Ready. Set. Go! The Ethanol Industry Is Poised for Continued Success in 2023
by Geoff Cooper (Renewable Fuels Association/Ethanol Producer Magazine) … (T)he Renewable Fuels Association remains focused on solidifying year-round access to E15, building export markets and moving incrementally closer to net-zero carbon emissions by 2050.
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In December, the Environmental Protection Agency proposed RFS volumes through 2025 that provide certainty and an opportunity for growth. The agency also put an end to abusive small refiner exemptions that had decimated RFS demand for years and established a pathway for ethanol to serve as a “biointermediate” feedstock for new applications like sustainable aviation fuel. At the direction of President Biden, EPA also provided emergency waivers allowing the summertime use of E15, while also committing to make E15 more broadly available to consumers across the country by the summer of 2023. At the same time, USDA finalized rules enabling ethanol producers to access $700 million in COVID relief funding and expanded the HBIIP program, providing resources for gasoline marketers wanting to provide E15 and flex fuels like E85 to consumers.
On Capitol Hill, the Inflation Reduction Act adopted in August heralded new tax incentives for sustainable aviation fuels, established a Clean Fuel Production Credit, enhanced the 45Q carbon capture credit, and appropriated another $500 million for higher ethanol blend infrastructure. Other bills that would establish a growing role for high-octane, low-carbon fuels—including the Next Generation Fuels Act—attracted growing support in both parties and both chambers of Congress. In an important development, we also gained a crucial new ally in our work toward making E15 available year-round, the American Petroleum Institute. With the API’s support, we saw the Consumer and Fuel Retailer Choice Act filed in both the House and Senate with momentum building for a permanent solution.
In the marketplace, ethanol production, demand and exports all continued to rebound from the pandemic malaise.
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In 2023, RFA will continue to pursue policy and regulatory solutions that provide parity for E15, allowing year-round accessibility for consumers and to reduce costs at the pump. We still believe that the secret to sustained success in the ethanol industry lies in the ability to reduce carbon emissions and pursing policies promoting and incentivizing low carbon fuels at the pump, such as E15, E20/30 and E85. READ MORE
2022 was a good year for the ethanol industry. (Iowa AgriBusiness Radio Network)
Falling gasoline consumption poses long-term challenge for ethanol industry, corn growers (Agri-Pulse)
