Nikki Haley Checks Biofuels Vision Boxes

Cindy Zimmerman

Nikki Haley is the second Republican presidential candidate to take a positive position on all eight topics vital to the future of Iowa farmers and biofuels producers, according to Biofuels Vision 2024.

Haley was recently asked by a voter about the battle over carbon intensity scoring and she pledged to look into the issue and respond. A few days later Haley issued a statement supporting the U.S. Argonne National Laboratory GREET model over a European model that unfairly discriminates against farm products.

“Amb. Haley has shown she is dedicated to listening to Iowa farmers, learning and educating herself about the promise biofuels hold for the future,” stated Iowa Renewable Fuels Association Vice President Brad Wilson, the president/general manager of Western Iowa Energy, a biodiesel producing company, headquartered in Wall Lake, Iowa. “We appreciate her support on the key issues facing farmers and biofuels producers. With the right leadership, the Midwest can play a prominent role in meeting America’s energy needs.”

Haley joins Gov. Ron DeSantis as the second candidate checking all the Biofuels Vision boxesn. All GOP candidates who are actively campaigning in Iowa support a growing role for biofuels and a permanent national year-round E15 fix, while opposing laws and regulations that directly or indirectly mandate electric vehicle (EV) purchases. Other issues on the list include proper enactment of the RFS, preserving biofuels tax credits, adopting the GREET model, unlocking higher blends, and supporting a farm bill energy title.

“While we are excited that two candidates have taken positive positions on all eight of our priority issues, there is still time for other candidates to join them prior to the First-in-the-Nation Iowa Caucuses on January 15,” said Wilson.

Biofuels Vision 2024 is a coalition of Iowa organizations and citizens tracking candidates’ stances on eight issues vital to the future of biofuels and the Iowa economy. The coalition does not endorse or rank candidates.

Ethanol, Ethanol News, politics

Vilsack to Address Iowa RFA Summit

Cindy Zimmerman

Secretary of Agriculture Tom Vilsack will address the 2024 Iowa Renewable Fuels Summit this month and during the event will receive IRFA’s highest award.

“The IRFA Board is very excited that Secretary Vilsack can join the Summit,” said Iowa Renewable Fuels Association Marketing Director Lisa Coffelt. “As a state legislator, governor and now USDA secretary, Tom Vilsack has been an outstanding voice for farmers and the importance of biofuels to rural America. We are looking forward to hearing his vision for the future and for the chance to honor his many years of support.”

Nominated by President Joe Biden, Sec. Vilsack was confirmed as the 32nd United States Secretary of Agriculture on Feb. 23, 2021 by the U.S. Senate. Vilsack was the longest-serving member of President Barack Obama’s original Cabinet. Prior to his appointment, he served two terms as the Governor of Iowa, served in the Iowa State Senate and as the mayor of Mt. Pleasant, Iowa. He received his bachelor’s degree from Hamilton College and his law degree from Albany Law School in New York.

The 2024 Iowa Renewable Fuels Summit will be held on January 11, at the Prairie Meadows Event Center in Altoona, Iowa with the theme “Chart Our Course” for the future of biofuels. Registration is free.

Biodiesel, biofuels, Ethanol, Ethanol News, Iowa RFA, USDA

Ethanol Report on 2023

Cindy Zimmerman

Renewable Fuels Association President and CEO Geoff Cooper says 2023 was one of the best years ever for the U.S. ethanol industry.

In this edition of the Ethanol Report podcast, Cooper takes a look back at the year for ethanol and some of the battles won for producers who are optimistic for the new year.

Ethanol Report 12-26-23 27:10

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, Ethanol, Ethanol News, Ethanol Report, Renewable Fuels Association, RFA

DeSantis Checks Biofuels Vision 2024 Boxes

Cindy Zimmerman

Gov. Ron DeSantis is now the only Republican presidential candidate that checks all the boxes vital to the future of Iowa farmers and biofuels producers, according to Biofuels Vision 2024. The organization says DeSantis checked his last box during a question-and-answer session at the POET Bioprocessing ethanol plant near Menlo, Iowa on December 18.

“On behalf of IRFA members, I want to thank Gov. DeSantis for taking the time to visit with Iowa farmers and tour multiple biofuel plants across the state as part of completing his ‘Full Grassley’ earlier this month,” stated Iowa Renewable Fuels Association President Al Giese, owner of Prairie Feed & Trucking and board member with Quad County Corn Processors. “During that time, Gov. DeSantis has learned a great deal, and he clearly understands the vital role agriculture and biofuels play in growing rural America. Just as important, Gov. DeSantis recognized the role biofuels can play in achieving U.S. energy security.”

Biofuels Vision 2024 is a coalition of Iowa organizations and citizens tracking candidates’ stances on eight issues vital to the future of biofuels and the Iowa economy. The coalition does not endorse or rank candidates. According to the coalition, all Republican candidates who are actively campaigning in Iowa support a growing role for biofuels and a permanent national year-round E15 fix, while opposing laws and regulations that directly or indirectly mandate electric vehicle (EV) purchases.

biofuels, Ethanol, Ethanol News

Mexico Rail Bridges Shut Down Impacts Exports

Cindy Zimmerman

U.S. Customs and Border Protection closed two rail bridges this week that move freight between Texas and Mexico due to a surge in the influx of migrants through Mexico by train but the move is impacting exports of agriculture and ethanol.

The Renewable Fuels Association joined dozens of commodity groups and other organizations in asking U.S. Homeland Security Secretary Alejandro Mayorkas to reopen two rail bridges to Mexico, in El Paso and Eagle Pass, that are critical to reaching export markets south of the border. In 2022, Mexico was the fifth largest export market for U.S. ethanol, taking in more than 69 million gallons, and the largest international market for distillers grains, at over 2.2 million metric tons.

“For agriculture, nearly two-thirds of all U.S. agricultural exports to Mexico move via rail,” the letter states. “It was our second largest export market in 2022 with $28.5 billion in sales, and this year exports to Mexico have been a bright spot in a relatively down year for overall U.S. agricultural exports. Unfortunately, the crossing closures are causing exports to be lost. Each day the crossings are closed we estimate almost 1 million bushels of grain exports are potentially lost along with export potential for many other agricultural products.”

Joining RFA in the letter were more than 40 other organizations, including the National Corn Growers Association, National Grain and Feed Association, the American Chemistry Council, and the National Association of State Departments of Agriculture.

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

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