Kansas City Gets Approval for Year Round E15

Cindy Zimmerman

The Environmental Protection Agency (EPA) has announced the approval of the removal of the low Reid Vapor Pressure (RVP) gasoline requirements in the Kansas City metro area, which allows for E15 fuel to be sold in the area year-round.

The Kansas Corn Growers Association (KCGA) and Missouri Corn Growers Association (MCGA) welcomed the news after working with government agencies in both states on modeling studies that showed no ozone exceedances are expected to occur in the area due to E15 use.

American Coalition for Ethanol (ACE) Senior Vice President and Market Development Director Ron Lamberty says this is good news for consumers and retailers in the KC metro area. “Right now, low ethanol prices and high RIN credit values make E15 the lowest cost gasoline at the rack, and whether they sell it as UnleadedE15, Unleaded88, or something else, retailers can offer the lowest price on the street and still earn some extra margin.”

Lamberty says it’s very likely most retailer’s current equipment is compatible with E15 and if EPA’s recent proposed E15 labeling and underground storage tank compatibility rule is finalized, it will be even easier for station owners to prove this to be true.

EPA’s proposed rule references ACE’s Flex Check E15 compatibility tool as a place station owners can get an idea how compatible their station might be.

ACE, E15, EPA, Ethanol, Ethanol News

RFA Opposes Proposal to Extend RFS Deadlines

Cindy Zimmerman

The Renewable Fuels Association submitted comments this week to oppose an EPA proposal to extend the deadlines for demonstrating compliance with the Renewable Fuel Standard for 2019 and 2020.

“This proposal is unnecessary, and the timelines are excessive,” wrote RFA President and CEO Geoff Cooper. “All that the extensions would do is to compound problems that the EPA itself created under the last administration: the massive and unjustified increase in small refinery exemptions and the failure to finalize the 2021 renewable volume obligations by the statutory deadline.”

Cooper pointed out that it is reasonable to assume refiners and other obligated parties were already preparing to meet the March 31 regulatory compliance deadline when the EPA’s proposal was issued in January. Those refiners that did not prepare for compliance should not be rewarded for their bad behavior, Cooper said.

The RFA called on the EPA to reject the proposed extensions and re-establish integrity in its implementation of the RFS.

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

Broad Coalition Supports MN Clean Fuels Standard

Cindy Zimmerman

A broad coalition representing automakers, biofuel producers, farmers, electric vehicles, and conservation advocates is endorsing new legislation that would implement a clean fuels standard statewide in Minnesota, which would be the first for a Midwestern state. The American Coalition for Ethanol (ACE) and the Renewable Fuels Association (RFA) are both members of the coalition, which is facilitated by the Great Plains Institute.

The 25-member Minnesota Future Fuels Coalition is throwing its support behind the Future Fuels Act, which would direct the Commissioner of the Minnesota Department of Commerce with developing a rule to implement a clean fuels standard at the state level to achieve a 20 percent reduction in carbon intensity for all transportation fuel supplied in the state by the end of 2035.

The lead authors of the legislation are Minnesota House of Representatives Assistant Majority Leader Todd Lippert (DFL) and Senate Energy and Utilities Finance and Policy Committee Chairman David Senjem (R). The MN House Climate and Energy Finance and Policy Committee held a virtual hearing on Thursday to hear comments on the bill.

“Minnesota is behind schedule in achieving bipartisan transportation greenhouse gas reduction and clean fuel adoption goals and we believe that a clean fuels policy, such as the proposed Future Fuels Act, can help get the state back on track,” said Brendan Jordan, vice president for transportation and fuels at the Great Plains Institute during the hearing.

The Future Fuels Act requires reductions in transportation greenhouse gas emissions but is technology and fuel neutral and rewards a fuel’s greenhouse gas reduction based on actual performance. It would establish a process for evaluating the lifecycle greenhouse gas emissions from any transportation fuel and allow transportation fuel providers to compete in offering lower carbon fuels at lower cost.

