RFA Helps Retailers with Higher Blends Infrastructure Grants

Cindy Zimmerman

Dozens of fuel retailers got help from the Renewable Fuels Association this year to apply for $100 million in matching grant funds from the U.S. Department of Agriculture Higher Blends Infrastructure Incentive Program (HBIIP) under the recently concluded signup period.

RFA hosted webinars with more than 250 participants, thanks to the assistance of state retail organizations from Wisconsin, Minnesota, Indiana, and Iowa. At the conclusion of the brief 90-day application window, the organization had helped over 40 companies with their applications. With the generous assistance from the National Corn Growers Association, RFA filed grant applications totaling more than $36 million, with matching retailer funds totaling more than $150 million.

RFA Director Market Development Cassie Mullen said the grant applications represent $200 million in infrastructure funding that could lead to 1,000 more dispensers at more than 220 new E15 locations across 19 states. “One exciting aspect of this round was the interest we saw from applicants in non-traditional ethanol states such as California,” said Mullen. “RFA helped retailers apply for 10 locations in California, and there may have been more than 100 sites that applied statewide.”

Sheetz, which offers E15 and E85 at many of its locations across Ohio, Pennsylvania, Maryland, West Virginia, Virginia and North Carolina, worked with RFA to apply for funding at 67 new locations. “Over the last few months, we worked side-by-side with RFA and could not have gotten this over the finish line without their hard work and dedication,” said Sheetz Senior Petroleum Scheduler Joshua Jadlock. “This process is not always an easy one, but with our partners at RFA we were able to submit our application and hopefully bring a lot more ethanol into the marketplace.”

RFA has had a perfect success rate in assisting retailers to apply for and receive grants under this program; since 2020, RFA-supported grants led to infrastructure projects by 35 companies, totaling $74 million and covering 260 retail operations spanning 21 states. Going into 2023 and beyond, Mullen noted, more funds will become available for retailers thanks to the Inflation Reduction Act, which provides an additional $500 million for higher blend infrastructure. For more information, contact Mullen at cmullen@ethanolrfa.org.

biofuels, blends, Ethanol, Ethanol News, Renewable Fuels Association, Retailers, RFA

Ethanol Production Jumps to Highest Level This Year

Cindy Zimmerman

U.S. ethanol production shot up 6 percent the week ending December 2 to the highest level this year to 1.077 million b/d, equivalent to 45.23 million gallons daily and a 51-week high, according to data released by the U.S. Energy Information Administration and analyzed by the Renewable Fuels Association.

Production was 1.2% lower than the same week last year yet 1.8% above the five-year average for the week. The four-week average ethanol production increased 0.7% to 1.037 million b/d, equivalent to an annualized rate of 15.90 billion gallons (bg).

Ethanol stocks rose 1.4% to 23.3 million barrels, the largest weekly volume recorded since August. Stocks were 13.6% more than a year ago and 6.1% above the five-year average.

Ethanol, Ethanol News, RFA

Danforth Center Researching Water Use for Bioenergy Crop

Cindy Zimmerman

Donald Danforth Plant Science Center Principal Investigator Ivan Baxter is leading a new $16 million multi-institutional project on understanding of water use efficiency in sorghum as a bioenergy crop.

“To be economically viable and have environmental benefits, crops used for bioenergy production need to be grown where the supply of water is insufficient or too inconsistent to support production of traditional food crops,” said Baxter. 

Yields of bioenergy crops, such as Sorghum bicolor, have increased through breeding and improved agronomy. However, the amount of biomass produced for a given amount of water use has remained constant. 

The multi-institutional team will focus on three major control points of water-limited production: enhanced acquisition of available water by roots, reduced water use through the pores plants use to exchange water and CO2, and improving photosynthetic carbon assimilation. The project will also look at a closely related model plant, Setaria viridis, which is smaller and faster growing to enable rapid testing. In both species, genetics, genomics, and bioinformatics will be used to identify new genes that can affect the control points.

