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

Nebraska Governor Signs Bill Promoting Use of Biodiesel

Cindy Zimmerman

Nebraska Gov. Jim Pillen last week signed legislation promoting the sale and use of biodiesel in the state by providing retail tax incentives for the sale of biodiesel at fuel retailer locations.

Part of an omnibus revenue bill, the Nebraska Biodiesel Tax Credit Act, provides a 14-cent per gallon credit for the sale of biodiesel. The credit is applied to a Nebraska fuel retailer’s income tax liability. Total funding for the program is $5 million.

“We applaud Gov. Pillen for signing legislation that will continue to strengthen the momentum of a growing biodiesel market,” said Donnell Rehagen, CEO for Clean Fuels Alliance America. “Nebraska has responded to the call to decarbonize through this forward-thinking legislation that promotes the production and use of biodiesel, a homegrown fuel from homegrown feedstocks.”

In addition to promoting biodiesel, the legislation helps Nebraska soybean farmers by adding value to their crop. In 2022, the biodiesel industry in Nebraska supported an estimated $322 million worth of overall value to Nebraska soybeans. For a Nebraska farmer with 500 acres, the biodiesel and renewable diesel industry supports about $28,400 to their bottom line.

Nebraska joins Illinois, Iowa and Missouri as states that have recently passed legislation supporting the sale and production of biodiesel. These efforts will help grow the biodiesel market in the Midwest by over 300 million gallons.

Biodiesel, Clean Fuels Alliance

Sugarcane Ethanol Plant Secures Crop Commitments

Cindy Zimmerman

California Ethanol & Power has announced its low-carbon sugarcane-to-ethanol and power facility, Sugar Valley Energy, has secured letters of intent with local Imperial Valley farmers to grow 12,000 acres of sugarcane to support its initial feedstock production schedule.

The sugarcane plantings will take place in phases, corresponding with the timing of construction of the facility, which will encompass an advanced bioethanol refinery producing as much as 75 million gallons annually, and a power island that will produce 43 MW of bioelectricity as well as pipeline-grade biogas. The SVE Essential Ethanol™ will represent the lowest carbon pathway of any commercial biofuel produced in California.

Commitments for another 38,000 acres of sugarcane are expected to be secured to support the facility completion and commencement of operation in 2026, with financing for the 160-acre facility and the agricultural operations expected this year.

Ethanol, Ethanol News, sugarcane

2023 FEW in Omaha This Week

Cindy Zimmerman

The ethanol industry is in Omaha this week for the 2023 Fuel Ethanol Workshop and Trade Show and the Renewable Fuels Association is headlining the event this year.

Starting today with a golf outing and sessions, FEW officially kicks off tomorrow morning with the industry keynote address by RFA President and CEO Geoff Cooper. Following that, Senior Vice President for Government and Public Affairs Troy Bredenkamp will serve on the annual association leadership panel. RFA’s new Vice President for Strategy and Innovation Tad Hepner will trace the industry’s path to net-zero carbon emissions in an afternoon panel today.

The event will also include a meet-and-greet reception for members of RFA’s committees on Monday evening, while RFA’s Young Professionals Network will be holding a networking cocktail hour in conjunction with Renewable Fuels Nebraska. And RFA will also be showcasing its new Flex-Fuel Plug-In Hybrid EV at the Expo.

The 39th annual Fuel Ethanol Workshop and Expo conference runs through Wednesday in Omaha.

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

Ethanol Part of USDA Trade Mission to Japan

Cindy Zimmerman

USDA Under Secretary Alexis Taylor (center) with state ag officials from Kansas, Kentucky, Maine, Nebraska, and North Dakota

USDA Under Secretary for Trade and Foreign Agricultural Affairs Alexis Taylor led a trade mission to Japan this week with representatives from 11 state departments of agriculture, numerous farm organizations, and 40 agribusinesses looking to connect with future business partners in Japan.

