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Sequestration: A Blueprint for Success

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By Lisa Gibson

March 11, 2021

Policy Business Operations 

While a few ethanol producers have already taken advantage of the 45Q tax credit, the policy precludes full industry participation. Fortunately, a new blueprint from the Carbon Capture Coalition lays out recommendations from lessons learned.

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In comments submitted to the U.S. EPA on March 11, the Renewable Fuels Association opposed a proposal to extend the deadlines for demonstrating compliance with the Renewable Fuel Standard for 2019 and 2020.

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Legislation introduced in the Minnesota Legislature in March aims to establish a clean fuels standard (CFS) that would require a 20 percent reduction in the carbon intensity of transportation fuel sold within the state by 2035.

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Considerable attention has been focused on President Biden's call for widespread use of electric vehicles, but we shouldn't pit EVs against biofuels. We should leverage both. They can be combined to more seamlessly transition away from fossil fuels.

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The U.S. Senate on March 10 voted 66 to 34 to confirm Michael Regan as administrator of the U.S. EPA. Representatives of the biofuels and bioenergy industries have spoken out in support of Regan's confirmation.

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Mother Nature has already given us an extraordinary solar panel that covers several hundred million acres of cropland in America's breadbasket, where energy absorbed from the sun is stored for later use in a perfect battery: an ear of corn.

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The U.S. exported 164.63 million gallons of ethanol and 916,541 metric tons of distillers grains in January, according to data released by the USDA Foreign Agricultural Service on March 5. Exports of both products were up from the previous month.

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A bipartisan group of 10 senators on March 8 sent a letter to Agriculture Secretary Tom Vilsack urging him to provide targeted COVID-19 relief to U.S. biofuel producers through the USDA's Commodity Credit Corp.

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Nebraska Gov. Pete Ricketts on March 8 announced that research conducted by the University of Nebraska-Lincoln with support from the Nebraska Department of Administrative Services clearly demonstrates that E30 is safe for long-term use in non-FFVs.

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The Washington House of Representatives on Feb. 27 voted 52 to 46 to pass H.B. 1091, a bill that aims to establish a state-wide Clean Fuels Standard. The legislation is currently pending in the Washington Senate.

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The Renewable Fuels Association, U.S. Grains Council and Growth Energy on March 4 submitted joint comments to Environment and Climate Change Canada in support of proposed regulations for the country's Clean Fuel Standard.

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Thanks to the U.S. Grain's Council's work promoting the benefits of DDGS to Irish swine, producers in the country have upped their inclusion of U.S. DDGS significantly, opening a market worth tens of millions annually.

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Beginning with the release of the January 2021 monthly trade data on March 5, USDA will adopt the WTO;s internationally recognized definition of “agricultural products,� which includes ethanol, distilled spirits and manufactured tobacco products.

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Several groups representing oil refining interests filed amicus briefs with the U.S. Supreme Court in late February and early March urging the court to overturn the Tenth Circuit Court of Appeals January 2020 ruling on SREs.

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OPINION: Conference panel looks at challenge of retailer future

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By Cassie Mullen, director of market development, Renewable Fuels Association

March 03, 2021

One of the biggest challenges facing fuel marketers is the shifting political scene and the current historic drive toward electric vehicles, according to Cassie Mullen, director of market development at the Renewable Fuels Association.

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OPINION: Now is the perfect time to add E15

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By Ron Lamberty, senior vice president, American Coalition for Ethanol

March 03, 2021

Despite a lack of federal grant programs and higher ethanol prices, ACE's Ron Lamberty says now is the perfect time to add E15. Adding the fuel blend, he says, can help retailers offer a higher octane fuel at a lower pump price than competitors.

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Co-chairs of the House Biofuels Caucus on March 3 introduced two pieces of legislation that aim to expand access to higher biofuel blends and fully recognize the environmental benefits of renewable fuels.

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Sens. Debbie Stabenow, D-Mich., and Joe Manchin, D-W.V., on March 1 introduced the American Jobs in Energy Manufacturing Act of 2021, which aims to incentivize domestic manufacturing of advanced energy technologies.

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House Committee on Energy and Commerce democrats on March 2 introduced the CELAN Future Act, which sets a goal to achieve net-zero GHG emissions by 2050. The bill includes provisions related to the RFS and bioenergy.

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The USGC participated in the USDA's Agricultural Trade Mission to Ghana in October 2019, followed by a side trip to Nigeria to meet with participants from the Global Ethanol Summit. The events helped increase U.S. ethanol exports.

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The Carbon Capture Coalition on Feb. 24 released a national policy blueprint that includes near-term recommendations the group says policymakers should adopt in order to accelerate the deployment and commercialization of carbon capture projects.

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The U.S. Senate on Feb. 25 voted 64 to 35 to confirm Jennifer Granholm as secretary of energy. Granholm, a former two-term governor of Michigan, was sworn in later that day. She is the second woman to lead the DOE.

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The U.K. Department for Transport on Feb. 25 announced that the country will adopt E10 as its standard gasoline blend by September. The move will allow idle ethanol production capacity in the U.K. to be brought back online.

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Using ATP program funds, the U.S. Grains Council sponsored participation at the Global Ethanol Summit of ethanol buyers from nearly two dozen Middle Eastern, European and African countries, who subsequently purchased $245 million in U.S. ethanol.

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Affiliates of HollyFrontier and Wynnewood Refining on Feb. 22 filed a brief with the U.S. Supreme Court arguing their position against the Tenth Circuit Court of Appeals' January 2020 ruling on small refinery exemptions (SREs).

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Tom Vilsack is once again leading the USDA. The Senate on Feb. 23 voted 92 to seven to confirm him as secretary of agriculture. Vilsack, a former two-term governor of Iowa, served as ag secretary during all eight years of the Obama administration.

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The USDA predicts that corn use for ethanol will remain relatively flat, increasing by 0.5 percent over the next decade, according to data released by the agency in February as part of its long-term agricultural projections through 2030.

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The U.S. EPA on Feb. 22 announced it now supports the Tenth Circuit Court of Appeal's January 2020 ruling on small refinery exemptions (SREs). Representatives of the U.S. biofuels decision are applauding the agency's new position.

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Representatives of the U.S. biofuels industry are urging the U.S. EPA to deny several petitions that have been filed with the agency seeking waivers of 2019 and 2020 RFS blending obligations, calling them unnecessary, illegal and unjustified.

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Reps. Dusty Johnson, R-S.D., and Angie Craig, D-Minn., on Feb. 19 reintroduced the Renewable Fuel Standard Integrity Act, which aims to ensure transparency and predictability in the U.S. EPA's administration of the SRE process.

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