Biofuel and Farm Groups Join Tailpipe Emissions Letter

Cindy Zimmerman

Biofuel groups and farmer organizations were among some 100 transportation fuel stakeholders who sent a letter this week urging the Biden administration to reverse course on its proposed tailpipe emissions standards for light, medium and heavy-duty vehicles.

“We share the goal of reduced greenhouse gas emissions across the broader economy and, specifically, those from energy production, transportation, and use by society,” the letter states. “EPA’s proposals inhibit the marketplace from identifying the most efficient, lowest cost opportunities to reduce GHG emissions from vehicles and greatly restrict consumer choice. We are concerned that such a prescriptive policy is not in the best interest of the consumer or of U.S. energy and economic security.”

The letter also expressed concerns with EPA’s narrow focus on electric vehicles to achieve compliance and highlighted the benefits of evaluating a broader range of emissions reductions pathways.

“A diversified portfolio of vehicle and fuel technologies that meets the multitude of transportation needs of Americans and makes meaningful GHG reductions can be achieved while also allowing new zero-emission vehicle, and specifically battery electric vehicle, technologies to advance,” the signatories wrote. “Improved crop yield, innovative biofuel and refined product processing, and manufacturing efficiency tied with carbon capture each represent promising advancements for current liquid and gaseous fuels to continue to accelerate emissions reductions.”

While the majority of the groups signing the letter were petroleum manufacturers, marketers and retailers, the American Farm Bureau, National Corn Growers Association (NCGA), Clean Fuels Alliance America, and the Renewable Fuels Association (RFA) were among the farm and biofuel groups included.

NCGA vice president of public policy Brooke Appleton participated in a press conference on the issue with leaders from the American Petroleum Institute, the U.S. Chamber of Commerce and the American Fuel & Petrochemical Manufacturers. Listen to her comments here:

API press call - Brooke Appleton, NCGA (3:17)

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South Dakota Ethanol Plant Explosion

Cindy Zimmerman

Onida Fire Department photo

An explosion rocked Ringneck Energy ethanol plant in Onida, South Dakota Sunday causing major structural damage to the facility.

No one was injured at the plant but DRG Media Group reports there were six employees working at the time. “The explosion occurred in the ethanol production side of the plant,” said Onida Volunteer Fire Department Chief Caleb Shepherd. “Major damage to the facility. It will be out of operation for quite some time.”

The South Dakota Fire Marshal’s Office will begin an investigation on Monday.

Ethanol, Ethanol News

Ethanol is Star of Trump Rally

Cindy Zimmerman

Former President Donald Trump held a rally and launched his Farmers for Trump coalition this past weekend in Council Bluffs, Iowa to tout his support of agriculture and ethanol.

The Republican presidential candidate highlighted actions he took while in office to help farmers, such as rolling back the Waters of the United States, ending the estate tax, renegotiating trade agreements, and supporting ethanol, while attacking both his GOP opponent Ron DeSantis and current President Joe Biden. “Every Iowan needs to know that Ron ‘DeSanctus’ totally despises Iowa ethanol and ethanol generally,” said Trump. “Joe Biden is trying to kill Iowa ethanol and replace it with expensive electric cars.”

Trump made note of the year-round E15 waiver that he announced in 2019, not far from where the rally was held on Saturday. “In addition, I dramatically increased the number of fueling stations where E15 could be sold,” he said. “I like to say very strongly and proudly that I fought for Iowa ethanol like no president.”

Listen to some of Trump’s remarks here:
Pres. Donald Trump Iowa rally (26:56)

RFA’s Justin Schultz (2nd from left) on panel prior to Trump rally (RFA Twitter)

One of the people sharing the stage with President Trump was Renewable Fuels Association Director for Environment, Health & Safety Justin Schultz who previously worked for the Southwest Iowa Renewable Energy (SIRE) plant where Trump announced the E15 waiver in 2019. Schultz participated in a pre-rally panel where he talked about the importance of ethanol, which he tied into the theme of national security. “I served in the military for 23 years, I got two combat tours overseas, and when I think about foreign dependence on oil and what we are able to do in the state of Iowa and the Midwest to basically get rid of that dependence, it’s with products like E15,” said Schultz.

