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

Ethanomics 101: How More Ethanol Lowers Gas Prices

Cindy Zimmerman

Everyone can agree that the price of gasoline is higher than it has ever been. However, no one seems to agree on any way to make it lower, even though an obvious answer is staring us right in the face – ethanol. According to the Renewable Fuels Association (RFA), it’s simply a matter of Ethanomics 101. Listen up, class!

Increased Ethanol Use Will Help Ease the Price Of Gasoline

Ethanol costs significantly less than gasoline. As of March 8, 2022, the price of gasoline was $3.68/gal (April RBOB futures), while the ethanol spot price was $2.55/gal. That is, ethanol is currently trading at a $1.13 per gallon discount to gasoline.

In addition, each gallon of ethanol comes with a free Renewable Identification Number (RIN) attached, which was worth $0.98 on Tuesday. The price differential and RIN value can be seen in significantly lower retail prices for 15% ethanol blends (E15) and especially E85 versus regular unleaded at the pump across the country.

US Ethanol Can Fully Offset Russian Gasoline-Equivalent Import Volumes

Russia accounted for 7% of combined U.S. imports of crude oil and products over the last three years. If the unused capacity in the U.S. ethanol industry were brought online, the additional production could fully replace the amount of gasoline we have been getting via Russian petroleum imports.

How?
The gasoline-equivalent volume of Russian imports averages about 1.7 billion gallons per year (bgy).
U.S. ethanol production capacity is 17.7 bgy. Over the last month, ethanol production has averaged 15.6 bgy on an annualized basis. The unused capacity of 2.1 bgy can fully offset the 1.7 bgy of gasoline-equivalent imports from Russia that are now banned.

In addition, we have current ethanol stocks of 1.1 billion gallons, equivalent to nearly 30 days’ usage, which can be utilized while ethanol production ramps up toward full capacity.

Any questions?

Ethanol, Ethanol News, Renewable Fuels Association, RFA

RFA CEO Responds to Atlantic Editorial

Cindy Zimmerman

Renewable Fuels Association president and CEO Geoff Cooper penned the following response to an article in The Atlantic this week by David Frum alleging that using less ethanol could help Ukraine.

By Geoff Cooper

In nearly 20 years of advocating for American renewable fuel producers and farmers, I’ve seen my share of baseless accusations, uninformed rhetoric, and outright misinformation about corn ethanol. But in those two decades, I have rarely seen an attack as ignorant, incoherent, and insulting as the bizarre tirade recently launched against ethanol by David Frum in The Atlantic (“Ethanol: The Fuel that Powers Putin”).

One of the first rules of effective debate is to never repeat the deceiving arguments of your opponent, so I won’t go into detail on Mr. Frum’s specious allegations about the impacts of ethanol on global grain markets and food security. But the crux of his cockamamie contention is that expanded U.S. ethanol production has somehow “strengthened Russia’s grip upon the world’s food supply” because American farmers today are producing more corn for domestic use and less wheat for export than they did in the 1980s. This is completely absurd.

Wheat’s decline in the United States began decades before commercial-scale ethanol production even began. The amount of U.S. cropland planted to wheat peaked in 1981 at 88 million acres, ironically, in response to President Reagan’s lifting of a U.S. grain embargo against Russia (the embargo, incidentally, had been put in place by President Carter following the Soviet Union’s invasion of Afghanistan). Ethanol was barely an idea at that time.

(Click to read the entire editorial from RFA)

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Ethanol Report on RFA and NCGA

Cindy Zimmerman

The Renewable Fuels Association presented its annual Industry Award to the National Corn Growers Association this year in recognition of the close partnership between the two groups over the last 40 years in moving the ethanol industry forward.

The award was presented at the 27th annual National Ethanol Conference in New Orleans in February, and last week RFA joined NCGA in New Orleans for the 2022 Commodity Classic as the conflict in Ukraine escalated and gas prices skyrocketed.

In this edition of The Ethanol Report, we hear from RFA President and CEO Geoff Cooper, NCGA CEO Jon Doggett, NCGA chairman John Linder, NCGA president Chris Edgington, and Secretary of Agriculture Tom Vilsack, all from the Commodity Classic.

