NBB Renews Request to Meet with EPA Administrator

Cindy Zimmerman

The National Biodiesel Board sent a second request to EPA Administrator Michael Regan last week asking for a meeting to discuss the findings of a new study on the potential health benefits of using biodiesel as a transportation fuel. NBB previously requested a meeting with Regan in May.

The study from Trinity Consultants quantifies at a community level the public health benefits and resulting economic savings of using higher blends of biodiesel. The findings complement those of a new EPA report, “Climate Change and Social Vulnerability in the United States,” that details the unequal impacts of carbon and associated emissions on socially disadvantaged communities.

“We believe that our industry’s goals are consistent with your agency’s plans to address carbon and focus on environmental health,” writes Kurt Kovarik, NBB Vice President of Federal Affairs. “Replacing petroleum with drop-in alternatives like biodiesel and renewable diesel immediately reduces carbon. Additionally, biodiesel and renewable diesel reduce particulate matter and hydrocarbon emissions that contribute to cancer, lung, and heart disease rates.”

The Trinity Consultants study provides insight on one potential solution to the challenge EPA identifies in its new report. EPA’s report first identifies U.S. areas projected to experience the highest impacts of climate change, including air quality impacts on asthma rates and premature deaths. It then estimates the likelihood that socially vulnerable populations live in these areas.

“EPA’s new report highlights an important issue but does not go further to discuss solutions,” Kovarik adds. “We would like an opportunity to show Administrator Regan how biodiesel and renewable diesel can support EPA’s goals to address climate change and environmental justice issues.”

Biodiesel, EPA, NBB

Ethanol Report RFA 40th Anniversary – Randy Doyal

Cindy Zimmerman

The Renewable Fuels Association was born in 1981 and RFA is celebrating its 40th anniversary this year by spotlighting some of the pioneers in the ethanol industry who were there at the beginning, like Randy Doyal.

Doyal is CEO of Al-Corn Clean Fuel in Claremont, Minnesota and has been an RFA board member since 1995, serving as board chairman in 2015-2016. Last year, Al-Corn celebrated its billionth gallon of ethanol production.

But Doyal actually got his start in the ethanol business over 40 years ago about a thousand miles southwest of Minnesota in Portales, New Mexico.

Listen to his story in this edition of The Ethanol Report.

Ethanol Report 9-17-21 (13:15)

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

POET Pledges Carbon Neutrality by 2050

Cindy Zimmerman

Biofuel producer POET this week released its inaugural sustainability report and pledged to reduce its greenhouse gas (GHG) emissions by at least 70 percent compared to gasoline by 2030.

POET established several environmental, social and governance (ESG) goals, including investing in the latest biotechnology, advancing operational efficiencies and promoting a sustainable society through both POET’s business ventures and its philanthropic endeavors. According to a recent study, today’s bioethanol reduces carbon emissions by 46 percent compared to gasoline.

In July, members of the Renewable Fuels Association (RFA) made a commitment to ensuring ethanol achieves a net-zero carbon footprint, on average, by 2050 or sooner.

In a letter to President Biden, RFA’s board of directors wrote that today’s grain-based ethanol is already a low-carbon fuel that is helping to clean up our nation’s transportation fuels. But with smart policy measures, ethanol can do even more. It can serve as an affordable zero-emissions fuel for light-duty cars and trucks, while also helping to decarbonize medium- and heavy-duty vehicles, aviation, marine, and stationary power generation.”

To support the achievement of its goals, RFA encouraged the administration to move forward with several key policy initiatives: development of a national Clean Fuel Standard, support for carbon capture, utilization and sequestration (CCUS) technologies, and deployment of more flex-fuel vehicles.

Ethanol, Ethanol News, POET, Sustainability

RFA Analysis: RINS Have No Impact on Gas Prices

Cindy Zimmerman

A new analysis from the Renewable Fuels Association finds the Renewable Fuel Standard’s compliance credit market mechanism, known as Renewable Identification Numbers (RINs), has no impact on retail gasoline prices. The analysis finds that while RINs are a factor in wholesale gasoline prices, there is no evidence that RIN costs have any measurable effect on the retail prices paid by consumers.