Schultz noted that 15 percent of the ethanol industry workforce is made up of veterans. “This agricultural community, we’re the toughest people in the nation, we’re the type of people that roll up our sleeves and get things done,” he said.

Listen to Justin’s comments here:
Pre-Trump Rally panel - Justin Schultz, RFA (3:42)

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Ethanol Exports Down, DDGs Up in May

Cindy Zimmerman

U.S. ethanol exports were down 10 percent in May to 113.2 million gallons (mg), mainly due to lower undenatured non-beverage, non-fuel ethanol shipments, including 12.6 mg lower exports to India, according to the latest analysis by the Renewable Fuels Association (RFA).

Canada was our largest destination for the 26th consecutive month and accounted for 45% of global ethanol sales. The 51.0 mg of ethanol shipped north of our border (a 9% increase over April and the second largest on record) included 73% of total U.S. denatured fuel exports for the month. Other substantial markets included the European Union (22.6 mg, +37%)—primarily shipped to the Netherlands, marking the country’s second-largest import volumes on record—the United Kingdom (9.7 mg, -7%), South Korea (9.6 mg, -10%), Peru (6.2 mg, +113%), and Colombia (6.0 mg, +116%). Brazil again remained essentially absent from the market with a 16% tariff on U.S. ethanol in place. Year-to-date U.S. ethanol exports total 593.0 mg, lagging 18% behind last year at this time.

Meanwhile, exports of the ethanol co-product dried distillers grains (DDGS) hit a 9-month high of 958,385 metric tons (mt) in May. This was 23% more than April but one percent behind last year. The bulk of DDGS shipments went to just six countries with Mexico up four percent to capture the largest market share for the 11th consecutive month and Turkey’s imports were up sevenfold to a 22-month high of 146,559 mt. South Korea, Indonesia, Vietnam, and Canada rounded out our largest global customers for the month. In addition, several smaller markets logged near-record volumes. For example, Tunisia imported 20,008 mt and Guatemala bought 18,016 mt. Year-to-date DDGS exports, totaling 4.17 million mt, lag 11% behind last year at this time.

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

Clean Fuels Alliance Grows Diverse Membership

Cindy Zimmerman

Clean Fuels Alliance America continues to grow a more diverse membership as interest in low carbon fuels gains momentum.

Since January, Clean Fuels has welcomed nine new companies, according to CEO Donnell Rehagen. “The success of our industry relies on growing support from a broad mix of organizations who understand the value of clean fuels as a solution to decarbonize,” said Rehagen. “The addition of these members demonstrates the benefit they see in being part of our trade association and the ongoing expansion of this industry.”

Clean Fuels’ newest members include:
– Biodiesel Coalition of Missouri, an industry organization
– Canary Biofuels Inc., a Canadian- and California-based biofuel producer
– CNH Industrial America, a heavy equipment manufacturer
– Consolidated Grain & Barge, an agricultural transportation and storage company
– Gevo, a leader in next generation renewable gasoline, jet fuel, and diesel fuel
– Gilbarco Veeder-Root, fueling and convenience store equipment and technology
– Indigenous Energy, Inc., a renewable fuels and energy consulting firm
– Par Pacific Holdings, financial and investment firm
– Restaurant Technologies, maker of automated oil storage, handling, and management systems

Biodiesel, biofuels, Clean Fuels Alliance

Groups Urge Fairness in Tailpipe Emissions Standards

Cindy Zimmerman

Seven national associations representing the renewable fuel supply chain sent a letter this week to EPA Administrator Michael Regan asking him to adopt a market-oriented, technology-neutral approach to transportation decarbonization in its upcoming final tailpipe emissions standards for 2027-2032 light- and medium-duty vehicles.

The groups wrote that the proposed rule favors electric vehicles while failing to consider the decarbonization potential of existing biofuels that can improve the emissions profile of the vast majority of cars on the road today. The organizations recommend that EPA account for all emissions relating to different fuel and engine technologies and equitably incentivize emissions reductions from all of those technologies.

