House Biofuels Caucus Announces Two New Bills

Cindy Zimmerman

The co-chairs of the House Biofuels Caucus have introduced two new pieces of legislation to increase access to biofuels and to fully recognize the environmental benefits.

Rep. Cindy Axne (D-IA) and Rep. Rodney Davis (R-IL) introduced the Renewable Fuels Infrastructure Investment and Market Expansion Act, which would expand access to higher blends of biofuels. Rep. Dusty Johnson (R-SD) was the lead sponsor of the Adopt GREET Act, which will direct the Environmental Protection Agency (EPA) to update its greenhouse gas modeling for ethanol and biodiesel.

The Renewable Fuel Infrastructure Investment and Market Expansion Act would authorize $500 million over 5 years for infrastructure grants for fuel retailers and direct the EPA Administrator to finalize a proposed rule to repeal E15 labeling requirements warning drivers about E15’s potential impact on cars, which may confuse and deter drivers from using E15, a blend of gasoline with 15 percent ethanol. The bill would also direct the EPA Administrator to finalize provisions from the same proposed rule to allow certain existing Underground Storage Tanks (UST) to store higher blends of ethanol.

The Adopt GREET Act would require the EPA to update its greenhouse gas modeling for ethanol and biodiesel by requiring the EPA to adopt the Argonne National Lab’s Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) Model for both fuels. EPA would then be required to update its modeling every five years or report to Congress to affirm its modeling is current or otherwise explain why no updates were made.

Both bills are backed by the ethanol industry.

Biodiesel, biofuels, Ethanol, Ethanol News

ACE Opens Scholarship Program, Recognizes 2020 Winners

Cindy Zimmerman

As the American Coalition for Ethanol (ACE) Scholarship Program opens for 2021-2022 academic year applications, the organization congratulates the 2020 scholarship recipients who each received a $1,000 scholarship through the program to help further their education.

Kaelyn Drury is from Blue Hill, Nebraska, and is attending the University of Nebraska-Lincoln in Lincoln, Nebraska, where she studies Nutrition Science. Kaelyn is the daughter of Terry and Penny Drury. Her father is affiliated with ACE ethanol producer member Chief Ethanol Fuels with plants in Hastings and Lexington, Nebraska.
Cassidy Frericks is from Ashton, South Dakota, and is pursuing a degree in Corporate Communication at Black Hills State University in Spearfish, South Dakota. Cassidy is the daughter of Stacey and Anne Frericks. Her father Stacey is affiliated with ACE ethanol producer member Redfield Energy in Redfield, South Dakota.
Matthew Sperry is from Bath, South Dakota, and is pursuing a degree in Precision Ag and Agronomy at South Dakota State University in Brookings, South Dakota. Matthew is the son of Scott and Kathy Sperry. His father is affiliated with ACE associate member South Dakota Corn Growers Association.

The ACE Scholarship Program was initiated in 2004, awarding $59,000 so far. Scholarships are available to employees and dependents of employees and shareholders of ACE ethanol producer, voting and associate member companies and organizations. For a copy of the 2021 scholarship application, or to make a financial contribution to the program, contact Shannon Gustafson or Nick Fosheim at the ACE office.

ACE, Education, Ethanol, Ethanol News

CLEAN Future Act Includes RFS Provisions

Cindy Zimmerman

Leaders of the House Energy and Commerce Committee Tuesday introduced the Climate Leadership and Environmental Action for our Nation’s (CLEAN) Future Act, intended to achieve net zero greenhouse gas pollution by 2050.

The Renewable Fuels Association welcomed the inclusion of certain provisions in the legislature that would help bring more transparency and integrity to EPA’s implementation of the Renewable Fuel Standard. Those provisions include requirements that EPA take more expeditious action to approve new renewable fuel pathways under the RFS, set reasonable deadlines for the submission of any small refinery waiver petitions, and ensure more transparency in the refinery waiver petition process.

RFA President and CEO Geoff Cooper said they will continue to work with the committee to promote the climate and environmental justice benefits that renewable fuels bring to the table. “In particular, we are eager to discuss the importance of fuel- and vehicle-neutral carbon performance standards that can aggressively and immediately reduce GHG emissions from the transportation sector,” said Cooper.

