Trade Groups Urge EPA to Meet 2026 RFS Volumes Deadline

Cindy Zimmerman

Clean Fuels Alliance America and other trade associations representing feedstock providers, advanced biofuel producers, and low-carbon fuel customers are urging the Environmental Protection Agency to propose and finalize 2026 Renewable Fuel Standard volumes by this November’s statutory deadline.

In a letter to EPA Administrator Michael Regan, the nine organizations highlighted the dramatic drop in the value of RFS compliance credits (or RINs) in response to EPA’s unreasonably low 2023 -2025 volumes EPA set last year. The situation prompted several production facilities to close and now threatens investments in feedstock processing capacity as well as production of sustainable aviation fuel, according to the association letter.

“Each of our industries are committed to reducing greenhouse gas emissions, and we recognize that sustainable biofuels offer some of the most substantial immediate benefits to deliver carbon reductions. The EPA should utilize the RFS to improve energy security, bolster domestic industry and manufacturing, and maintain America’s leadership in developing and using sustainable, clean transportation technologies,” the associations write. “While our industries will continue to make investments in producing, distributing, and using low-carbon fuels, EPA can and should send a strong signal to the market through robust RVOs.”

“Transportation industries are looking for low-carbon solutions – particularly for heavy-duty engines – and clean fuels producers and feedstock suppliers are coordinating to deliver those solutions,” added Kurt Kovarik, Vice President of Federal Affairs with Clean Fuels. “We are united in asking EPA to use the Renewable Fuel Standard to drive growth in the market, achieve significant near-term greenhouse gas emission reductions, and support the investments we’ve made. EPA must act in a timely manner on the 2026 RFS volumes to keep the program on track.”

Joining Clean Fuels in sending the letter are American Short Line and Regional Railroad Association, American Soybean Association, American Trucking Associations, Association of American Railroads, National Energy & Fuels Institute, National Oilseed Processors Association, North American Renderers Association, and U.S. Canola Association.

Read more from Clean Fuels Alliance America

aviation biofuels, Biodiesel, biofuels, Clean Fuels Alliance, EPA, Soybeans

Sustainable Aviation Fuel Stakeholders Form SAF Coalition

Cindy Zimmerman

With new guidance expected Tuesday on what will qualify for sustainable aviation fuel (SAF) tax credits, a new coalition of SAF stakeholders was announced Monday in an effort to to “accelerate the development and deployment of sustainable aviation fuels.”

The Sustainable Aviation Fuel (SAF) Coalition consists of over 40 companies and organizations that hold a stake in the development and deployment of sustainable aviation fuel, including airlines and aircraft operators, agricultural enterprises, aircraft and aircraft equipment manufacturers, airports, technology developers, labor unions and biofuel producers.

“SAF will enhance domestic energy security, create new markets for American farmers, reduce aviation emissions and drive next-generation technology development,” said Alison Graab, Executive Director, SAF Coalition. “The membership of this coalition shows the deep support that SAF enjoys across aviation’s many stakeholders. Federal policies that support and increase SAF production will create jobs, spur innovation, reduce the environmental impacts of jet fuel, and enhance American energy security.”

Members of the coalition include names such as American Airlines, Gevo, LanzaJet, Renewable Fuels Association (RFA), and Summit Agricultural Group.

“Expanding the availability of sustainable aviation fuel is an important part of decarbonizing the transportation sector, and the U.S. ethanol industry stands ready to play a vital role in this transition,” said RFA President and CEO Geoff Cooper. “The SAF Coalition’s diverse membership is a reflection of the exciting future that lies ahead for the renewable fuels industry and our partners up and down the supply chain.”

aviation biofuels, biofuels, biojet fuel, Ethanol, Ethanol News, Renewable Fuels Association, SAF

GREET Model Update Expected Tuesday

Cindy Zimmerman

The Biden administration is expected to finally release on Tuesday the long-awaited update to the GREET model to determine eligibility for feedstocks to make sustainable aviation fuel (SAF), according to news reports.

Secretary of Agriculture Tom Vilsack was in Michigan last week with House Agriculture Committee Member Elissa Slotkin to discuss various issues, including the pending GREET model changes. Brownfield Ag News reports Vilsack says the model is expected to “serve as a placeholder in the 40B tax credit which applies to a small amount of the fuel in production this year.”

“There’s a 45Z credit, which is a pretty good credit, it provides quite the financial incentive to produce this fuel,” he says. “To qualify for that, I’m confident there will be climate-smart agricultural opportunities.”

Vilsack also stressed the importance of waiting for the announcement to be released rather relying on rumor because it is the Treasury Department issuing it, not the EPA.

aviation biofuels, Carbon, EPA, Ethanol, Ethanol News, USDA

RFA CEO Honored as Patriotic Employer

Cindy Zimmerman

Renewable Fuels Association (RFA) President and CEO Geoff Cooper, an Army veteran, was honored this week by the Department of Defense Employer Support of the Guard and Reserve office “for contributing to national security and protecting liberty and freedom by supporting employee participation in America’s national guard and reserve force.”

