Governors’ E15 Waiver Request Moves Forward

Cindy Zimmerman

After months of delay, some action was finally taken this week on the request from eight states to allow year-round sales of E15. On Monday, EPA’s proposed rule was sent to the White House Office of Management and Budget (OMB) for final review, which is the last step in the process before the rule is finalized and published.

Renewable Fuels Association president and CEO Geoff Cooper said they are relieved to see the rule finally move forward before the end of the year. “OMB review marks the final step in this long and arduous regulatory process. We are urging OMB to move quickly to finalize the Governors’ request so that the marketplace will have adequate lead time to continue preparing for implementation in 2024. Swift completion of this rule will ensure drivers in these eight Midwest states enjoy cleaner air and have uninterrupted, year-round access to lower-cost, lower-carbon E15 in 2024 and every year after that.”

A letter was sent last week from 22 members of the House and Senate to OMB Director Shalanda Young encouraging her to act quickly to finalize the rule, which usually takes 2-4 weeks.

American Coalition for Ethanol (ACE) CEO Brian Jennings stressed the need to get the rule done as soon as possible. “Despite the upcoming Christmas holiday, we urge OMB to quickly perform its closing review so the final rule can be issued early in 2024. All market participants, including but not limited to retailers, wholesalers, terminal operators and refineries, should expect and plan for this rule to take effect in the eight states for the 2024 summer driving season and plan accordingly.”

The governors of eight Midwestern states petitioned EPA back in April 2022 to make the regulatory change allowing year round E15 sales and even though the Clean Air Act requiring the EPA to comply within 90 days, it was not until March 2023 that EPA proposed regulations to require fuel suppliers in these states to slightly reduce the volatility of gasoline beginning on May 1, 2024. EPA has yet to take final action on that proposal and in August the attorney generals of Iowa and Nebraska sued EPA for failing to meet a statutory deadline.

In addition to Iowa and Nebraska, the other states are Illinois, Kansas, Minnesota, North Dakota, South Dakota, and Wisconsin.

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

Most 2024 Vehicles Approved for E15

Cindy Zimmerman

More new vehicles than ever are specifically approved by manufacturers to run on 15 percent ethanol blended fuel (E15).

The Renewable Fuels Association just released its annual review of vehicle owner’s manuals and warranty statements and found that E15 is explicitly approved by the manufacturer for use in approximately 95 percent of model year 2024 cars and light trucks.

“RFA has worked diligently with the auto industry for more than a decade to ensure a smooth market transition to E15, and we are pleased that each year more manufacturers recognize its benefits,” said RFA President and CEO Geoff Cooper. “Nearly all cars, SUVs, and pickups on the road today are legally approved to use E15, and just about all new 2024 vehicles carry the manufacturer’s explicit approval of the fuel. Given the emissions and cost savings with E15, we urge Congress and the administration to move quickly to adopt nationwide, year-round use of the blend. It’s better for the air and public health; it’s better for family budgets; and it’s better for the U.S. economy and energy security.”

New for 2024, Subaru approved the use of E15 in its popular Forester model, completing the manufacturer’s multi-year shift to E15 across the board. Notably, BMW and Mini continue to approve the use of gasoline containing up to 25 percent ethanol (E25) in their vehicles. However, RFA notes that Mercedes-Benz, Mazda, and Volvo do not specifically list E15 as an approved fuel.

The light-duty internal combustion vehicles produced by those three automakers collectively make up almost 6 percent of total U.S. sales. Their failure to endorse E15 use leaves air quality and climate benefits on the table, Cooper said.

automotive, Car Makers, E15, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Clean Fuels Ready to Fly Under New SAF Guidance

Cindy Zimmerman

Clean Fuels Alliance America is pleased with guidance from the U.S. Department of the Treasury and Internal Revenue Service (IRS) for the Sustainable Aviation Fuel (SAF) Credit established by the Inflation Reduction Act (IRA). The guidance enables companies currently producing SAF under the Renewable Fuel Standard (RFS) to access the base value of the tax incentive while it defers allowing producers to use the Argonne National Laboratory’s GREET model to calculate additional credit until it is updated by March 2024.

