Business Briefs

News and announcements from the October issue of Ethanol Producer Magazine, including the passage of the Inflation Reduction Act, the introduction of the Next Generation Fuels Act in the Senate and more.
By Ethanol Producer Magazine | September 15, 2022

Inflation Reduction Act passes
President Joe Biden on Aug. 16 signed the Inflation Reduction Act. He called the legislation the “biggest step forward in climate—ever” and stressed that the expansive legislative package will allow the U.S. to boldly take additional steps towards meeting its climate goals. The IRA, in part, establishes new tax credits to support the production of sustainable aviation fuel (SAF), clean transportation fuels and clean hydrogen.  It also extends and modifies the Section 45Q tax credit for carbon capture and storage (CCS). In addition, the IRA extends several existing tax credits that benefit transportation biofuels, including the $1 per gallon blenders tax credit for biodiesel and renewable diesel, which is extended through the end of 2024. The IRA also appropriates $500 million to support the development of biofuel infrastructure. An additional $245 million is appropriated for projects related to the production, blending or storage of SAF.

Next Generation Fuels Act introduced in Senate
On July 26, an important piece of legislation met a milestone with its introduction in the Senate. Sen. Chuck Grassley, along with original cosponsors Sens. Amy Klobuchar, D-Minnesota; Joni Ernst, R-Iowa; and Tammy Duckworth, D-Illinois; introduced the Next Generation Fuels Act. The bill establishes a high-octane, low-carbon fuel standard that would lower pump prices, reduce greenhouse gas emissions, enable greater engine efficiency, and encourage competition. In addition, the legislation addresses regulatory impediments that have slowed the commercialization of these fuels and the vehicles that consume them. A similar bill was introduced in the House last year by Rep. Cheri Bustos, D-Illinois, and now has 26 cosponsors.

The Renewable Fuels Association first began advocating for the creation of a national high-octane, low carbon fuel standard in late 2018. As additional lawmakers evaluate this approach, RFA will look for opportunities to advance the bill.

ACE elects board of directors at annual business meeting
The American Coalition for Ethanol announced the re-election of several board members and the election of two new members to the organization’s board of directors during its annual business meeting prior to ACE’s 35th annual conference in Omaha, Nebraska.

Re-elected to the board of directors for three-year terms:
• Redfield Energy LLC  – Troy Knecht
• KAAPA Ethanol LLC  – Scott McPheeters
• Absolute Energy LLC  – Rick Schwarck
• Golden Grain Energy LLC  – Dave Sovereign
• East River Electric Power Cooperative  – Chris Studer

Randy Gard, representing Bosselman Enterprises Corp., owner of the Nebraska-based Pump & Pantry convenience store chain, was elected as a new member to the board of directors for a three-year term.

Wayne Garrett, general manager with Chief Ethanol Fuels Inc., was newly elected to represent the company on the board of directors for a three-year term. He fills the seat of Duane Kristensen, who retired from Chief Ethanol in 2021.

POET acquires Savannah transload facility, expands global network
POET announced that it has signed a purchase agreement with Savannah Marine Terminal to acquire its rail-to-container transload facility in Savannah, Georgia.

The acquisition will include all equipment and real estate to operate the grain transload facility.  The Port of Savannah, one of the highest volume container ports in the U.S., has geographic synergy with several of POET’s key global markets for its animal feed products, including Dakota Gold dried distillers grains and its corn fermented protein product, NexPRO.

The facility will also strengthen POET’s shipping process, ensuring even greater traceability and transparency for its customers.

POET is currently the 36th-largest container shipper, exporting to more than 20 countries around the world.