IN REGULATIONS 

EPA Releases Proposed 2019 RVOs

Chart from EPA Website: *The biomass-based diesel standard for 2019 was set at 2.1 billion gallons in 2018 and cannot be changed.

Yesterday, the U.S. EPA announced their proposed Renewable Volume Obligations (RVOs) for 2019. EPA’s proposal provides for 19.88 billion gallons of total renewable fuel including 15 billion gallons for conventional, starch ethanol. It also includes 4.88 billion gallons of advanced biofuel, of which, 381 million gallons would be cellulosic biofuel. The proposal also stipulates 2.43 billion gallons of biodiesel for 2020. Unfortunately, it neither requires reallocation of small refinery exemptions nor restores the 500 million gallons required after our successful litigation in the 2016 RVO.

Growth Energy CEO Emily Skor released the following statement outlining how the EPA proposal represents the latest in a string of decisions that favor big oil at the expense of rural America.

“While EPA’s proposed volumes for 2019 maintain 15 billion gallons for conventional biofuels, our industry needs assurance that those gallons will actually be blended – and this proposal fails to provide those assurances. By neglecting to reallocate lost gallons, the EPA is doubling down on another year of an estimated 1.5 billion gallons in demand destruction."

The EPA's announcement came following an exclusive report from Reuters yesterday that demonstrated that the agency consistently ignored recommendations from the Department of Energy (DOE) to reduce or reject refinery waiver allocations. The EPA has now ignored President Donald Trump, the Department of Agriculture (USDA), and DOE in relation to small refinery waivers and allowing year-round sales of E15. We will continue to monitor the situation and will be providing resources to members to join us in commenting on the 2019 RVOs.

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

 ON THE HILL

House Energy and Commerce Subcommittee Meets to Discuss Advanced Biofuels, Farm Bill on Senate Floor

The House Committee on Energy & Commerce held another hearing on Renewable Fuel Standard (RFS) last Friday, with the most recent hearing focused on advanced biofuels under the RFS. Biofuels opponents have tried to encourage sunsetting the RFS among legislators in recent hearings. Our champions on the panel were quick to respond, stating that any sunset would maintain big oil handouts while unfairly punishing farmers and rural America.

This week the Agriculture Improvement Act of 2018 will be on the Senate floor, where it will come to a vote. Senator Chuck Grassley is expected to try to include his amendment, which was denied in committee. Growth Energy will continue to monitor important agriculture and biofuel related legislation so that our members can remain as informed as possible.

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

AROUND THE GLOBE

China Increases Denatured Ethanol Tariff in Response to US Tariff List Announcement

While final details are still emerging, it appears as though the import duty on denatured alcohol will increase to 70 percent on July 6. On June 15, denatured ethanol was included on a retaliatory tariff list alongside 545 other products posted by China’s Ministry of Finance. The announcement was in response to the United States’ tariff list posted the same day. These incremental 25 percent tariffs are in addition to a 30 percent tariff which began in January of 2017, and a 15 percent tariff announced March 23, 2018. Prior to tariff announcements, China was the United States' third biggest export destination for both calendar year 2016 and also year-to-date 2018. With increasingly prohibitive tariff percentages being announced, this may change however. 

With both sides claiming the other is engaging in unfair trade practices, there seems to be little indication of de-escalation without one side admitting defeat. Agricultural products and byproducts are the United State's primary export to China and have therefore suffered the brunt of the tariff backlash. With the international community already frustrated with American tariff increases and focused on ethanol and agriculture as a way to strike back, the need for ensuring equitable market access for domestic biofuels is more important now than ever.

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

AT THE PUMP

Survey: If RVP relief is granted, how much additional ethanol will E15 generate annually within the first five years?

Select a choice below to submit your answer:

Last week we asked you which retailer had the best pizza and you all had some pretty strong opinions on the matter. 90 percent of our survey respondents chose Casey's as the best pizza around, while the remaining 10 percent thought QuikTrip was the place to grab a slice. Stay tuned next week for a new survey and the results from this week!

For more details, contact Vice President of Market Development Mike O'Brien.

IN THE FAST LANE

Growth Energy to Host Veterans for Daytona Salutes Race

Pictured: Auston Dillon winning the Daytona 500 earlier this year.

NASCAR Salutes is a portion of the NASCAR season schedule that emphasizes honoring United States Armed Forces heroes and their families. The program began on Memorial Day weekend, and will conclude the week of Independence Day. American Ethanol's next paint out for Austin Dillon’s No. 3 Chevy Camaro ZL1 is during the final race of NASCAR Salutes – the Coke Zero Sugar 400 at Daytona International Speedway.

To celebrate and honor the men and women of the U.S. Armed Forces, American Ethanol will host a group of military veterans currently employed at Growth Energy member companies in the ethanol industry. We are looking forward to being able to show this small token of appreciation to the men and women who have served our country.

For more details, contact Manager of Communications Austin Dabney. 

ON EDUCATION

CEO Emily Skor Speaks at FFA Washington Leadership Conference

Pictured: Emily Skor poses with FFA WLC attendees who wanted to speak with her after her speech.

Growth Energy CEO Emily Skor spoke to a crowd of over 350 students at National FFA's Washington Leadership Conference. FFA is an agriculture focused educational and leadership organization that offers members a path to personal achievement, growth, and leadership. Their Washington Leadership Conference, in particular, offers students who join insight into the nation's capital and the hallways of leadership that govern it. Over the course of seven weeks, students come for a week at a time to meet with influencers and participate in speaking and educational events.

Skor was invited to speak at a WLC lunc, where she explained the benefits of biofuels to the nation and to rural America. After speaking, she fielded questions from the audience and met with students, individually, who were interested in both her career and the biofuels industry. Growth Energy works hard to ensure that the next generation of agricultural leaders are properly educated and poised to lead biofuels in the future.

Call to Action: Boating Industry Holds Survey on Refueling with Ethanol

BoatUS is holding a survey on boating and ethanol fuel to measure boaters' interactions with ethanol-blended fuel. BoatUS has long opposed including ethanol into the nation's fuel supply and has posited that it harms boating engines. As most of you know, these claims are baseless and have been widely disproved. E10 has long been approved for use in boating engines and our own surveys and polls have overwhelmingly demonstrated that consumers are not as dumb as anti-ethanol advocates would have you believe. Our survey demonstrates that consumers are more than able to identify fuel at the pump and make sure that their boats are running on the best possible fuel for their wallets and the environment, E10. Please join us in helping to educate the community by taking their survey and explaining the benefits of 10 percent ethanol-blended fuel.

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

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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