“We appreciate President Biden recognizing that American farmers and clean fuel producers will be providing essentially all of the sustainable aviation fuel available over the next 20 years to meet the administration’s Grand Challenge,” said Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels. “Enabling U.S. taxpayers to access a lifecycle model developed by U.S. national labs is clearly the best way to provide assurance to fuel producers and meet the demand for low-carbon fuels from airlines and passengers.”

The guidance is also positive for U.S. soybean farmers.

“America’s soybean farmers are always innovating in an effort to expand our markets and provide even more benefits to consumers,” said Josh Gackle, American Soybean Association president and North Dakota soybean farmer. “We are very pleased with this guidance and the opportunities it could bring for soy. Biofuels continue to be not only a viable market but a growing market when it comes to U.S. roadways and workforce fleets. There is legislation on the table right now that would expand biofuels’ great functionality and environmental benefits to ocean-going vessels. And now, with this guidance supporting soy and other plant-based feedstocks going into sustainable aviation fuel, the sky truly is the limit for soy.”

advanced biofuels, ASA, aviation biofuels, Biodiesel, Clean Fuels Alliance, Soybeans

Ethanol Report on SAF Guidance

Cindy Zimmerman

The U.S. Treasury Department has released long-awaited guidance regarding the implementation of the Inflation Reduction Act’s sustainable aviation fuel (SAF) tax credit. The guidance clarifies that a soon-to-be-updated version of the Department of Energy’s GREET model will be among the methodologies used to determine eligibility for the tax credit. The administration has committed to finishing the GREET model updates by March 1, 2024.

Renewable Fuels Association president and CEO Geoff Cooper says this is great news for ethanol producers even though there are important carbon modeling updates and details that still need to be worked out. He explains the Treasury guidance and what it means for ethanol producers in this edition of the Ethanol Report podcast.

Ethanol Report 12-15-23 17:20

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.

Choose an option to subscribe

Audio, aviation biofuels, biojet fuel, Ethanol, Ethanol News, Ethanol Report, Renewable Fuels Association, RFA, SAF

U.S. Treasury and IRS Release SAF Guidance

Cindy Zimmerman

The U.S. Department of the Treasury and Internal Revenue Service (IRS) today released guidance on the Sustainable Aviation Fuel (SAF) Credit established by the Inflation Reduction Act (IRA).

The Treasury Department’s guidance provides important clarity around eligibility for the SAF Credit. The credit incentivizes the production of SAF that achieves a lifecycle greenhouse gas emissions reduction of at least 50% as compared with petroleum-based jet fuel. Producers of SAF are eligible for a tax credit of $1.25 to $1.75 per gallon. SAF that decreases GHG emissions by 50% is eligible for the $1.25 credit per gallon amount, and SAF that decreases GHG emissions by more than 50% is eligible for an additional $0.01 per gallon for each percentage point the reduction exceeds 50%, up to $0.50 per gallon.

Under the guidance issued today, numerous fuels will qualify for the credit, including valid biomass-based diesel, advanced biofuels, cellulosic biofuel, or cellulosic diesel that have been approved by EPA under the Renewable Fuel Standard (RFS).

Fuels that achieve a 50% or greater reduction in lifecycle greenhouse gas emissions under the most recent Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) standard will continue to qualify under today’s guidance. In addition, EPA, DOT, USDA, and DOE are announcing their commitment to release an updated version of DOE’s GREET model by March 1, 2024. Pending further guidance from the Treasury Department, the updated GREET model will provide another methodology for SAF producers to determine the lifecycle GHG emissions rates of their production for the purposes of qualifying for the SAF Credit for SAF sold or used during calendar years 2023 and 2024.

Reacting to the announcement, Renewable Fuels Association President and CEO Geoff Cooper said, “While there are important carbon modeling updates and details that still need to be worked out, we are cautiously optimistic that today’s guidance could open the door to an enormous opportunity for America’s farmers, ethanol producers and airlines. The Biden administration is recognizing that the best way to meet ambitious SAF targets is to maximize marketplace flexibility, make use of existing low-carbon fuel assets, and stimulate innovation and competition across the entire supply chain.”

