Ethanol Report on E15 in Limbo

Cindy Zimmerman

With only weeks until the summer driving season starts, the future of E15 retail sales for the summer remains in limbo, and the clock is ticking. A plan was already in place by this time last year and at this point the only solution requires immediate action by the Biden administration.

In this edition of the Ethanol Report podcast, Renewable Fuels Association President and CEO Geoff Cooper discusses why the E15 situation is so urgent right now for both producers and consumers, and reaction to the administration’s proposed tailpipe emissions standards that would require more electric vehicles. In addition, RFA Chief Economist Scott Richman provides an analysis of E15 sales last year, which surpassed a billion gallons, as well as insight into the oil production market situation and how E15 is needed this summer as much or more than last year.

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Ethanol Report 4-14-23 35:47

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

Ethanol Industry Pans Proposed Emission Standards

Cindy Zimmerman

Ethanol industry stakeholders panned the Environmental Protection Agency’s new proposed federal vehicle emissions standards released today as the deadline looms for taking action to allow uninterrupted sales of 15% ethanol fuel this summer.

“While we certainly share the Biden administration’s goals of increasing vehicle efficiency and reducing carbon emissions from transportation, we strongly disagree with policy approaches that arbitrarily pick technology winners and losers with no clear scientific basis,” said Renewable Fuels Association President and CEO Geoff Cooper. “Today’s EPA proposal would effectively force automakers to produce more battery electric vehicles and strongly discourage them from pursuing other vehicle technologies that could achieve the same—or better—environmental performance at a lower cost to the U.S. economy and American families. We urge EPA to reconsider its proposal and instead adopt a technology-neutral approach that treats all low-carbon transportation options fairly and equally.”

American Coalition for Ethanol (ACE) CEO Brian Jennings pointed to comments made last month by EPA Agriculture Advisor Rod Snyder to ACE members in Washington, DC. “There is no question we will be using liquid transportation fuels for a long time to come, our lifetimes probably,” Snyder told ACE members during the group’s annual fly-in.

“Appreciating this truth, ACE members are dedicated to producing domestic biofuels with net-negative carbon scores – something that EVs will never achieve,” said Jennings. “Rather than put all our eggs in the electric vehicle basket, a smarter and more achievable approach would be through a technology-neutral Clean Fuel Standard that ensures fair and accurate accounting and crediting of GHG reductions from climate-smart agriculture practices and unleashes homegrown fuel sources.”

ACE, E15, Ethanol, Ethanol News

With E15 in Limbo, Biden Backs EVs

Cindy Zimmerman

It was one year ago today that President Joe Biden visited an Iowa ethanol plant to announce an emergency waiver to allow 15% ethanol fuel to be sold across the United States during the summer months.

“(W)ith this waiver, on June 1, you’re not going to show up at your local gas station and see a bag over the pump that has the cheapest gas. You’re going to be able to keep filling up with E15. And it’s going to solve a whole problem,” said Biden on April 12, 2022. “Even if it’s an extra buck or two in the pockets when they fill up, it’ll make a difference in people’s lives.”

Despite the fact that EPA has proposed a permanent waiver to allow at least eight states to sell E15 year round, that rule would become effective until next year, leaving this summer driving season in E15 limbo.

Instead of taking action to make E15 available this summer, the Biden Administration today proposed tough new car emissions standards pushing the adoption of electric vehicles nationwide.

“As a car enthusiast and self-proclaimed car guy, President Biden is seizing the moment. His Investing in America agenda is expanding domestic manufacturing and accelerating adoption of zero-emission vehicles (ZEV), including battery electric, plug-in hybrid electric, and fuel cell electric vehicles.”

In the first year of his Administration, President Biden set a goal that at least 50 percent of all new passenger cars and light trucks sold in 2030 be zero-emission vehicles, ultimately reaching net-zero carbon emissions by 2050. A year ago in Iowa he said, “And you simply can’t get to net zero by 2050 without biofuels.”

E15, EPA, Ethanol, Ethanol News

RFA and Propel Promote E85 in California

Cindy Zimmerman

The Renewable Fuels Association held an event this week in Sacramento with Propel Fuels spotlighting the importance of the lower-carbon E85 Flex Fuel blend, which hit a record 103.5 million gallons sold in the state last year.

“Gas prices are on the rise again in California, and drivers are seeking out options at the pump that are both more affordable and better for the environment; E85 definitely checks both of those boxes,” said RFA President and CEO Geoff Cooper. “American-made E85 is a low-carbon, low-cost liquid fuel that is growing in popularity and availability. The fuel substantially reduces greenhouse gas emissions compared to gasoline and helps insulate our nation’s fuel supply from the whims of the OPEC cartel and Russia. The record sales volume for E85 in 2022 clearly shows that, when the blend is made available and effectively promoted, FFV drivers will absolutely respond.”