If finalized as proposed, EPA expects its tailpipe emissions standards could result in EVs accounting for 67% of new light-duty vehicle sales and 46% of new medium-duty vehicle sales by 2032. “The speed at which the Agency appears to anticipate the market and consumers will transition to electric vehicles is divorced from our members’ assessment of reality,” according to the letter. “The Proposed Rule does not appreciate the market obstacles associated with such a massive transition in consumer behavior. It also abandons proven decarbonization technologies, such as higher-octane liquid fuels, that can deliver material emissions reductions using existing infrastructure, existing vehicles, and working with consumers’ existing behavioral proclivities.”

The organizations submitting the letter include the Renewable Fuels Association; National Association of Convenience Stores; NATSO, Representing America’s Travel Plazas and Truckstops; National Corn Growers Association; National Farmers Union; SIGMA: America’s Leading Fuel Marketers; and Growth Energy.

corn, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Celebrate Independence Day with Ethanol

Cindy Zimmerman

With AAA projecting that a record number of Americans will hit the road for a long holiday weekend, the Renewable Fuels Association is reminding drivers that lower-cost, lower-carbon ethanol fuel blends are better for the environment and the family budget.

“Across the country, the lowest-cost fuel available at the pump is the fuel with the highest content of ethanol, whether that is E10, E15, or E85. E15 is typically sold for 15-25 cents per gallon less than E10 and up to $1 per gallon less than gasoline with no ethanol,” said RFA President and CEO Geoff Cooper. “And if you’re lucky enough to drive a flex fuel vehicle, E85 offers even greater savings. At the same time, drivers choosing ethanol blends are supporting an American-made product that is better for the environment and the air our families breathe. Renewable fuels like ethanol help our rural economy grow and are part of a balanced portfolio of products that both feed and fuel our great country. What better time to celebrate the benefits of ethanol to American families than on the Fourth of July?”

RFA is once again sponsoring the Ethanol Days of Summer fuel giveaway contest, and encouraging both motorists and boaters to get educated on ethanol and save money at the pump.

RFA Vice President of Industry Relations Robert White says the popularity of the fuel giveaway contest has grown as the availability of higher ethanol blends has grown. “More than 5,700 stations are now selling E85 across more than 3,000 cities, and more than 2,900 stations in 31 states offer E15,” said White.

Drivers are invited to report retail fuel station prices for higher blends of ethanol like E15 and E85 either through E85prices.com, or on Twitter by tagging @EthanolRFA and including the hashtags #ethanol #E15 #E85 and #fuelprices. Contestants will be entered into a random weekly drawing for a $250 pre-paid credit card to be used for fuel purchases. Each week until Labor Day, RFA will award $250 in free fuel to one lucky winner.

Learn more about ethanol in the summertime in this interview:
Interview with Robert White, RFA (5:25)

Audio, Ethanol, Ethanol News, Renewable Fuels Association, RFA

USDA Opens Fuel Retailer Incentive Program

Cindy Zimmerman

The U.S. Department of Agriculture has officially begun accepting application for $450 million in grant applications for the Higher Blends Infrastructure Incentive Program (HBIIP).

The funding, which comes the Inflation Reduction Act, will have application windows that run quarterly from July 1, 2023, through Sept. 30, 2024. Approximately $90 million will be made available each quarter to fueling stations, stores and facilities who implement higher ethanol blends such as E15 and higher, and biodiesel blends greater than 5 percent, such as B20. According to USDA, awards to successful applicants will be in the form of cost-share grants for up to 75 percent of total eligible project costs, but not to exceed $5 million, whichever is less.

Ethanol organizations, including the Renewable Fuels Association (RFA) and the American Ethanol Coalition (ACE), have help available for retailers to apply for these grants.

RFA has helped more than 85 companies secure grants in 21 states for almost $68 million in funding, matched by over $217 million in retailer funding for almost $285 million towards higher blend infrastructure. These combined state and federal grant efforts will result in nearly 2,400 dispensers at over 460 locations, according to RFA Director of Market Development Cassie Mullen.

ACE Chief Marketing Officer Ron Lamberty has helped retailers apply for and receive HBIIP grants since the program’s inception and has provided feedback to USDA on challenges experienced by marketers and suggestions to increase participation following each round of awards and for these funds designated for biofuel infrastructure under the IRA. “Even something as simple as the multiple application periods announced today will help marketers who don’t have staff or time to gather information and fill out complicated grant applications. In past rounds, if they weren’t sure they could complete the application by the due date, they couldn’t risk the time. Now they’ll know when another application opens and can plan accordingly,” said Lamberty.