Cooper discusses the guidance in this interview:
RFA CEO Geoff Cooper interview (5:53)

American Coalition for Ethanol (ACE) CEO Brian Jennings also welcomed the announcement. “Today’s decision helps clear the runway for ethanol-to-jet. Treasury made the right call to enable the use of GREET to determine the carbon intensity of SAF because it is the global gold-standard for calculating GHGs from transportation fuels and GREET is the most up-to-date, accurate model reflecting the best-available science, including farm practices. Treasury’s decision will enable corn ethanol to emerge as a significant SAF feedstock in the years to come and fulfill President Biden’s pledge that farmers would be providing 95 percent of SAF in the next 20 years.”

ACE, Audio, aviation biofuels, Ethanol, Ethanol News, Renewable Fuels Association, RFA, SAF

Dates for 2024 ACE DC Fly-in Set for March

Cindy Zimmerman

ACE staff pose during 2023 Fly-in

The American Coalition for Ethanol (ACE) has announced its 13th annual DC Fly-in and Government Affairs Summit will take place March 14-15, 2024, assuming Congress will be in session on those dates.

Building off this past spring’s successful return to Capitol Hill, ACE is eager to continue hosting one of the industry’s longest-running and successful fly-ins for biofuels advocates.

“We encourage ethanol supporters to mark their calendars for the ACE fly-in March 14-15,” said Brian Jennings, ACE CEO. “Taking place in an election year, our gathering presents a strategic opportunity to underscore the significance and vitality of a robust U.S. ethanol industry to Members of Congress, their dedicated staff and key decision makers with EPA, USDA and the Treasury Department.”

“In the 12-year legacy of ACE’s DC fly-ins, the most impactful gatherings have struck a balance between engaging with our staunch supporters and reaching out to Members of Congress who may be unfamiliar, hold differing views on our policy priorities, or hail from regions outside the Corn Belt,” said Katie Muckenhirn, Vice President of Government Affairs. “While lawmakers routinely hear from lobbyists and association representatives, the power of a deeply personal perspective showcasing the direct benefits of the ethanol industry can provide a fresh and compelling viewpoint on our issues.”

The meetings will take place on Capitol Hill and at the Hyatt Regency Washington on Capitol Hill. For more information about the event, please contact Katie Muckenhirn at kmuckenhirn@ethanol.org, Ashley Borchert at aborchert@ethanol.org or visit ethanol.org/events/fly-in.

ACE, Ethanol, Ethanol News

Lawmakers Demand Action on E15 Waiver Request

Cindy Zimmerman

A bipartisan, bicameral group of 22 lawmakers sent a follow up letter to the White House this week seeking swift action on regulations that would allow year-round sales of 15% ethanol blended fuel (E15) in eight Midwest states, as requested in April 2022 by the states’ governors.

Congressman Brad Finstad (R-MN), Congresswoman Nikki Budzinski (D-IL), Senator Joni Ernst (R-IA), and Senator Tammy Baldwin (D-WI) spearheaded the letter urging the Environmental Protection Agency (EPA) and the Office of Management and Budget (OMB) to implement their outstanding regulatory action to remove the 1-psi volatility waiver for gasoline and ethanol blends, like E15, in Midwest states.

It has been more than 300 days since Rep. Finstad and Sen. Ernst sent an initial letter requesting EPA and OMB act on a request made by several Midwest governors to lift restrictions on the year-round sale of E15, and more than 500 days since the statutory deadline of the governors’ April 2022 request.

“It is long past time for the Biden Administration to implement our Midwest states’ request and permanently remove restrictions on the sale of E15,” said Rep. Finstad. “Sadly, this White House is intent on stonewalling the sale of a cheaper, cleaner fuel option for consumers and by doing so, withholding certainty for our biofuel producers and fuel retailers.”

Other signers included Sens. Pete Ricketts (R-NE), Sherrod Brown (D-OH), Deb Fischer (R-NE), Chuck Grassley (R-IA) and Amy Klobuchar (D-MN), and Reps. Mike Flood (R-NE), Eric Sorensen (D-IL), Adrian Smith (R-NE), Mark Pocan (D-WI), Ashley Hinson (R-IA), Randy Feenstra (R-IA), Dusty Johnson (R-SD), Tom Emmer (R-MN), Mariannette Miller-Meeks (R-IA), Michelle Fischbach (R-MN), Mark Alford (R-MO) and Max L. Miller (R-OH).

