House Members Urge Support for RFS

Cindy Zimmerman

U.S. Representative Angie Craig (D-MN) led several co-chairs of the Congressional Biofuels Caucus in sending a letter urging the Biden Administration to take steps to protect and strengthen the Renewable Fuel Standard (RFS).

The letter encouraged EPA Administrator Michael Regan to maintain the blending requirements for 2022, deny all pending Small Refinery Exemptions (SREs), reconsider proposed retroactive cuts to previously finalized 2020 RVOs and set 2021 RFS volumes at the statutory levels. Craig was joined in signing the letter by Representatives Cindy Axne (D-IA), Cheri Bustos (D-IL) Ron Kind (D-WI), Mark Pocan (D-WI) and David Scott (D-GA).

“The benefits of renewable biofuels are clear,” the six House members wrote. “They play a key role in reducing carbon emissions from the transportation sector, generate economic growth and markets for family farmers across rural America, and reduce the cost of fuel at the pump for hardworking Americans.”

Ethanol industry organizations thanked the lawmakers for their support. “We applaud these House members for standing with American farmers and renewable fuel producers,” said Renewable Fuels Association President and CEO Geoff Cooper. “They understand the impacts these EPA proposals could have on their districts and across America’s heartland at a time when we need to focus on rebuilding the economy and reducing carbon emissions. We appreciate their support and hope EPA will listen and respond.”

“As EPA prepares to make several important decisions regarding the RFS this year, the backing and leadership of these House members is greatly appreciated,” said American Coalition for Ethanol (ACE) CEO Brian Jennings. “EPA has steps at its disposal it can immediately take to get the RFS back on track and we appreciate the House members for underscoring these actions to the Agency, so the program’s potential can be fully realized.”

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

RFA Releases Ethanol and DDGS Export-Import Reports

Cindy Zimmerman

The Renewable Fuels Association (RFA) has just released the latest statistical reports on U.S. exports of ethanol and distillers grains in 2021.

The ethanol trade summary report shows that 1.24 billion gallons were exported in 2021, representing 8.3 percent of total U.S. ethanol production. While this is 5 percent lower than 2020, it remains the fifth-largest export volume in history and, at $2.77 billion, the value of those exports was the second-highest on record.

U.S. ethanol was shipped to 88 countries and Canada remained the top export destination, taking in 30 percent of U.S. ethanol exports in 2021, followed by India and South Korea. Overall exports fell mainly as a result of lower shipments to Brazil, which were 59 percent below 2020 levels, when it ranked as the second-leading market for U.S. ethanol exports.

The second trade summary report covers co-product exports, including distillers grains, a high-protein feed ingredient for livestock and poultry. Distillers grains exports totaled 11.6 million metric tons in 2021, a slight improvement over 2020 and the third-largest annual volume on record, representing 36 percent of U.S. distillers grains production.

Distillers grains were exported to more than 50 countries. Mexico remained the top destination for U.S. distillers grains, representing 21 percent of total shipments, followed by Vietnam and South Korea. U.S. distillers grains exports set a record in 2021 with an aggregate value of $3 billion.

Listen to RFA president and CEO Geoff Cooper talk about how U.S. ethanol exports continued to be impacted by the COVID pandemic last year in this segment from the recent Ethanol Report.
RFA president and CEO Geoff Cooper 4:09

Audio, Distillers Grains, Ethanol, Ethanol News, Exports, Renewable Fuels Association, RFA

American Coalition for Ethanol Staff News

Cindy Zimmerman

The American Coalition for Ethanol (ACE) announces the hiring of a new Communications Manager, and the shifting of Ron Lamberty’s role to Chief Marketing Officer (CMO).

Ashley Borchert, former Digital Marketing and Social Media intern at Midcontinent Communications (Midco), replaces Katie Muckenhirn who took on the role of ACE’s Vice President of Public Affairs last fall. Borchert’s responsibilities include handling the organization’s social media platforms and assisting with media and member relations, along with other communication activities, including ACE websites, Ethanol Today magazine, and events and advocacy efforts.

Ron Lamberty’s new role as the organization’s Chief Marketing Officer makes him responsible for the planning and implementation of ACE’s market development and member relations efforts. As CMO, he’ll continue leading ethanol business development in the fuel marketing sector and build strategic relationships with current and prospective ACE members.

“Ethanol plants’ product offerings are constantly evolving in response to emerging market opportunities,” Lamberty said. “With these growing market possibilities, ACE has the experience to help communicate product benefits, identify and educate potential buyers, and ensure public policy provides access and a level playing field for our members’ products. As CMO, I’ll make sure we’re doing all we can to continue to expand markets for ethanol and other products for our members.”