“As one of the largest world economies, Japan is one of the top and most reliable trading partners for the United States. Every year for over the past two decades, Japan has imported at least $10 billion worth of U.S. food and agriculture products, reaching a record-high $14.6 billion in 2022. This shows that there is a continuously growing demand for U.S. products in Japan, providing U.S. exporters with a tremendous opportunity to expand their exporting,” said Under Secretary Taylor. “On this agribusiness trade mission, we have many incredible businesses joining this delegation to showcase the strength of U.S. food and agriculture products. Japanese consumers are especially interested in high-quality, health-oriented products, and I am confident that U.S. businesses can meet and exceed these expectations.”

Among the topics being discussed on the trade mission is ethanol, since Japan recently adopted a new biofuels policy that could allow exports of U.S. ethanol to increase by over 80 million gallons annually, representing an additional $150-200 million in exports each year. “As we globally are trying to deal with changing climate, ethanol is a key tool for many countries around the world,” said Taylor, who met with Japan’s Ministry of Economy, Trade and Industry during the mission, along with representatives from the U.S. Grains Council.

Taylor addressed ethanol during a press conference from Japan Thursday.
USDA Under Secretary Taylor on ethanol in Japan 1:26

Audio, Ethanol, Ethanol News, Exports, USDA

New Study Shows E15 Reduces Emissions

Cindy Zimmerman

The University of California, Riverside has just released a peer-reviewed study that shows E15 ethanol blends provide notable emissions reductions compared to California’s regular reformulated gasoline.

According to the study, emissions of total hydrocarbons, non-methane hydrocarbons, and carbon monoxide all showed either marginally or statistically significant reductions for E15 compared to regular California gasoline. In addition, particulate matter (PM) and solid particle number emissions dropped substantially with E15, and E15 showed lifecycle greenhouse gas emissions savings when compared to E10. Nitrogen oxide (NOx) emissions when using E15 showed marginal reductions in many cases, but the changes in NOx were not statistically significant.

Renewable Fuels Association President and CEO Geoff Cooper says the report is proof of the value of E15 for The Golden State, which is one of only two states yet to allow the E15 blend to be used. “This new study shows what we’ve been arguing all along—that E15 offers emissions benefits that would help meet environmental goals in California, where the state’s 27 million drivers log more than 340 billion miles a year on the road,” RFA President and CEO Geoff Cooper said. “We continue to call on California’s regulators to move quickly to permit E15 to be sold in the state, a blend that also offers cost savings in a place where gasoline prices are higher than anywhere else in the country.”

Montana is the other state that has not yet approved E15. The research will appear in the October 2023 journal Fuel, and was supported by RFA, the California Air Resources Board and other organizations.

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

Absolute Energy Partners With Summit Carbon Solutions

Cindy Zimmerman

Absolute Energy in Saint Ansgar, Iowa is the latest ethanol plant to partner with Summit Carbon Solutions in its carbon capture and storage project.

Absolute Energy, which commenced operations in 2008 and produces approximately 130 million gallons per year of ethanol, joins a growing network of ethanol plants as partners in the project, which upon completion will sequester up to 18 million metric tons of carbon dioxide each year. The project, extending through Minnesota, Iowa, Nebraska, South Dakota, and North Dakota, significantly reduces the carbon footprint of participating ethanol plants and opens new market opportunities.

“It fills us with a sense of purpose and satisfaction to team up with Summit on this critical mission of carbon capture and storage,” said Rick Schwarck, CEO of Absolute Energy. “The strategic placement of our Absolute Energy facility in Saint Ansgar, Iowa, coupled with our earnest endeavor to curtail greenhouse gas emissions, finds a parallel mission with Summit Carbon Solutions. We eagerly anticipate joining forces with Summit to meet our environmental sustainability goals.”

Summit’s partnership with Absolute Energy will result in the removal and permanent storage of 370,000 metric tons of CO2 per year and builds on recent momentum, including a new partnership with NuGen Energy, a South Dakota producer, and having successfully acquired 70 percent of its pipeline route through voluntary easements with nearly 2,500 landowners. These achievements underline Summit’s strong community support and shared vision for sustainable agriculture and energy production.

Carbon, carbon capture, Ethanol, Ethanol News