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...
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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...
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...
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...
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...
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...
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...