Ethanol Report on 29th NEC

Cindy Zimmerman

The 29th National Ethanol Conference held in San Diego California last week may go down as one of the best and most timely industry meetings ever, setting the stage for major decisions that hang in the balance this year, including year-round availability of E15 and a revised GREET model that will determine ethanol’s role in sustainable aviation fuel.

The Renewable Fuels Association was pleased to welcome USDA Secretary Tom Vilsack to the NEC this year, as well as Doug McKalip, Chief Agricultural Negotiator in the Office of the United States Trade Representative. This edition of the Ethanol Report includes comments from both of them, as well as RFA President and CEO Geoff Cooper, RFA Chairman Erik Huschitt of Badger State Ethanol, Dr. Michael Wang with Argonne National Laboratory, and RFA Senior VP, Industry Relations & Market Development Robert White.

Ethanol Report 2-26-24 19:10

2024 National Ethanol Conference Virtual Newsroom

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RFA Chair Optimistic About Future for Ethanol

Cindy Zimmerman

Renewable Fuels Association board chairman Erik Huschitt says there are both big challenges and big opportunities right now for the ethanol industry but he remains optimistic about the future.

“I’m optimistic because I know science is on our side,” said Huschitt, who is CEO of Badger State Ethanol. “And I know that the brilliant people and the passion in this room will not be overcome by any politician naysayer that exists in the marketplace.”

Huschitt says most people in the ethanol industry are “time tested” by the ups and downs they have experienced over the years. “Being in the ethanol industry, nothing comes in a straight line and nothing is easy,” he said.

Listen to an interview with Huschitt and his remarks at the National Ethanol Conference.
NEC24 RFA Chairman, Erik Huschitt, CEO of Badger State Ethanol address 5:10

NEC24 RFA chair Erik Huschitt, interview 4:52

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ACE Reacts to E15 Waiver Approval, Prepares for DC Fly-in

Cindy Zimmerman

The American Coalition for Ethanol (ACE) reacted to the Biden Administration’s EPA announcement this week to allow the sale of E15 year-round in eight Midwest states, but not until the summer of 2025.

“As the saying goes, ‘better late than never,’ but EPA had a legal responsibility to approve E15 year-round in these states more than a year and a half ago, so postponing the effective date to April 28, 2025 is disappointing,” said ACE CEO Brian Jennings.

Jennings says ACE continues to actively support bipartisan legislation in Congress to permanently enable all Americans to benefit from the cost savings and cleaner emissions of year-round E15 and that will be the biggest priority issue during the organization’s March 14-15 DC fly-in. “E15 is really the timely, urgent topic right now,” said Jennings during an interview at the National Ethanol Conference this week. “We think we’re getting closer and closer to the point where that’s going to get adopted but we need to continue to mobilize support for that.”

E15 was also part of ACE’s comments this week to the California Air Resources Board (CARB) regarding its 2024 proposed amendments to the Low Carbon Fuel Standard (LCFS), but they primarily focused on the proposed “sustainability criteria” for crop-based biofuels. “We are gravely concerned about the direction that CARB is taking this program,” said Jennings. “They want to go to the point where they are requiring ethanol producers to essentially track every bushel of corn that’s delivered to their facility.”

Listen to the full interview with Jennings here:
ACE CEO Brian Jennings 8:44

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EPA Announces E15 Waiver Approval for 8 States in 2025

Cindy Zimmerman

The Environmental Protection Agency announced Thursday approval of requests from state governors to remove the 1-psi volatility waiver for gasoline-ethanol blends containing 10 percent ethanol in their states, but delays the effective date to April 28, 2025.

“After review of the emissions modeling results presented by the governors in their requests, EPA is removing the 1-psi waiver in the following states: Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin,” EPA states, adding that the delay in implementation is “due to concerns over insufficient fuel supply with an earlier effective date, consistent with statutory provisions.”

USDA Secretary Tom Vilsack previewed the announcement earlier this week at the National Ethanol Conference, adding that he believes the approval will ultimately go beyond the eight Midwestern states. “We understand higher blends need to be supported which is why I am confident that 2025 we will have E15 across the country and this summer we will likely see waivers as we have the last couple of summers,” Vilsack said in remarks. Regarding the delay until 2025, he told reporters, “I think it’s important to have the justification for the expansion locked down solid so that if there are any concerns expressed about it as often the oil industry provides, that we’re in a position to defend this as strongly as we can.”

