USDA Announces Biofuels Infrastructure Funding

Cindy Zimmerman

USDA Secretary Tom Vilsack today announced plans to invest up to $500 million from President Biden’s Inflation Reduction Act to increase the availability of domestic biofuels and give Americans additional cleaner fuel options at the pump.

Joined by Minnesota Senators Amy Klobuchar and Tina Smith, Vilsack announced the first awardees of 59 infrastructure projects that will receive a total of $25 million of the $50 million in Inflation Reduction Act funding USDA made available in December 2022 to expand the use and availability of higher-blend biofuels through the Higher Blends Infrastructure Incentive Program (HBIIP).

Over $8 million of the initial awards went to Minnesota projects, including the Farmers Cooperative Oil Company, which will use a $623,500 grant to replace nine E85 dispensers, two B20 dispensers, two ethanol storage tanks and two biodiesel storage tanks at a fueling station in Barnesville. The project is expected to increase annual sales of biofuels by nearly 122,000 gallons.

In addition, USDA announced today that in July the Department will begin accepting applications for $450 million in grants through HBIIP. These grants will continue to support the infrastructure needed to lower out-of-pocket costs for transportation fueling and distribution facilities to install and upgrade biofuel-related infrastructure such as pumps, dispensers and storage tanks.

Listen to the announcement here, along with comments from the senators and media questions including the new tariff imposed by Mexico on white corn, and worsening drought conditions in the Midwest.
USDA press call on biofuels funding 36:34

Audio, biofuels, Ethanol, Ethanol News, USDA

House Energy Sub Committee Hearing on Affordable Fuels

Cindy Zimmerman

A House Energy and Commerce Sub Committee heard testimony this week on “Driving Affordability: Preserving People’s Freedom to Buy Affordable Vehicles and Fuel” regarding several bills related to lowering emissions from transportation vehicles.

National Corn Growers Association CEO Neil Caskey testified in support of several bills that would leverage the benefits of biofuels to ensure a level playing field in transportation, including the Fuels Parity Act, sponsored by Rep. Marianna Miller-Meeks (R-IA). “As producers of the sustainable, primary feedstock for low carbon ethanol, corn farmers stand behind agriculture’s contribution to low-cost, cleaner, domestic energy,” said Caskey. “Their production improvements will help achieve biofuels with net-zero emissions and higher ethanol blends cost less.”

Listen to Caskey’s opening statement here:
House subcommittee hearing - NCGA CEO Neil Caskey (5:20)

Another witness at the hearing was American Fuel and Petrochemical Manufacturers (AFPM) CEO Chet Thompson, who said they also back the Fuels Parity Act, as well as the Preserving Choice in Vehicle Purchases Act, both of which would amend the Clean Air Act. “We also support allowing corn starch ethanol to qualify as an advanced biofuel,” said Thompson. “This might surprise some but the RFS has a challenging history and we hope the diverse support for this bill is a model for ways for us to work together going forward.”

Listen to Thompson’s comment here:
House subcommittee hearing - AFPM CEO Chet Thompson (:53)

During the hearing, Rep. Miller-Meeks had the opportunity to explain her bill, as she questioned witness Joseph Goffman with the Environmental Protection Agency.

“Allowing corn to qualify as an advanced biofuel allows internal combustion vehicles to compete with EVs by incentivizing lower emissions from ethanol production,” said Miller-Meeks. “As long as corn starch ethanol can achieve a 50 percent greenhouse gas reduction it should be afforded the same opportunity to be an advanced biofuel just like every other feedstock.”

House subcommittee hearing - Rep. Miller-Meeks (5:13)

Audio, Ethanol, Ethanol News

Ethanol Report on RFA Reaction to EPA Final Rule

Cindy Zimmerman

The final 2023-2025 Renewable Fuel Standard volumes released by the Environmental Protection Agency this week mark an unfortunate step backward from the volumes that were originally proposed, according to the Renewable Fuels Association.

In this edition of The Ethanol Report podcast, RFA Senior Vice President for Government & Public Affairs Troy Bredenkamp discusses the final rule from EPA, as well as new legislation proposed for sustainable aviation fuel, and the current status of the Midwest Governors’ Year-Round E15 petition.

Ethanol Report 6-21-23 20:23

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.

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

Biofuels Groups Unhappy With Final EPA RFS Rule

Cindy Zimmerman

The Environmental Protection Agency on Wednesday announced a final rule for biofuel volume requirements through 2025, displeasing major biofuel organizations.

The final rule includes conventional renewable fuel requirements of 15 billion gallons for both 2024 and 2025, down from the proposed volumes of 15.25 billion for both years. Renewable Fuels Association President and CEO Geoff Cooper called the reductions “inexplicable and unwarranted.”

“The RFS was intended to drive continual growth in all categories of renewable fuels well beyond 2022; instead, today’s final rule flatlines conventional renewable fuels at 15 billion gallons and misses a valuable opportunity to accelerate the energy sector’s transition to low- and zero-carbon fuels,” said RFA President and CEO Geoff Cooper. “By removing half a billion gallons of lower-carbon, lower-cost fuel, today’s rule needlessly forfeits an opportunity to further enhance U.S. energy security and provide more affordable options at the pump for American drivers.”