RFA Chief Economist Scott Richman found that, not surprisingly, the main driver of recent higher retail gas prices is higher crude oil prices. He calculates that retail gasoline prices have had a correlation of 0.96 with West Texas Intermediate crude oil prices on a monthly basis from January 2013 to July 2021 (with 1.00 representing a perfect correlation and 0.00 representing no correlation whatsoever). Meanwhile, there has been essentially zero correlation (-0.05) between gasoline prices and the prices of RINs. The new analysis is consistent with similar studies conducted by Informa in 2015 and 2017.

“Higher gasoline prices this summer were caused primarily by OPEC+ oil production cutbacks and an increase in gasoline demand,” writes Richman. “Additionally, supply issues such as the Colonial Pipeline shutdown and refinery closures due to Hurricane Ida accentuated price pressures at times. RINs are a convenient target for accusations since they are not widely understood, but as the analysis confirms, RINs do not contribute to higher retail gasoline prices.”

Read more about the analysis from RFA.

Ethanol, Ethanol News, Renewable Fuels Association, RFA, RFS, RINS

Biofuels Offer Benefits for California’s Carbon-Neutral Future

Cindy Zimmerman

In comments submitted last week to the California Air Resources Board (CARB), a group of ag and biofuel organizations and companies highlighted how renewable fuels like ethanol can help the state achieve its goal of reaching carbon neutrality by 2045 or sooner. CARB is seeking input as part of updating its Scoping Plan which lays out the path toward achieving the state’s carbon reduction targets.

The comments were signed by leadership of the Renewable Fuels Association, Growth Energy, National Corn Growers Association, Aemetis Inc., Alto Ingredients Inc., Calgren Renewable Fuels, Pearson Fuels, Propel, POET and RPMG. Their comments spotlight recent state-funded research that indicates pathways to carbon neutrality through greater reliance on renewable fuels like low-carbon ethanol.

Reminding CARB that ethanol has already cut more than 26 million metric tons of carbon in California with a weighted average carbon intensity 46% lower than gasoline, the group recommended first that the board expedite the approval of E15 as a legal fuel in California. This action alone has the potential for an immediate 50% increase in GHG reductions from ethanol in the existing light-duty fleet.

Second, the group recommended the state consider requiring internal combustion engine light-duty vehicles sold in California be flex-fuel vehicles beginning in model year 2024. This requirement would put more vehicles on the road capable of maximizing GHG reductions comparable to battery electric vehicles through use of higher biofuel blends, which emit fewer toxic tailpipe emissions.

Finally, they urged that the Low Carbon Fuel Standard program be extended beyond 2030 in a form that is consistent with the state’s carbon neutrality goals. Specifically, the program should incorporate crediting for agricultural soil carbon sequestration, given the significant opportunity for GHG reductions with appropriate incentives and accounting.

“Ethanol in a wide range of blend levels above today’s typical 10% blend represents an immediate, mid-term and long-term opportunity for California to maximize GHG reductions, while providing affordable fuel to consumers and encouraging new economic development and job growth in the state.”

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

Sustainable Aviation Fuels Plan Flaw Could Hurt Farmers

Cindy Zimmerman

In the rush to get as much spending in the massive Build Back Better bill as possible, Congressional Democrats created a new tax credit for sustainable aviation fuel (SAF) starting at $1.25 a gallon and increasing based on the carbon content of the biofuel, but the plan could favor foreign imports over American farmers and biofuel producers in its current form.

America’s top biofuel and farm advocates are asking Democratic leaders to fix a “major flaw” in the House Ways & Means Committee text released Friday night for tax provisions of the budget reconciliation, which is set for consideration Tuesday.

Despite farm-friendly promises as recently as Thursday from White House leaders, the legislation under consideration would rely on foreign standards based on decade-old models, rather than updated lifecycling modeling by scientists at the Department of Energy who study the U.S. agricultural supply chain, including both direct and indirect land use.