Read more

bioenergy, biofuels, biomass, Research, sorghum

Year Round E15 Legislation Introduced in the House

Cindy Zimmerman

This has been a busy week for actions to get a permanent fix for year-hour E15.

In the latest, U.S. Representatives Angie Craig (D-MN) and Adrian Smith (R-NE) introduced the Consumer and Fuel Retailer Choice Act of 2022 to enable the year-round, nationwide sale of ethanol blends higher than 10%.

The Consumer and Fuel Retailer Choice Act of 2022 would extend the Reid vapor pressure (RVP) volatility waiver to ethanol blends above 10 percent to allow for the year-round, nationwide sale of E15. In addition, it would ensure consistency across the fuel markets and limit disruptions across the national fuel supply chain by prohibiting the removal of the 1-psi waiver for E10 ethanol.

In the House, the Consumer and Fuel Retailer Act is cosponsored by Representatives Cindy Axne (D-IA), Dusty Johnson (R-SD), Dan Kildee (D-MI), Randy Feenstra (R-IA), Mike Flood (R-NE), James R. Baird (R-IN), Tracey Mann (KS-1), Jim Banks (IN-03), Mary Miller-Meeks (R-IA), Jake LaTurner (R-KS), Michelle Fischbach (MN-07), Ashley Hinson (IA-01),Vicky Hartzler (MO-4), Sam Graves (R-MO), Ken Buck (R-CO), Cheri Bustos (D-IL), Brad Finstad (R-MN), Ron Estes (R-KS), Tim Ryan (D-OH), James Comer (R-KY) and Jason Smith (R-MO).

The House bill is a companion to bipartisan Senate legislation introduced on Nov. 29 by Sens. Deb Fischer (R-NE), Amy Klobuchar (D-MN) and 13 other senators. More than 250 organizations and companies urged the Senate to pass this legislation before the end of the session. In addition, the White House Office of Management and Budget is now officially reviewing the request from nine Midwest governors to eliminate the 1-psi RVP waiver for E10 in their states and allow year-round sales of E15.

While there is some doubt that Congress will be able to pass legislation before the end of the year, Renewable Fuels Association President and CEO Geoff Cooper said, “We are highly encouraged by the broad, diverse and bipartisan support that this effort is receiving, and we urge Congress to move quickly to adopt this commonsense legislation.”

“Achieving a national, permanent solution for E15 year-round is best done through Congress and we are enormously grateful for the leadership of Reps. Craig, Smith, and other House biofuel supporters for introducing this legislation to clarify the statute ahead of the 2023 summer driving season,” said American Coalition for Ethanol CEO Brian Jennings.

A recent CSP survey found that one out of every five fuel retailers plan to add the E15 blend at their locations in the coming year. Currently, more than 2,800 U.S. fuel stations carry the blend.

ACE, E15, Ethanol, Ethanol News, Research, RFA

17th Iowa Renewable Fuels Summit Next Month

Cindy Zimmerman

The Iowa Renewable Fuels Association (IRFA) is proud to present the 17th Annual Iowa Renewable Fuels Summit. The 2023 Iowa Renewable Fuels Summit is taking place on February 7, 2023, in Des Moines, Iowa. Registration is free and required to attend.

“The rapid changes occurring across the energy spectrum make the 2023 Iowa Renewable Fuels Summit a can’t miss biofuels event,” said IRFA Marketing Director Lisa Coffelt. “Biofuels producers and supporters will be digging into the challenges and opportunities, from the future of U.S. biofuels policy to carbon capture and next generation markets. Anyone interested in the intersection of agriculture, energy and the environment will benefit from attending the Summit.”

Renewable Fuels Association President and CEO Geoff Cooper will share his insight on industry issues as the biofuel keynote speaker at the summit. “America’s ethanol producers have a powerful story to tell,” Cooper said. “Whether you’re concerned about jobs and market opportunities in rural communities, clean and sustainable fuel choices in urban cities, or low carbon initiatives, ethanol is an excellent fuel choice to address those concerns and more. We in the industry need to be bold in sharing that story.”