Ethanol Report 3-14-22 (12:36)

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, Commodity Classic, corn, Ethanol, Ethanol News, Ethanol Report, NCGA, Podcasting, Renewable Fuels Association, RFA

Secretary Vilsack Addresses #Classic22

Cindy Zimmerman

Secretary of Agriculture Tom Vilsack made only his second in-person appearance at a large agricultural event since taking office last year when he addressed the 2022 Commodity Classic in New Orleans Friday and thousands of corn, sorghum, soybean, and wheat farmers.

He talked about the situation in Ukraine and being able to hear from the agriculture minister from that country who was speaking to them from a bunker. “As I listened to him, it impressed upon me the importance of all of us who live in a free and democratic country never to take that privilege for granted,” Vilsack said to applause.

The secretary got a standing ovation when he talked about the role biofuels can play in lowering record high fuel costs. “We know and I know and you know that E15 can do that and B20 can do that,” he said.

During his press conference, Vilsack had little else to add when asked about what can be done to increase the use of higher ethanol blends to offset higher gas prices. “You can expect announcements of increased use in the sense that we are putting $100 million of USDA resources out to expand the resources to make E15 more available,” said Vilsack, adding that he could not speak for other federal agencies, meaning that USDA is not able to make any decisions regarding retail sales of E15 in the summer months. “It’s clear from the marketplace that there is a price differential (between ethanol and gas) and we would obviously support whatever steps are necessary.”

Secretary Vilsack remarks (32:11)

Vilsack press conference (24:24)

Audio, Biodiesel, biofuels, Commodity Classic, E15, Ethanol, Ethanol News, USDA

RFA Promotes Higher Ethanol Blends at #Classic22

Cindy Zimmerman

The Renewable Fuels Association is back in New Orleans this week at the 2022 Commodity Classic promoting higher blends of ethanol at the trade show.

For one, they are giving farmers a chance to sign a letter to President Biden urging him to use more ethanol to help moderate soaring gas prices. “Today ethanol is selling for about a dollar a gallon less than gasoline,” said RFA President and CEO Geoff Cooper. “Obviously, if you are able to blend more ethanol, it’s going to result in a lower cost product for the consumer.”

In this interview, Cooper talks about other ways they are trying to get the administration to unleash the power of higher ethanol blends, and the great partnership between RFA and corn growers.
Classic 22 Interview with Geoff Cooper, RFA (6:10)

In addition, RFA has its new flex-fuel Hauk Designs Can-Am X3 on display. “We took this thing from 170 horsepower all the way up to about 220, so it’s a rocket on four wheels…demonstrating that nearly every engine on the planet can be converted to use a higher blend of ethanol,” said RFA Vice President for Industry Relations Robert White.

The Can-Am X3 project is being featured on Season 4 of the popular Hauk Machines television program and White says mini-episodes of the show are starting to air now on RFA social media.

In this interview, White talks about some of the plans RFA has for the vehicle.
Classic 22 Interview with Robert White, RFA (5:24)

Audio, Commodity Classic, corn, E15, E85, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Wisconsin Capital Moving Fleet to B100

Cindy Zimmerman

The City of Madison, Wisconsin will soon be seeing emissions reductions after 17 fleet vehicles have been converted to operate on 100% biodiesel, thanks to a partnership with Optimus Technologies and Renewable Energy Group.

Over the lifecycle of the fuel, biodiesel can reduce greenhouse gas emissions by up to 86% when compared with petroleum diesel. Utilizing Optimus Technologies proprietary Vector System, a simple vehicle add-on that works in conjunction with the conventional diesel components, fleets can operate on B100 year-round.

“Optimus’ Vector System is in use in cities across the U.S. like Washington, D.C. and the City of Chicago where we’re eliminating carbon emissions from critical public services such as refuse collection and snow removal,” said Colin Huwyler, CEO of Optimus Technologies. “These applications require severe-duty trucks with the ability to perform in the harshest conditions without compromising reliability or performanc.”

The City of Madison vehicles were installed with the Vector System at the end of last month, and will begin operating on B100 in the coming weeks. The 17 vehicles that were converted include three dump trucks, 12 garbage trucks, one 644kh loader and one wood grinder.

