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No. 43, August 1, 2018

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ON THE HILL

President Trump Reaffirms EPA 'Very Close' to Ensuring Year-Round Sale of E15

 
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This past Thursday, July 25, President Donald Trump reaffirmed his commitment to providing year-round sale of E15 nationwide at a televised meeting with an Iowa congressional delegation, saying that he was 'very close' to making E15 available year round. The President's statement came following comments made earlier that week by Acting EPA Administrator Andrew Wheeler, in which he had indicated that year-round E15 was not close. Growth Energy has been working hard to hold the President to his promise to our industry and America's farmers to provide long-term growth for biofuels. His comments last week were, therefore, very reassuring that we continue to make progress.

 

“We are pleased to hear President Trump say he is ‘very close’ to making E15 available year round, fulfilling his promise to America’s farmers," said Emily Skor, Growth Energy CEO in a recent release. "Increased access to US markets will provide America’s farmers with some financial confidence, and we hope that President Trump will direct the EPA to act quickly to provide year-round RVP relief.”

 

Our recent ad that ran throughout the Midwest last week, diligent work from our government relations team, and help from all of you within the membership made these comments possible. 

For more details, contact Vice President of Government Affairs John Fuher.

WORKING FOR YOU

ON THE HILL

Wheeler to Testify in Front of Senate Environment & Public Works Committee on EPA Agenda

House Energy and Commerce Committee Held Hearing on RINs under RFS

IN REGULATIONS 

Sorghum Oil Pathway and Registration Update:

 

Join our Action Center!

AROUND THE GLOBE

Canadian Clean Fuel Standard Under Consideration by ECCC

President Trump Meets with President of European Commission Jean-Claude Juncker to Discuss Trade

AT THE PUMP

Did You Know?

IN OUR ASSOCIATION

Iowa Corn Greets RAGBRAI Cyclists with Fresh Corn


Member Highlight: Green Plains - Otter Tail

AT THE TRACK

American Ethanol Driver Deric Kramer Finishes Earns His Third Final Round Finish of Season

UPCOMING EVENTS

Darlington Paintout

September 02

Darlington, SC

Biofuels Summit

September 10-15

Washington, DC


 

 ON THE HILL

Wheeler to Testify in Front of Senate Environment & Public Works Committee on EPA Agenda

 
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Acting EPA Administrator Andrew Wheeler will testify for the first time this Wednesday, August 1, in front of the Senate Environment and Public Works Committee to discuss the EPA's agenda. The hearing, entitled "Examining EPA’s Agenda: Protecting the Environment and Allowing America’s Economy to Grow," will give Wheeler the opportunity to differentiate himself from his scandal-plagued predecessor, Scott Pruitt. The timing of this hearing is also very fortuitous for the biofuels industry, following President Trump's comments late last week that year-round sale of E15 was 'very close'. 

 

Growth Energy hopes that participants in the hearing will use this time to provide clarity on a number of issues including: RVP and year-round E15; reallocation of lost biofuels gallons from small refinery exemptions; increased transparency around small refinery exemption applications; and approval of a pathway for cellulosic biofuels production. See our blog post here about how these priority issues can help improve farm income and keep the RFS strong. Additionally, you can use the tweet below on your social media networks to get the word out about the hearing:


Senate @EPWGOP will listen tomorrow to @EPAAWheeler & hear his plans for @EPA going forward. @GrowthEnergy put together a great blog post of biofuels' top priorities, including upholding @realDonaldTrump's Iowa promise for #E15YearRound. See it here: http://bit.ly/EPAepw

House Energy and Commerce Committee Held Hearing on RINs under RFS

Last week, the House Energy and Commerce (E&C) Subcommittee on the Environment held a hearing on “Background on Renewable Identification Numbers under the Renewable Fuel Standard”. Full hearing video can be viewed here. The hearing was part of the subcommittee Chairman, Rep. John Shimkus’ (R-IL), ongoing efforts to examine the Renewable Fuel Standard (RFS) in an attempt to potentially reform the program. The purpose of the hearing was to gain a better understanding of how RINS fit into the overall RFS program.

 

House biofuels champion, Rep. Dave Loebsack (R-IA-02), weighed in on the hearing to ensure that the subcommittee understood that allowing year-round sales of E15 would lower overall RIN prices and he also discussed the issues that the program has endured as a result of the EPA’s recent explosion of small refinery compliance waivers. Other members of Congress that also spoke to the benefit of the biofuels industry and the success of the RFS program included the Subcommittee Ranking Member, Rep. Paul Tonko (D-NY-20), and the full E&C Committee Ranking Member, Rep. Frank Pallone (D-NJ-06).

For more details, contact Vice President of Government Affairs John Fuher.