Propel launched E85 in the Sacramento region in 2007 and CEO Rob Elam says it’s now the fastest-growing fuel in California. “We expect to see exponential growth as Propel expands its E85 wholesale offering across the west coast and beyond,” said Elam.

The latest Energy Information Administration update shows prices for regular gasoline averaged $4.68 per gallon in California last week, up more than $0.50 per gallon since the beginning of the year. E85 typically sells for 25 to 40 percent less in California and was priced at $2.99 per gallon Tuesday, compared to $4.69 for regular unleaded.

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

Couser Provides Grassroots Input to EPA

Cindy Zimmerman

Environmental Protection Agency Administrator Michael Regan recently appointed members for the Farm, Ranch, and Rural Communities Federal Advisory Committee (FRRCC), including Iowa livestock producer and ethanol investor Bill Couser. Established in 2007, the FRRCC provides independent policy advice, information, and recommendations to the EPA administrator on a range of environmental issues and policies that are of importance to agriculture and rural communities.

Couser, who frequently hosts tours of his operation to promote ethanol and agriculture, considers it an important duty to be involved in decisions that might impact the industry.

“It’s our voice that we get to sit down with the ag liaison to the administration,” said Couser. “It’s a think tank and they give us topics to work on…that’s our grassroots input to the administration. That’s why I feel so confident today that we finally have a seat at the table and are not on the menu.”

The committee’s focus for the next two years will be advancing climate mitigation and adaptation strategies for U.S. agriculture with specific topics including improved quantification of low-carbon biofuels’ reduction of greenhouse gas emissions and the benefits of nutrient management practices for climate and water quality.

Couser was thrilled to once again take part in the recent American Coalition for Ethanol DC Fly-in where he had the chance to meet with members of Congress and feels very optimistic for ethanol right now. Listen to an interview with him below:
ACE-DC 23 Bill Couser, Iowa (3:47)

Photos

2023 ACE DC Fly-in Photo Album

Find more audio from the ACE Fly-in here:
ACE Fly-in Virtual Newsroom

ACE, Audio, EPA, Ethanol, Ethanol News

New Energy Blue Hires Davis as VP

Cindy Zimmerman

New Energy Blue announces the hiring of bioenergy veteran Kelly Davis as Vice President. Davis joins New Energy Blue after a decade as Vice President of Technical and Regulatory Affairs for the Renewable Fuels Association and she also brings three decades of biofuels experience in quality management, production, and marketing.

“We’re building our first biomass refinery here in the U.S., optimizing a process proven by a commercial operation in Denmark,” says Thomas Corle, CEO and co-founder. “Having Kelly’s counsel from this point forward will be invaluable. I’ve worked with her and witnessed the full spectrum of her abilities since the late ’90s. She knows the biofuels industry inside and out, and there’s almost nothing she can’t do.”

“I’ve never taken on an easy job,” says Davis of her move to New Energy Blue. “The irresistible challenge here is turning corn stalks into cellulosic ethanol—and doing it profitably at commercial scale. That’s the holy grail of the bioenergy business. That’s what excites me.”

Davis joins the team planning the New Energy Freedom Biomass Refinery for a site outside Mason City, Iowa. The project can keep over one million tons of CO2 out of the atmosphere every year–equivalent to taking 200,000 cars off the road, achieved in part by replacing fuels and chemicals now produced from oil and gas refining.

advanced biofuels, biofuels, Cellulosic, Ethanol, Ethanol News

First Timers at ACE Fly-in

Cindy Zimmerman

L-R: Benjamin Bremmer, IL FFA officer; Kathy and Bill Howell, and Rep. Eric Sorenson (D-IL)

This year was the first time Bill and Kathy Howell attended the American Coalition for Ethanol DC Fly-in and they welcomed the opportunity to meet with Congressional lawmakers and staff to talk about ethanol.

Howell just became manager and CEO of Adkins Energy, an ethanol and biodiesel production facility in northwest Illinois, about six months ago after a four year hiatus from the ethanol industry. “In some respects it feels like its a rebirth for biofuels,” he said. “With the carbon intensity issues and how we can get that carbon down in our gen one plants and what does the future look like as we start to talk about aviation fuels and other fuels in the future.”

One of the visits the Howells were able to make on the Hill was to freshman Congressman Eric Sorenson (D-IL) who was appointed to the agriculture committee.

Listen to an interview with the Howells.
ACE-DC 23 Bill and Kathy Howell, Adkins Energy (3:31)

2023 ACE DC Fly-in Photo Album

Find more audio from the ACE Fly-in here:
ACE Fly-in Virtual Newsroom

ACE, Biodiesel, biofuels, Ethanol, Ethanol News

Iowa Corn Supports New Engine Technology

Cindy Zimmerman

Iowa’s corn farmers are backing new technology to power heavy-duty engines with clean, renewable fuels.