Listen to comments from coalition representatives during Thursday’s hearing, beginning with an introduction of the legislation from Rep. Lippert.
MN House committee hearing on Future Fuels Act (23:45)

ACE, Audio, Biodiesel, biofuels, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Michael Regan Confirmed as EPA Administrator

Cindy Zimmerman

Michael Regan has officially been confirmed as Administrator of the U.S. Environmental Protection Agency with a 66-34 vote Wednesday by the U.S. Senate. Regan comes to EPA after serving as Secretary of the North Carolina Department of Environmental Quality.

During his confirmation hearing, Regan emphasized that the “RFS is definitely a priority for this administration.” U.S. biofuels organizations are thrilled with his confirmation.

Renewable Fuels Association President and CEO Geoff Cooper said, “In his previous position, Mr. Regan built a strong track record of listening to all stakeholders to find practical, science-based solutions to the environmental issues impacting the people of North Carolina. We welcome a similar approach to problem-solving as he takes the helm at EPA, and we appreciate the outreach he has already conducted to renewable fuel stakeholders.”

American Coalition for Ethanol (ACE) CEO Brian Jennings said they look forward to working with Regan “to address the long to-do list he inherits with respect to the RFS, including reining-in Small Refinery Exemptions, restoring 500 million gallons remanded to EPA by the D.C. Circuit Court from the 2017 Americans for Clean Energy Inc. decision, and promptly moving forward on the 2021 and 2022 Renewable Volume Obligations.”

National Biodiesel Board (NBB) Vice President of Federal Affairs Kurt Kovarik added, “The Renewable Fuel Standard is a vital supportive policy for U.S. biodiesel and renewable diesel producers. Every year, these fuels meet more than 90 percent of the RFS’s goals for advanced biofuel production and use, achieving measurable reductions in transportation sector carbon emissions. As our industry pursues a vision to sustainably increase production over the next decade and support emergence of sustainable aviation and marine fuels, we look forward to working with Administrator Michael Regan.”

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

Dakota Ethanol Surpasses One Billion Gallons

Cindy Zimmerman

Dakota Ethanol has surpassed one billion gallons of ethanol production at its 90 million-gallon-per-year facility in Wentworth, South Dakota.

Dakota Ethanol began production in September 2001 with a nameplate capacity of 40 MGY by its parent company Lake Area Corn Processors, with a membership of over 1,000 local farmers, investors, and community members. The expansion to running at a 90-million-gallon rate has allowed for improved operational efficiencies, which have been important in improving the plant’s carbon intensity (CI) score. The plant continues to focus on operational efficiencies to reduce costs and improve CI revenues the plant receives from shipping its ethanol to low carbon markets in the western U.S.

“I’m proud of how Dakota Ethanol has been able to utilize and monetize its lower-than-average CI through plant efficiencies,” said Ron Alverson, a Dakota Ethanol board member and former president of the American Coalition for Ethanol. “There’s more opportunities ahead for the plant to further reduce its CI, including proving our area growers produce corn more efficiently than the default CI the marketplace currently assigns to raising a bushel of corn. I have no doubt many producers can achieve zero carbon ethanol in the future if properly accredited for their contributions to decreasing lifecycle greenhouse gases.”

Dakota Ethanol produces 90 million gallons of ethanol from 30 million bushels of locally grown corn each year. The plant employs 45 full-time individuals, many who have been with the company since startup.

ACE, Ethanol, Ethanol News

Fuel Ethanol Workshop Moves to Des Moines

Cindy Zimmerman

The 37th International Fuel Ethanol Workshop & Expo will now be held in Des Moines, Iowa, July 13-15.

The event, which is scheduled to be in person, was originally planned for Minneapolis. Last year, FEW was delayed until September due to the pandemic and was ultimately a virtual event.

Ethanol, Ethanol News, FEW

Nebraska E30 Demonstration Study Released

Cindy Zimmerman

Nebraska Gov. Pete Ricketts and the Nebraska Ethanol Board released the details of a new study on higher ethanol blends on Monday.

The E30 Demonstration was conducted by the University of Nebraska-Lincoln Engineering Department. The yearlong demonstration involved 50 non-flex fuel vehicles (non-FFVs) from the State of Nebraska to determine adaptability, economic feasibility, and environmental impact of using E30. Twenty-six vehicles were fueled by E15, and 24 were fueled by E30.