NEC24 Vilsack E15 waiver comments 2:10

Renewable Fuels Association President and CEO Geoff Cooper called the delayed approval a good news, bad news situation. On one hand, the EPA decision finally allows retailers in these eight states to sell E15 year-round. But on the other hand, it delays implementation until 2025, creating uncertainty and confusion about the availability of E15 this coming summer. “Summertime is just around the corner, what’s the marketplace going to do with E15 come June 1?” said Cooper. “Long term we’ve got to resolve this in a way that provides certainty in the marketplace and stability.”

NEC24 Cooper E15 waiver comments 1:08

RFA Chairman Erik Huschitt, CEO of Badger State Ethanol, is of the opinion that 2025 is better than never. “If we have to wait until 2025 it’s an embarrassment of our political leadership that they can’t get it done earlier,” said Huschitt. “We’ll take it in 2025…as long as we have a clear path we’ll show a little more patience.”

NEC24 Huschitt E15 waiver comments :21

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#RFANEC 2024 Wraps Up in California

Cindy Zimmerman

The Renewable Fuels Association wrapped up its 2024 National Ethanol Conference Wednesday in San Diego with RFA President and CEO Geoff Cooper calling it one of the most successful ever.

“This has been a great event, lots of energy, lots of enthusiasm coming out of this conference for the opportunities that lie ahead,” said Cooper. “We had the most people here than we have had in 8 or 9 years.”

While at the conference in California this week, RFA submitted comments to the California Air Resources Board on proposed amendments to that state’s Low Carbon Fuel Standard.

“One of the particular areas of concern that we have is around new what they are calling sustainability requirements for crop-based biofuels,” said Cooper. “We think that would put unnecessary and complex new burdens on ethanol producers without any benefits whatsoever to the program.”

In addition, Cooper says they urged CARB to approve sales of the lower-carbon E15 fuel blend. “This is the last state out of all 50 states that has yet to approve E15 and if they care about reducing carbon emissions, the simplest, lowest cost way to do that in the near term is approve E15.”

Hear more about the 2024 NEC in this interview.
NEC24 RFA CEO Geoff Cooper, interview 9:58

Find audio from all the panels and presentations and hundreds of photos from the NEC in the virtual newsroom for the event.

2024 National Ethanol Conference Photo Album

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RFA Honors Argonne Scientist Michael Wang

Cindy Zimmerman

At the 2024 National Ethanol Conference in San Diego, the Renewable Fuels Association presented its 2024 Award of Excellence to Dr. Michael Wang, an Argonne National Laboratory distinguished fellow, senior scientist, director of the Systems Assessment Center, and “Father of the Greet model.”

At Argonne, Dr. Wang has led the development and applications of the GREET model for life-cycle analysis of transportation fuels for ethanol, and many other uses. His work in the life-cycle analysis area has been used extensively and often cited in research and academic fields. As of 2023, there were more than 55,000 registered GREET users worldwide. Dr. Wang also is a faculty associate at the Consortium for Advanced Science and Engineering at the University of Chicago and a senior fellow at the Northwestern Argonne Institute of Science and Engineering of Northwestern University.

Listen to the presentation and Dr. Wang’s remarks here.
NEC24 Dr. Michael Wang, Argonne 5:01

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USTR Ag Negotiator Provides Ethanol Trade Outlook

Cindy Zimmerman

The Chief Agricultural Negotiator for the U.S. Trade Representative spoke to attendees at the National Ethanol Conference this week about the trade outlook for ethanol.

Ambassador Doug McKalip said had just returned from Guatemala where he spoke with government officials about ethanol. “It was clear to me that the government of Guatemala is very much dedicated to meeting its goal of getting to E10 by early 2025,” said McKalip. “Throughout the course of 2024 there will be very close coordination with the Guatemalan government to help them through the process.”

McKalip says he has also been in discussions with Brazilian officials to get the 18% tariff on U.S. ethanol eliminated and open that market back up for the industry. “Last week I had the Brazilian secretary of agriculture in my office…and we had a very frank discussion about this,” said McKalip. “The secretary promised to me that he would go back, meet with the Brazilian CAMEX (Chamber of Foreign Trade), and put together a proposal for us on how they might change their direction.”

Listen to his remarks and press availability below.
NEC24 USTR Ambassador Doug McKalip - remarks 21:00
NEC24 USTR Ambassador Doug McKalip - press 4:36

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RFA Honors USDA Secretary Tom Vilsack

Cindy Zimmerman

RFA CEO Geoff Cooper presents award to Secretary Vilsack

Following his remarks at the National Ethanol Conference today in San Diego, the Renewable Fuels Association presented its 2024 Industry Award to U.S. Agriculture Secretary Tom Vilsack in recognition of his many years championing renewable fuels both in Washington and at home in Iowa.

