New Poll Says Voters Want E15 Available Year-Round

Cindy Zimmerman

Voters say they want their E15, according to a new Morning Consult poll for the Renewable Fuels Association.

With retail gas prices remaining elevated, nearly 70 percent of poll respondents support increasing the availability of E15 to help lower fuel prices and support energy independence. Just 13 percent of those surveyed did not support expanded availability of E15. Meanwhile, 62 percent support recently introduced bipartisan legislation that would allow the lower-carbon E15 blend to be sold year-round nationwide. Only 15 percent of respondents do not support the legislation, while 23 percent had no opinion. Morning Consult polled 1,978 registered voters March 20-23, across all demographics.

Click here for the topline data.

In addition, the poll found that ethanol favorability and support for the Renewable Fuel Standard have reached record highs with 69 percent of respondents expressing a favorable opinion of ethanol, while 66 percent support the RFS. These are the highest numbers since RFA kicked off baseline polling in June 2016.

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

Ethanol Watching Carbon Pipeline Future in Iowa

Cindy Zimmerman

The Iowa House approved a bill last week that would restrict the use of eminent domain by carbon pipeline companies and thereby “create a de facto ban on new projects that allow Iowa ethanol producers to install carbon capture and sequestration (CCS) technology,” according to the Iowa Renewable Fuels Association (IRFA).

The legislation would require pipeline companies to obtain voluntary easements for 90% of their proposed route before they would be allowed to use eminent domain for the remainder. “This bill will hurt Iowa ethanol production, which hurts Iowa corn prices, which hurts Iowa farmers and the economy,” said IRFA Executive Director Monte Shaw. “IRFA will continue to fight for a fair and equitable path forward for CCS technology in the Iowa Senate.”

Iowa Governor Kim Reynolds commented on the carbon pipeline issue during a press availability earlier this month at the National Ethanol Conference in Orlando, noting that she had to be careful what she said.

“We have legislation going through the chamber so I have to be careful about how I comment, it’s been my policy not to weigh in to existing legislation,” said Reynolds. “But I’ve made it very clear there are laws on the books, eminent domain should be used as a last resort. Landowners should be compensated well.”

Reynolds said she believes carbon capture and sequestration is “the future of ethanol so it’s extremely important” and that as governor, her “role is to add value to what we do and ethanol and biofuels is a big component for that.”

Listen to Reynolds’ comments here:
Gov. Reynolds comments on carbon pipelines (2:05)

Audio, Carbon, carbon capture, Ethanol, Ethanol News

EPA Pressed to Take Action on E15

Cindy Zimmerman

It was April 12, 2022 when President Biden traveled to an ethanol plant in Iowa to announce an emergency waiver to allow the sale of 15 percent ethanol (E15) in the summer months – and once again the industry finds itself in the same situation a year later.

In a letter to EPA Administrator Michael Regan last week, Renewable Fuels Association President and CEO Geoff Cooper noted that the same fuel supply circumstances that justified emergency waivers last summer still exist in the marketplace today.

“War in Ukraine continues to disrupt the U.S. fuel supply,” Cooper wrote. “Total U.S. gasoline stocks fell to just 229.6 million barrels last week, 5 percent below year-ago levels and the lowest for this time of year since 2015. Meanwhile, total stocks of crude oil and petroleum products are also down 5 percent from a year ago and have fallen to a 19-year low for this time of year.”

Earlier this month, EPA proposed to approve petitions from eight states that would allow the year-round sale of E15 in their states, but not until next year, leaving the country again without E15 in the summer.

Members of the American Coalition for Ethanol (ACE) are heading to Washington DC this week to meet with lawmakers and hear from EPA officials, and CEO Brian Jennings says the topic of year round E15 will be a major priority for them.

“EPA’s proposed delay makes a more permanent, nationwide E15 solution even more critical, and ACE will remain engaged with Congress and our industry partners,” Jennings said.

Rep. Ashley Hinson (R-IA) is among members of Congress who are pressuring the administration to take action on E15. “They need to stop dragging their feet on these ethanol-related issues because this is about doing the right thing for consumers and doing the right thing for agriculture at the same time,” said Hinson on the latest Agri-Pulse Newsmakers.