Environment, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Vilsack Stresses Importance of Strong RFS

Cindy Zimmerman

Secretary of Agriculture Tom Vilsack started his first full week of work Monday addressing the National Farmers Union’s virtual convention, the first of many appearances he will likely be making to agricultural organizations. As secretary under the Obama Administration for eight years, Vilsack made an effort to attend as many agriculture and biofuel related events as possible each year.

Secretary Vilsack addressed several important issues in his remarks, including “new, more, fairer and better markets.”

“More markets means making sure we have a Renewable Fuel Standard that is enforced and recognized and respected by the administration,” said Vilsack. “I’m pleased to see EPA’s recent announcement relative to waivers. We’re not going to see the kind of liberal use of waivers that were granted in the previous administration.”

USDA Secretary Vilsack addresses NFU convention 13:08

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

UK Embraces 10 Percent Ethanol Petrol

Cindy Zimmerman

“Motorists across the UK are set to shift to a greener fuel with the introduction of E10 at petrol stations in September 2021,” announced a February 25 GOV.UK press release.

That announcement is very welcome news to ethanol producers in the United States, according to a joint statement from Renewable Fuels Association, Growth Energy and the U.S. Grains Council. “The United Kingdom’s introduction of an E10 ethanol blend comes amid a global push to decarbonize the transportation sector and reduce greenhouse gas emissions. This is a welcome announcement that will benefit the health of U.K. residents, create more jobs, and accelerate the country’s goal of a zero-emissions future. It is also another example of how biofuels like ethanol are being used to help countries achieve their climate targets.”

Transportation fuel in the UK currently has either no ethanol or up to five percent, known as E5. UK Transport Secretary Grant Shapps says, “the small switch to E10 petrol will help drivers across the country reduce the environmental impact of every journey, as we build back greener.”

The UK government included an informational video about the benefits of E10 in its formal announcement.


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Year End EIA Data Show Ethanol Volume Declines

Cindy Zimmerman

The Renewable Fuels Association reports year-end data from the Energy Information Administration (EIA) show both the impact of the COVID-19 pandemic and the resilience of the ethanol industry.

U.S. ethanol production fell to 13.93 billion gallons last year, down 1.85 bg, or 11.7%, from 2019. It was the lowest production level since 2013. The data indicate that domestic ethanol consumption was 12.63 bg (13.2% below the 2019 level and the lowest since 2009). Gasoline consumption in the United States totaled 123.49 bg, down 13.5%.

The implied ethanol blend rate—the average content of ethanol in gasoline—rose slightly to a record 10.23%. On a monthly basis, the blend rate slumped to 9.05% in April as petroleum prices plummeted and the price of renewable identification numbers (RINs) remained subdued after more than two years in which large-scale exemptions from the Renewable Fuel Standard had been granted to refiners. However, by November and December, the blend rate rose to record highs of 10.78% and 10.81%, respectively, as petroleum prices rebounded and RIN prices began strengthening after the election and no further refinery exemptions had been granted during the year.

RFA President and CEO Geoff Cooper also notes ethanol exports were relatively buoyant, “especially when export barriers and the impact of the pandemic on global fuel consumption are considered.”

The EIA estimated fuel ethanol exports at 1.34 bg, a decline of 8.5%. Exports were fairly strong to start the year but then were affected by a combination of trade barriers and pandemic-related declines in fuel consumption in key markets.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Glacial Lakes Energy Joins Carbon Capture Project

Cindy Zimmerman

Glacial Lakes Energy (GLE) of South Dakota has joined the partnership with Summit Carbon Solutions to make a clean energy source even more environmentally friendly.

Last week, Summit announced a carbon capture project that will result in an annual reduction of 10 million tons of carbon dioxide or the carbon footprint equivalent of 2 million autos. Glacial Lakes Energy has signed an offtake agreement with Summit to supply the carbon dioxide at its plants located in Huron, Aberdeen, Mina, and Watertown. This partnership will allow over 1.6 million tons of carbon dioxide to be captured, transported, and deposited deep underground through Summit’s transportation and storage platform which originates in Iowa and concludes in North Dakota. Capturing and storing carbon dioxide is viewed as a necessity toward lowering greenhouse gases and fighting climate change.