Thanks to support from Iowa Corn, Chicago-based ClearFlame Engine Technologies recently raised $30 million in Series B funding to move from pilot to product in key markets. The new funding will help demonstrate how ClearFlame’s unique engine modification technology powers diesel engine platforms with renewable liquid fuels like ethanol in place of diesel fuel, helping to advance carbon and climate goals more immediately and cost efficiently.

“ClearFlame continues gaining momentum with technology that heavy-duty equipment users can deploy to more quickly and affordably meet critical ESG goals,” said BJ Johnson, ClearFlame Chief Executive Officer and company co-founder. “Federal Department of Energy funding moved us from concept to patent. Series A funding propelled us from patent to pilot. This latest investment round can accelerate us from pilot to proven product in multiple markets, starting with long-haul trucks.”

By maintaining over 85% of the original diesel engine design, the company’s patented technology can efficiently adapt to markets like long-haul trucking, agriculture, power generation and mining, offering the same power, durability and performance as today’s diesel engines while readily integrating into existing manufacturing, fueling, maintenance and repair ecosystems.

“Ethanol and other clean renewable fuels represent a critical part of our overall zero-carbon strategy,” said Johnson. “Our strategy puts these sustainable fuels to work powering diesel engines, the workhorses of our economy who also contribute significantly to transportation emissions. We look forward to continuing our long-standing partnerships as we move from pilot to product.”

Johnson and ClearFlame Chief Technology Officer and co-founder Julie Blumreiter dedicated their doctoral research at Stanford University to finding solutions to mitigate climate change and achieve carbon reduction goals by freeing heavy-duty diesel engines from their reliance on fossil fuels. Diesel fuel consumption accounts for approximately 26% of overall CO2 emissions from the U.S. transportation sector. While electric powertrains face significant barriers for heavy-duty applications, the technology ClearFlame developed can meet heavy-duty performance requirements while offering better lifecycle greenhouse gas emissions reduction than EV by nearly 61% using low-soot renewable fuels.

advanced biofuels, corn, Ethanol, Ethanol News

RFA Kicks Off Ad Campaign for E15

Cindy Zimmerman

With the summer driving season less than two months away and fuel prices again on the rise, the Renewable Fuels Association this week kicked off an advertising campaign and call-to-action targeting ethanol supporters across the Midwest, as well as policymakers and insiders in Washington D.C. RFA is running radio spots and print ads in D.C. and Midwest markets, as well as digital ads across multiple geographies.

“Our message to the Biden administration is simple: Unless the White House acts quickly, American drivers will lose access to the lowest-cost, lowest-carbon fuel at the pump on June 1,” said RFA President and CEO Geoff Cooper. “ As we saw last summer, allowing year-round sales of E15 is an easy step the administration can take to immediately reduce gas prices for consumers. With OPEC announcing another round of production cuts and oil prices on the rise again, American families need relief at the pump and they want E15 as an option throughout the summer and every day of the year.”

Cooper points out that a Morning Consult poll conducted late last month found strong voter support for year-round E15 sales with 70 percent of poll respondents support increasing the availability of E15 to help lower fuel prices and support energy independence. Last year, allowing summertime sales of E15 saved American drivers $57 million at the pump between June 1 and September 15, an RFA analysis shows.

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

ACE Members Happy to be Back on the Hill

Cindy Zimmerman

Rep. Randy Feenstra (R-IA) meets with Charlie and Alex Good, Rick Schwarck, and Lisa Coffelt

This year was the 12th year that the American Coalition for Ethanol led a fly-in on Capitol Hill, but the last one was four years ago so members were very pleased to be back in person.

“Congress just opened up about a month a half ago,” said Rick Schwarck, President and CEO of Absolute Energy in St. Ansger, Iowa. “Face to face conversations are just more impactful, I believe.”

For Charlie Good and his son Alex, it was important for them to present the fuel retailer perspective in Washington D.C. right now at this critical time for E15. “I’m at about 25 percent of sales every day at E15 now,” said Good, owner of Good & Quick convenience store in Nevada, Iowa which offers ethanol blends up to E85. “We have an ethanol plant right outside of town, 80 to 90 percent of my customers are farmers, I’m from rural America. It’s huge for me.”

Listen to interviews with Schwarck and Good at the ACE Fly-in.
ACE-DC 23 Rick Schwarck, Absolute Energy (1:50)

ACE-DC 23 Charlie Good, Iowa (5:48)

Photos

2023 ACE DC Fly-in Photo Album

Find more audio from the ACE Fly-in here:
ACE Fly-in Virtual Newsroom

ACE, Audio, E15, Ethanol, Ethanol News