The governors have also called on EPA to take emergency action ensure uninterrupted access to E15 throughout the summer 2023 driving season if the agency is unable to implement their proposal in time. Signing on to a letter last week were Govs. Kim Reynolds (R-IA), Jim Pillen (R-NE), Tim Walz (D-MN) and Kristi Noem (R-SD).

They wrote, “we ask that EPA use its authority under Clean Air Act to apply the same volatility limitations to both E10 and E15 during the 2023 summer ozone control season to address extreme and unusual fuel supply circumstances across our nation caused by the war in Ukraine.”

During an EPA virtual hearing on the governors’ proposal, Cooper said despite the fact that EPA delayed in responding to the petition, “there remains no economic, environmental, or legal justification for the agency to delay implementation by another year.”

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

Ethanol Industry Worth $2.7 Billion to MN Economy

Cindy Zimmerman

Minnesota’s ethanol industry contributed $2.7 billion to the state’s gross domestic product (GDP) in 2022, according to a new study by the University of Minnesota Extension, sponsored by MN Bio-Fuels.

The study found the industry produced 1.34 billion gallons of ethanol last year, up from 1.27 billion gallons in 2021, resulting in $8 billion in economic activity through sales and supported 25,820 jobs in Minnesota. The study said the ethanol industry also contributed $1.9 billion in income for Minnesota residents and paid $183.8 million in state and local taxes in 2022.

“This economic impact report from the University of Minnesota Extension shows that the ethanol industry continues to play a major role in Minnesota’s economy. Among other critical findings, the report notes that last year ethanol plants across the state purchased 479 million bushels of corn from Minnesota farmers, employed nearly 26,000 Minnesotans, produced 3.95 million tons of dried distillers grains for Minnesota livestock, and 409 million pounds of corn oil for biodiesel and sustainable aviation fuel applications. The takeaway, as the report so succinctly states, is that ‘ethanol production creates economic activity in Minnesota’,” said Brian Werner, executive director at the Minnesota Bio-Fuels Association (MN Bio-Fuels).

The study said the 3.95 million tons of dried distillers grains produced in 2022 was enough to support 1.9 million cows, 2.4 million pigs and 59.3 million turkeys and chickens.

“For context, Minnesota farms have 2.2 million cattle, 8.6 million pigs, and 37.5 million head of turkeys,” the study said.

In addition, the study said the 409 million pounds of corn oil produced by Minnesota’s ethanol industry in 2022 was sufficient to produce 53.1 million gallons of biodiesel. Minnesota’s biodiesel production capacity is 85.5 million gallons.

corn, Ethanol, Ethanol News

Preliminary Agenda Announced for 2023 FEW

Cindy Zimmerman

Ethanol Producer Magazine has announced the preliminary agenda for the 2023 International Fuel Ethanol Workshop & Expo (FEW) taking place June 12-14, 2023 in Omaha, Nebraska.

This year’s agenda includes three co-located events: Biodiesel Summit: Sustainable Aviation Fuel & Renewable Biodiesel, Carbon Capture & Storage Summit, and the annual Ethanol 101.

“In addition to ethanol production, management, and product diversification for ethanol producers, this year’s agenda is covering multiple topics about carbon capture and storage, biodiesel and renewable diesel production, as well as sustainable aviation fuel production,” says John Nelson, vice president of operations, sales and marketing at BBI International. “And as we have in the past, the agenda will allow those new to the industry to learn some of the basics in Ethanol 101, taking place Monday, June 12th.”

Ethanol, Ethanol News, FEW

Ethanol Report with More #NEC23 Highlights

Cindy Zimmerman

The centerpiece of the 2023 National Ethanol Conference was a new concept vehicle that runs on both electricity and up to 85 percent ethanol.

In this edition of The Ethanol Report, Renewable Fuels Association VP of Industry Relations Robert White talks about the new Flex Fuel EV, which has already become a trade show star. We also hear from Jeff Wilkerson, Government Policy and Regulatory Affairs with Pearson Fuels, who was on a panel at the NEC talking about E85 in California, where sales last year topped a million gallons. And Phillip Morris with the Locust Street Group provides some insights from the latest consumer focus group study presented at the NEC.

Ethanol Report 3-23-23 17:52

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, automotive, Ethanol, Ethanol News, Ethanol Report, National Ethanol Conference, Renewable Fuels Association, RFA

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