ACE Wraps Up 2024 DC Fly-in

Cindy Zimmerman

The American Coalition for Ethanol (ACE) wrapped up its annual DC Fly-in last week, with dozens of members bringing their message to Capitol Hill when it comes to important topics for the industry.

CEO Brian Jennings was especially pleased members were able to hear from Sen. Deb Fischer (R-NE), sponsor of the Nationwide Consumer and Fuel Retailer Choice Act of 2023. “Probably the most important piece of legislation for our industry pending in Congress right now,” said Jennings. “The fact that we could meet with the primary author of the bill, she could help explain to us the roadblocks she sees in the path of her legislation, and then we could have our members go to Capitol Hill…that’s what this event is all about.”

Even though it is a presidential election year and nothing much may even get done, Jennings says it’s still important to show up. “There was also some feedback that maybe in the lame duck we could move something like an E15 bill,” he said. “If we fail to do the work between now and November we won’t have an opportunity to move anything in the lame duck.”

Wrap up with Brian Jennings, ACE 4:39

2024 ACE DC Fly-in Photo Album

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Volumes of E15 and E85 Set New Records in Minnesota

Cindy Zimmerman

The latest data from the Minnesota Commerce Department shows sales of both E15 and E85 hit new records in 2023. The volume of E15 reported hit 127.6 million gallons, up 21 percent from 2022, while E85 sales were reported at 16.6 million gallons, up 8 percent from 2022 and the highest on record.

Al-Corn Clean Fuels CEO Thomas Harwood

When that news was released last week, the CEO of Al-Corn Clean Fuel in Claremont, Minnesota was in Washington, D.C. urging lawmakers to support year round E15 sales. “Really proud of the work we’re doing in the state of Minnesota to push E15 sales,” said Thomas Harwood. “That’s why it’s so critical that we get movement on year round E15. We’ve shown in Minnesota that we can do it and that it’ll benefit consumers.”

Thomas Harwood, Al-Corn Clean Fuels 3:26

“When it comes to expanding the use of ethanol, Minnesota continues to set an excellent example for the rest of the country to follow,” said Renewable Fuels Association (RFA) President and CEO Geoff Cooper. “Minnesota families understand the economic and environmental benefits of using higher blends like E15 and flex fuels like E85; they know that choosing these lower-cost, lower-carbon fuels supports local farmers and creates good-paying jobs across the state.”

Minnesota is one of the eight Midwest states where the year-round sales of E15 will be allowed, starting in 2025, but will still require a waiver from EPA to allow sales this summer.

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Sen. Grassley Meets with Ethanol Stakeholders

Cindy Zimmerman

Sen. Grassley meets with Iowa ethanol constituents during ACE Fly-in

One of the few members of Congress still left in town on Thursday afternoon last week was Iowa’s senior Senator Chuck Grassley, who was more than happy to meet with members of the American Coalition for Ethanol and talk about his favorite topic.

“It’s good for agriculture, it’s good for the environment, it’s good for good paying jobs in rural America, it’s good for our national defense…and everything about it is good, good, good,” Grassley said, repeating the phrase he has used for more than four decades now when it comes to the corn-based fuel his state produces more than any other.

Sen. Grassley is a co-sponsor of the Nationwide Consumer and Fuel Retailer Choice Act of 2023 and he is encouraged by the opportunities for ethanol in sustainable aviation fuel, but he is disappointed that the administration has delayed the release of updates for the GREET model to allow producers to take advantage of tax credits under the Inflation Reduction Act. “It’s a sad commentary because the delay as far as the formula is concerned is based on ignorance when you have this indirect land (use) factor in the formula,” said Grassley.

Sen. Grassley interview 3:07

2024 ACE DC Fly-in Photo Album

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New USDA Under Secretary Excited to Help Rural America

Cindy Zimmerman

USDA Under Secretary Basil Gooden speaks to ACE members

The recently confirmed USDA Under Secretary for Rural Development told ethanol supporters last week that he is excited about the programs they have to help the people in rural America.

“One thing that I really want to make clear that I bring to this position as Under Secretary each day is my passion for rural America,” said Dr. Basil Gooden in remarks to the American Coalition for Ethanol annual DC Fly-in. “I grew up in rural America. I grew up on the same farm that we own and operate today.”

