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By Neglecting Biofuels, Tailpipe Proposal Would Undermine U.S. Climate Progress

By Emily Skor

June 19, 2023

MarketsPolicyBusiness

Despite federal support for electric vehicles (EVs), lower-carbon biofuels will remain vital to decarbonizing transportation for decades to come.

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The Consumer and Fuel Retailer Choice Act of 2023 aims to allow year-round sales of E15 nationwide.

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The USGC's Southeast Asia and Oceania office recently participated in two simultaneous renewable fuels events in Australia and Thailand, giving presentations and partaking in panel discussions on renewable fuels and ethanol.

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In May, the USGC's ethanol team traveled to Toronto, Canada, to emphasize the significance of maintaining both the federal level policy, Clean Fuel Regulations, and Ontario’s existing provincial level E15 mandate.

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The U.S. exported 125.69 million gallons of ethanol and 777,617 metric tons of distillers grains in April, according to data released by the USDA Foreign Agricultural Service on June 7. Exports of both products were down.

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In late May, the USGC's bioethanol team hosted a mission to Brussels, Belgium, and then traveled from there to Leipzig, Germany, for the International Transport Forum’s (ITF) 2023 Summit, where the Council was a sponsor.

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U.S. fuel ethanol production expanded by 3 percent and reached a six-month high the week ending June 2, according to data released by the U.S. EIA on June 7. Ethanol stocks were also up by approximately 3 percent. Exports were up significantly.

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A newly released, peer-reviewed study from the University of California, Riverside, shows that the E15 ethanol blend provides notable emissions reductions compared to California’s regular reformulated gasoline.

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The USDA on May 31 released its latest quarterly outlook for U.S. agricultural trade, reporting that the agency’s forecast for FY 2023 ethanol exports remains unchanged at $3.6 billion. If realized, that value will be the second highest on record.

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On May 31, 21 members of the House, led by Rep. Darin LaHood, R-Ill., sent a letter to U.S. Trade Representative Katherine Tai urging her to protect U.S. farmers and biofuel producers and prioritize U.S. ethanol export competitiveness in Brazil.

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In late May, the USGC's Europe, Middle East and Africa regional office wrapped up two buyers and sellers conferences – in Dakar, Senegal, then in Lisbon, Portugal. Information on DDGS was shared during the events.

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CropEnergies on May 24 announced it achieved record revenues during the 2022-’23 financial year, the 12-months ended Feb. 28. The company attributed the record high results to improved sales prices for all product segments, particularly ethanol.

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The European Commission on May 23 announced it has closed its antitrust investigation into Belgium-based Alcogroup S.A. and its subsidiary Alcodis S.A. related to their alleged participation in an ethanol benchmarks cartel.

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With drivers expected to hit the roads in near pre-pandemic numbers this Memorial Day weekend, Growth Energy is urging travelers to fill up with Unleaded 88 to save to save money at the pump and reduce their emissions over the holiday.

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A $1.3 billion transportation budget package passed by the Minnesota legislature on May 21 aims to create a Clean Transportation Standard Working Group to study and address information gaps and opportunities related to the development of a state CFS.

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Global aquaculture industry professionals came together in Morocco in May for the U.S. Grains Council's (USGC's) International Aquaculture Conference. The conference covered a variety of topics, including aquafeed ingredient properties.

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The Renewable Fuels Association on May 18 welcomed an announcement by the U.S. Energy Information Administration that fuel ethanol export estimates will now be included in EIA’s Weekly Petroleum Status Report.

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The Taiwan Ministry of Foreign Affairs (MOFA) organized a 22-member Agriculture Trade Goodwill Mission traveling to the United States in September 2022. USGC and MOFA officials signed a $600 agreement on corn and U.S. DDGS exports.

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The U.S. EPA has delivered its final rule to set 2023, 2024 and 2025 Renewable Fuel Standard blending obligations to the White House Office of Management and Budget. OMB review marks a final stage before promulgation of a rulemaking.

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UNICA, the Brazilian sugarcane industry association, has announced that sugarcane processing and ethanol production slowed during the second half of April due to intense rainfall. Ethanol sales were also down during the two-week period.

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Iowa awards $800,000 in renewable fuel infrastructure grants

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By Iowa Department of Agriculture and Land Stewardship

May 26, 2023

The Iowa Renewable Fuels Infrastructure Program Board approved 15 project applications and 11 supplemental grant requests for a total of more than $800,000 during its quarterly board meeting on May 9.

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A bill introduced in the U.S. House of Representatives on May 15 aims to allow corn ethanol to qualify as an advanced biofuel under the RFS. It would also require the U.S. EPA to use the GREET model to determine the GHG emissions profile of biofuels.

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Summit Agricultural Group has announced the creation of Summit Next Gen, a sustainable aviation fuel production platform. Summit Next Gen will utilize Honeywell's ethanol-to-jet processing technology to convert ethanol into SAF.

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Carbon intensity scores determine, in part, the value producers get for each gallon of ethanol they produce. Today's CI calculations don't factor in low-carbon farming practices, but industry leaders like Brian Jennings are determined to change that.

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In April, the U.S. Grains Council held the 2023 U.S. DDGS Trade Promotion Conference in Seoul, South Korea, that offered information on U.S. distillers dried grains with solubles (DDGS) and its benefits, among other topics.

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The RFA, Growth Energy and ACE and are calling on the U.S. EPA to recognize the carbon reduction benefits of ethanol in its proposed rule to set multi-pollutant emissions standards for MY 2027 and later light-duty and medium-duty vehicles.

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In conjunction with the USDA's Agricultural Trade Mission that took place during April in the Netherlands, the USGC organized an ethanol policy and infrastructure assessment mission to discuss the country's current ethanol policy.

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In April, USGC ethanol staff traveled to British Columbia, Canada, to meet with provincial government officials, fuel suppliers and fuel retailers about the province's updated low-carbon fuel standard and increasing ethanol blends to E15.

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Fueled by Nebraska, a partnership of Nebraska biofuels organizations, and the Nebraska Soybean Board, is celebrating Renewable Fuels Month with giveaways, student contests, radio interviews, fuel promotions, and more.

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