Renewable Fuels Part of Climate Plan

Cindy Zimmerman

Industry organizations are pleased to see renewable fuels are included in the 2030 Greenhouse Gas Pollution Reduction Target under the Paris Agreement.

The fact sheet for the plan includes “spurring research, development, demonstration, and deployment efforts that drive forward very low carbon new-generation renewable fuels for applications like aviation, and other cutting-edge transportation technologies across modes.”

Renewable Fuels Association President and CEO Geoff Cooper says ethanol can do even more. “Just since 2008, nearly 1 billion metric tons of GHG emissions have been prevented from entering the atmosphere due to the increased use of renewable fuels to meet Renewable Fuel Standard obligations. In addition, recent research by scientists affiliated with Harvard, Tufts, and MIT shows that today’s average corn ethanol is reducing GHG emissions by almost 50% compared to gasoline. And with the adoption of carbon capture and sequestration, carbon-efficient feedstock production practices, and other new technologies, corn ethanol can be a ‘net-zero,’ carbon-neutral fuel by the end of the decade.”

American Coalition for Ethanol (ACE) CEO Brian Jennings agrees. “The mention of renewable fuels is welcome in President Biden’s plan to reduce GHGs. Today’s corn ethanol is next generation or advanced biofuel based on its ability to reduce GHGs by 50 percent compared to gasoline. In fact, ethanol is the only transportation energy source that can reach net-negative carbon intensity through carbon capture and sequestration and continued advancements within ethanol facilities and on-farm practices in how biofuel crops are grown. Other countries have initiated national ethanol policies as part of their countries’ global initiatives to decarbonize transportation fuels, and U.S. biofuel producers are ready to play a larger role in meeting these targets here and around the world.”

Agriculture Secretary Vilsack said USDA’s investment in biofuels infrastructure announced on Earth Day is part of the climate plan. “Biofuels we know have a better greenhouse gas footprint than petroleum based fuels so to the extent that we can increase higher blends of biofuels that’s going to have a benefit towards climate change and towards our reduction goals.”

USDA Sec. Vilsack on biofuels role in climate 1:58

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

USDA Invests in Rural Water, Energy, and Biofuel Infrastructure

Cindy Zimmerman

In honor of Earth Day 2021, the United States Department of Agriculture (USDA) announced $487 million in critical infrastructure prioritizing climate-smart solutions and environmental stewardship. USDA is making the investments under the Water and Environmental Program, the Rural Energy for America Program, the Electric Loan Program and the Higher Blends Infrastructure Incentive Program.

USDA is investing $18.4 million in 20 states through the Higher Blends Infrastructure Incentive Program (HBIIP) to build infrastructure to help expand the availability of higher-blend renewable fuels by approximately 218 million gallons per year. This will give consumers more environmentally-friendly fuel choices when they fill-up at the pump.

Vilsack also announced this week that USDA will open enrollment in the Conservation Reserve Program (CRP) with higher payment rates, new incentives, and a more targeted focus on the program’s role in climate change mitigation.

Secretary Vilsack held a media call Thursday to discuss the actions.
USDA Secretary Tom Vilsack press call 29:23

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Ethanol Industry Supports E15 Labeling Changes

Cindy Zimmerman

Ethanol industry stakeholders filed comments this week generally supporting proposed changes to E15 fuel dispenser labeling requirements and underground storage tank regulations to accommodate the safe storage of E15 and other higher blends, with a few changes. The rule co-proposes EPA either modify the E15 label or remove the label requirement entirely; and to modify the underground storage tank (UST) regulations to make it easier for station owners to demonstrate compatibility with E15 and possibly higher ethanol blends in the future.

Renewable Fuels Association (RFA) president and CEO Geoff Cooper says they support many of the changes proposed. “EPA’s proposal would help to remove two crucial impediments that have prevented E15 from spreading more rapidly in the marketplace,” said Cooper.

In comments to the EPA, RFA Vice President of Regulatory Affairs Kelly Davis noted the trade association “believes that with a few modest revisions, the labeling modifications and UST compatibility provisions proposed by EPA will result in expanded availability and use of E15, a cleaner, more affordable fuel blend that improves our nation’s energy efficiency, air quality, energy security, and resiliency to climate change.”

RFA suggests that the E15 pump label should be modified to better reflect the increasingly small share of vehicles and equipment for which E15 is not approved. Further, RFA believes EPA should clarify that its mandatory E15 label preempts the ability of state and local governments to require duplicative and redundant E15 dispenser labels.

American Coalition for Ethanol (ACE) Senior Vice President Ron Lamberty submitted comments on behalf of the organization. “The proposed rule removes unnecessarily harsh restrictions that were put in place as a response to misinformation-based fear created by carefully crafted and heavily promoted anti-ethanol myths, which have been “busted” by more than 10 years of E15 use with retailers reporting no damage claims, and no increase in releases from UST systems,” Lamberty wrote.