For more information, visit IowaRenewableFuelsSummit.org.

Biodiesel, biofuels, Ethanol, Ethanol News, Iowa RFA, Renewable Fuels Association, RFA

White House Reviewing Governors E15 Volatility Petition

Cindy Zimmerman

The White House Office of Management and Budget is now officially reviewing the request from nine Midwest governors to eliminate the 1-psi RVP waiver for E10 in their states and allow year-round sales of E15, according to the RegInfo.gov dashboard.

Renewable Fuels Association President and CEO Geoff Cooper said, “OMB review marks an important step in this process, and we are pleased to see that the governors’ petition is moving ahead. This means the petition remains on track for approval before summer 2023, just as Administrator Regan outlined a few months ago. Of course, a legislative fix that applies nationwide (like the one introduced last week by Sens. Fischer and Klobuchar) would obviate the need for this multi-state petition, and we are actively pursuing that approach for E15 market access as well.”

Iowa Gov. Kim Reynolds led seven other Midwest Governors in a letter to EPA Administrator Michael Regan in April of this year formally requesting a permanent Reid Vapor Pressure (RVP) waiver that will allow each state to continue selling E15 year-round without restriction. In addition to Iowa, the states include Nebraska, Illinois, Kansas, Minnesota, North Dakota, South Dakota, and Wisconsin. Ohio Governor Mike DeWine joined the petition as well in June, bringing the total number of states to nine.

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

250 Groups Call for Senate Passage of Year-Round E15 Bill

Cindy Zimmerman

Over 250 organizations and companies signed a letter to Congressional leaders this week calling for quick passage of S. 5145, the Consumer and Fuel Retailer Choice Act of 2022, a bipartisan bill that allows for year-round of E15 by extending the 1-psi Reid vapor pressure (RVP) waiver to fuel blends containing gasoline and over 10 percent ethanol.

“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,” the letter states. “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. In the absence of such legislation, we could see gasoline marketplace uncertainty and political disputes over E15 continue to resurface every summer.”

The letter was signed by ethanol producer companies, organizations and stakeholders, farm groups, corn growers, petroleum interests, convenience store owners, and more. “We all agree that the marketplace desperately needs the certainty and stability that this legislation would provide,” said Renewable Fuels Association President and CEO Geoff Cooper. “And by ensuring consumers nationwide have uninterrupted access to E15, this bill would help lower pump prices, enhance our nation’s energy security, and reduce emissions of both greenhouse gases and the pollutants that contribute to air pollution and smog.”

Earlier this week, Sen. Chuck Grassley (R-IA) said if they are unable to get the bill passed in the lame duck session it will be a priority in the new Congress. “I think that’s a very difficult thing to get done this year,” Grassley said during his weekly press call with farm reporters Tuesday. “But we are not going to stop fighting for it for sure.”

Read the letter.

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

Wayne Ovation Fuel Dispensers Get E40 Upgrades

Cindy Zimmerman

Dover Fueling Solutions (DFS) recently announced that all North American Wayne Ovation Fuel Dispensers will be supplied as compatible and UL-listed to E40/B20 as a standard feature. The announcement extends DFS’ UL compliance from E25 to E40, with the continued option of up to E85 available across all models and configurations, and makes DFS the first manufacturer of fuel dispensers to offer an E40 UL listing.

Scott Negley, Senior Director, Product Management at Dover Fueling Solutions, said the move reflects the company’s commitment to supplying retailers with the most flexible, reliable and future-proofed equipment options. “Regardless of the direction policy and next-generation vehicle technologies take, retailers can rest assured that their investments in our fuel dispensers will be viable for years to come.”

DFS works in partnership with the National Corn Growers Association (NCGA) to prepare for fueling advancements, enhance dispenser offerings and meet infrastructure needs for future mid-level ethanol blends.

