Proactively Leveraging Ethanol’s Low-Carbon Value
by Brian Jennings (American Coalition for Ethanol/Ethanol Producer Magazine) Merely playing defense on the RFS does not constitute a plan to expand ethanol demand. We need to go on offense because it is a matter of when, not if, Congress takes up climate legislation that will impact the transportation fuel market.
As I write this column in late July , we have helped convince members of Congress to introduce bipartisan legislation to reimburse ethanol producers either on gallons produced or on bushels processed, and we are urging them to include some form of direct economic relief in the phase-four stimulus package.
Given the fact that ethanol use is not expected to recover to pre-COVID-19 levels for a long time, we will continue to prioritize economic relief for the biofuel sector. However, we have not allowed the coronavirus or the U.S. EPA’s ongoing mismanagement of the Renewable Fuels Standard to distract us from also strategically paving the way to leverage ethanol’s low-carbon value in the marketplace.
Prior to the outbreak of COVID-19, ACE helped lead a diverse coalition of Midwestern organizations in developing a policy blueprint to encourage new low-carbon fuel markets, resulting in “A Clean Fuels Policy for the Midwest” report we released in January of this year. Our report describes how properly crafted policy at the state level can spur low-carbon fuels and provide meaningful economic benefits to farmers and biofuel producers—nearly $1 billion annually in the Midwest. Following the release of our report, stakeholders in several Midwestern states have contacted ACE to learn more about how to push for new clean fuel legislation in their upcoming legislative sessions.
At the federal level, we have engaged key congressional offices to position agriculture and ethanol as part of the solution to their policy efforts designed to reduce greenhouse gas (GHG) emissions. Our engagement has paid dividends because it helped convince the U.S. House of Representatives Select Committee on the Climate Crisis to include a recommendation for a new technology-neutral Low Carbon Fuel Standard, in addition to the existing RFS, in a report they released this summer.
Properly crafted low-carbon fuel policy built on top of the RFS’s success in beginning to break our country’s reliance on petroleum is one of the most meaningful things Congress can do to address climate change.
The Select Committee’s report not only cites our Midwest Clean Fuel Policy blueprint as a positive example of progress, it also echoes our recommendations to reflect the best available science for life cycle assessments and reward farmers and biofuel producers using climate-smart practices that reduce carbon emissions, store soil carbon and reduce nitrous oxide emissions.
…
ACE proactively engaged Congress, explaining how modern-day farming and ethanol production practices reduce GHG emissions, and that increasing ethanol use is part of the climate solution.
…
We need to go on offense because it is a matter of when, not if, Congress takes up climate legislation that will impact the transportation fuel market. That is why ACE will continue to proactively engage Congress on the need for new clean fuel policy built on top of the RFS that can further expand the domestic marketplace. READ MORE
A (Virtual) Reality Check for Lawmakers (Ethanol Producer Magazine/Growth Energy)
Excerpt from Ethanol Producer Magazine/Growth Energy: Despite promises from the White House, EPA Administrator Andrew Wheeler has stalled the rural recovery by delaying action on 2021 biofuel targets and refusing to faithfully enforce court limits on so-called “hardship” exemptions granted to oil companies.
We’re also meeting with lawmakers about our own big plans for the future, including efforts to reinvigorate exports. Over this next year, we must work quickly to rebuild our key markets in China, Brazil, Mexico and other countries where demand is already recovering from COVID-19.
At the same time, we must remind policymakers at home and abroad that ethanol remains the world’s best tool for decarbonizing the transportation sector while protecting healthy air for motorists and their families.
Lawmakers are paying attention. House Democrats recognized the need for low-carbon biofuels in a recent report by the Select Committee on the Climate Crisis; the U.S. Department of Agriculture placed biofuels at the center of its Agriculture Innovation Agency; and key senators are working closely with Growth Energy and our allies on legislation to promote sustainable farm practices. Similar conversations are occurring in states like California, where Growth Energy is working directly with academics and regulators to secure E15’s rightful role in the market.
We’re also working to ensure the success of USDA’s Higher Blends Infrastructure Incentive Program, which will deploy $100 million in competitive grants for blender pumps and other upgrades. In the past six months, Growth Energy has interacted with over 65,000 retail locations to encourage maximum participation in the HBIIP program. In this time, we’ve secured applications for nine retail chains or 325 sites that together sell more than 500 million gallons annually. READ MORE
