Senators Reintroduce Next Generation Fuels Act

Cindy Zimmerman

Sens. Chuck Grassley (R-IA) and Amy Klobuchar (D-MN), together with Joni Ernst (R-IA) and Tammy Duckworth (D-IL), this week led bipartisan colleagues in reintroducing the Next Generation Fuels Act, legislation that would leverage higher-octane fuels to improve engine efficiency and performance.

“Instead of continuing to buy more oil from foreign adversaries, we should be increasing the use of ethanol made by biofuel producers right here in the United States. The Next Generation Fuels Act would help put America back on the path to energy independence while easing the pain at the pump. It’s good for consumers, good for farmers and biofuel producers, and good for the environment. This is the right approach to energy policy, and I’m proud to work with my colleagues to reintroduce this bill,” Grassley said.

“I’ve long pushed for investments in readily-available, domestically-produced biofuels, which are good for drivers and farmers alike,” Klobuchar said. “By allowing the use of higher biofuel blends in our fuel supply, our bipartisan legislation will benefit our economy, decrease prices at the pump, and reduce our dependence on foreign oil.”

Renewable Fuels Association (RFA) President and CEO Geoff Cooper said, “Americans will continue to rely on liquid fuels and internal combustion engines for decades to come, and this legislation will ensure drivers have access to more efficient high-octane, low-carbon, lower-cost fuels for their vehicles well into the future. We look forward to working with clean fuel supporters in both chambers of Congress to turn this bold vision into a reality.”

“Enactment of the clean fuel performance-based §45Z tax credit late last year in the Inflation Reduction Act enables ethanol and other clean fuel producers the opportunity to obtain a tax credit based on their unique carbon intensity score,” said American Coalition for Ethanol CEO Brian Jennings. “Enactment of the Next Generation Fuels Act would complement that tax credit by helping lower pump prices while enabling greater engine efficiency and biofuel demand, and we look froward to promoting the legislation during our fly-in next week.”

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

USDA Under Secretary Supports US Ethanol in Panama

Cindy Zimmerman

USGC photo: USDA Undersecretary Alexis Taylor (top right) witnesses signing of Ethanol MOU In Panama

USDA Under Secretary for Trade and Foreign Agricultural Affairs Alexis Taylor is on a trade mission to Central America-Dominican Republic and supporting U.S. ethanol on the way.

The mission included Taylor witnessing a memorandum of understanding signing between the U.S. Grains Council and the Panamanian Sugar Cane National Industry on ethanol blending.

“Our U.S. industry and the Panamanian industry are coming together to help grow this ethanol market here,” said Taylor during a media call from Panama on Wednesday. The country recently began to implement legislation allowing ethanol blending up to 5% and working with sugarcane farmers to produce it locally and increase the blend to 10%.

The MOU recognizes the importance of assessing the role and benefits of biofuels and ethanol in the promotion of economic growth, diversification of the energy matrix and decarbonization of transportation in the global energy transition to address global greenhouse gas emissions.

Taylor held a media call from Panama City, Panama Wednesday to discuss the trade mission.
USDA Under Secretary Alexis Taylor from Panama City, Panama (15:18)

Audio, Ethanol, Ethanol News, Exports, International, Trade, USDA, USGC

EPA Holds Virtual Hearing on Proposed E15 Waiver

Cindy Zimmerman

The Environmental Protection Agency held a virtual hearing Tuesday on the recently proposed rule for a permanent waiver to allow eight states to sell E15 year round. For ethanol stakeholders, comments boiled down to one message: EPA took too long to respond to the governors’ request and must do something immediately to implement a waiver before summer.

Renewable Fuels Association President and CEO Geoff Cooper reminded the agency that it had a statutory duty to approve and implement the governors’ petition within 90 days—which would have been no later than July 27, 2022. Instead, the proposal was issued just three weeks ago, and EPA now proposes deferring implementation until 2024.

“If there truly is a problem with implementing the governors’ petition this summer, it is a problem of the Administration’s own making,” Cooper said. “EPA’s seven-month delay in taking any action at all on the petition has put the marketplace in a real jam—and it should be EPA’s responsibility to get us out of that jam. If the Agency truly believes it cannot implement this petition in time for the summer of 2023, then it should consider using other regulatory authorities to ensure consumers have uninterrupted access to lower-cost, lower-carbon E15.”

