EPA Proposes RFS Biofuel Standards for Three Years

Cindy Zimmerman December 1, 2022

The Environmental Protection Agency (EPA) has published its proposed rule to establish required Renewable Fuel Standard (RFS) volumes and percentage standards for 2023, 2024, and 2025, as well as to propose a series of important modifications to strengthen and expand the RFS program.

The proposal sets next year’s (2023) total RFS requirement at 20.82 billion gallons, including 5.82 billion in advanced biofuels and 15 billion from conventional renewable fuels like corn ethanol. In addition, EPA proposes to add a supplemental volume of 250 million gallons on top of the 2023 standards to address a 2017 D.C. Circuit Court decision. The total RFS volume proposed for 2024 is 21.87 billion gallons, with 6.62 billion advanced and 15.25 billion conventional; and for 2025, EPA increases the total volume to 22.68 billion gallons, 7.43 billion of advanced biofuel and 15.25 billion of conventional renewable fuel.

Renewable Fuels Association president and CEO Geoff Cooper reacted to the proposal:
“EPA’s proposed rule solidifies a role for the Renewable Fuel Standard in future efforts to reduce carbon emissions and enhance our nation’s energy security. Once finalized, this rule will significantly accelerate growth and investment in the low-carbon renewable fuels that will help decarbonize our nation’s transportation sector, extend domestic fuel supplies, and bolster the rural economy. By including three years’ worth of RFS volumes, EPA’s proposed rule will finally provide certainty and stability for the entire supply chain. EPA Administrator Michael Regan put the RFS program back on track with the 2022 volume obligations, and today’s proposal builds upon that solid foundation. RFA thanks Administrator Regan and the Biden administration for continuing to make good on their commitment to grow the marketplace for lower-carbon, lower-cost renewable fuels.”

American Coalition for Ethanol (ACE) CEO Brian Jennings issued the following reaction:
“This proposed rule is a critical opportunity for EPA to leverage the greenhouse gas reducing benefits of increasing biofuel blending targets by getting the RFS back on track, and we’re pleased the Agency is taking steps in the right direction by setting conventional biofuel blending at 15 billion gallons or more for 2023 through 2025 on paper, in addition to including the 250 million gallons of supplemental volume to carry out the 2017 DC Circuit Court order. Multi-year targets help provide clarity the market needs to lean into climate benefiting transportation fuels such as ethanol. The Inflation Reduction Act is poised to boost investments in clean fuel technologies that support the Agency increasing the use of clean fuels like ethanol through RFS targets moving forward.”

EPA will hold a virtual public hearing by Zoom on January 10, 2023, for the proposed rule. An additional session will be held on January 11, 2023, if necessary, to accommodate the number of testifiers that sign-up to testify. There will be no in-person hearing.

ACE, EPA, Ethanol, Ethanol News, Renewable Fuels Association, RFA, RFS

RFA’s Davis Reappointed to Commerce Advisory Committee

Cindy Zimmerman December 1, 2022

Renewable Fuels Association Vice President of Technical and Regulatory Affairs Kelly Davis has been reappointed for a fifth term to the U.S. Department of Commerce’s Renewable Energy and Energy Efficiency Advisory Committee (REEEAC), which advises the agency on issues related to the exportation of U.S. renewable energy and energy efficiency products and services.

“Since 2014, I have been proud to serve on this valuable committee to expand the competitiveness of U.S. exports of renewable energy, specifically ethanol for fuel use,” Davis said. “I am looking forward to the next Charter with a renewed enthusiasm towards our exportable climate-friendly solutions.”

Established in 2010, the REEEAC is composed of senior private sector representatives that provide advice to the Secretary of Commerce on the development and administration of programs and policies to expand the export competitiveness of U.S. renewable energy and energy efficiency products and services.

Davis will serve on the committee in this term through May 2024. To learn more about the committee and Davis’ role, read this May 2022 report from Davis about the committee’s activities.

Ethanol, Ethanol News, Exports, Renewable Fuels Association, RFA, Trade

ACE Provides Feedback on IRA Biofuel Infrastructure Funds

Cindy Zimmerman November 30, 2022

In written comments submitted this week, American Coalition for Ethanol (ACE) Chief Marketing Officer Ron Lamberty provided expert feedback with the Rural Business-Cooperative Service (RBCS) and the Rural Utilities Service (RUS) on implementation of funds for biofuel infrastructure under the Inflation Reduction Act (IRA). The legislation provides for $500 million in grants for infrastructure for blending, storing, supplying, or distributing biofuels and may provide a federal share at up to 75% of the total project cost.

