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EPA issues emergency waiver allowing continued access to E15

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By Erin Voegele

April 28, 2023

PolicyBusinessMarkets

The U.S. EPA on April 28 issued an emergency waiver that will allow E15 sales to continue through the summer 2023 driving season nationwide. Representatives of the U.S. ethanol industry are applauding the agency's decision.

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ICM announced Element LLC was placed into receivership due to market-based disruptions that have impacted profitability, including high corn basis and reduce LCFS values. ICM technologies installed at the plant, however, exceeded expectations.

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The European Commission announced on April 26 that a political agreement has been reached on the REFuelEU Aviation proposal, which creates a mandate requiring the use of sustainable aviation fuel (SAF).

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USGC Chairman Josh Miller joined USGC staff to share the benefits of U.S. ethanol at the Seoul Mobility Show in Seoul, South Korea. The USGC's Korea office also held various events for the nearly 4,000 attendees at its booth this year.

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Transitioning to E15 from E10 in Minnesota would contribute $1.06 billion to Minnesota's GDP, according to a new study by ABF Economics. The move to E15 would increase ethanol demand, benefits consumers and the economy, and reduce GHG emissions.

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The U.S. Grains Council's Europe, Middle East and Africa (EMEA) office had two opportunities to promote distiller's dried grains with solubles (DDGS) in March, including at an event in Turkey and a tour of three Saudi Arabian cities.

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Representatives of the U.S. ethanol industry urged the U.S. EPA to take immediate action to make E15 available during the summer 2023 driving season in comments submitted to the agency on April 20 as part of its Midwest E15 rulemaking.

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A new analysis by the RFA indicates that since the beginning of 2022 American drivers saved an average of more than 25 cents per gallon when using the E15 fuel blend, which contains 15 percent low-carbon ethanol, compared to regular E10 unleaded.

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European ethanol producer CropEnergies on April 17 issued a statement indicating the company expects to experience a significant reduction in revenues, EBITDA and operating profit for the first fiscal quarter of 2023.

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Members of the House Ag Committee grilled EPA Administrator Michael Regan on the agency's low proposed RFS RVOs for biomass-based diesel, delays in implementing year-round E15 waivers, and GHG tailpipe emission standards during an April 19 hearing.

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In advance of a Senate subcommittee hearing on April 17 on the importance of cleaner vehicles, the RFA stressed the importance of renewable fuels like ethanol in providing “an effective and immediate solution for reducing carbon emissions."

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A report filed with the USDA Foreign Agricultural Service's Global Agricultural Information Network on April 11 discusses Colombia's March 15 decision to extend its existing 20-cent-per-gallon duty on U.S. ethanol for the next five years.

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UNICA, the Brazilian sugarcane industry association, has released data indicating sugarcane processing by mills in the south-central region of Brazil was up 5 percent during the 2020-'23 harvest season. Ethanol production was also up 5 percent.

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Despite seasonally lower ethanol demand, U.S ethanol production and profitability were in line with long-term averages during the first quarter of 2023, according to CoBank Knowledge Exchange's latest quarterly report, released April 6.

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RFA: E15 now available in New York

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By Renewable Fuels Association

April 13, 2023

E15 is now available to drivers in New York state for the first time, according to the RFA. Dandy Mini Mart and Travel Plaza in Nichols has become one of the first retailers in the state to offer E15. New York approved use of the fuel blend in 2019.

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Michigan lawmakers on April 12 introduced the Clean Energy Future Plan, a bill package that aims to implement a wide range of clean energy provisions, including a clean fuel standard (CFS) and a clean energy standard.

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Industry experts and ethanol producers explain what caused markedly high production margins in 2022—strong markets, exciting policy and good prices—while analyzing the first couple months of 2023 and predicting what's to come. Ethanol producers are coming off an undeniably strong year. 2022 was not devoid of challenges, but it was replete with landmark policy and marketplace dynamics that, on balance, allowed the vast majority of U.S. ethanol producers to do quite well financially. Mirroring that financial success this year would be like a pro baseball pitcher throwing back-to-back perfect games—it doesn’t happen—and, sure enough, the last quarter of 2022 and the first quarter of 2023 already reflect that. But this year’s margins may not disappoint, with at least some of last year’s margin-making factors still in play. 

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The EU does not have to choose between its climate, energy and food security goals when it has a pragmatic, proven, homegrown solution that is already delivering results and could do much more with the right approach.

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Green Plains is developing new technologies and coproducts. CEO Todd Becker talks about the company's various projects related to protein, corn oil, clean sugar and carbon, as well as a newly announced joint venture in SAF.

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It comes as no surprise that the lowest-cost fuel in California is also the state's fastest-growing liquid fuel, the RFA said April 11 at an event in Sacramento spotlighting the importance of the lower-carbon E85 flexfuel blend.

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The U.S. Energy Information Administration has maintained its forecast for 2023 ethanol production in its latest Short-Term Energy Outlook, released April 11. The outlook for 2024 ethanol production was reduced slightly.

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The “E” Is Silent

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By Ron Lamberty

April 10, 2023

When EPA examined concerns about removing the 1-pound RVP waiver during the high-ozone season to facilitate year-round blending of E15, it gave zero consideration to the negative economic impact a "gap year" would have on retailers of the blend.

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Metacon has announced Switzerland-based WattAnyWhere (WaW) has ordered its second ethanol-to-green hydrogen reforming system from Metacon subsidiary Helbio. Deliver of the system is planned for the fourth quarter of this year.

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The U.S. Grains Council on April 6 announced it is now accepting applications to join its seven Advisory Teams (A-teams), including the Ethanol A-team, for the 2023-2025 term. Applications are due April 30.

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The U.S. ethanol industry can't allow Brazil to game the system to steal markets away from our producers. We need to correct outdated models of lifecycle emissions and take an unapologetic approach to challenging patently unfair trade practices.

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The U.S. EPA should use its authority under the Clean Air Act to provide consumers with continued access to low-cost, low-emission E15 during the summer months, according to a letter sent on April 4 from corn grower leaders to the agency.

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The U.S. exported 104.03 million gallons of ethanol and 764,494 metric tons of distillers grains in February, according to data released by the USDA Foreign Agricultural Service on April 5. Exports of both products were down.

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The American Coalition for Ethanol hosted its annual Washington, D.C., fly-in March 29-30. During the event, 60 ACE members held approximately 100 meetings with federal lawmakers to advocate for legislation that supports the U.S. ethanol industry.

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USTR: Japan's new policy increases market for US ethanol exports

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By Office of U.S. Trade Representative

April 05, 2023

Following extensive engagement by the USTR, the USDA, and U.S. Embassy Tokyo, Japan published a new biofuels policy on March 31 that will allow the United States to capture up to 100 percent of Japan's on-road ethanol market.

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Growth Energy, RFA, NCGA, NSP, AFBF and NFU on April 5 sent a letter to President Joe Biden urging his administration to issue an emergency waiver allowing E15 sales this summer. Such a waiver was implemented ahead of the summer 2022 driving season.

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