“Without a change in these three bills before the House of Representatives, U.S. biofuel producers will not be able to participate in the SAF market, rural communities will be locked out from contributing to a cleaner climate, and our nation’s ability to decarbonize the airline fleet will suffer,” said the Renewable Fuels Association, Advanced Biofuels Business Council, American Farm Bureau Federation, American Soybean Association, Growth Energy, National Biodiesel Board, National Corn Growers Association, National Farmers Union, and the National Sorghum Producers in a letter Sunday.

USDA joined the government-wide Sustainable Aviation Fuels (SAF) Grand Challenge to meet 100% of U.S. aviation fuel demand by 2050 announced during a White House roundtable on Thursday.

Under the plan, USDA will “support U.S. farmers with climate-smart agriculture practices and research, including biomass feedstock genetic development, sustainable crop and forest management at scale, and post-harvest supply chain logistics. USDA will also support fuel producers with carbon modeling components of aviation biofuel feedstocks.”

USDA will work to ensure farmers, foresters, small businesses and rural economies benefit from these opportunities with attention to cost, quality and quantity of agricultural-based feedstock for producing SAF. The Department will conduct research to support biomass feedstock genetic development, sustainable crop and forest management, and post-harvest supply chain logistics such as through transportation, storage, preprocessing and regional supply chain integration, optimization and greenhouse gas reductions.

advanced biofuels, AFBF, Biodiesel, biofuels, corn, Ethanol, Ethanol News, NFU, Renewable Fuels Association, RFA, USDA

Biodiesel Tax Credit Extension in Build Back Better Bill

Cindy Zimmerman

The National Biodiesel Board is pleased the House Ways & Means Committee include a proposed extension through 2031 of the biodiesel and renewable diesel blenders tax credit in the Build Back Better Act.

“Biodiesel and renewable diesel are clean, low-carbon fuels that are widely available today to achieve the carbon reductions Congress is seeking. These fuels are 74% less carbon intensive than petroleum diesel on average and have prevented more than 140 million tons of carbon emissions since 2010. Moreover, they substantially cut emissions of particulate matter that impact cancer rates, asthma and other respiratory diseases, which can lower associated healthcare costs,” said Kurt Kovarik, NBB Vice President of Federal Affairs. “The biodiesel tax credit continues to be extremely successful in expanding consumer access to these clean, low-carbon fuels while driving economic growth and job creation. NBB and its members sincerely thank Representative Axne and Senator Cantwell along with other champions for ensuring the credit is included in this legislation.”

Biodiesel, biofuels, NBB, renewable diesel

Biofuel Infrastructure in Build Back Better Bill

Cindy Zimmerman

Biodiesel and ethanol producer organizations are pleased that both the House and Senate Agriculture Committees have included infrastructure funding for higher ethanol blends into their drafts for the Build Back Better Act budget reconciliation package.

Specifically, the new bill language provides for $960 million to install, retrofit, or otherwise upgrade fuel dispensers or pumps and related equipment, storage tank system components, and other infrastructure required to ensure the availability of fuel containing greater than 10 percent ethanol and fuel containing greater than 20 percent biodiesel.

Renewable Fuels Association President and CEO Geoff Cooper thanked Senate Ag Committee Chairwoman Debbie Stabenow and House Ag Committee Chairman David Scott for their support. “They understand the critical role that low-carbon ethanol will continue to play in efforts to combat climate change. RFA’s members have pledged to reach net-zero greenhouse gas emissions by 2050 or sooner, and building out the infrastructure to distribute higher ethanol blends is an important part of reaching that goal.”

American Coalition for Ethanol (ACE) CEO Brian Jennings said this is a historic provision for biofuels. “ACE members appreciate the tenacity of members of Congress like Sen. Amy Klobuchar and Reps. Cindy Axne and Angie Craig who helped secure nearly $1 billion for biofuels infrastructure funding in the reconciliation bill, representing a historic level of support if it becomes law.”

