Ethanol
“These tax credits, which encourage the use of more eco-friendly fuels, could make or break the prospects of corn ethanol as a sustainable aviation fuel,” says Jim Wiesemeyer, ProFarmer policy analyst.
“There’s no question of the law, science or anything. They’re simply not doing their job,” says Monte Shaw, Iowa Renewable Fuels Association executive director.
In just a few years the farm financial pendulum swung from shaky to stable, according to the 2022 Agricultural Lender Survey report by the American Bankers Association and Farmer Mac.
With the popularity of electric and hybrid vehicles growing, long-term gasoline use could drop, taking ethanol consumption with it. Will ethanol continue to be the juggernaut in the corn market?
“Nearly two decades of data prove that the supposed ‘cost’ to refiners is an accounting fiction, and EPA’s decision reflects those facts,” said Emily Skor, Growth Energy CEO.
Under the Clean Air Act, those affected by this decision have the right to request a judicial review with the US Court of Appeals within 60 days of the notice’s Federal Register publication.
There is now a dollar value assigned to grain carbon intensity scores below 29 in the form of tax credits to biofuel plants that buy grain as part of their decarbonization efforts.
EPA released biofuel blending obligations under the Renewable Fuel Standard on Tuesday. While EPA says the decision will reduce reliance on oil imports, some biofuel industry leaders do not approve.
EPA’s 479-page RFS ruling can be difficult to sift through and interpret. Jim Wiesemeyer breaks down the heavy-hitting components that will impact producers.
The White House set a goal of producing 3 billion gal. of sustainable aviation fuel (SAF) by 2030. Senators say outdated climate data is keeping producers from reaching the finish line, but a new bill could change that.
Analysts at Wolfstreet believe the U.S. is seeing the first hint of an EV effect on gas demand. John Phipps looks at the data and explains why a possible peak in U.S. gasoline consumption could impact ethanol demand.
“EPA is using decade-old analysis to measure the carbon intensity of ethanol, despite the Department of Energy’s updated data,” says Chris Bliley of Growth Energy. “This bill will ensure we capture the accuracy.”
Generally, E15 is banned in summer months, but EPA flipped the script for the first time last year when it lifted the ban to lower pump prices.
The U.S. ethanol industry is lobbying the Biden administration to ensure lower-carbon aviation fuel made from ethanol will qualify for subsidies.
Michael Regan, EPA administrator, appeared before the House Ag Committee on Wednesday to discuss everything from WOTUS to the farm bill. Here are the highlights that will directly impact producers.
Exports of U.S. ethanol could increase by over 80 million gallons annually, representing an additional $150-200 million in exports each year.
Emily Skor, Growth Energy CEO, says the fuel industry has only “scratched the surface” of ethanol potential. She feels this act will help unleash ethanol’s capabilities.
While Iowa and Nebraska attorney generals have weighed suing EPA for its delayed ruling, members of Congress feel the matter should be dealt with through legislative process.
Finding a new path for ethanol demand could come in the form of higher-octane fuels. NCGA says the Next Generation Fuels Act would address climate goals while also driving up the domestic demand for corn.
Remember when Trump was president and he tried to find a “win-win” regarding ethanol policy? In the end, neither side was satisfied. That again is the case with EPA’s year-round E15 sale announcement on Wednesday.
“This proposal, while well-intended, still leaves the country with a patchwork of regulations that prevents the nation’s driving public from enjoying the full benefits of biofuels,” said Sen. Deb Fischer.
Without the Office of Management and Budget approval, states will be unable to sell E15 fuel in the summer months.
The Fifth Circuit Court of Appeals on Friday suspended the RFS compliance obligations for two refineries that were denied small refinery exemptions by EPA in 2021.
United Airlines is teaming up with a corn ethanol maker in a bid to ramp up production of green jet fuel to deal with carbon credits and climate change by 2028.
Vilsack said USDA believes there are more options for farmers other than “get big or get out. There’s got to be a system in which the many and most have a fair shot.”
“The funds awarded today by the DOE will undoubtedly accelerate the innovations taking place at U.S. ethanol plants, opening new opportunities for low-cost, low-carbon energy,” says Growth Energy’s Emily Skor.
“A lot of people looked at the smaller landlocked crush facilities and said, ‘Does that make sense?” I think those locations will go away, and I’m not sure they should have been there to begin with,” Fife says.
EPA is seeking comment on it’s proposed RFS levels for 2023-2025, in addition to comments on environmental impacts from the RFS to include: assessments of air, water and soil quality, and biodiversity.
Proposed renewable fuel volume targets, electric vehicle’s seat at the RFS table and year-round E15 odds: Here’s everything you need to know about renewable fuel’s big week on The Hill.
EPA is facing a Nov. 30 deadline to propose 2023 renewable fuel blending levels as part of a negotiated deal with Growth Energy, which sued EPA for failing to deliver the proposed levels by the statutory deadline.