Biodiesel, REG

Senators Introduce Energy Independence Act

Cindy Zimmerman

Senators Joni Ernst (R-IA) and Amy Klobuchar (D-MN) have introduced a new bill that puts into law a ban on Russian oil and opens up the use and production of American biofuels, including ethanol and biodiesel.

The Home Front Energy Independence Act combines parts of several of the senators’ past bills that would make E15 available year round, establish an E15 and Biodiesel Tax Credit, direct EPA to finalize their E15 labeling rule, and provide for biofuel infrastructure and compatibility with retailers. Senators Chuck Grassley (R-Iowa), Tammy Duckworth (D-Ill.), Roger Marshall (R-Kan.), Tammy Baldwin (D-Wis.), and Deb Fischer (R-Neb.) are cosponsoring the bill.

Clean Fuels Alliance America Vice President of Federal Affairs Kurt Kovarik said the bill would help biodiesel and renewable diesel continue growing. “We appreciate the Senators’ continued support for a new program to match investments in biodiesel infrastructure and improve consumer access to clean fuels. Over the past decade, the contribution that biodiesel and renewable diesel have made to America‘s fuel supply has kept fuel prices down by an average of 31 cents per gallon.”

Another bipartisan group of senators led by Sens. John Thune (R-SD) and Dick Durbin (D-IL) wrote a letter this week urging President Biden to permit the year-round sale of E15 fuel.

“As the United States joins global partners in seeking to hold accountable and isolate the Russian Federation for its unprovoked assault on Ukraine, we must deny Russia’s economic lifeblood of energy dominance,” the senators wrote. “This will require tapping every accessible contribution of American energy technology. As you know, American biofuels are one such readily available energy solution that offer consumers affordable and cleaner options at the pump.”

“The emergency action recommended by these Senators would remove a key roadblock that restricts consumer access to lower-priced E15, and we encourage EPA to immediately act upon this request.” said Renewable Fuels Association President and CEO Geoff Cooper.

Biodiesel, biofuels, Clean Fuels Alliance, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Iowa Lawmakers Promote Biofuels for Energy Security

Cindy Zimmerman

Southwest Iowa Renewable Energy plant

As gas prices soar, Iowa’s bipartisan congressional delegation this week magnified the voices of ethanol supporters telling the Biden administration to unleash the power of higher ethanol blends in strengthening American energy security and lowering record-high pump prices.

Senators Chuck Grassley (R-IA) and Joni Ernst (R-IA) joined Reps. Randy Feenstra (IA-04), Cindy Axne (IA-03), Ashley Hinson (IA-01) and Mariannette Miller-Meeks (IA-02) in a letter to EPA Administrator Michael Regan to prioritize American energy independence by using more American-made ethanol and other biofuels.

“According to the U.S. Energy Information Administration, Russia ranks as the world’s third-largest producer of petroleum and other liquid fuels, producing an average of 10.5 million barrels per day in 2020. The United States and our allies across the globe are now looking to decrease our reliance on Russian oil. As conflict continues in the region, we urge the Biden administration to expand the production and potential export of domestic ethanol and biodiesel to meet global energy needs,” the lawmakers wrote.

Renewable Fuels Association (RFA) President and CEO Geoff Cooper says ethanol was selling for $1 per gallon less than gasoline in wholesale markets this week. “U.S. biorefineries have the spare capacity to entirely replace the volume of gasoline produced from Russian petroleum imports; the industry stands ready to help, just as it did during the onset of the pandemic by supplying critical and essential products to the marketplace.”

During his Tuesday morning call with reporters, Sen. Grassley questioned why the administration is turning to foreign sources of oil during this trying time instead of taking advantage of our own clean sources of fuel. “Instead of going to Venezuela, OPEC and Russia with these corrupt dictators, President Biden ought to look to the Midwest and think about how ethanol and biodiesel can fill these voids,” said Grassley. “These producers in the Midwest can make up the difference in production that we need.”

Sen. Grassley comments 3-8-22 (1:49)

biofuels, E15, Ethanol, Ethanol News