richman explains the results of the study, and RFA President and CEO Geoff Cooper talks about how they are continuing to work with California regulators to help them meet air quality standards and save consumers money at the same time.

Ethanol Report 7-12-24 25:16

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