American Coalition for Ethanol (ACE) Chief Marketing Officer (CMO) Ron Lamberty testified that while EPA justifies delaying the effective date of the rule to 2024 by saying it had to thoroughly consider challenges to every step of the supply chain from refinery to delivery, “EPA conspicuously gives zero consideration to the economic impact their delay will have on E15 retailers and the consumers who use the fuel.”

“Retailers who have offered E15 and consumers who have purchased E15 in 2020, 2021, 2022, and who will be able to use it in 2024, will now have to quit selling and using E15 for three and a half months because of EPA foot-dragging,” Lamberty said. “More importantly, the retailers and consumers using E15 do so because it costs 5 to 15 cents less than E10 and 40 to 75 cents less than non-ethanol gasolines. Now they’ll have to spend more for fuel during the busiest time of the year because EPA didn’t get its work done on time.”

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

Second Part of Iowa Carbon Study Released

Cindy Zimmerman

The second part of a study looking at potential impacts if Iowa prevents carbon capture and sequestration (CCS) projects was released this week by Decision Innovation Solutions (DIS) and the Iowa Renewable Fuels Association (IRFA), finding that farm income could drop by more than $1 billion annually.

DIS concluded: “Ethanol production in the state of Iowa has brought tens of billions of dollars in increased economic activity to the state and has been a significant factor in the rise in net farm cash income for Iowa’s farmers. That economic activity could be lost if Iowa’s ethanol plants are not enabled to be competitive with ethanol plants in other states that have access to carbon capture and sequestration via pipelines or direct injection into deep, underground saline formations.”

Iowa Renewable Fuels Association (IRFA) commissioned DIS to conduct an all-encompassing economic impact study based on a scenario where Iowa ethanol plants are excluded from using CCS while pipelines in the surrounding states go forward. The first phase of the study found that current market and policy dynamics would result in Iowa ethanol production becoming noncompetitive. As production migrates out of state by the end of the decade, Iowa ethanol production could contract by 75% with Iowa farmers losing local markets for over 1 billion bushels of corn annually.

“Ethanol production has done more to increase farm income than anything else over the last twenty years,” stated IRFA executive director Monte Shaw. “If Iowa legislators adopt laws that prevent ethanol production from remaining competitive in the state, they are also imposing an 85 percent pay cut on farmers who produce corn. This would be as unwise for the state as it would be unwelcome for our farmers. IRFA continues to ask all Iowans to unite behind a fair and equitable path forward for CCS projects in this state.”

Shaw held a virtual press conference Monday to announce the study results with David Miller, Chief Economist of Decision Innovation Solutions, and Iowa corn grower Tim Recker.
Iowa RFA study phase two results (24:36)

Audio, biofuels, Carbon, corn, Ethanol, Ethanol News, Farming

Nuseed Launches 2023 Carinata Program at Classic

Cindy Zimmerman

Look, up in the sky! It’s a mustard seed! It’s a cover crop! No, it’s super Carinata sustainable aviation fuel!

Once a lowly Ethiopian mustard seed with little to offer for human consumption, this plant is growing in popularity as a certified sustainable non-food cover crop that can be used as a low-carbon feedstock for sustainable aviation fuel (SAF).

“Carinata is an exciting crop,” said Roger Rotariu, Nuseed North American Marketing Lead. “We position it as a cover crop for the Southern U.S. grower with yield potential and profitability opportunities.”

The Nuseed Carinata program pays growers for what they grow and how they grow it. Growers receive contract payment for the grain harvested from the cover crop and for certifiable sustainable farming practices, like reduced tillage and lower synthetic nitrogen applications.

“Carinata is grown for a specific downstream market and that is sustainable aviation fuel,” said Rotariu. “So it’s a feedstock to allow planes to continue to fly and meet the carbon requirements that we all know are coming in the future.”

Rotariu says carinata has all the benefits of a cover crop for farmers, with a profitability advantage.

Learn more in this interview with Rotariu from Commodity Classic.
Classic 23 interview with Roger Rotariu, Nuseed (8:04)

Audio, aviation biofuels, Commodity Classic, feedstocks, SAF, Sustainability

RFA Provides Comments on California LCFS

Cindy Zimmerman

The Renewable Fuels Association submitted comments last week to the California Air Resources Board that identified several areas in CARB’s proposal and underlying analysis that need improvement.