“DFS continues to innovate by producing and selling dispensers certified to deliver fuel containing up to 40 percent ethanol,” said NCGA Vice President of Market Development Jim Bauman. “This initiative complements our policy priorities like the Next Generation Fuels Act and supports future demand for ethanol and corn farmers.”

“We want to congratulate DFS for being the first manufacturer to offer UL-certified E40 fuel dispensers,” said NCGA President Tom Haag. “This is an important step toward offering consumers additional choices at the pump supplied by ethanol, an affordable, domestically-produced source of octane that helps to reduce the environmental footprint of liquid fuels.”

blends, corn, Ethanol, Ethanol News, NCGA

Biofuels Industry Provides Input on IRA for IRS

Cindy Zimmerman

Biofuel stakeholder organizations provided input this week to the Internal Revenue Service (IRS) on implementation of specific provisions of the Inflation Reduction Act (IRA) related to credits for carbon sequestration and clean fuel production.

In its comments to the IRS, the Renewable Fuels Association stressed that, if implemented correctly, the Clean Fuel Production Credit (45Z) could lead to “transformative investments” in carbon reduction technologies in the ethanol sector. RFA advocates for the use of the Department of Energy Argonne National Laboratory’s GREET model for lifecycle assessment related to the tax credit, including for sustainable aviation fuels.

In separate comments on Credit for Carbon Oxide Sequestration, RFA noted carbon capture, utilization and sequestration, or CCUS, “is an important tool for ethanol producers as they work toward their net-zero carbon emissions pledge.”

American Coalition for Ethanol (ACE) CEO Brian Jennings’ comments to the IRS noted that proper implementation of the new tax credit “will incentivize U.S. ethanol companies and farmers to invest in production processes and practices to reach these net-zero carbon intensity goals in a meaningful timeframe to address the current climate challenges.” ACE supports the use of the GREET model to make determinations about §45Z emission rates as directed in the IRA, but Jennings notes that certain emissions factors related to feedstock production (i.e., corn farming for corn-based ethanol) are not yet fully incorporated in the model and should be considered.

Clean Fuels Alliance America also advocated for use of the GREET model to measure the lifecycle greenhouse gas emissions of sustainable aviation fuel (SAF). Additionally, Clean Fuels asked that “Treasury allow producers to petition for provisional emissions reduction rates based on scores from California’s Low Carbon Fuel Standard.”

Clean Fuels also urged Treasury and IRS to “strictly adhere to the statutory prohibition on co-processed fuel, consistent with existing law under 40A for biomass-based diesel” and supports eligibility in the Clean Fuels Production Credit for use of biodiesel and renewable diesel in home heating oil.

ACE, Biodiesel, biofuels, Clean Fuels Alliance, Ethanol, Ethanol News, Renewable Fuels Association, RFA

Economist Says Sustainable Aviation Fuel is the Future

Cindy Zimmerman

Renewable diesel and sustainable aviation fuel (SAF) are big and getting bigger in the agricultural economy according to AgResource economist Dan Basse who presented his outlook for the industry at the American Seed Trade Association (ASTA) CSS & Seed Expo 2022 this week in Chicago.

Basse says “green fuels” are very important to the current administration in the move toward electric vehicles, but some modes of transportation are unlikely to be electrified. “How many of you want to fly in a battery-powered airplane?” Basse asked. “Sustainable aviation fuel is going to be the future (and) will be a big deal for ethanol going forward.”

When it comes to renewable diesel, Basse says the industry is heavily investing in that future which demands lots of soybeans. “What is happening today is we’re building 23 new crush facilities, increasing soybean crush capacity 26% over the next four years. This is the biggest increase in crush capacity the United States has ever seen.”

Learn more in Basse’s report at ASTACSS and an interview specifically about renewables.
ASTACSS Dan Basse, AgResource, report 60:00

ASTACSS Dan Basse, AgResource, renewables outlook 4:25

Audio, aviation biofuels, Biodiesel, Ethanol, Ethanol News, renewable diesel