“If EPA’s goal with the Renewable Fuel Standard is to maximize reductions in greenhouse gas (GHG) emissions from the transportation sector, today’s final rule falls short by arbitrarily limiting conventional biofuel use to 15 billion gallons in 2024 and 2025 compared to the Agency’s proposal of 15.25 billion gallons for each of those years,” said American Coalition for Ethanol (ACE) CEO Brian Jennings. “Higher blending targets would enable fuels such as E15 and E85 to quickly displace carbon pollution from gasoline, but EPA’s proposal will rein in those opportunities.”

The rule also finalized moderate increases in the biomass-based diesel and non-cellulosic advanced volumes each year but did not increase the overall renewable fuel market. Clean Fuels Alliance America notes EPA failed to change biomass-based diesel volumes for 2023 despite the rapid increase in U.S. production of biodiesel, renewable diesel and sustainable aviation fuel during the first months of the year.

“EPA is undercutting the certainty that our industry hoped for from a three-year RFS rule,” said Kurt Kovarik, Vice President of Federal Affairs with Clean Fuels. “U.S. clean fuel producers, oilseed processors, fuel distributors and marketers have all made significant investments to grow the industry rapidly over the next several years. The industry responded to signals from the Biden administration and Congress aiming to rapidly decarbonize U.S. fuel markets, particularly aviation, marine, and heavy-duty transport, and make clean fuels available to more consumers. The volumes EPA finalized today are not high enough to support those goals.”

The rule also responds to a court remand of the 2016 annual rule by establishing a supplemental volume requirement of 250 million gallons of renewable fuel for 2023, which the groups support.

Biodiesel, biofuels, biojet fuel, Clean Fuels Alliance, EPA, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Coalition White Paper Concludes EV No Silver Bullet

Cindy Zimmerman

New research by the Clean Fuels Development Coalition (CFDC) concludes that the widespread introduction of electric vehicles as a means of reducing carbon emissions presents more challenges than a technology neutral strategy.

Reality EV: No Silver Bullet explores the constraints single fuel source electric vehicles (EVs) must overcome and how it could cost as much as $3 trillion in government/taxpayer investment to replace 50% of the consumer fleet.

CFDC Executive Director Doug Durante said this research is not intended to dismiss the potential contribution of EVs but rather to put them in perspective. “EVs will clearly be a key part of our transportation mix but the reality of cost, consumer choice, re-charging, and many other factors indicates we need to make sure biofuels remain part of the mix,” said Durante. “Mandating EVs and banning the internal combustion engine is simply bad policy, force feeding something that is not ready at the expense of the public.”

Read the brief.

Electric Vehicles, Ethanol, Ethanol News

FEW Honors Ethanol Industry Leaders

Cindy Zimmerman

Ethanol industry awards were presented this week in Omaha at the 2023 International Fuel Ethanol Workshop and Trade Show.

Mick Henderson, General Manager of Commonwealth Agri-Energy and past chairman of the Renewable Fuels Association, received the FEW High Octane Award, which honors those whose passion and unstoppable pursuits have significantly benefited the ethanol industry. Henderson began his career in ethanol in the 1990s as a plant manager for ADM before taking the GM position at Commonwealth in 2003. He served as RFA board chairman in 2016 and 2017.

Former RFA staff member Kelly Davis of New Energy Blue was presented with the FEW Award of Excellence, which recognizes individuals who have made significant contributions to the fuel ethanol industry through their research, technical advisory and/or development activities. Davis has been involved in the technical and regulatory side of the ethanol industry since the 1980s and recently joined New Energy Blue after serving a decade as a director and vice president at RFA.

Davis was also honored as one of the women who have made significant contributions to the ethanol industry, whether it be through scientific research, business leadership, or advocacy efforts. In a special ceremony, Ethanol Producer Magazine recognized women within the ethanol industry, and Growth Energy CEO Emily Skor received the inaugural winner of the Women in Ethanol Award.

Ethanol, Ethanol News, Renewable Fuels Association, RFA

Senators Support Sustainable Aviation Fuel Legislation

Cindy Zimmerman

U.S. Senators Tammy Duckworth (D-IL) and Deb Fischer (R-NE), along with Joni Ernst (R-IA), Amy Klobuchar (D-MN) and Chuck Grassley (R-IA), are introducing bipartisan legislation to identify the standards required to meet the definition of sustainable aviation fuel (SAF) at the Federal Aviation Administration (FAA).

The Sustainable Aviation Fuels Accuracy Act of 2023 would require the federal government to use the most up-to-date lifecycle emissions models, such as the GREET model, “that accurately considers crops, land uses and carbon reduction practices in the U.S and does not arbitrarily prevent our American farmers and crops from contributing to our green economy.”

Sen. Duckworth, who is a pilot and member of the Senate Transportation Committee, said, “One of the most important things we can do to make American aviation more sustainable is increase the supply of American-grown, American-made, sustainable aviation fuel.”