The top area of improvement cited by RFA Chief Economist Scott Richman is immediate approval of E15 for use in California. “Migrating all E10 to E15 in California today would result in approximately 2 million metric tons annually of additional GHG reductions,” says Richman.

Richman also noted that while the California Transportation Supply (CATS) model used by CARB incorporates the average carbon intensity (CI) of ethanol in the market today and assumes that CI improvements will continue in the future, it assumes that the CI of ethanol produced at facilities using carbon capture and sequestration (CCS) will be flat over time. “On the contrary, it is reasonable to expect substantial reductions in the CI of ethanol broadly, and that ethanol with CCS in particular is likely to achieve steady reduction and, ultimately, net-zero emissions over the next two decades.”

Finally, the current low credit prices under the LCFS are clearly inhibiting new investment in low-carbon fuel production. The long period of time (up to three years) to update the LCFS given the regulatory process in California is creating uncertainty as to the longer-term trajectory of the program, and the incorporation of a compliance acceleration mechanism into the LCFS could potentially address this problem.

Read the comments.

Carbon, carbon capture, Ethanol, Ethanol News, Low Carbon Fuel Standard, Renewable Fuels Association, RFA

California E85 Sales Surpass 100 Million Gallons

Cindy Zimmerman

California drivers set a new record buying E85 (85% ethanol) fuel last year, up 66 percent over 2021 and more than doubled the pre-pandemic record set in 2019, according to new data released by the California Air Resources Board.

The Renewable Fuels Association reports that California drivers purchased over 103.5 million gallons (mg) of E85 flex fuel, up from about 62.5 mg in 2021.

Renewable Fuels Association President and CEO Geoff Cooper said drivers are seeking out options at the pump that are both more affordable and better for the environment. “E85 substantially reduces greenhouse gas emissions compared to gasoline, and the fuel typically sells for 25 to 40 percent less in California. This new data show that when E85 is made available and effectively promoted, FFV drivers will absolutely respond,” said Cooper.

Cooper noted that the surge in E85 sales in California is due to a combination of factors. “These results show what is possible when policies like the California Low Carbon Fuel Standard and federal Renewable Fuel Standard are combined with smart promotional and marketing campaigns,” he said. “The California E85 experience should serve as a model for other states to emulate.”

RFA Member Pearson Fuels is California’s largest provider of E85 and has witnessed how the momentum is growing for E85. “Part of the massive growth last year came from severe gasoline price spikes, which saw E85 priced nearly $3 per gallon cheaper than regular unleaded gasoline,” said Doug Vind, managing member of Pearson Fuels. “In 2022 alone, we estimate FFV owners using E85 saved upwards of $200 million at the pump. As we continue to add stations, our 2023 volumes are tracking ahead of last year – so we expect solid growth again.”

E85, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Farmers Join Fight Against MN “Clean Cars” Mandate

Cindy Zimmerman

The Minnesota Soybean Growers Association (MSGA) has joined the Minnesota Service Station & Convenience Store Association and NACS, Clean Fuels Development Coalition, and ICM Inc., in filing a lawsuit against the state of Minnesota for its adoption of California’s “zero-emission vehicle” mandate.

“Having Minnesota blindly follow California’s rules gives up our ability to make our own decisions and would sabotage our own growers and producers of liquid fuels in the heartland,” MSGA President Bob Worth said. “Minnesota consumers know better than California politicians what is best for their own lives.”

The lawsuit, filed in the U.S. District Court for the District of Minnesota, challenges the legality of Minnesota Pollution Control Agency rules requiring that new cars, light-duty trucks and medium-duty vehicles in the state meet emission limits set by California and match California’s requirements for the sale of a certain percentage of so-called “zero-emission vehicles,” as defined by California regulators.

The lawsuit contends that the federal Energy Policy and Conservation Act (EPCA), which creates a uniform national standard for vehicle fuel efficiency, prohibits states from adopting policies “related to” federal fuel-economy standards. EPCA says that a “State or a political subdivision of a State” cannot “adopt or enforce a law or regulation related to fuel economy standards or average fuel economy standards.”

Read more from MN Soy

Biodiesel, Electric Vehicles, Soybeans

Consumers Continue to Support Ethanol

Cindy Zimmerman

The Renewable Fuels Association revealed the results of its latest consumer focus group research at the recent National Ethanol Conference.