Lamberty’s comments centered around 1) how to ensure funds are more accessible to small retail marketers and incentivize conversions beyond those directly funded, and 2) how progress can be measured to meet greenhouse gas (GHG) reduction goals when expanding infrastructure for renewable, clean biofuels.

Previous HBIIP grants have been awarded mainly to large retailers and Lamberty points out while those chains have added hundreds of E15 locations, they own and operate nearly 10,000 stations, and appear to be converting only locations for which they’ve received grants. Lamberty says small retailers are not following the big chains’ example because they are used to seeing large retailers offering products they don’t offer and often assume competitors have those products because they’re better funded. “To the contrary, when small retailers get funds and build or convert sites to become the first in their market to offer higher blends, the new fuels become part of the station’s identity, and historically, the larger chains add the same fuels to regain market share, using their own money,” Lamberty said.

Year-Round E15 Legislation Introduced with Diverse Support

Cindy Zimmerman November 30, 2022

Legislation to allow year-round, nationwide sales of ethanol blends higher than 10 percent was introduced in the U.S. Senate Tuesday by Senators Deb Fischer (R-NE) and Amy Klobuchar (D-MN), with an additional 13 bipartisan co-sponsors.

The Consumer and Fuel Retailer Choice Act of 2022 would increase the availability of biofuels like E15 and would also end years of regulatory uncertainty and prevent a patchwork of uneven state regulations.

Additional cosponsors of the bill include Sens. Tammy Duckworth (D-IL), Chuck Grassley (R-IA), Tina Smith (D-MN), John Thune (R-SD), Sherrod Brown (D-OH), Joni Ernst (R-IA), Roger Marshall (R-KS), Dick Durbin (D-IL), Jerry Moran (R-KS), Tammy Baldwin (D-WI), Kevin Cramer (R-ND), Ben Sasse (R-NE), and Mike Rounds (R-SD).

The bill also has support from farm, ethanol and oil interests, including the National Corn Growers Association, Renewable Fuels Association (RFA), and the American Petroleum Institute.

“For the first time in history, ethanol producers, oil refiners, fuel retailers, equipment manufacturers, and farmers have all come together to support legislation that ensures American families can choose lower-cost, lower-carbon E15 at the pump every single day of the year without interruption,” said RFA President and CEO Geoff Cooper. “We thank Sens. Fischer, Klobuchar, and other renewable fuel supporters in the Senate for introducing this legislation, which brings much-needed consistency and stability to the marketplace. It provides a simple, straightforward solution that will finally remove a burdensome and nonsensical barrier to broader deployment of cleaner, more affordable fuels. We are highly encouraged by the broad and diverse support that this effort is receiving, and we urge Congress to move quickly to adopt this commonsense legislation.”

Additional organizations supporting the bill include:
National Farmers Union, America Farm Bureau Federation, National Sorghum Producers, Association of Equipment Manufacturers, National Council of Farmer Cooperatives, Growth Energy, American Coalition for Ethanol, SIGMA, National Association of Truck Stop Operators, and National Association of Convenience Stores.

ACE, Ag group, corn, E15, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Columbia Economist Wrong on Ethanol

Cindy Zimmerman November 28, 2022

Dr. Noah Kaufman is an economist who has worked on energy and climate change policy in both the public and private sectors. Under President Biden, he served as a Senior Economist at the Council of Economic Advisers. He also just published a commentary about ethanol earlier this month in Columbia University’s School of International and Public Affairs (SIPA) website called “A Chance to Phase Out Support for Corn Ethanol in the Renewable Fuel Standard.”

He claims that the Renewable Fuel Standard (RFS) “has failed to achieve its goals of materially reducing greenhouse gas emissions or improving energy security for Americans,” based on flawed science instead of facts. He repeats the worn out lie that “Corn ethanol produced in the United States is referred to as a ‘first-generation’ biofuel, which provides few emissions benefits and competes with food crops… also puts upward pressure on food prices.”

And then there is, “The country’s fuel supply infrastructure and vehicle engines are not universally compatible with gasoline that consists of more than about 10 percent ethanol, which is the composition of most gasoline sold in the United States today. … [D]omestic ethanol production has roughly stalled since this 10 percent ‘blend wall’ was approached a decade ago.” conveniently ignoring E15, a fuel comprised of 15% ethanol and 85% gasoline, is legally approved for use in model year 2001 and newer cars, light-duty trucks, medium-duty passenger vehicles and flex-fuel vehicles.