The proposed rule was announced in the final days of the Trump administration.

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

RFA Safety Programs Win Award for 9th Year

Cindy Zimmerman

The Renewable Fuels Association met the challenges of 2020 and received its ninth annuaol TRANSCAER National Achievement Award for training first responders and others in ethanol emergency response safety.

“It’s a privilege to recognize the Renewable Fuels Association for their efforts in 2020,” said TRANSCAER Director Erica Bernstein. “While 2020 was unlike any year we have experienced before, it was incredible to see how quickly RFA adapted to the challenges of training during COVID. We appreciate their continued commitment to training emergency responders and supporting TRANSCAER.”

In 2020, RFA held 28 training sessions with more than 2,600 attendees. This included five train-the-trainer webinars reaching more than 580; 10 ethanol safety seminars spanning four states and training nearly 200; 13 ethanol safety webinars with over 1,600 attendees; and a two-hour, self-led online training program for more than 200.

RFA Director of Safety and Technical Programs Missy Ruff is in charge of the organization’s Ethanol Emergency Response initiative. Ruff has served on the TRANSCAER executive committee and as chair of the National TRANSCAER Task Group, and has been frequently recognized for her service, most recently winning an Individual Recognition Award from TRANSCAER for 2020.
RFA’s next round of ethanol safety programs is taking place this week – April 21, 22 and 24. Register here.

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RFA Provides Ethanol Industry Update

Cindy Zimmerman

The Renewable Fuels Association (RFA) provided an ethanol industry update on Friday, presenting a history of the Renewable Fuel Standard (RFS) and its success, how small refinery waivers have undermined production, progress on recovery after COVID, a new consumer attitudes survey, and more.

RFA President and CEO Geoff Cooper discussed the RFS in an historical context and how the biofuels industry has responded to meet the goals of the legislation, while fighting EPA in court to follow the intent of the law. “Even with these implementation challenges and all of the waivers that we have seen, the RFS has really done exactly what it was supposed to do,” said Cooper. “It has reduced imports of crude oil and petroleum products, it has added value to farm commodities and boosted farm income, it has reduced gasoline prices…and critically it has reduced greenhouse gas emissions.”

Cooper stressed the important role ethanol is already playing in carbon reduction, and its advantages over fully electric powered vehicles.
RFA Industry Update - Geoff Cooper 18:13

RFA Chief Economist Scott Richman reviewed the growth of the ethanol industry after implementation of the RFS, and the economic impact of COVID in 2020, as well as the demand destruction caused by small refinery waivers.
RFA Industry Update - Scott Richman 7:56

Troy Bredenkamp, RFA Senior Vice President, Government and Public Affairs, presented some very recent polling data regarding public perceptions of renewable fuels.
RFA Industry Update - Troy Bredenkamp 13:25

Full briefing audio:
RFA Industry Update 1:03:51

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Chippewa Valley Ethanol Celebrates 25 Years

Cindy Zimmerman

This month marks the 25th anniversary for Chippewa Valley Ethanol Company (CVEC) in Benson, Minnesota.

Since 1996, CVEC has grown to over 900 member owners and produces 50 million gallons of ethanol per year. CVEC board member Jan Lundebrek, who is also on the board of the American Coalition for Ethanol (ACE), says the investment has paid off for those who believed in it. “Ethanol is not only fuel, it’s food, it’s oil, it’s feed, dried distillers…we’ve done very well.”

ACE CEO Brian Jennings congratulated CVEC for reaching this milestone. “ACE proudly celebrates with CVEC this month as it marks 25 years of providing a valuable market for Minnesota farmers and returning value to its member owners, all the while producing low carbon fuel and a variety of other products like high-protein feed, corn oil, and industrial alcohol for the nation and the world. The leadership and staff at CVEC should be commended for helping lead the industry’s effort to ramp up production of industrial alcohol to serve the growing demand for hand sanitizers and disinfectants over the past year. We’re also grateful to have Jan Lundebrek of CVEC provide industry insight as a member on our board.”

ACE, Ethanol, Ethanol News

E15 in Court

Cindy Zimmerman

The D.C. Circuit Court heard oral arguments this week in a case brought by oil refiners challenging the Environmental Protection Agency’s 2019 rulemaking allowing the year-round sale of E15.

The Renewable Fuels Association, Growth Energy and the National Corn Growers Association argued as intervenors in support of the rule that oil refiners are seeking to block American drivers from year-round access to a more affordable, lower-carbon fuel at the pump.

Studies have repeatedly shown that the volatility of E15 is lower than that of E10. And other recent studies find that a nationwide switch from E10 to E15 would significantly reduce greenhouse gas emissions –equivalent to removing approximately 3.85 million vehicles from the road. If the refiners had their way and this rule was overturned, both volatile emissions and greenhouse gas emissions would increase. EPA’s E15 rule should be upheld because it is consistent with Congressional intent and the Clean Air Act, good for the environment, good for the rural communities that rely on a strong biofuels industry, and good for American drivers who want more options at the pump.

