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

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.

Choose an option to subscribe

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