At the end this commentary of false accusations, Kaufman admits there is little to no cost to the RFS. “When producers have been allowed to increase or decrease how much ethanol they blend into gasoline in recent years, they have chosen to continue blending ethanol around current levels.[6] That is because producers use ethanol to add oxygen to gasoline (it is a “fuel oxygenate”), which improves performance and reduces certain pollutants (CARB 1998). While it’s possible the country would be better off using the land that is used to produce ethanol for more societally productive purposes,[7] under current conditions, weakening the RFS mandates probably would not cause a large immediate change in ethanol use, or in fuel or food prices in turn (EPA 2022a).”

For a more detailed rebuttal of Kaufman’s commentary, check out this blog post by Renewable Fuels Association Chief Economist Scott Richman, who calls it “superficial and misguided” and “reiterated myths about ethanol that might be found through a simple internet search.”

Commentary, Opinion, RFA, RFS

Ethanol Report on Carbon Pipeline Projects

Cindy Zimmerman November 23, 2022

New pipeline projects in the Midwest utilizing Carbon Capture, Utilization, and Sequestration (CCUS), also called Carbon Capture and Storage (CCS), technology offer the opportunity for the ethanol industry to lead the way to a net zero energy future and the Renewable Fuels Association is supporting that pathway for its members.

In this episode of the Ethanol Report podcast we hear from a number of stakeholders in the carbon pipeline space. RFA chairman Erik Huschitt with Badger State Ethanol, RFA president and CEO Geoff Cooper, Summit Carbon Solutions Chief Commercial Officer Jim Pirolli, Navigator CO2 vice president of government and public affairs Elizabeth Burns Thompson, Wolf Carbon Solutions senior vice president for corporate development Nick Noppinger, South Dakota farmer and ethanol plant founder Ron Alverson, and Nebraska Farm Bureau Federation president Mark McHargue.

Ethanol Report 11-23-22 27:43

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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Carbon, carbon capture, corn, Ethanol, Ethanol News, Ethanol Report, Renewable Fuels Association, RFA

ACE Helps Retailers with Higher Blend Infrastructure Funding

Cindy Zimmerman November 23, 2022

The latest round of USDA’s Higher Blends Infrastructure Incentive Program (HBIIP) closed this week. HBIIP provides $100 million in grants to pay up to 50 percent of the cost of equipment for station owners to add or upgrade equipment and sell higher ethanol blends like E15 and E85. It is separate from the $500 million provided in the Inflation Reduction Act (IRA).

American Coalition for Ethanol (ACE) Chief Marketing Officer Ron Lamberty says they were able to assist fuel retailers throughout this latest application window. “ACE is happy to have assisted marketers who applied for grants for nearly a hundred new retail locations as well as some blending facilities, and we appreciate USDA HBIIP Program Manager Jeff Carpenter’s efforts to make the program more accessible to retailers, by reaching out to ACE and others early in the process and allowing us to provide our observations and input we received from our industry partners in previous rounds of the program,” said Lamberty.

“Over the summer and fall, ACE promoted USDA’s biofuel infrastructure program through our flexfuelforward.com website, advertising in c-store industry publications, and by connecting with retailers in person at trade shows and a workshop we hosted featuring Carpenter and some top fuel marketers. We also made it easier for retailers to find information online with a new portal on flexfuelforward.com to sign up for updates, and submit questions and concerns surrounding the program, and we updated the short, fuel marketer-focused videos featuring Jeff (Carpenter) and breaking down the daunting HBIIP application process in to smaller pieces we hope are easier to follow and complete.”

Lamberty says ACE looks forward to providing input next week on how to improve future rounds of funding, including making funds more accessible to small marketers. “As this HBIIP deadline approached, we heard from prospective high-blend retailers waiting to apply for upcoming IRA funds, citing 75 percent cost share versus HBIIP’s 50 percent. Marketers know 75 percent is only an option, but 50 percent max is a certainty this round. If HBIIP applications end up being down, it’s an indication of increased interest in the next round, not decreased interest in this one.”

Diverse Groups Push for Year Round E15

Cindy Zimmerman November 22, 2022

A broad coalition of energy and agriculture organizations is calling on Congress to quickly adopt legislation that would provide equal regulatory treatment for all gasoline blends containing 10 percent ethanol (E10) or more, including gasoline with 15 percent ethanol (E15).