Glacial Lakes Energy four ethanol biorefineries in Watertown, Huron, Aberdeen, and Mina.

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Secretary Vilsack Back at USDA

Cindy Zimmerman

Former Secretary of Agriculture Tom Vilsack became current secretary under the Biden Administration this week, returning to the job he held for eight years under President Obama. Secretary Vilsack was confirmed by the Senate on Tuesday, sworn in virtually by Vice President Harris on Wednesday, and held his first press call with reporters Thursday morning.

The first issue Vilsack addressed was the priority of the Biden Administration to beat COVID-19, which is taking a higher toll on rural areas. He announced that USDA is investing $42.3 million to help rural residents gain access to health care and educational opportunities. The investments include $24 million provided through the CARES Act and will benefit five million rural residents.

“Rural areas are seeing higher infection and death rates related to COVID-19 due to several factors, including a much higher percentage of underlying conditions, difficulty accessing medical care, and lack of health insurance,” said Vilsack. “With health care and education increasingly moving to online platforms, the time is now to make historic investments in rural America to improve quality of life for decades to come.”

Vilsack said it is a different USDA that he will be leading, compared to the department he left in 2016, mainly due to COVID. He is still in Iowa and says most others in the department will continue to work remotely for now with only about 350 people at work in the building in Washington DC.

USDA Secretary Vilsack press call 42:33

Audio, USDA

Frigid Weather Takes Toll on Ethanol Production

Cindy Zimmerman

Ethanol production took a dive last week along with the temperatures as the polar vortex that hit most of the country led to electricity outages, major disruptions in the natural gas market, and transportation issues.

According to EIA data analyzed by the Renewable Fuels Association, ethanol production plummeted 27.8%, or 253,000 barrels per day (b/d), to 658,000 b/d—equivalent to 27.64 million gallons daily and the lowest output since May 8, 2020. This was the largest week-over-week drop on record. Production remained 37.6% below the same week last year. The four-week average ethanol production rate fell 7.4% to 860,000 b/d, equivalent to an annualized rate of 13.18 billion gallons (bg).

Ethanol stocks sank 6.2% to an 11-week low of 22.8 million barrels, which was 7.8% below a year-ago. Inventories drew down across all regions, including a sizable decrease (down 1.05 million barrels) in the Midwest (PADD 2).

As the National Ethanol Conference got underway last Tuesday, RFA President and CEO Geoff Cooper had already heard from ethanol producers who were being impacted by the weather who ultimately had to reduce output rates by 40% or fully idle. “With much warmer weather this week, the natural gas and electricity mess is beginning to untangle itself, but it may be another week or so before the industry returns to pre-vortex operations.”

Listen to Cooper’s comments on how the weather was impacting plants last week.
RFA CEO Geoff Cooper - cold weather impact on ethanol production 1:31

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Renewable Fuels Nebraska Names Interim Director

Cindy Zimmerman

The board of Renewable Fuels Nebraska (RFN) has named Pam Miller interim executive director, effective earlier this month.

Pam has been involved in the ethanol industry since 2004. At that time, she was an elected official, serving as a county commissioner in Northeast Nebraska. As such, she created the Dakota County Economic Development Committee. A thorough SWOT analysis of the county led to the genesis of Siouxland Ethanol as an economic development project. Pam became one of the original founders of Siouxland Ethanol, wrote the business plan for the company, and became passionate about the value-added benefits of this clean source of octane. Siouxland Ethanol began as a 50 million gallon dry mill ethanol plant in Jackson, Neb., in 2007 and has expanded to producing more than 90 million gallons of ethanol a year.

Miller has also served on the boards of the Renewable Fuels Association, American Coalition for Ethanol, and Renewable Fuels Nebraska. As interim executive director for RFN, Miller replaces Troy Bredenkamp, who recently joined the RFA as Senior Vice President for Government and Public Affairs in Washington DC.

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