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March 9, 2017

RFA Publishes Report On U.S. Ethanol Industry

On February 22, 2016, the Renewable Fuels Association (RFA) published the results of a study on the impact of the ethanol industry on the U.S. economy.  The study, which was commissioned by ABF Economics, found that the U.S. ethanol industry contributed over $42 billion to the nation’s gross domestic product (GDP) and supported 340,000 jobs in 2016.  Additionally, the report states that the ethanol industry provided significant contributions in terms of displacing imported crude...
March 9, 2017

Weekly Roundup of Other Biobased News

Fuels America, “America’s Biofuel Advocates Reject Effort to Derail Renewable Fuel Standard”   ?   The Hill, “House GOP to Prioritize Ethanol, Pipeline Legislation”   ? Premier Jay Wetherill, “State Government to Support Legalisation of Industrial Hemp”   ? Oil Price, “Biofuels May be the Future of the Aviation Industry”   ? Princeton University, “Schmidt Fund Awards Go to Projects with...
February 10, 2017

UAI Petitions EPA To Withdraw Flawed Emissions Model

On January 25, 2017, the Urban Air Initiative (UAI), along with the Energy Future Coalition and the states of Kansas and Nebraska, filed a request for correction of information petitioning EPA to correct its models on motor vehicle fuel emissions that limit the use of higher blends of ethanol.  In the petition, UAI claims that EPA continues to publish inaccurate data regarding ethanol emissions that originated with its fuel effects study and vehicular emissions computer model, MOVES2014,...
January 20, 2017

USDA Releases Report On Lifecycle Greenhouse Gas Balance Of Ethanol

On January 12, 2017, USDA released a report on the lifecycle greenhouse gas (GHG) balance of corn ethanol, titled “A Life-Cycle Analysis of the Greenhouse Gas Emissions of Corn-Based Ethanol.”  The study reviewed industry and farm sector performance over the past decade and found that in the United States corn-based ethanol generates 43 percent less GHG emissions than gasoline.  Compared to previous studies, the lifecycle GHG benefits were greater due to improvements in...
September 9, 2016

Mexico Publishes 5.8 Percent Ethanol Mandate For Rural Areas

On August 29, 2016, the Energy Regulatory Commission of Mexico (CRE) published fuel regulation NOM-016-CRE-2016 in the Mexican Federal Register. This fuel standard allows for the blending and sale of up to 5.8 percent ethanol in the nation's fuel supply outside of Mexico City, Guadalajara, and Monterrey. These new regulations will go into effect 60 days after publication of the bill, marking the first ethanol mandate to impact rural areas of Mexico. Guadalajara currently has a 2 percent...
September 2, 2016

USDA Reports On Increasing Ethanol Production Capacity In The Philippines

On August, 24, 2016, the U.S. Department of Agriculture (USDA) Foreign Agricultural Service released an annual report on the Philippines' biofuel industry and ethanol imports. In January 2007, The Biofuels Act or Republic Act (RA 9367) was signed, creating biofuels legislation in the Philippines that now mandate a ten percent ethanol blend and a two percent biodiesel blend. While the Biofuels Act gives priority to local ethanol, supply issues with local ethanol production have resulted in...
September 2, 2016

Brazil Backtracks From Plan To Increase Ethanol Use Through Tax Breaks

On August 24, 2016, Brazil's government announced that it would not be extending a tax break on ethanol sales that is due to expire in December 2016. During the 2015 Paris Climate Accord, Brazil pledged to increase cane-based ethanol and biodiesel to nearly 18 percent of its total energy mix by 2030, requiring an increase in annual ethanol production from 30 billion liters in 2015/2016 to 50 billion liters in 2030. The loss of the ethanol tax break prevents biofuel from being cost...
September 2, 2016

Weekly Roundup of Other Biobased News

? Growing Produce, "Better Biocontrol Options Becoming Available to Organic Growers" ? Joint Genome Institute, "Expanding the Stable of Workhorse Yeasts" ? Scientific American: ClimateWire, "Engineered Bacterium Turns Carbon Dioxide into Methane Fuel" ? DVIDS, "Fueling The Future: Air Force Title III Program Working To 'Home-Grow' Biofuels for DOD, Industry" ? NEC, "NEC Develops Non-Edible-Plant-Based Bioplastic Featuring the Elegance of...
August 26, 2016

North Dakota To Study Technical And Economic Feasibility Of CCS

On August 10, 2016, Red Trail Energy, LLC, a North Dakota ethanol producer, announced that it, along with the Energy & Environmental Research Center, had been awarded $490,000 to examine the integration of carbon capture and storage (CCS). The study will consist of installing and operating a commercial CCS system in a facility producing approximately 63 million gallons of ethanol and 180,000 tons of CO2, and tracking the technical and economic parameters required. The total project is...
May 27, 2016

USDA Exploring Ways To Increase U.S. And Mexican Renewable Energy Sectors

On May 23, 2016, USDA announced that a team of U.S. ethanol industry leaders would travel to Mexico with Acting Deputy Secretary of Agriculture Michael Scuse to explore opportunities to expand the United States' and Mexico's renewable energy industries. The trip occurred on May 24-25, 2016, with mission participants sharing their experiences with ethanol production and developing renewable fuel policies. The goal of the trip was to demonstrate how Mexico can implement its own renewable...
May 6, 2016

Iowa Legislature Unanimously Votes To Extend Renewable Fuels Infrastructure Program