Under Cooper’s leadership, RFA last year founded Veterans for Renewable Fuels to provide veteran employees in the ethanol industry opportunities to come together and support each other in their careers and personal lives. According to a Department of Energy report, the percentage of ethanol industry workers who are veterans is 15 percent, which is triple that of the national workforce and higher than the petroleum fuels and general energy workforce.

“When women and men in uniform leave the military and start searching for jobs, they want more than a paycheck,” says Cooper. “Thousands of veterans have found exactly what they’re looking for in the ethanol industry, and we are truly honored to have them in our midst.”

Ethanol, Ethanol News, Renewable Fuels Association, RFA

SAF Stakeholders Call for Farm Bill Provisions

Cindy Zimmerman

Industry stakeholders representing nearly the entire supply chain for Sustainable Aviation Fuel (SAF) are calling on House and Senate Agriculture Committee leaders to include provisions in the Farm Bill to boost the role of American farms in fueling low-carbon aviation.

“SAF, which can be produced from renewable biomass and agriculture-based feedstocks, presents an opportunity to expand U.S. markets for agricultural goods, bolster our nation’s rural economy and provide a renewable, low-emission domestic energy supply for the aviation sector,” they said in a letter. “Due to wide bipartisan, bicameral support in Congress, as well as benefits to U.S. farmers, biofuel producers and the aviation industry, we ask that you include meaningful SAF provisions, such as the Farm to Fly Act, in the Farm Bill to strengthen American agriculture and help leverage this key resource.”

The letter was signed by the Aerospace Industries Association, Airlines for America, Airbus, Alaska Airlines, American Airlines, the American Soybean Association, Atlas Air Worldwide Holdings, Inc., Boeing, the Cargo Airline Association, Clean Fuels Alliance America, Delta Air Lines, FedEx Express, Fuels America, GE Aerospace, US, the General Aviation Manufacturers Association, Gevo, Inc., Growth Energy, Hawaiian Airlines, JetBlue Airways, the Kansas Corn Growers Association, the Kansas Grain Sorghum Association, the Kansas Soybean Association, Marquis Sustainable Aviation Fuel, the National Air Carrier Association, the National Air Transportation Association, the National Business Aviation Association, the National Corn Growers Association, Novonesis, the Ohio Corn & Wheat Growers Association, the Ohio Soybean Association, POET, LLC, the Renewable Fuels Association, Southwest Airlines, United Airlines, United Parcel Service, and Vertical Aviation International.

Ag group, aviation biofuels, Biodiesel, biofuels, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Nebraska Governor Signs SAF Tax Credit Bill

Cindy Zimmerman

Nebraska Gov. Jim Pillen has signed into law the establishment of a production tax credit for sustainable aviation fuel (SAF) in Nebraska.

The SAF tax credit (LB937) will provide a $0.75 per gallon tax credit for the production of aviation fuel that reduces lifecycle emissions by at least 50 percent, which may be calculated based on the most recent version of Argonne National Laboratory’s GREET model.

“We are excited and encouraged by this landmark SAF legislation, and Gov. Pillen’s signing of the bill,” Nebraska Ethanol Board (NEB) Executive Director Reid Wagner said. “This bill creates a first-in-the-Midwest tax credit for SAF to be produced right here in Nebraska. We thank Sens. Dungan and Bostar for helping develop SAF production, which represents a tremendous opportunity for our state moving forward.”

Ethanol and oils from corn and soybean processing serve as low-carbon, low-cost feedstocks for the production of SAF, which can reduce emissions by more than 50% compared to conventional jet fuel. LB937 establishes an income tax credit for the production of SAF beginning in 2027.

aviation biofuels, Ethanol, Ethanol News, SAF

Indigo Ag and Red Trail Energy Partner for Low CI Corn

Cindy Zimmerman

Sustainable agriculture company Indigo Ag and North Dakota bioethanol producer Red Trail Energy (RTE) have announced a collaboration to source low carbon intensity (CI) corn to support farmers using sustainable practices and benefit from emerging clean fuels market tax credit programs.

Utilizing Indigo’s proven measurement, reporting and verification (MRV) and remote sensing capabilities, RTE will work with Indigo Ag to measure field level carbon intensity (CI) and identify, enroll and verify farmers with the highest potential to produce low CI feedstock. Indigo Ag will produce the data required for tax credit compliance, including data collection, verification and analysis of eligible practices in GREET and other clean fuel calculators. This level of data collection will enable RTE to maximize benefits from clean fuel markets across the U.S. and Canada, starting with the 45Z tax credit in January 2025.