Phillip Morris of the Locust Street Group conducted a round of focus groups for RFA in late January with consumers in Ohio, Florida and California. This was the third time this research has been conducted for RFA, previously in 2019 and 2021, which Morris says provides them with perspective to see changing attitudes and trends. “I think this round of research, we’ve seen some of the most notable shifts in consumer attitudes toward ethanol than we’ve seen to date,” said Morris.

Among the shifts was awareness of ethanol in gasoline. “When we’ve conducted this in years past, we had very few folks in our focus groups tell us that they were even aware that ethanol was in their gas tank,” said Morris. “That was not the case this time.”

This time, record high gas prices made a difference. “In a time of higher than usual gas prices, folks are more conscious than ever of what they’re putting in their gas tank and that is driving greater awareness of the role that ethanol plays,” Morris said.

For the first year, the research included questions about electric vehicles, and Morris says they found many believe EV adoption will occur within the next 50 years but they are concerned about how it can be achieved. “However, within the next 15 years, the vast majority said they think there will still be a mix of liquid fueled and electric vehicles on our roads,” said Morris.

Morris said they found strong opposition to any state or local initiatives to ban the sale of new gas-powered vehicles. “They do not want government forcing them to choose one vehicle type over another,” he said.

Listen to Morris’ summary of the focus group findings at NEC.
RFANEC23 presentation Phillip Morris, Partner, Locust Street Group (40:19)

2023 National Ethanol Conference Newsroom

Audio, Electric Vehicles, Ethanol, Ethanol News, National Ethanol Conference, Renewable Fuels Association, RFA

Consumer and Fuel Retailer Choice Act Reintroduced

Cindy Zimmerman

Legislation that would allow the year-round, nationwide sale of ethanol blends higher than 10% was reintroduced in both the House and Senate this week.

Sens. Deb Fischer (R-NE) and Amy Klobuchar (D-MN) led the reintroduction in the Senate of the Consumer and Fuel Retailer Choice Act this week, as Reps. Adrian Smith (R-NE), Angie Craig (D-MN) and Rep. Dusty Johnson (R-SD) did the same in the House.

The legislation not only has bipartisan and bicameral support, it also has support from a wide mix of stakeholders, including the National Corn Growers Association, Renewable Fuels Association, American Coalition for Ethanol (ACE), and the American Petroleum Institute.

“This commonsense legislation is supported by a broad and diverse coalition, ranging from farmers to filling stations and from ethanol producers to petroleum companies,” said RFA President and CEO Geoff Cooper. “We all agree that American drivers need access to lower-cost, lower-carbon E15 at the pump every day of the year and across this country. With the summer driving season right around the corner, we call on Congress to move quickly and adopt this legislation as soon as possible.”

“Securing national and permanent market access for E15 year-round is best done through Congress,” said ACE CEO Brian Jennings “ACE members look forward to fostering support for this legislation during our annual fly-in at the end of the month. Given the urgency to ensure uninterrupted market access for 2023, ACE is pushing for immediate action via emergency waivers, passage of this legislation and other options to unleash the cost-saving benefits of E15 this summer.”

Original Senate supporters of the bill include: Senators John Thune (R-S.D.), Pete Ricketts (R-Neb.), Tammy Baldwin (D-Wis.), Chuck Grassley (R-Iowa), Tina Smith (D-Minn.), Kevin Cramer (R-N.D.), Debbie Stabenow (D-Mich.), Mike Rounds (R-S.D.), Tammy Duckworth (D-Ill.), Jerry Moran (R-Kan.), Dick Durbin (D-Ill.), Roger Marshall (R-Kan.), Sherrod Brown (D-Ohio), Joni Ernst (R-Iowa), and John Hoeven (R-N.D.).

Original House supporters of the bill include: Representatives Mariannette Miller-Meeks (R-Iowa), Marcy Kaptur (D-Ohio), Dan Kildee (D-Mich.), Sam Graves (R-Miss.), Mike Flood (R-Neb.), Don Bacon (R-Neb.), Jake LaTurner (R-Kan.), Mike Bost (R-Ill.), Blaine Luetkemeyer (R-Miss.), Randy Feenstra (R-Iowa), Andre Carson (D-Ind.), Michelle Fischbach (R-Minn.), Ashley Hinson (R-Iowa), Darin LaHood (R-Ill.), and Zach Nunn (R-Iowa).

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