Gov. Ricketts discussed the project during his Monday morning press briefing and introduced Nebraska Ethanol Board Executive Director Roger Berry and UNL research lead Rajib Saha.

Nebraska Gov. Ricketts E30 Demo press conference (10:57)

Audio, Ethanol, Ethanol News

Vilsack Sees Future for Renewable Fuels

Cindy Zimmerman

U.S. Secretary of Agriculture Tom VilsackU.S. Secretary of Agriculture Tom Vilsack sees a continued need for biofuels in the future.

“Most of you will still be around 20 or 30 years from now and I think you’re still going to have a need for and a higher demand for renewable fuels,” said Vilsack in a virtual appearance concluding the 2021 Commodity Classic Special Edition last week. “The reality is, this industry is going to be around for quite some time.”

The secretary said USDA will continue to support the Renewable Fuel Standard (RFS) and work with the Environmental Protection Agency and Congress to maintain its integrity going forward.

Listen to Secretary Vilsack’s full comments on renewable fuels.
Secy Vilsack comments on renewable fuels (4:04)

Hear the secretary’s full remarks from the Commodity Classic closing session moderated by NAFB president Gale Cunningham:
2021 Classic - Secretary Vilsack (48:53)

If you missed it last week, you can still register by March 12 and watch more than 50 archived sessions on-demand until April 30, 2021.

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

U.S. Ethanol Exports Hit a Record-High January

Cindy Zimmerman

China and India helped ethanol exports accelerate in January to hit a record high for the month, according to Renewable Fuels Association analyst Ann Lewis.

American shippers rallied at the start of the year with ethanol exports surging 48% ahead of December volumes to 164.6 million gallons (mg). This marks a record-high for January exports. Three-quarters of shipments were destined for just five countries, with spikes in purchases by India and China sufficient to supplant Canada as our largest customers. India imported nearly ten times its December offtake, buying a record 53.2 mg. China boosted its imports by 81% to 22.7 mg—more U.S. ethanol imported by the country than in 2020 alone and its largest draw since Feb. 2018.

January was the first time in eight months that the U.S. had no ethanol imports.

U.S. exports of dried distillers grains (DDGS) also increased in January, up 9% from December but still 6% below year-ago levels. U.S. DDGS exports to Mexico perked up 18% to a ten-month high but shipments slowed to South Korea, Indonesia, and Vietnam.

Distillers Grains, Ethanol, Ethanol News, Exports

US Ethanol Groups Support Canada Clean Fuel Reg

Cindy Zimmerman

The Renewable Fuels Association (RFA), U.S. Grains Council and Growth Energy submitted joint comments regarding Canada’s proposed Clean Fuel Regulation.

“The proposed regulation takes a market-based approach to driving carbon reductions in the Canadian fuels market, providing an attractive model for other countries to follow,” the organizations said. “Canada should be applauded for showing global leadership on the implementation of a clean fuel standard, and it is encouraging to see both the United States and Canada taking steps to slash greenhouse gas emissions from transportation. Renewable fuels have already played a crucial role in jump-starting decarbonization efforts in both countries, and policy initiatives like Canada’s clean fuel standard will further accelerate those efforts.”

In separate comments filed by RFA, Vice President for Regulatory Affairs Kelly Davis stressed support for Canada’s technology-neutral approach to reducing carbon-based emissions and the important role ethanol can play. “Ethanol is already reducing climate change emissions from the transportation sector and there is room for more growth,” wrote Davis. “RFA believes that renewable fuel, especially ethanol, can further decarbonize passenger cars and light-duty trucks today. Promising research and development initiatives show ethanol can also power medium-duty and heavy-duty engines in the future as well.”

RFA also reiterated the call for more information on Canada’s proposed lifecycle analysis model and for Canada to consider reciprocity, or an efficient conversion process for the ability to use other LCA models currently utilized in other jurisdictions.

Ethanol, Ethanol News, Renewable Fuels Association, RFA