A letter to Senate Leaders Chuck Schumer and Mitch McConnell, House Speaker Nancy Pelosi, and House Minority Leader Kevin McCarthy, was signed by the Renewable Fuels Association, American Petroleum Institute, American Farm Bureau Federation, Association of Equipment Manufacturers, Growth Energy, National Association of Convenience Stores, National Corn Growers Association, National Council of Farmer Cooperatives, National Farmers Union, National Sorghum Producers, NATSO, representing truckstops and travel plazas, and SIGMA: America’s Leading Fuel Marketers.

“Due to the current policy, it is extremely difficult for many fuel marketers and retailers that may desire to offer E15 to their customers in the summer months to source that product,” according to the letter. “Our groups have come together—for the first time ever—to support legislation that would resolve this issue once and for all.”

The groups are advocating for a simple legislative fix that would provide equal treatment nationwide to all gasoline blends containing 10 percent ethanol or more, while simultaneously superseding state regulatory action recently sought by a group of governors. “By ensuring uniformity across the nation’s fuel supply chain, federal legislation will provide more flexibility and result in more consistent outcomes than a state-by-state regulatory landscape,” the letter says.

“In the absence of such legislation, we could see gasoline marketplace uncertainty and political disputes over E15 that would continue to resurface every summer. Thus, we urge Congress to act quickly to adopt legislation that will bring certainty and consistency to the fuel market, while also finally resolving long-standing differences among many stakeholders about fuel volatility regulations.”

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

Sheetz Offers 15% Ethanol Fuel for Thanksgiving Discount

Cindy Zimmerman November 22, 2022

Mid-Atlantic convenience store chain Sheetz kicked off the holiday season this week by reducing the price of its Unleaded 88, 15% ethanol blended fuel, to $1.99 a gallon. This promotion started Monday and runs through November 28, 2022 to help families save at the pump as they travel for Thanksgiving. The company offers Unleaded 88 at 368 store locations throughout Pennsylvania, West Virginia, Virginia, Maryland, Ohio and North Carolina and customers can check if their local Sheetz sells Unleaded 88 through the Sheetz mobile app or website.

“Sheetz is a family owned and operated company and we are always looking for ways to help the communities we serve,” said Travis Sheetz, President and CEO of Sheetz. “We are excited to extend this offer to our customers as many of them start hitting the road for the Thanksgiving holiday.”

Sheetz is also offering a special promotion that can be utilized even after this offer ends on November 28, 2022. Customers who sign up to become My Sheetz Rewardz members using code FUELUP88 during this promotion, and purchase Unleaded 88 fuel, will receive 500 points within 24 hours of this promotion ending. These points can be redeemed for fuel discounts as well as food and drink items in store. Customers can become a My Sheetz Rewardz member by downloading the Sheetz app.

Renewable Fuels Association president and CEO Geoff Cooper says the Sheetz holiday special of $1.99 per gallon compares to the national average price of $3.66 per gallon for regular unleaded gasoline. “At a time when so many families are hitting the road to come together for a special holiday, this is a great gift for those who have access to Sheetz stores,” RFA President and CEO Geoff Cooper said.

Sheetz conducted a similar promotion over the Independence Day holiday in July.

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

Ethanol Making Thanksgiving Visits More Affordable

Cindy Zimmerman November 21, 2022

The cost of this year’s traditional Thanksgiving dinner may be 20 percent higher this year compared to last, and gas prices are up 30 to 40 cents a gallon, but ethanol is still helping families save money at the pump this holiday to visit friends and relatives.

AAA predicts that 54.6 million people will travel 50 miles or more from home for the holiday, approximately 90% of them by car. Analysis by the Renewable Fuels Association indicates that ethanol in the nation’s fuel supply is expected to save Thanksgiving travelers nearly $140 million on gasoline purchases over the long holiday weekend.

Based on the most recent monthly data, E10, a 10% ethanol blend that is prevalent at gas stations nationwide, is saving drivers $0.32 per gallon at the pump. The discount has averaged $0.23 per gallon since January—on pace to reduce Americans’ spending on gasoline by $34 billion, or $240 per household, for the year as a whole.

The discount is even greater for E15, a 15% ethanol blend that is approved for more than 95% of the cars and trucks on the road today. According to E15prices.com, the national average retail price of E15 has been $0.35 per gallon less than E10 this year (the differential stood at $0.38 on November 16). If E15 were adopted nationwide, it would reduce household spending on gasoline by $47 billion this year, or almost $370 per household. And, as recently noted by EIA, E15 helped keep a lid on pump prices in the summer of 2022, as the market faced tight fuel supplies and record-high prices.