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.

Ethanol, Ethanol News, Renewable Fuels Association, RFA, safety

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

Audio, Ethanol, Ethanol News, Renewable Fuels Association, RFA

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

ACE, ACE Ethanol Conference, Ethanol, Ethanol News

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.

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

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

Minnesota Enters Fourth Year of B20

Cindy Zimmerman

For the fourth year now, Minnesota will move to a 20 percent biodiesel blend (B20) during the summer months before reverting back to five percent biodiesel blend (B5) on Oct. 1.

“With the ongoing debate around ‘Clean Cars’ and electric vehicles, we know that biodiesel is a proven, reliable solution to address climate and energy concerns. It’s reducing carbon right here, right now,” says Minnesota Soybean Research & Promotion Council (MSR&PC) Senior Director of Product Development & Commercialization Mike Youngerberg, who’s also executive director of the Minnesota Biodiesel Council.

In 2020, using B20 in the summer and B5 in the winter has removed an estimated 1,252,967 tons of CO2 from the air. This equates to removing the emissions of nearly 246,000 passenger vehicles each year. According to the National Biodiesel Board, biodiesel Greenhouse Gas (GHG) reductions are on average 80% below petroleum diesel. Studies show biodiesel lowers particulate matter by 47%, reducing smog and improving Minnesota’s environment. Each year, cleaner-burning, renewable biodiesel displaces roughly 130 million gallons of petroleum diesel in Minnesota.

Biodiesel, NBB

Next Gen DDGs Offer New Opportunities

Cindy Zimmerman

New corn fractionation technologies at dry mills offer the potential for ethanol producers to produce specialized Dried Distillers Grains with Solubles (DDGs) for specific livestock and poultry needs, according to the National Corn Growers Association (NCGA).

As these next generation DDGs products become increasingly competitive in their nutritional composition, ethanol manufacturers have the opportunity to diversify their portfolio, plugging into newly created revenue sources. If an ethanol plant is experiencing a lull in liquid fuel demand, they could offset this loss or risk by continuing to produce specialized feed products for livestock, poultry and aquaculture producers as well as the pet food industry. This heightened level of confidence and corn demand consistency at a local ethanol plant could translate to additional dollars back on the farm.

Clark Price, a North Dakota corn grower and cattle producer, uses modified distillers in his grower and finisher diets. “Depending on the price of the product, we use it as an energy source first, which at 20-to-40 percent in the ration, provides us with all of the protein requirements also. The modified distillers also work as a ration conditioner which binds the ration together and eliminates cattle sorting as well as a rumen conditioner due to its bypass protein.”

The new corn fractionation technologies create value by separating out the various components of corn to optimize feed for animals of different species in various geographies and life stages. Producers are working with regulatory agencies to develop specifications for these next generation feed products.

corn, Distillers Grains, Ethanol, Ethanol News, livestock feed, NCGA