Learn more about HBIIP here.

ACE, blends, E15, E85, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Ethanol Industry Leads in Military Vet Employment

Cindy Zimmerman

According to a new Department of Energy (DOE) report, the military veteran workforce in the ethanol industry is triple the rate seen in the national workforce average and higher than the petroleum fuels and general energy workforce. According to the DOE report, veterans make up 15% of the corn ethanol fuels workforce, which is higher than the 9% energy workforce average.

Renewable Fuels Association President and CEO Geoff Cooper, himself an Army veteran and part of the RFA staff’s 20% veteran workforce, said, “The ethanol industry’s values and priorities, focused on American-made products that provide energy independence, align extremely well with those of our women and men in uniform, so it’s no surprise that we are attractive to veterans seeking employment. Military veterans know that they can continue to protect their fellow Americans and serve their country by producing a homegrown, cleaner, greener, and more affordable renewable fuel.”

Cooper also noted that the DOE report underscores that progress is being made toward the industry goals of greater diversity, with women accounting for 31% of the ethanol industry workforce, well above the 26% average across all energy sectors. The ethanol industry also hires more older workers, with 23% of its workforce aged 55 or older, compared to 18% for the petroleum fuels industry and 17% across the energy sector.

The portion of the ethanol industry workforce made up of Hispanic or Latino workers has grown from 9% in 2018 to 11% in 2022, while the share comprised of Native Hawaiian or other Pacific Islander workers has doubled from 1% to 2%. The shares of workers identifying as Black or African American has grown by two percentage points since last year, from 5% to 7%, and American Indian or Alaska Native (1%), Asian (6%), Black or African American (5%), and two or more races (5%) have held relatively steady.

Workers with disabilities comprise 4% of the ethanol industry workforce, double the average across all energy sectors and on par with the national average.

Energy, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Praise for USDA Biofuels Grants

Cindy Zimmerman

After last week’s disappointing final biofuel volume rule from the Environmental Protection Agency, stakeholder organizations this week are happy with the U.S. Department of Agriculture for announcing new infrastructure funding.

Clean Fuels Alliance America says some of the new Higher Blends Infrastructure Incentive Program grants will increase consumer access to biodiesel from California to New Hampshire, by companies such as Crimson Renewable Energy, New Leaf, and World Energy. “Out of the $25 million in grants announced today, more than $6.9 million will be used to support consumer access to more than 104 million gallons of biodiesel,” said Kurt Kovarik, Vice President of Federal Affairs with Clean Fuels. “This program enjoys bipartisan congressional support and it is successfully opening new markets to biodiesel.”

USDA spotlighted Carmel Terminals of New York, which will use a $1 million grant to install four 50,000-gallon B10 bioheat storage tanks, a 25,000-gallon B10 on-road biodiesel storage tank and a B100 biodiesel storage tank at a fuel distribution facility in Carmel. The funds also will be used to install piping, circulation lines, a heating system for biodiesel flow control, electronics and other equipment. This project is expected to increase annual sales of biodiesel by more than 16 million gallons.

In July, USDA will begin accepting applications for another $450 million in grants through HBIIP. “We’re thrilled to see this new announcement from USDA Secretary Tom Vilsack, which will help bring lower-cost biofuel blends like E15 and E85 to more fuel retail locations around the country,” said Troy Bredenkamp, Renewable Fuels Association Senior Vice President for Government and Public Affairs. “RFA has been proud to assist retailers in the application process and to move these grants forward.”.

American Coalition for Ethanol (ACE) Chief Marketing Officer Ron Lamberty says they look forward to seeing more details of the program when they are released. “We thank USDA for allowing us to provide feedback and recommend changes we hope will make funds more accessible to single-store and small chain retailers. Those retailers are key to widespread availability of E15 and E85 and ACE continues to fight for them as the program evolves at USDA,” said Lamberty.

ACE, Biodiesel, biofuels, Clean Fuels Alliance, Ethanol, Ethanol News, Renewable Fuels Association, RFA