#RFANEC Explores Implementing Inflation Reduction Act

Cindy Zimmerman

The Inflation Reduction Act passed by Congress has been called the most important piece of legislation for the future of the ethanol industry since the Renewable Fuel Standard, but as the Renewable Fuels Association notes, the devil is in the details so getting implementation right is critical for the industry.

The National Ethanol Conference this week featured a panel of experts discuss how the bill’s energy tax incentives, infrastructure grants, and other provisions will be implemented in the years ahead. Moderated by Jared Mullendore, RFA Director, Government Affairs, the panel included:
Dana Jackson, Partner, RSM US LLP; Jorge Medina, Partner & Head of Renewables, Shearman & Sterling LLP; Matt Lauer, VP of Carbon Capture, Utilization & Storage, Foss & Company.

Listen to the entire panel here:
RFANEC23 Implementing the IRA panel (41:58)

2023 National Ethanol Conference Newsroom

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Ethanol Groups React to EPA Proposal

Cindy Zimmerman

EPA’s proposed rule released today in response to the request of several Midwest governors that would allow for year-round E15 in their states is a good news, bad news story, according to Renewable Fuels Association president and CEO Geoff Cooper.

“While we’re glad to see EPA is finally taking action to approve the Governors’ petition, we’re frustrated and disappointed that the agency is proposing to kick the can on implementation until 2024,” said Cooper. “There is simply no justification for further delaying this action, which is already months overdue. By law, EPA should have finalized approval of the Governors’ petition more than seven months ago, which would have given the marketplace more than enough time to adjust and prepare for implementation this summer.”

Listen to Cooper’s comments here:
RFANEC23 Cooper reaction to EPA proposal (2:30)

American Coalition for Ethanol CEO Brian Jennings has a similar reaction. “While ACE appreciates this step for 2024, EPA made multiple public promises these Midwest states would be approved for E15 market access in time for the 2023 summer driving season,” said Jennings. “Now, the Administration appears to be caving to refiner crocodile tears by kicking the can to 2024 instead. This delay means consumers in conventional gasoline areas of the country will be forced to pay more at the pump this year and retailers who want to offer lower cost E15 to their customers will be penalized.”

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EPA Releases Proposal for States’ Request on E15

Cindy Zimmerman

Just as the Environmental Protection Agency’s Deputy Director for Office of Transportation and Air Quality was addressing the Renewable Fuels Association National Ethanol Conference in Orlando, EPA finally released its proposed rule in response to the request from eight Midwest states for removal of the national gasoline volatility waiver to allow year-round sales of E-15 ethanol.

The proposal states, “After review of the modeling results presented by the governors in their requests, EPA is proposing to remove the 1-psi waiver in the following states: Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin.”

However, as EPA’s Ben Hengst the rule proposes to have an effective date of April 2024, next year’s driving season. “We are going to have a public comment process, we will have a public hearing…we will request comment on multiple aspects of the rule, including the effective date.”

Hengst’s comments on the proposed rule come at the end of his remarks.

RFANEC 23 Remarks, Ben Hengst, EPA (22:22)

2023 National Ethanol Conference Photo Album

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RFA’s Cooper Gives State of Ethanol Industry Address

Cindy Zimmerman

Renewable Fuels Association President and CEO Geoff Cooper delivered his annual “State of the Industry” address at the National Ethanol Conference today in Orlando.

“When faced with challenges, roadblocks, and failure, we don’t give up,” Cooper said. “We continue to innovate. We think outside of the box. We find workarounds. We eliminate the ways that won’t work…and find the way that will work.”

Cooper cited several policy and marketplace successes last year—such as passage of the Inflation Reduction Act, strong RFS volumes for 2022, a growth-oriented RFS proposal for 2023-2025, and greater interest in sustainable aviation fuel—as building momentum toward an even better 2023. He noted that the unanimous net-zero-carbon commitment of the association’s members is leading to a “renaissance moment” for ethanol, including unprecedented interest and innovation in green chemicals, sustainable aviation fuel, and other non-traditional uses.

“We have momentum on our side after some major victories in 2022,” Cooper said. “Now, we need to keep it going. As we continue positioning ethanol for long-term success and growth, we need to be persistent in telling our story to policymakers, regulators, the media, industry stakeholders, and the general public. We can’t let others define us. We define our future—not oil refiners in Delaware; not environmental extremists; not ivory tower academics; not loud-mouthed cable TV talk show hosts.”

Much work needs to be done, Cooper said, including a permanent fix allowing year-round nationwide E15, a recommitment to E85 and flex fuel vehicles, restoring fair trade in major global markets, securing the future of the Renewable Fuel Standard, and the development of future policies like a national clean fuel standard or the Next Generation Fuels Act.

Click to read Cooper’s state of the industry remarks, listen below.

RFANEC 23 State of the Industry Address Geoff Cooper, RFA (33:17)

RFA CEO Geoff Cooper press conference
RFANEC23 Geoff Cooper press avail (22:30)

2023 National Ethanol Conference Photo Album

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#RFANEC Attendance Above Pre-COVID Levels

Cindy Zimmerman

Renewable Fuels Association (RFA) president and CEO Geoff Cooper is pleased with attendance at this year’s National Ethanol Conference in Orlando.

“We are looking at the highest attendance we’ve had in four or five years, we’re actually above where we were in 2019,” said Cooper.