ACE, Ethanol, Ethanol News

Strong Support for EPA to Deny Small Refinery Exemptions

Cindy Zimmerman

The Environmental Protection Agency’s proposal to deny 65 pending small refinery exemption (SRE) petitions is strongly supported by the ethanol industry.

In comments on the proposal, the Renewable Fuels Association
noted that such an action would “restore confidence” in the Renewable Fuel Standard program, and would also ensure the SRE program complies with the Tenth Circuit Court’s 2020 decision moving forward.

“EPA’s proposed decision is consistent with the statute and with EPA’s repeated determinations that small refineries pass through the cost of RFS compliance to the wholesale prices of their products and therefore do not face disproportionate economic hardship,” wrote RFA President and CEO Geoff Cooper in comments submitted to the agency. “When finalized, the proposed approach will restore confidence in the RFS program, which in turn will stimulate the increased investment in renewable fuel production that Congress sought to encourage.”

RFA also encourages EPA to deny 31 SREs granted by the previous administration for compliance year 2018. Those exemptions were inappropriately issued in 2019 and were recently remanded to EPA by the D.C. Circuit following a legal challenge led by RFA.
American Coalition for Ethanol (ACE) CEO Brian Jennings noted the importance of EPA’s determination that RFS compliance costs are essentially a pass through and not ultimately born by refiners, which prevents RIN prices from being used to justify waivers.

“EPA’s proposed rulemaking denying the pending SRE petitions complies with the long-held position that RIN prices cannot be evidence of economic harm in seeking a waiver from RFS obligations,” the comments read.

ACE, Ethanol, Ethanol News, RFA

Clean Fuels Comments on EPA RFS Proposals

Cindy Zimmerman

Clean Fuels Alliance America submitted comments supporting the Environmental Protection Agency’s proposal to deny pending small refinery exemptions while asking for certainty regarding proposed Renewable Fuel Standard (RFS) Volume Standards for 2020, 2021 and 2022. Clean Fuels expressed particular concern with EPA’s triggering “reset” authority and proposals for regulating biointermediates.

Kurt Kovarik, Clean Fuels’ Vice President of Federal Affairs, writes in the comments on the annual volumes, “We ask EPA to provide certainty to the biodiesel and renewable diesel industry, do not unlawfully use the reset authority to retroactively adjust the 2020 volumes, and be cautious of unintended consequences associated with the biointermediates provisions.”

In addressing the separate proposal on pending small refinery exemptions, Kovarik writes, “Clean Fuels supports EPA’s proposal to deny 65 pending small-refinery exemption petitions and requests that EPA also deny the 36 small-refinery exemptions—31 of which were originally granted – for 2018.” The 36 additional petitions pending before the agency are those remanded by order of the U.S. Court of Appeals for the D.C. Circuit in response to EPA’s motion in Sinclair Wyoming Refinery and consolidated cases.

Clean Fuels’ comments on the annual rule
Clean Fuels’ comments on small refinery exemptions

advanced biofuels, Biodiesel, Clean Fuels Alliance, EPA

USDA to Invest $1 Billion in Climate Smart Commodities

Cindy Zimmerman

Agriculture Secretary Tom Vilsack was in Jefferson City, Missouri yesterday to announce $1 billion in partnerships to support America’s climate-smart farmers, ranchers and forest landowners.

The new Partnerships for Climate-Smart Commodities opportunity will finance pilot projects that create market opportunities for U.S. agricultural and forestry products that use climate-smart practices and include innovative, cost-effective ways to measure and verify greenhouse gas benefits. USDA is now accepting project applications for fiscal year 2022.

Vilsack says the investment includes climate smart feedstocks for biofuels. “A tremendous challenge coming from President Biden to create an aviation biofuel. 36 billion gallons of drop in aviation fuel so allow our planes to fly. I don’t know about you folks. I kind of get the electric car thing. You know, you get in the car and if by chance the battery runs down, you pull off to the side of the road. You get your cell phone, you call for help. If you’re in an airplane, the battery wears out. How exactly is that going to work? So I think it is important for us to have a biofuel as we transition to the next iteration of transportation fuels.”

Listen to Vilsack’s address here.
Secy Vilsack - Climate Smart Commodities (30:30)

Audio, aviation biofuels, biofuels, Carbon, Climate Change, Ethanol, Ethanol News, USDA

Ethanol Plant-Turned-World-Class-Distiller Sells

Cindy Zimmerman

An ethanol plant that has become one of the largest producers of grain-based, high quality specialty alcohols in the country now has a new owner.

CC Industries, Inc. (“CCI”) recently announced that it has acquired CIE. Headquartered in Marion, Indiana, CIE operates a world-class, commercial-scale distillery, which serves customers from Fortune 500 spirit, food and fragrance brands to niche artisan craft distilleries. Ocean Park acted as exclusive financial advisor to CIE on the transaction. Financial terms of the transaction were not disclosed.