“Emissions modeling needs to reflect the latest science and technology. The GREET Model will more accurately capture the environmental benefits of biofuels, including for sustainable aviation fuels,” said Sen. Fischer.

Biofuels organizations and stakeholder groups are in full support of the bill. American Coalition for Ethanol (ACE) CEO Brian Jennings says the GREET model is the global gold standard for lifecycle analysis. “This bill is consistent with what Congress requires Treasury to follow with respect to implementing the new 45Z tax credit, and since the SAF tax credit eventually migrates to 45Z this makes good policy sense,” said Jennings.

“Producers need the ability to rely on a U.S. model that is consistently updated with accurate, real-world data from the industry,” said Kurt Kovarik, Vice President of Federal Affairs, Clean Fuels Alliance America. “The Department of Energy’s GREET model should be the gold standard.”

Read the legislation here.

ACE, aviation biofuels, Clean Fuels Alliance, Ethanol, Ethanol News, SAF

EPA Delays Final Biofuel Blending Targets

Cindy Zimmerman

The Environmental Protection Agency (EPA) has been granted permission to extend by one week the court-ordered consent decree deadline to issue the final “Set” 2023-2025 Renewable Volume Obligations (RVOs) under the Renewable Fuel Standard (RFS). Instead of June 14, EPA will now be required to finalize the rule by June 21, 2023.

The consent decree agreement was made between EPA and Growth Energy last year to propose and finalize the RVOs by a set deadline to avoid delays that impact the industry’s ability to comply. According to the EPA notice to the U.S. District Court for the District of Columbia Tuesday, “Based on the parties’ discussions and mutual understandings, the parties so stipulate with the understanding that EPA will not seek a further extension of any deadline established by the decree.”

EPA, Ethanol, Ethanol News

RFA CEO Keynotes #FEW23

Cindy Zimmerman

Renewable Fuels Association President and CEO Geoff Cooper offered the keynote address Tuesday at the 2023 International Fuel Ethanol Workshop & Expo.

In his presentation, Cooper outlined the goals of the global “Energy Transition” and noted that many seem to believe electrification is the only way to decarbonize the transportation sector by mid-century. “For many, the ‘Energy Transition’ is simply shorthand for ‘Universal Electrification,’” Cooper said. “But for a number of reasons, a headlong rush into electrification is shortsighted and would almost certainly fail to achieve ambitious carbon reduction goals.”

Cooper summarized many of the challenges associated with a massive, complicated transition of the transportation sector to lower-carbon energy sources. He pointed out that there are more than 278 million passenger vehicles and light trucks in the United States today, and only 3.4 million are plug-in electric vehicles—even with record EV sales in 2022.

“Americans will continue to rely upon hundreds of millions of combustion engines and hundreds of billions of gallons of liquid fuels for many decades to come, even as more EVs enter the fleet,” he said. “If we really care about reducing greenhouse gas emissions from transportation, we need to start by increasing our use of lower-carbon liquid fuels.”

Cooper pointed to creative market solutions like RFA’s new Ford Escape Flex Fuel EV, which was on display at the FEW trade show this year, that can travel about 430 miles with a full tank of E85 and a full charge of the battery while reducing emissions as much as 80 percent compared to a Ford Escape running on gasoline.

“It is our hope that one day soon, after proving the benefits of this technology, consumers will be able to choose a true zero-emissions vehicle that meets their everyday needs and doesn’t break the bank,” he said. “And whether it is a plug-in hybrid FFV, sustainable aviation fuels, green chemicals, or fuel for heavy-duty engines, we remain very confident that ethanol can—and will—lead the Energy Transition.”

Read Cooper’s remarks.

Ethanol, Ethanol News, FEW, Renewable Fuels Association, RFA

RFA Talks Net-Zero Carbon Emissions Progress at FEW

Cindy Zimmerman

At the 2023 Fuel Ethanol Workshop in Omaha today, Renewable Fuels Association Vice President for Strategy and Innovation Tad Hepner presented the findings a survey of U.S. ethanol producers and a new white paper that shows the industry to be on track toward its net-zero-carbon goal, with facilities producing ethanol that is up to 55 percent less carbon intensive than gasoline, on average.

In July 2021, RFA’s producer members unanimously committed to ensuring that, by 2023, ethanol reduces greenhouse gas emissions by at least 70 percent, on average, when compared directly to gasoline, and reach net-zero GHG emissions by 2050 or sooner. A report released at the 2022 National Ethanol Conference identified a workable pathway to that goal. Earlier this year, RFA surveyed its member producers and received responses from nearly all RFA member biorefinery facilities, representing a wide variety of sizes, plants with annual production capacities ranging from 35 to 150 million gallons. These responses came from biorefineries operating in 12 different states, both inside and outside the Corn Belt.
Hepner also noted that all the survey facilities reported adopting at least one tracked carbon-reduction technology in recent years, and most have adopted more than one of these technologies and practices. These plants have seen a 12 percent reduction in average carbon intensity since 2015/16 and nearly two-thirds of the plants have an approved Efficient Producer Pathway under the Renewable Fuel Standard.

Carbon, carbon capture, Ethanol, Ethanol News, FEW, Renewable Fuels Association, RFA