No. 164 February 25, 2021 TOP STORY Biden EPA Signals Support for RFS Growth Energy welcomed news that, despite the Trump administration’s previous view of the 10th Circuit’s interpretation of small refinery exemption (SRE) eligibility under the RFS, the current U.S. Environmental Protection Agency (EPA) did not file a brief supporting that position by the February 22 deadline in the Supreme Court's review of the decision in the HollyFrontier case. In response, CEO Emily Skor issued the following statement:
“We are pleased to see the Biden EPA signal support for the 10th Circuit’s ruling and repudiate the prior administration EPA’s misguided attempt to distort the plain language of the RFS to serve oil industry interests at the expense of America’s biofuel producers and farmers.”
WORKING FOR YOU IN GOVERNMENT AFFAIRS Growth Energy Applauds Introduction of Bipartisan RFS Integrity Act
Senate Confirms U.S. Secretary of Agriculture Tom Vilsack
Trade, Farm Groups Call for Biofuels Assistance
Two-Week Change to Paycheck Protection Program IN REGULATORY AFFAIRS Campaign: Tell EPA to Fix Onerous E15 Labeling and Remove Infrastructure Barriers IN GLOBAL CVD Duties To Be Refunded in Peru Ethanol Case IN LEGAL Growth Energy Rejects Attempt by Oil to Forgo Blending Obligations IN OUR ASSOCIATION Celebrating National FFA Week IN COMMUNICATIONS Skor Joins Iowa Farm Bureau Podcast
IN GOVERNMENT AFFAIRS Growth Energy Applauds Introduction of Bipartisan RFS Integrity Act On Friday, U.S. Representatives Angie Craig (D-Minn.) and Dusty Johnson (R-S.D.) introduced the Renewable Fuel Standard Integrity Act to reduce the secrecy currently surrounding the small refinery exemption (SRE) process and bring more certainty into the renewable fuel marketplace. CEO Emily Skor released the following statement in strong support of the legislation:
“We applaud the introduction of the RFS Integrity Act and the strong bipartisan effort to restore integrity and transparency to the Renewable Fuel Standard,” said Skor. “The intent of the RFS is to blend more biofuels into our nation’s transportation fuel supply every year, not have oil companies use questionable tactics to delay and avoid their blending obligations, creating a tremendous amount of uncertainty for farmers, biofuels producers, and the entire fuel supply chain.
“Recent research has found that greenhouse gas emissions from corn ethanol are 46 percent lower than gasoline. As the science on biofuels continues to update and highlight the increasing environmental benefits of ethanol over gasoline, it’s critical we restore the RFS to its original intent and harness the power of biofuels to immediately address climate change concerns and decarbonize our transportation fleet. We are grateful to Rep. Craig and Rep. Johnson for their continued leadership on this issue.”
Currently, EPA does not impose a clear deadline for submitting a request for an SRE. If enacted, the RFS Integrity Act would set an annual deadline of June 1st for refineries to submit SRE petitions and bring greater transparency to SREs by no longer excluding from public disclosure the refinery’s name, the number of exempted gallons requested, and the compliance year of the requested exemption.
Senate Confirms U.S. Secretary of Agriculture Tom Vilsack CEO Emily Skor issued the following statement on the U.S. Senate’s confirmation of Tom Vilsack to be U.S Secretary of Agriculture on Tuesday:
“We congratulate Secretary Vilsack and are excited to work with him and his team on supporting rural America. As seen throughout his confirmation hearing and reflected in his tremendous record of public and private service to the agriculture community, Vilsack is exactly who our farmers, producers, and rural communities need in their corner right now.”
“Additionally, Secretary Vilsack has been a tireless champion of the biofuels industry over the years and understands the important role biofuels should play in our country’s climate change initiatives which the Biden Administration has put at the forefront of its agenda.
“We look forward to working together to support rural economies and build back better with biofuels.”
Trade, Farm Groups Call for Biofuels Assistance Growth Energy, American Coalition for Ethanol, American Farm Bureau Federation, National Corn Growers Association, National Farmers Union, and the Renewable Fuels Association sent a letter to the U.S. Department of Agriculture yesterday identifying specific guidelines the agency should follow to keep the biofuels industry afloat as COVID-19 continues to cause devastating demand destruction.