RTE will be amongst the first ethanol producers to take advantage of the Clean Fuel Production Credit, or 45Z, in January 2025, utilizing 2024 crops. 45Z will pay 2 cents per gallon for every carbon intensity (CI) point reduction below the minimum threshold, and will be the first clean fuels program to enable the generation of credits from lower CI agricultural feedstock in a meaningful way. Sustainable farming practices like cover crops or no till have the potential to lower ethanol CI scores by more than 20 points.

Carbon, corn, Ethanol, Ethanol News

USDA Awards $43 Million in HBIIP Grants

Cindy Zimmerman

Agriculture Deputy Secretary Xochitl Torres Small traveled to Erie, Pennsylvania this week to announce that USDA is awarding more than $43 million in grants through the Higher Blends Infrastructure Incentive Program (HBIIP) to business owners to increase the availability of domestic biofuels in 15 states and give Americans cleaner, more affordable fuel options.

HBIIP provides grants to fueling station and distribution facility owners, including marine, rail, and home heating oil facilities, to help expand access to domestic biofuels, a clean and affordable source of energy. These investments help business owners install and upgrade infrastructure such as fuel pumps, dispensers and storage tanks.

USDA is making the HBIIP awards in California, Florida, Illinois, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, New York, Oklahoma, Pennsylvania, South Dakota, Texas and Wisconsin.

Some examples include:

In Pennsylvania, Clyde S. Walton Inc. will use a grant of more than $810,000 to install a 30,000-gallon biodiesel storage tank and loading equipment at its home heating oil distribution facility in Lansdale. This project is expected to increase the amount of biodiesel sold by more than 5 million gallons per year.

In Kansas, Blue River Valley LLC will use a $3 million grant to rebuild a pair of 2-million-gallon ethanol storage tanks and other equipment at a fuel distribution facility in Potwin. This project is expected to increase the amount of ethanol sold by more than 238 million gallons per year.

In Minnesota, Twin Cities Auto Repair & Gas LTD will use a $402,000 grant to install four E15 dispensers and two ethanol storage tanks at a fueling station in Burnsville. This project is expected to increase the amount of ethanol sold by 996,000 gallons per year.

USDA has invested approximately $135 million in the past three years to increase access to biofuels at fueling stations.USDA continues to accept applications for funding to expand access to domestic biofuels quarterly through Sept. 30, 2024.

Ethanol, Ethanol News, USDA

Ethanol Report on EPA E15 Waiver

Cindy Zimmerman

The emergency fuel waiver issued by the Environmental Protection Agency to allow sales of E15 this summer will help American consumers save money at the pump, while also cutting greenhouse gas emissions and harmful tailpipe pollution, but the Renewable Fuels Association says a permanent legislative solution is still necessary. The emergency waiver issued Friday follows a concerted effort by RFA and its allies and will make the sixth year that some type of EPA action has allowed sales of 15% ethanol fuel in conventional gasoline areas during the summer.

In this edition of The Ethanol Report, RFA Senior VP for Government & Public Affairs Troy Bredenkamp and Chief Economist Scott Richman discuss the E15 waiver and why it was necessary, and why the Nationwide Consumer and Fuel Retailer Choice Act of 2023 is more important than ever.

Ethanol Report 4-19-24 28:13

2024 National Ethanol Conference Virtual Newsroom

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.

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Audio, Ethanol Report

Ethanol Industry Pleased EPA Issues Summer E15 Waiver

Cindy Zimmerman

The Environmental Protection Agency today issued a waiver to allow E15 (15 percent ethanol fuel) to continue to be sold this summer. The temporary waiver under the Clean Air Act was issued “to address extreme and unusual fuel supply circumstances caused by a confluence of events, including the ongoing war in Ukraine and conflict in the Middle East, that are affecting all regions of the Nation.”

Ethanol organizations and stakeholders welcomed the action, which the Renewable Fuels Association says will help American consumers save money at the pump this summer, while also cutting greenhouse gas emissions and harmful tailpipe pollution. However, RFA Senior VP for Government & Public Affairs Troy Bredenkamp says the ultimate goal is to find a permanent solution to allow E15 sales in the summer. “We are certainly seeking some sort of legislative solution to solve this long term so we don’t have to keep begging and pleading to make sure that E15 does not disappear during the summer.”

RFA Summer E15 waiver reaction - Troy Bredenkamp (2:51)

American Coalition for Ethanol (ACE) CEO Brian Jennings said he was grateful to see the administration respond to the industry’s requests. “Earlier this year, the Biden administration finally confirmed E15 can permanently be offered in eight Midwest states, but postponed year-round access in those states until the summer of 2025. Today’s action is an important reminder that higher ethanol blends play a critical part in our nation’s energy security as well as contribute significant climate and air quality benefits. A permanent solution to year-round E15 will ensure these benefits aren’t left to the whim of ad hoc agency decision making in the future.”

Both ACE and RFA support the bipartisan Nationwide Consumer and Fuel Retailer Choice Act (S. 2707) sponsored by Sen. Deb Fischer (R-NE) to ensure continuous access to E15 nationwide.

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