USDA Rural Development administers the Higher Blend Infrastructure Incentive Program, better known as HBIIP, which received funding under the Inflation Reduction Act and in January awarded another $19 million to help increase the availability of higher blends. “That program is there to really, really boost the consumption of ethanol and it looks to actually boost it by about 1.2 billion gallons annually,” said Gooden.

Listen to Gooden’s remarks here:
Remarks from Basil Gooden, USDA 16:21

2024 ACE DC Fly-in Photo Album

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Irish Group Invests $500 Million in Aztalan Bio

Cindy Zimmerman

Irish agribusiness group ClonBio announced this week a $500 million in Wisconsin biorefinery Aztalan Bio.

ClonBio contracted to purchase the plant in Johnson Creek, Wisconsin in 2022 and has invested $100 million in the acquisition and upgrading of the plant, which is now the largest grain processing facility in Wisconsin.

“We are thrilled with this monumental investment by our parent company, ClonBio Group Limited, marking a significant step forward in our mission to revolutionize the biorefinery industry,” said Aztalan Bio CEO Jeff Oestmann. “With a staggering $500 million investment injection, we’re not only investing in our plant but also in the local community, with the creation of 1,000 new jobs on the horizon.”

Ethanol, Ethanol News

Year Round E15 Bill Hits Roadblock

Cindy Zimmerman

Sen. Deb Fischer (R-NE) told members of the American Coalition for Ethanol (ACE) meeting in Washington D.C. this week that her bill to allow year-round sales of E15 has hit a roadblock, in the form of Sen. Tom Carper (D-DE).

“Senator Carper, as you know, is chair of the Environment and Public Works Committee,” said Fischer. “We’ve reached out to him to try and do a markup of the bill…but I don’t think we are getting anywhere on that.”

Fischer says Carper is concerned about a refinery in his state and she considers it a “rather odd position” for him to take, considering the Nationwide Consumer and Fuel Retailer Choice Act of 2023 has the support of not only the agriculture and ethanol industries, but also retailers and even Big Oil. “Would you have ever thought Big Oil was going to step up and get on a Fischer E15 bill? Never.”

Listen to Fischer’s remarks here:
ACE DC 24 remarks from Sen. Deb Fischer 18:35

2024 ACE DC Fly-in Photo Album

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New EPA Ag Office Head Addresses ACE Fly-in

Cindy Zimmerman

The head of EPA’s new Office of Agriculture and Rural Affairs Rod Snyder addressed the 13th American Coalition for Ethanol DC Fly-in Thursday and had a lot to talk about of interest to ethanol stakeholders, not the least of which was updates to the GREET model for implementation of Inflation Reduction Act tax credits.

“It’s better to do something right than do to something fast,” said Snyder. “We’re looking at ways we can integrate additional greenhouse gas reducing activities as part of that modeling so I think for everyone in the room who is interested in getting this right and providing as many pathways as possible for qualification of the tax credit, this extra time is I think good news.”

Snyder said they still expect to have that guidance, as Secretary Vilsack said at Commodity Classic, within “weeks, not months” but ultimately the decision will be made by the Treasury Department.

Regarding retail sales of E15 this summer, “It is too early for me to speculate on what we can or should do for 2024 but I want to reassure you we are already talking with the Department of Energy about market conditions and how they compare to prior years and what sort of case can be made for what needs to be done for summer of 2024.”

Listen to Snyder’s comments here:
ACE DC 24 remarks from Rod Snyder, EPA 31:24

2024 ACE DC Fly-in Photo Album

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Record E85 Sales Save California Drivers $99 Million

Cindy Zimmerman

The record use of E85 (up to 85% ethanol fuel) in California last year saved the state’s drivers $99 million in 2023, while cutting greenhouse gas emissions by nearly 370,000 metric tons, according to a new analysis from the Renewable Fuels Association.

A record 118.5 million gallons of E85 were sold last year, up 14 percent over 2022 and nearly double the volume of 2021. According to E85prices.com, the average retail price of E85 in California in 2023 was $3.17 per gallon, compared to an average price of $5.01 per gallon for E10 gasoline—an average price discount of 37 percent. With 1.34 million FFVs on the road in California, the average FFV owner saved $74 on their annual fuel bill.