On April 27, 2016, the Iowa Senate voted 49-0 to extend the Renewable Fuels Infrastructure Program (RFIP) through June 30, 2017. The legislation, House File 2464, was passed by the Iowa House 94-0 and provides funding for cost-share grants to upgrade fueling infrastructure. RFIP covers up to 70 percent of the installation cost of E15, E85, or biodiesel blend fuel pumps for Iowa retailers, up to $50,000 per project. "While we were hopeful for a long-term funding solution for the state's...
April 15, 2016

Argentina More Than Doubles Required Ethanol Blend To Move Away From Fossil Fuels

On April 8, 2016, Reuters reported that Argentina is planning on increasing the required percentage of ethanol in gasoline from 12 percent to 26 percent. Specific targets have not yet been created for increasing the required ethanol blend, but Argentina has been increasing the required ethanol percentage to reduce energy deficits and boost its economy. Argentina first created an ethanol mandate at five percent in 2010, and has increased the percentage incrementally since then. The increase of 14...
February 26, 2016

Tom Vilsack Responds To Studies On Evolution Of Ethanol Production

On February 16, 2016, Agriculture Secretary Tom Vilsack responded to two recent reports on ethanol and renewable fuels. The first report was published by USDA and is on "2015 Energy Balance for the Corn-Ethanol Industry," and the second report comes from the University of Missouri Food and Agricultural Policy Research Institute (FAPRI) and is a "Literature Review of Estimated Market Effects of U.S. Corn Starch Ethanol." Both studies demonstrate the growth of the United...
January 22, 2016

Biobased Chemicals: The Iowa Opportunity Report Calls For State Support Of Biorenewables

On January 14, 2016, a report titled "Biobased Chemicals: The Iowa Opportunity" was released by Iowa's Cultivation Corridor and the Iowa Biotechnology Association at the Iowa Statehouse. This report is based on research by Iowa State University professors and outlines opportunities for Iowa to capitalize on bioprocessing developments in the United States. While Iowa has the advantage of a strong biofuel industry, there is still a need for the Iowa legislature to address the needs...
October 22, 2015

Ethanol Mandates under RFS and EPA’s Lifecycle GHG Analysis

In a settlement with the American Fuel & Petrochemical Manufacturers (AFPM) and the American Petroleum Institute (API), the U.S. Environmental Protection Agency (EPA) agreed to set renewable fuel obligations for calendar years 2014 and 2015 by November 30, 2015, under the Renewable Fuel Standard (RFS).  The RFS requires annual increases in the amount of renewable fuel that must be blended into the total volume of gasoline refined and consumed in the U.S.  A current TV ad featured...
October 20, 2015

EPA’s Office of Inspector General Orders New Ethanol Emissions Study

In a memorandum dated October 15, 2015, the U.S. Environmental Protection Agency’s (EPA) Office of Inspector General (OIG) stated that it plans to begin preliminary research on the lifecycle impacts of EPA’s renewable fuel standard (RFS).  The stated objectives from the memorandum are to determine whether EPA:  (1) complied with the reporting requirements of laws authorizing the RFS; and (2) updated the lifecycle analysis supporting the RFS with findings from the...
October 2, 2015

Pennsylvania House Of Representatives Votes To Remove Ethanol Blend Requirement

On September 25, 2015, the Pennsylvania House of Representatives voted to amend the Biofuel Development and In-State Production Incentive Act by removing a ten percent ethanol blend requirement that occurs when Pennsylvania ethanol production exceeds 350 million gallons. The Act was originally passed in 2008. Since the incentive was put in place, Pennsylvania has not come close to reaching the 350 million gallon threshold. The bill has been referred to the Senate Environmental Resources and...
September 18, 2015

USDA Announces State Finalists For Biofuel Infrastructure Partnership Grants

On September 10, 2015, the U.S. Department of Agriculture (USDA) announced the 21 state finalists for Biofuel Infrastructure Partnership (BIP) grants to add infrastructure to supply more renewable fuel to drivers. The program was announced in May 2015, to increase the number of gas pumps dedicated to higher ethanol blends, including E15 and E85. While $100 million was made available by the USDA's Farm Service Agency (FSA), applications totaled over $130 million. The grants given out by the...
August 21, 2015

RFA Asks EPA To Allow Higher Ethanol Blends In Midwest Region After Refinery Outage Leads To High Pr

On August 14, 2015, the Renewable Fuels Association (RFA) asked EPA to waive Reid Vapor Pressure requirements for E15 and to also allow E12 blending. Reid Vapor Pressure is a measure of gasoline's volatility and is regulated in the summer months to reduce health risks caused by evaporative emissions. The request by the RFA occurred in the wake of a 240,000 barrels per day (b/d) refinery outage in Whiting, Indiana that has resulted in 50 cents per gallon cost increases for gasoline in some...
August 21, 2015

Energy Information Administration Issues Short Term Energy Outlook Report

On August 11, 2015, the U.S. Energy Information Administration (EIA) released the Short Term Energy Outlook (STEO) report. The report outlined expectations for regular gasoline to average a retail price of $2.41 for all of 2015, with prices for the fourth quarter of 2015 averaging $2.11. Consistently low gasoline prices, in addition to the proposed Renewable Fuel Standard volumes that were announced on May 29, 2015, have resulted in the EIA forecasting that ethanol consumption will average about...