Brazil has temporarily lifted its 18% tariff on all U.S. ethanol as of Wednesday, March 23 and running through the end of the year as a means of decreasing inflationary pressures. Ethanol supporters welcomed the move and also are calling for additional actions by the administration to expand E15 use domestically.

In a joint statement, Ryan LeGrand, president and CEO of the U.S. Grains Council; Emily Skor, CEO of Growth Energy; and Geoff Cooper, president and CEO of the Renewable Fuels Association, say the temporary elimination of the 18% tariff should improve access for Brazil’s ethanol consumers as well as help meet its own decarbonization goals. This is an issue the organizations have been working on for a number of years in meetings and correspondence with officials from Washington to Brasilia.

“We welcome this decision and see it as an opportunity to continue discussions with Brazil to expand the global use of low-carbon ethanol, reduce barriers to trade and elevate its prominence in energy discussions. Our hope is that with this action, Brazil and the U.S. will share with third parties the vision of free and open global ethanol markets,” the joint statement notes.

The ethanol industry leaders add they will continue to pursue a long-term, open and mutually beneficial ethanol trading relationship with Brazil as they work to make this temporary reduction permanent. “We look forward to continuing to work closely with USDA and USTR to return to a fair and reciprocal trading relationship with Brazil regarding ethanol."

Biden urged to increase E15 use

Iowa Renewable Fuels Association Executive Director Monte Shaw applauded Brazil’s decision and called on President Joe Biden’s administration to also take steps to clear a path for U.S. biofuels to save Americans money at the pump.

“If American-made biofuels can lower prices at the pump for drivers across the world, it would be an absolute shame to not do all we can to ensure biofuels are saving drivers money right here at home,” Shaw says. “President Biden has an opportunity to lead the way to lower fuel prices by unleashing the power of higher biofuel blends like E15.”

Shaw adds Iowa biofuel producers are excited for this new market opportunity in Brazil but would also love to see more of our fuel used here in the U.S. “Given the current fuel crisis, President Biden should immediately direct the EPA to use their emergency power to ensure E15 can continue to be sold throughout the summer months.”

Shaw explains without action before May 1, Iowans and Americans across the country will lose the ability to purchase E15, which often sells for 10 to 30 cents less per gallon than regular unleaded.

Growth Energy launched a new ad campaign calling on Biden to direct his administration to lift restrictions on the year-round sale of E15 to boost energy security and combat the surge in fuel costs accelerated by the conflict in Ukraine. The campaign will air on FOX, MSNBC and CNN in the Washington, D.C area. It will run until June 1, when many retailers will be forced to pull E15 from the market due to a court ruling which denied the E15 waiver request.  

“The White House says all options are on the table to ease surging gas prices, and E15 is a common-sense solution that can deliver immediate relief at the pump,” says Skor. “Biofuels are a homegrown, plant-based solution that can further reduce our dependence on foreign oil and shield American drivers from the volatility of the oil market. Right now, U.S. ethanol is available at a deep discount, but consumers can’t tap into those savings without access to higher biofuel blends like E15.  

Available at more than 2,500 gas stations across 31 states, E15 is approved for more than 96% of light duty vehicles, which account for 98% of all vehicle miles traveled. Even before the recent run up in oil prices, it was estimated that nationwide access to E15 could save drivers $12.2 billion annually in fuel costs, Growth Energy says.