Originally built as an ethanol plant in 2007, it was retrofitted to produce Grain Neutral Spirits under the leadership of CEO and President Ryan Drook. The Company’s alcohols are highly sought after across various high-value end markets, including spirits, beauty and personal care, food and flavorings, medical-life sciences and other industrial uses.

CCI, a family-owned holding company based in Chicago, will maintain the current leadership and staff at the facility.

Ethanol, Ethanol News

Coalition Urges RFS Update for Sustainable Aviation Fuel

Cindy Zimmerman

Membersof the Business Aviation Coalition for Sustainable Aviation Fuel are urging the U.S. Environmental Protection Agency (EPA) to provide greater opportunities for the development of sustainable aviation fuel (SAF) under the Renewable Fuel Standard (RFS).

In a letter to EPA Administrator Michael Regan in response to a request for comments on a proposed RFS rule, the Business Aviation Coalition for Sustainable Aviation Fuel called on the agency to expand the list of eligible feedstocks, which would make new sources available for biofuels and SAF; approve new process technologies and biointermediate opportunities; and ensure that the volumes for advanced biofuels are set at levels that will allow greater supplies of those fuels.

“We hope EPA and this Administration recognize the opportunity for SAF moving forward as part of the RFS program. The growth in SAF will not happen if EPA does not responsibly improve the regulatory structure of the RFS — by finalizing biointermediates, by updating the opportunities for both feedstocks and technologies, and by increasing the RVO volumes accordingly,” the coalition wrote in its comments.

EPA should ensure that municipal solid waste and woody biomass are included in the definition of biointermediates, according to the coalition. On the volumes, the coalition asked EPA to ensure that cellulosic, non-cellulosic advanced and biomass-based diesel are set at levels that will increase the volumes of each of these fuels to help support the SAF market.

The coalition is collaborating with the administration on the “SAF Grand Challenge” and will continue its efforts to educate key government, industry, and community stakeholders on the value of SAF in achieving shared environmental goals.

advanced biofuels, aviation biofuels, EPA

Ethanol Groups Submit Comments on Proposed RVOs

Cindy Zimmerman

Ethanol organizations submitted comments to the Environmental Protection Agency Friday on its Proposed Volume Standards for 2020, 2021, and 2022 under the Renewable Fuel Standard (RFS).

The Renewable Fuels Association expressed strong support for the agency’s proposed 2022 renewable volume obligations (RVO) while opposing the proposed retroactive reduction of the previously finalized 2020 RVO requirements.

RFA President and CEO Geoff Cooper wrote that the organization is “strongly supportive of the proposed volumes for 2022 for all categories of renewable fuel,” but noted that ethanol producers are “very troubled by EPA’s questionable proposed use of its ‘reset’ authority to reopen the 2020 RVO.” According to Cooper, retroactively revising the 2020 RVO “…would set a dangerous precedent and contradict the agency’s long-held position that it does not have the authority to retroactively adjust RFS standards once finalized.”

The American Coalition for Ethanol (ACE) submitted similar comments that also urge EPA to withdraw the proposed cut for 2020 and maintain volumes realized during that year, citing the unprecedented, unnecessary, and legally dubious nature of the proposal to retroactively reduce the volumes.

Both groups express support for EPA’s plan to restore the 500 million gallons unlawfully waived in 2016 by implementing a 250-million-gallon supplemental volume remedy for 2022 and 2023.

ACE, EPA, Ethanol, Ethanol News, RFA

Clean Fuels in the Age of Decarbonization

Carrie Muehling

Biodiesel, renewable diesel and sustainable aviation fuel can work together to provide solutions for decarbonization.

A panel at the 2022 National Biodiesel Conference and Expo discussed ways the industry can begin to meet the needs of growing and expanding markets when it comes to reducing carbon. One key message was shared by Gary Louis of Seaboard Energy.

“We realize, as a food company, food is fuel. You cannot separate the two. The renewable fuels industry has brought more value to the food industry,” said Louis. “If it’s good for food, it’s good for fuel.”

Randall Stuewe of Darling Ingredient agreed.

“It’s not food versus fuel; it’s food and fuel. We can add value both from the food and the fuel side,” said Stuewe.

The panelists shared the opinion that there is plenty of feedstock for this growing and changing industry to remain viable in helping to meet the goal of reducing carbon today and in the future. Listen to the entire discussion to hear more about these opportunities and challenges.

Moderator: Matt Herman, Clean Fuels Alliance America
Speakers: Randall Stuewe, Darling Ingredient; Cynthia Warner, REG; Gary Louis, Seaboard Energy; Gene Gebolys, World Energy
NBB22 - Age of DeCarbonization Panel (51:32)

advanced biofuels, Audio, aviation biofuels, Biodiesel, Biodiesel Conference, Clean Fuels Alliance