 

IN REGULATIONS

Sorghum Oil Pathway and Registration Update:

 
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As you may recall, last week, EPA approved its long awaited pathway for the use of sorghum oil to produce biodiesel providing a valuable market for producers using grain sorghum as a feedstock for ethanol. In conjunction, EPA updated its oil pathways to distillers corn oil, distillers sorghum oil, and comingled distillers corn oil and distillers sorghum oil, and removed non-food grade corn oil which is being replaced by distillers corn oil. It is important to note that for producers currently registered for a pathway with the non-food grade corn oil feedstock, you must update add the distillers corn oil feedstock pathway to your registration.

 

Details from the EPA notice here: “IMMEDIATE ACTION NEEDED FROM PRODUCERS REGISTERED FOR A PATHWAY WITH THE NON-FOOD GRADE CORN OIL FEEDSTOCK: Producers registered for one or more pathways with the non-food grade corn oil feedstock code should submit a registration request as soon as possible to add the same pathway or pathways but with the distillers corn oil feedstock code instead. No amended supporting documentation is necessary. Sixty days after the effective date of this rule, the non-food grade corn oil feedstock code will be removed from EMTS, and RINs will not be able to be generated using that feedstock code. Therefore, producers should include no edits other than the distillers corn oil pathway addition(s) in their registration request to ensure it is processed as quickly as possible. At the next registration update after the effective date of this rule, producers should request to remove the pathway or pathways with the non-food grade corn oil feedstock.”

 

Additional information on EPA’s rulemaking can be found on their website.

Join our Action Center!

If you have not done so already, we urge you to submit a comment on the 2019 RVO proposal through our action center to ensure that the EPA does not ignore the critical need to address refinery waiver handouts and the subsequent demand destruction of biofuel volumes.


Our action center is extremely easy to use and comments can be submitted in just a few short clicks. Submitting comments is a way for you, as members, to contribute to the continued growth and success of biofuels and to help strengthen the impact our association has on important regulation. 

In addition to submitting comments yourself, we encourage you to share the action center with others in your personal and professional networks. The action center will allow you to quickly post the link on social media, and we also ask that you send the link, www.growthenergy.org/action, to other potential advocates via email.

For more details, contact Vice President of Regulatory Affairs Chris Bliley.

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AROUND THE GLOBE

Canadian Clean Fuel Standard Under Consideration by ECCC

 In 2016, Environment and Climate Change Canada (ECCC is the Canadian government agency that regulates the environment) initiated discussions about establishing a national clean fuel standard to reduce carbon emissions by 30 million tons by 2030 from all fuels. Since that time, they’ve held several stakeholder briefings including a webcast last week. ECCC revealed its plans for furthering the development of and its timeline for regulatory action to implement the Clean Fuel Standard. This month, they have issued a request for proposals for a life cycle model to be implemented in the program by 2020.

 

This fall, ECCC plans to issue a regulatory design paper as well as a cost-benefit analysis framework for the liquid fuels portion of the program that will provide additional details on their plans and approach. They will then continue consultations with stakeholders through early 2019 and issue a regulatory proposal for comment in spring 2019, with the aim to publish final regulations in 2020 coming into force in 2022. The gaseous and solid fuels program would then follow soon thereafter. ECCC staff has said that it is closely looking at both the British Columbia and California low carbon fuel standards as they begin development of their own liquid fuels program. Growth Energy has participated in the stakeholder briefings and will continue to stay actively engaged throughout the regulatory process. Information on the Canadian effort can be found here.

President Trump Meets with President of European Commission Jean-Claude Juncker to Discuss Trade

 
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This past week President Donald Trump met in front of the White House with Jean-Claude Juncker where they made a joint statement agreeing to "to work together toward zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods." This statement was the culmination of an informal deal reached by Juncker and Trump over trade relations between the US and the European Union (EU). As part of this negotiation, Trump agreed to restart work on the Transatlantic Trade and Investment Partnership (TTIP) in exchange for the promise of greater access to soybean markets in the EU. This announcement, while beneficial if made manifest, holds little promise of making up the deficit felt by farmers due to lost trade in China. Critics have pointed out that Juncker has not ability to facilitate the purchase of soybeans by private companies within the EU, and the EU itself has no budget to do so. Additionally, this deal contained no information about increasing the amount of biofuels imports that the EU will accept.

 

As you may remember, five years ago when the EU imposed anti-dumping duties unfairly against ethanol exports from the U.S., Growth Energy fought to keep the market open for American biofuel exports to the region. It is a fight that we continue to wage and it is one that has not been aided by fallout from undermined US-EU trade relations over the past months. Fair treatment of American biofuels in the European market would be good not only for America's biofuels, but also is keep European prices competitive. Currently, the European Commission is investigating whether the anti-dumping duties, set to expire this year, should continue or end.  Growth Energy has retained European counsel along with others in the industry and continues to seek to end these unfounded trade restrictions.  We will continue to fight for fair market access to American biofuels across the globe and will keep you updated on any progress we make.

For more details, contact Senior Vice President of Global Market Craig Willis.

 

AT THE PUMP

Did You Know?