“Expanding consumer access to low-carbon biodiesel and Bioheat® fuel through infrastructure grants can generate immediate health care benefits and savings for many communities at a very low-cost,” said National Biodiesel Board Vice President of Federal Affairs Kurt Kovarik.

To date, USDA has provided $23.2 million in grants to share costs with 24 projects that support more than 900 million gallons of biodiesel. The increased use of biodiesel through those projects will cut carbon emissions by more than 8.5 million metric tons, at a cost of less than $2.75 per ton.

ACE, Biodiesel, Ethanol, Ethanol News, NBB, Renewable Fuels Association, RFA

USDA Projects Higher Corn and Soybean Production

Cindy Zimmerman

Corn and soybean production are both forecast to be higher this year compared to 2020, according to the latest Crop Production report issued Friday by USDA’s National Agricultural Statistics Service (NASS).

According to the report, corn production is up 6% from last year, forecast at 15.0 billion bushels while soybean growers are expected to increase their production 6% from 2020.

The average U.S. corn yield is forecast at 176.3 bushels per acre, up 1.7 bushels from last month’s forecast and up 4.3 bushels from last year. NASS forecasts record high yields in California, Illinois, Indiana, Kentucky, Michigan, New York, North Carolina, Ohio, Oklahoma, and Pennsylvania. Acres planted to corn, at 93.3 million, are up 3% from 2020. Area to be harvested for grain is forecast at 85.1 million acres, up 1% from last month and 3% more than was harvested last year. As of Aug. 29, 60% of this year’s corn crop was reported in good or excellent condition, 2 percentage points below the same time last year.

Area for soybean harvest is forecast at 86.4 million acres, down less than 1% from last month but 5% more than was harvested last year. Planted area for the nation, estimated at 87.2 million acres, is up 5% from last year. Soybean yields are expected to average 50.6 bushels per acre, up 0.6 bushel from last month’s forecast and up 0.4 bushel from 2020. If realized, the forecasted yields in Illinois, Indiana, Kentucky, Maryland, Mississippi, Missouri, New York, Ohio, Pennsylvania, and Virginia will be record high.

The September World Agricultural Supply and Demand Estimates was also released on Friday showing the 2021/22 U.S. corn outlook is for larger supplies, increased feed and residual use, greater exports, and higher ending stocks. Projected beginning stocks for 2021/22 are 70 million bushels higher based on a lower use forecast for 2020/21, with reductions in corn used for ethanol and exports. U.S. soybean supply and use changes for 2021/22 include higher beginning stocks, production, exports, ending stocks, and lower crush.

Biodiesel, corn, Ethanol, Ethanol News, Soybeans, USDA

White House Holds Roundtable on Sustainable Aviation Fuels

Cindy Zimmerman

Biofuel industry leaders and officials from the Biden Administration met virtually for a White House roundtable discussion on the future of sustainable aviation fuels Thursday. In conjunction with the event, the White House announced a goal to achieve 3 billion gallons of SAF production and reduce aviation-related emissions by 20 percent by 2030.

Renewable Fuels Association President and CEO Geoff Cooper participated in the event, sharing RFA’s view that SAF production presents a major new market opportunity for ethanol producers, as the lifecycle carbon footprint of ethanol continues to shrink and the economics of ethanol-to-jet fuel processes continue to improve. He also highlighted a recent letter from RFA member companies to President Biden, in which they pledged that the ethanol they produce will achieve an average GHG reduction of 70% compared to petroleum by 2030 and a net-zero emission carbon footprint by 2050 or sooner.

“Ethanol has a decades-long proven track record for reducing greenhouse gas emissions from motor vehicles, and we are confident that ethanol will play a central role in cleaning up aviation fuels as well,” said Cooper. “Today’s average corn ethanol already cuts GHG emissions in half compared to petroleum, and some readily available sources of ethanol in the market have been certified by the California Air Resources Board as providing a 70-80% GHG reduction.”

aviation biofuels, biofuels, Ethanol, Ethanol News, Renewable Fuels Association, RFA