Renewable Fuels Association President and CEO Geoff Cooper thanked the lawmakers for their action. “We’re hopeful that their letter will help break the logjam and ensure drivers in these states are able to enjoy the benefits of lower-cost, lower-carbon E15 all year long. Waiting until the last minute to act on the governors’ request isn’t good for anyone. The marketplace needs clarity and certainty now about the status of E15 in these eight states.”

At the same time, RFA continues to call on Congress to pass the Nationwide Consumer and Fuel Retailer Choice Act, which would permanently remove the summertime barrier on E15 nationwide.

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

Renewable Fuel for Ocean Vessels Bill Introduced

Cindy Zimmerman

Legislation introduced recently by U.S. Representatives Mariannette Miller-Meeks (R-IA) and John Garamendi (D-CA) would allow companies to preserve RIN credits under the Renewable Fuel Standard (RFS) for renewable fuel used for ocean-going vessels.

“Ocean-going cargo ships, tankers, and passenger vessels have a need for low-carbon, low-sulfur biodiesel and renewable diesel which provides an additional market for biofuels,” said Miller-Meeks. “This legislation allows for RINs to be generated for renewable marine fuel without requiring an obligation on any parties.”

The legislation is supported by Clean Fuels Alliance America, the American Soybean Association, and the North American Renderers Association (NARA), in addition to the Iowa Biodiesel Board, Iowa Soybean Association, the American Waterways Operators and other groups seeking to increase use of low-carbon fuels and reduce carbon emissions in international shipping and travel.

“International shipping companies and cruise lines are increasingly seeking low-carbon biodiesel and renewable diesel to meet climate goals and consumer demand,” said Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels. “This commonsense legislation will remove a regulatory roadblock and enable biodiesel and renewable diesel producers to meet the low-carbon fuel needs of shipping companies at a competitive price. It will allow refiners and blenders to keep RINs for fuel used in ocean-going vessels that are currently being sacrificed.”

ASA, Biodiesel, biofuels, Boats, Clean Fuels Alliance

ASTM International Honors Clean Fuels’ Fenwick

Cindy Zimmerman

Clean Fuels Alliance America is proud to announce that Scott Fenwick, Technical Director, has been awarded the prestigious Sydney D. Andrews Scroll of Achievement by ASTM International in recognition of his contributions to the committee responsible for the standards on petroleum products, liquid fuels and lubricants (D02).

ASTM, the globally recognized leader responsible for standardizations used around the world, presents the Scroll of Achievement to individuals who have shown exceptional commitment to the development and delivery of standards within their respective committees. This esteemed accolade underscores Fenwick’s long career in advancing the clean fuels industry, especially through his work with D6751, the ASTM specification for biodiesel.

Since 1998, Fenwick has served on various subcommittees within D02 leading numerous working group activities and interlaboratory studies, and receiving multiple awards in Excellence, Appreciation and Society Service. In 2018, Fenwick was appointed chairman of the D02 Committee, serving over 2,500 members who oversee more than 800 standards relating to petroleum products and lubricants.

Read more from Clean Fuels.

advanced biofuels, Biodiesel, Clean Fuels Alliance

Treasury Expected to Release SAF Guidance

Cindy Zimmerman

It is being reported that the Treasury Department may release highly-anticipated guidance on sustainable aviation fuel tax credits, possibly this week.

In anticipation of the announcement, Renewable Fuels Association President and CEO Geoff Cooper said this guidance represents a “make-or-break” opportunity for the future of sustainable aviation fuels. “The Treasury guidance will go a long way in determining whether U.S. farmers and ethanol producers are able to significantly contribute to the goal of decarbonizing the aviation sector, or if they’ll be left by the wayside,” said Cooper. “All we’re asking for is a fair, science-based methodology that gives us an opportunity to compete.”

Cooper says RFA hopes the guidance will include explicit and specific recognition of the Argonne GREET model as an allowable methodology for determining the carbon intensity of various SAF production pathways. “Without recognition of the GREET model, we fear commercial SAF production will simply not materialize at the scale necessary to truly decarbonize the aviation sector in the decades ahead. The ambitious goals of the Biden administration’s SAF Grand Challenge will not be realized unless we are able to tap into the vast resources of American agriculture.”

aviation biofuels, Ethanol, Ethanol News, Renewable Fuels Association, RFA, SAF