The Urban Air Initiative (UAI) argued before the court that EPA did not go far enough when it extended the 1 pound RVP waiver to allow year-round E15.

In court, attorneys representing UAI argued that the EPA’s interpretation of the Clean Air Act’s sub-sim provision to prohibit sale of E16-E50 blends even in flex fuel vehicles is unlawful. UAI attorneys told the court that since ethanol is now used in the certification of vehicles, the sub-sim law no longer limits the addition of ethanol in gasoline. Therefore, UAI asked the judges to reject the EPA’s limit at E15 and allow the RVP waiver for higher blends of ethanol.

Co-petitioners in this case include National Farmers Union, South Dakota Farmers Union, Farmers Union Enterprises, Jackson Express, Jump Start, Clean Fuels Development Coalition, Big River Resources, LLC, Fagen, Inc., Glacial Lakes Energy, LLC, and Little Sioux Corn Processors.

American Coalition for Ethanol (ACE) CEO Brian Jennings says, “EPA’s interpretation of the Clean Air Act holding E15 to the same gasoline volatility standards as E10 is consistent with Congressional intent and reflects the realities of today’s motor fuel market. EPA’s ruling in 2019 cut the RVP red tape allowing more retailers to add the blend to their fuel slate and offer their customers a low carbon fuel with higher octane at a lower cost.”

A ruling by the court is expected sometime this summer.

ACE, corn, E15, Ethanol, Ethanol News, Renewable Fuels Association, RFA, Urban Air Initiative

ACE 34th Conference Aims to “Accelerate” Ethanol Growth

Cindy Zimmerman

The American Coalition for Ethanol (ACE) has opened registration for its 34th annual conference August 18-20 in Minneapolis, Minnesota. The conference theme “Accelerate” will focus on the latest growth strategies and market opportunities shaping the future of the ethanol industry.

“With high hopes of gathering safely, in person, we’re looking forward to once again providing a conversational forum for our industry to network and learn about the latest developments,” said Shannon Gustafson, ACE Senior Director of Operations and Programming. “We’re putting together an agenda that covers timely topics to accelerate our industry toward a new and exciting chapter of success.”

“Despite the economic hardship COVID-19 brought to bear on ethanol producers, ACE is taking proactive steps to increase the value of and demand for ethanol, and we will showcase these initiatives during our conference,” said Brian Jennings, ACE CEO. “We encourage ethanol producers and industry members to join us in Minneapolis this summer.”

The conference includes updates from ACE leadership, as well as insight on topics like the ethanol retail marketplace, future demand opportunities, and trade developments. In addition, there will be breakout sessions with subjects covering the latest in technology updates, strategic planning advice, and ways for ethanol plants to lower their carbon score and raise their profitability.

Find out more from ACE

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Ethanol Exports Drop in February

Cindy Zimmerman

After a big start to 2021, U.S. ethanol exports took a dive in February, dropping 38% after January’s volume set a record high for the month. Renewable Fuels Association (RFA) Senior Analyst Ann Lewis shared the numbers in RFA’s latest Trade Monitor report.

Exports were 101.7 million gallons (mg), with half destined for just three countries. However, exports spiked to South Korea, up 120% (11.9 mg) to 21.8 mg. This is the largest volume imported in more than two years and was a sufficient boost to make South Korea our top market in February. Exports to Canada remained steady at 18.5 mg, while India’s imports dropped 76% (40.4 mg) to 12.8 mg. U.S. ethanol exports to other larger markets softened as well, including Brazil (7.8 mg, -55%), Nigeria (5.0 mg, -44%), Colombia (4.9 mg, -51%), the Philippines (4.9 mg, -64%), and China (4.7 mg, -79%).

RFA also reports U.S. exports of dried distillers grains were down 15% lower in February compared to January, and 9% below year-ago levels, with volumes to Mexico down a third from January to a five-month low.

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Ethanol Production is Up, Stocks are Down

Cindy Zimmerman

Ethanol production is up but stocks are down, according to the latest Energy Information Administration (EIA) data analyzed by the Renewable Fuels Association for the week ending April 2.

RFA reports that ethanol production for the week totaled 975,000 barrels/day, equivalent to 40.95 million gallons daily. Production was 45.1% above the same week last year when the effects of the pandemic were reflected but was 2.7% below the same week in 2019. The four-week average ethanol production rate increased 0.9% to 958,000 b/d, equivalent to an annualized rate of 14.69 billion gallons (bg). Ethanol stocks thinned by 2.2% to a 20-week low of 20.6 million barrels, which was 23.8% below a year-ago and 11.0% below this time in 2019. Inventories dropped across all regions except the Gulf Coast (PADD 3). Notably, West Coast (PADD 5) stocks declined to the lowest level since April 2014.

Ethanol, Ethanol News, RFA