“E85 continues to be an increasingly popular fuel option for the Golden State,” said RFA Senior Vice President for Industry Relations and Market Development Robert White. “Thanks to the efforts of leading fuel marketers like Pearson Fuels and Propel Fuels, more Californians are taking advantage of the lowest-cost fuel available in the marketplace. By choosing E85, these drivers are making a positive impact on their communities by reducing carbon emissions and slashing the harmful tailpipe pollution that causes air quality and health concerns.”

The RFA analysis also found that E85 use in California last year resulted in the avoidance of 369,518 metric tons of greenhouse gas emissions — equivalent to removing more than 82,000 gasoline-powered passenger vehicles from the road for the entire year.

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Lawmakers Push for Year Round E15

Cindy Zimmerman

More than 30 members of the U.S. House of Representatives this week sent a letter to House leadership requesting a legislative solution to allow the voluntary sale of E15 year-round nationwide.

Reps. Mariannette Miller-Meeks (R-IA), Nikki Budzinski (D-IL), Adrian Smith (R-NE), and Mark Pocan (D-WI) led the letter to Speaker Johnson, Leader Jeffries, Chair McMorris Rodgers, and Ranking Member Pallone. “We write to express our support for swift passage of a legislative solution which would allow motor vehicle fuel containing 15 percent ethanol (E15) to be voluntarily sold year-round throughout the country,” they wrote. “In light of the recent Environmental Protection Agency (EPA) final rule allowing the year-round sale of E15 in eight Midwestern states beginning in 2025, governors, agriculture producers, ethanol refiners, oil refiners, retailers, and the automotive industry have all recognized the need for permanent law which provides needed certainty for producers and consumers in every state.”

Other cosigners include: Reps. Mark Alford, Don Bacon, James Baird, Mike Bost, Stephanie Bice, Sharice Davids, Byron Donalds, Ron Estes, Randy Feenstra, Brad Finstad, Michelle Fischbach, Mike Flood, Ashley Hinson, Jonathan Jackson, Dusty Johnson, Marcy Kaptur, Mike Kelly, Darin LaHood, Greg Landsman, Jake LaTurner, Tracey Mann, Dan Meuser, Mary Miller, Max Miller, Zach Nunn, Derrick Van Orden, Ann Wagner.

Renewable Fuels Association President and CEO Geoff Cooper thanked the lawmakers for their support. “We urge Speaker Johnson to work with the bipartisan House Biofuels Caucus to move commonsense legislation forward quickly, so families on the road this summer can enjoy the economic and environmental benefits of E15,” said Cooper.

Members of the American Coalition for Ethanol will be heading to Capitol Hill on Thursday and ACE CEO Brian Jennings says year round E15 is the number one issue on their agenda. “E15 is going to be really the priority topic at the fly-in,” said Jennings.

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

California Sets Another E85 Record

Cindy Zimmerman

The state of California set another new record for use of E85 (up to 85% ethanol fuel) in 2023 at nearly 118.5 million gallons, up nearly 15% from 103.5 million in 2022, according to the latest data from the California Air Resources Board. California is the state with the largest consumption of E85 fuel, but is also the only state where retailers are unable to sell E15 at all.

The recent National Ethanol Conference was held in California and featured a panel on California’s E85 success story. Right in the middle of that story is Pearson Fuels, started in 2002 and located in San Diego with over 350 stations statewide. Jeff Wilkerson is Government Policy and Regulatory Affairs Manager for Pearson Fuels.

“We added 63 new sites last year… in terms of gallons, in 2023, I think we set another record, so that will be 16 records in 17 years… and I think ’24 will be another record as well,” said Wilkerson.

The key issue with E85 is that it can only be used by Flex Fuel Vehicles (FFV) and currently there are virtually no new FFVs being produced by car makers, but regular cars can be converted with a simple kit at a very affordable cost point at around $700, according to Juha Honkasalo with eFlexFuel. “It’s pretty simple, takes 1-2 hours to install…basically nothing is going to change, but you can use E85 and get more power,” said Honkasalo. “It’s pretty universal, available for all the cars out on the road on the US today and we also do motorcycles.”

Casey Laur, Manager of E85 Sales for The Andersons, says they sell E85 direct to retailers around the country from four plants in Michigan, Ohio, Indiana, and Iowa through eight terminals. “They get to buy direct from the ethanol producer in markets where there is not a plant,” said Laur.

Listen to their conversation moderated by Robert White, Renewable Fuels Association.

NEC24 California's E85 Success panel 51:30

2024 National Ethanol Conference Photo Album

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