 
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Today, there are currently 1,433 stations selling E15 across 30 states. The newest of which, Maryland, started selling E15 earlier this year. For the fourth year in a row, we have doubled the number of retail locations and expect to reach nearly 2,800 locations by 2020.

 

Last week's survey results:

The correct answer was C: When E15 is a choice, retailers sell more than 30-40 percent ethanol than the average E10 site. Only 20 percent of respondents chose the correct answer, with over 60 percent choosing answer B, 20-30 percent. E15 has tons of potential to boost sales of ethanol at the pump.

IN OUR ASSOCIATION

Iowa Corn Greets RAGBRAI Cyclists with Fresh Corn

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Pictured above (clockwise from top): Growth Energy's Vice President Kelly Manning and POET President of Nutrition Greg Breukelman pose together at the pitstop; the Biofuels Trailer was a welcome sight for weary cyclists; hungry cyclists chow down on fresh sweet corn.

This past weekend RAGBRAI cyclists were greeted by over 8,000 ears of fresh sweet corn at five stops on the event's 430 mile route by the Iowa Corn Growers Association. During the event, those who stopped for a bite of corn were show facts on the benefits of ethanol, the RFS, and Iowa corn. 

 

"There's nothing like showing our consumers what Iowa corn is, what we work towards, and how we feed our communities, our Iowa, our country and our world," says Scott Te Grootenhuis, Iowa Corn farmer. "It's fun to see people from across the country enjoying something grown right here in Iowa, but it's even more enjoyable to see their faces light up when we explain that sweet corn is only 1% of the corn we raise here."

 

To see Iowa Corn's video on the event and their incredible turnout, visit their youtube page.

Member Highlight: Green Plains - Otter Tail

 
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Name of company and city/state in which you're located:

Green Plains, Inc. We are headquartered in Omaha, Neb. and have 17 plants across the United States. The information below is about our plant in Otter Tail, Min.

 

Management Team:

  • President/CEO: Todd Becker
  • Plant Manager: Anthony Hicks
  • Operations Manager: Gary Rugroden
  • EHHS Manager: Brett Jacobs
  • Plant Controller: Shannon Norling
  • Maintenance Manager: Jason Resler
  • Production Manager: Keith Wetzel
  • Commodities Manager: Glenn Petersen
  • Lab Manager: Kristi Tostenson

 

How long has the company been in operation?

Green Plains acquired the Otter Tail location from "Otter Tail Ag Enterprises" in March 2011.

 

Do you make any ethanol co-products?

In addition to ethanol, we produce distillers grains and recover corn oil.

 

What do you consider some of your company's main accomplishments?

Our biggest accomplishment is being able to penetrate both domestic and export markets while being flexible to produce three different ethanol products to suit an ever changing customer need and demand.”

 

What is your website address?

www.gpreinc.com

 

What do you like about being a member of Growth Energy?

We appreciate the continued hard work that Growth Energy does on behalf of the ethanol industry. Growth Energy keeps us connected to key issues and does a wonderful job educating the consumer.

 

Any other fun facts?

Otter Tail is one of two Green Plains ethanol plants located in Min. After being acquired in 2011, annual production capacity expanded an additional 5 million gallons per year and a new corn extraction process was added in August 2011. Approximately 2,000 local trucks unload corn at Otter Tail every month, where 42 employees work together to turn it into fuel ethanol.

For more details, contact Vice President of Development, Kelly Manning.

 

ON THE TRACK

American Ethanol Driver Deric Kramer Finishes Earns His Third Final Round Finish of Season

 
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Pictured above: Deric Kramer heats up at the NHRA Sonoma Nationals.

This past week has been an exciting one for fans of American Ethanol. Deric Kramer finished his third final round of the season in the American Ethanol Chevrolet Camaro at the 31st annual NHRA Sonoma Nationals. Kramer was able to do so by beating Alan Prusiensky, Tanner Gray, and Jason Line to the final round, after qualifying for the No. 3 position to start the day. With an impressive reaction time of .006-seconds and a finishing time of 6.525, 211.10, Kramer beat out KB Racing teammates 6.551, 211.26. 


“It’s always fun beating our engine builder,” Kramer quibbed. “All joking aside, KB Racing really has given me some power and I knew that was gonna be a good race for sure.”


Kramer wasn't the only American Ethanol driver to get attention this weekend. Both Austin Dillon and Matt Tifft held paintouts for their cars this weekend. Dillon had an impressive 13th place finish in his new wrap in the Monster Energy Cup Series. Tifft finished 26th, despite having a strong race, due to being caught up in a crash in the Xfinity series. Coming up he will race in the U.S. Cellular 250 at Iowa Speedway, and Dillon will compete in the Gander Outdoors 400 at Pocono Raceway.  

For more details, contact Manger of Communications, Austin Dabney.

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The Weekly Rundown is the weekly newsletter for Growth Energy's members. It is published 51 times a year by the communications staff at Growth Energy. For more information, email team@growthenergy.org

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