In his time at USDA, Sec. Vilsack has been a strong and effective proponent of the Renewable Fuel Standard and greater consumer access to lower-carbon fuel blends like E15. His leadership helped the renewable fuels industry recover more quickly from the COVID-induced collapse of energy and ag markets in 2020. He also led the effort to secure an unprecedented investment in infrastructure for higher biofuel blends. More recently, Sec. Vilsack has played a pivotal role in advancing sustainable aviation fuel initiatives through collaborative efforts with industry stakeholders and federal agencies.

Vilsack spoke to attendees at the conference about the opportunities for the ethanol industry in the future with sustainable aviation fuel, and he confirmed a news report out today that E15 will be approved for use nationwide in 2025, while waivers will be once again needed for sales this summer.

Listen to his remarks here:
NEC24 Secretary Tom Vilsack Address 32:19

Vilsack press availability
NEC24 Secretary Tom Vilsack press availability 12:19

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RFA Provides Free E85 in San Diego for Military Community

Cindy Zimmerman

The Renewable Fuels Association used the opportunity this week of the National Ethanol Conference in San Diego to partner with Pearson Fuels and offer free fill-ups of E85 fuel for flex fuel vehicles (FFVs) driven by military veterans, active-duty servicemembers and spouses with an ID on Monday. The event put a focus on RFA’s new Veterans for Renewable Fuels initiative started last year.

In addition to offering free E85 fuel to the 240,000 veterans living in the San Diego area, all drivers were invited to stop by for a tank of E85 fuel for a discounted price of $1.85 per gallon.

RFA Senior VP, Industry Relations & Market Development Robert White, himself a veteran, says the event was very successful. “What was fun to watch was the older FFVs come in, the people that really needed a little help in the budget,” said White. “We got to talk to them and remind them of the connection with the veterans and renewable fuels.”

Besides White, RFA CEO Geoff Cooper and Environment, Health & Safety Director Justin Schultz, are military veterans, in addition to a good percentage of the industry as a whole. The percentage of ethanol industry workers who are vets is triple that of the national workforce and higher than the petroleum fuels and general energy workforce.

Learn more in this interview.

NEC24 Robert White, RFA 2:51

2024 National Ethanol Conference Preview Activities Photo Album

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Partnerships Move the Ethanol Industry

Cindy Zimmerman

Renewable Fuels Association (RFA) President and CEO Geoff Cooper this week addressed the biggest crowd for the National Ethanol Conference since before 2020, stressing the importance of partnerships and the need for critical questions to be answered soon.

The theme of this year’s NEC is “Powered by Partnerships” and Cooper reflected on the ethanol industry’s many victories and advancements over the past 50 years and noted that “None of those successes would have been possible without the industry’s valuable partnerships and ability to work together with a diverse group of stakeholders.”

However, he noted that several critical policy decisions expected in next three to six months “will shape the future course of the ethanol industry for years—and perhaps decades—to come.”

Specifically, Cooper addressed looming questions about the implementation of the Inflation Reduction Act’s sustainable aviation fuel (SAF) and clean fuel production tax credits, year-round E15, light-duty vehicle tailpipe GHG standards, and other important policy issues.

Commenting on the Biden administration’s soon-to-be-released SAF carbon footprint model, Cooper said, “The modified GREET model will either help open the door for U.S. agriculture and ethanol producers to participate in the SAF market, or it will lock out the highest-volume, lowest-cost feedstocks and assure the failure of the administration’s ambitious SAF goals.”

On EPA’s tailpipe GHG standards, Cooper noted that the agency’s proposal “…would force automakers to dramatically increase the production of battery electric vehicles and strongly discourage them from pursuing other technologies that could achieve the same—or even better—environmental performance at a lower cost to American consumers.”

As EPA prepares to finalize its tailpipe regulation, Cooper said RFA continues to call for a level playing field. “If given the same opportunity and a fair regulatory framework, we are confident that higher ethanol blends—and the vehicles designed to use them—can play an instrumental role in affordable decarbonization of the nation’s auto fleet,” he said.

Cooper also highlighted the importance of year-round E15. “Not only does E15 slash harmful tailpipe pollution, reduce carbon emissions, and lower pump prices, but it gives ethanol a chance for modest growth in an otherwise declining gasoline market,” he said. “It helps us hold the line on demand as other new markets—like aviation, maritime, and heavy-duty—are emerging.”

Listen to Cooper’s remarks here:
NEC24 RFA CEO Geoff Cooper address 32:15

2024 National Ethanol Conference Photo Album

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