In this interview, Cooper talks about how the ethanol industry’s contribution to the U.S. economy increased in 2022 as production volumes continued to recover from COVID pandemic levels and producers received higher prices for ethanol and co-products like distiller grains and corn oil, according to new analysis conducted for the RFA by ABF Economics. He also comments on another new study showing ethanol cuts gas prices by 77 cents a gallon.

RFANEC 23 interview with Geoff Cooper, RFA (3:05)

2023 National Ethanol Conference Photo Album

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RFA Celebrates Record High Blend Rate in 2022

Cindy Zimmerman

As the Renewable Fuels Association gathers in Orlando today for the National Ethanol Conference there are many reasons to celebrate, and one is a record high blend rate in 2022.

“It is a big deal,” said Robert White, RFA Vice President, Industry Relations. “What happened was you saw unrest in the Ukraine, tight supplies on petroleum, on gasoline, you saw record prices last year, and what happened was ethanol was able to highlight the savings benefit of that octane that’s allowed to bring up the petroleum gallon to a sellable product…and so you saw sales of E15 and E85 specifically grow because of that cost savings.”

Data from the U.S. Energy Information Administration for 2022 show that the ethanol blend rate (i.e., the national average ethanol content of gasoline) hit a record 10.39 percent, pushing far beyond the so-called blend wall. U.S. ethanol production rose two percent to 15.36 billion gallons (bg) in 2022, while domestic consumption increased modestly to 13.98 bg.

The ethanol blend rate exceeded 10% every month and reached a peak of 10.79 percent in October. Ethanol was often priced at a substantial discount to gasoline, and prices of renewable identification numbers (RINs) used for compliance with the Renewable Fuel Standard sustained their value from late 2021, both of which enhanced the economics of mid- and high-level blends of ethanol. Additionally, retailers were able to offer E15 (a blend containing 15% ethanol) year-round.

Also, RFA released its 2023 Ethanol Industry Outlook and Pocket Guide this week as the go-to source of ethanol industry information, facts, and statistics.

Learn more in this interview with White.
RFANEC 23 interview with Robert White, RFA (2:39)

2023 National Ethanol Conference Photo Album

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Ethanol Conference Teeing Off to Great Forecast

Cindy Zimmerman

The weather in Orlando this week is in the 80s and the forecast for a great Renewable Fuels Association National Ethanol Conference is even better.

“We have over 750 registered and a full golf outing today, so it’s going to be a good time and also a very informative time,” said Troy Bredenkamp, RFA Senior VP, Government & Public Affairs.

Bredenkamp joined the annual golf tournament this morning while others went on a popular outing into the headwaters of the Florida Everglades to see gators and other wildlife from an airboat. Tonight is the welcome reception and tomorrow the real business begins.

Listen to an interview with Troy here:
RFANEC 23 interview with Troy Bredenkamp, RFA Government & Public Affairs (2:41)

2023 National Ethanol Conference Photo Album

2023 National Ethanol Conference Golf Tournament Photo Album

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Biofuels Caucus Re-Launches for the 118th Congress

Cindy Zimmerman

The Congressional Biofuels Caucus has officially been relaunched for the 118th Congress.

Reps. Dusty Johnson (R-SD), Adrian Smith (R-NE), Angie Craig (D-MN), and Mark Pocan (D-WI) serve as co-chairs for the caucus which keeps Members of Congress and their staff informed on developments in the biofuels industry, and works with stakeholders to ensure policy reflects the role biofuels play in bolstering our nation’s domestic fuel supply and production, and creating jobs across rural America.
Renewable Fuels Association President and CEO Geoff Cooper says, “The Caucus serves a vital role in educating House members on the numerous benefits of renewable fuels, and advancing crucial legislation. We thank Representatives Dusty Johnson, Adrian Smith, Angie Craig and Mark Pocan for leading the Caucus, and we look forward to working with them to promote and advance biofuel policies that benefit the rural economy, the environment, and consumer pocketbooks.”

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RFA: 3rd Triennial Biofuels Report “Needs Work”

Cindy Zimmerman

The Environmental Protection Agency’s recently released Third Triennial Report to Congress on the environmental impacts of the Renewable Fuel Standard “takes some constructive steps but needs work,” according to the Renewable Fuels Association.

In comments during a peer review meeting last week, RFA Chief Economist Scott Richman pointed out several issues with the content they hope will be addressed in the final report.

One example is how the report covers corn ethanol, which was the only biofuel in the program for which EPA conducted a quantitative analysis attributing a specific increase in volumes to the RFS. At the same time, Richman said, when it came to land use, EPA “combined corn and soybeans into a single category, masking the divergent trajectories of the two crops over the last decade.”

Richman also questioned the report’s overreliance on disputed research by Tyler Lark of the University of Wisconsin. “The term ‘Lark et al.’ appears at least 65 times in the report, not including footnotes,” Richman said. “However, the methods used in the 2022 study by Lark et al. have been critiqued or refuted by the USDA; researchers from Argonne, Purdue and the University of Illinois system; and even the EPA itself.”

Click to read Richman’s remarks. RFA will submit a full response to the Triennial report on March 6 when the formal written comments are due.

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Agri-Pulse Newsmakers on Biofuels

Cindy Zimmerman

Last Friday’s Agri-Pulse Newsmakers featured a discussion on biofuels policy and farm bill with Sen. Joni Ernst (R-IA) National Corn Growers Association’s Kathy Bergren, American Coalition for Ethanol CEO Brian Jennings, and Kurt Kovarik with Clean Fuels Alliance America.

Well worth watching – check it out below:


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