"We ask that you use a portion of the funds provided to USDA to make necessary financial assistance available to the biofuels industry," wrote the coalition.
The letter asks that each biorefinery operating at the start of 2020 receive equitable treatment on a per gallon basis, especially as COVID and burdensome weather conditions have created unprecedented challenges throughout our industry.
Two-Week Change to Paycheck Protection Program The Biden Administration announced a two-week change to the U.S. Small Business Administration's Paycheck Protection Program between yesterday and Wednesday, March 10th. Between those dates, SBA will only offer PPP loans to businesses with 20 or less employees and sole proprietors.
Currently, PPP is set to expire on March 31, 2021, so larger businesses will still have time to apply for first- and second-draw loans until that date. For more information on this announcement, please visit SBA's website. For more information, please contact Vice President of Government Affairs John Fuher.
IN REGULATORY AFFAIRS Campaign: Tell EPA to Fix Onerous E15 Labeling and Remove Infrastructure Barriers As rural communities continue to rebuild in the wake of COVID-19, and as motorists return to the roads, it’s critical that the U.S. Environmental Protection Agency (EPA) address the barriers that hold back the sale of higher ethanol blends like E15. Growing markets for biofuels could provide an economic lifeline for rural communities and ensure more motorists can enjoy cleaner, more affordable fuel options like E15.
The EPA is currently collecting comments on rules for dispenser labels and fueling infrastructure for higher ethanol blends. With 95 percent of vehicles approved for E15 and over 19 billion miles driven on the fuel, it’s time for EPA to fix the outdated and confusing labels and clear hurdles to the sale of E15 through existing infrastructure. Expanding access to higher blends of ethanol will deliver immediate benefits for our environment and human health.
Join us today in calling on the EPA to help American farmers, biofuel workers, and motorists by fixing onerous labeling and infrastructure barriers to E15. The deadline to submit a comment is April 19th, 2021. Help us spread the word by sharing on your social media. Download our social media toolkit here. For more information, please contact Senior Vice President of Regulatory Affairs Chris Bliley.
IN GLOBAL CVD Duties To Be Refunded in Peru Ethanol Case In a continuation of our legal victory in Peru, any company that paid countervailing duties while the Peru Ethanol Order was in place can request a reimbursement with the INDECOPI. Companies must file their request within 4 years from February 6, 2021 (date of publication) and INDECOPI has 30 days to respond. U.S. exporters can begin requesting refunds of trade duties that have been collected since November 10, 2018. The request should include:
Please contact Deen Kaplan (deen.kaplan@hoganlovells.com) or Maria Arboldea (maria.arboldea@hoganlovells.com) for more information on making requests and being connected with their Peruvian co-counsel. IN LEGAL Growth Energy Rejects Attempt by Oil to Forgo Blending Obligations Growth Energy submitted comments to the U.S. Environmental Protection Agency (EPA) in response to the petitions from refiners and oil states to waive renewable fuel blending obligations under the Renewable Fuel Standard (RFS) for the 2019 and 2020 compliance years.
The petitioners claim that the alleged negative economic impacts caused by COVID-19, the Tenth Circuit’s small refinery exemption (SRE) decision last year, and, in their view, the high cost of RINs, entitle refiners to a waiver of their obligations because compliance with the RFS would cause “severe economic harm.”
As Growth Energy notes in its comment response, these refiners and oil states claims run counter to how the RFS is supposed to work and are far from meeting the narrow conditions under which such waivers have been and should be granted.
CEO Emily Skor stated that “many industries, including the biofuels industry, are suffering from the drop in transportation fuel demand brought on by the pandemic. The petitioners’ misguided and misleading attempt to frame the severe economic harm waiver in terms that would selectively and unfairly benefit the oil industry at the expense of America’s biofuels and agriculture producers should be roundly and swiftly rejected by the EPA.” For more information, please contact General Counsel Joe Kakesh.
IN OUR ASSOCIATION Celebrating National FFA Week The future of American agriculture is bright, as seen through the commitment and talent of National Future Farmers of America members and all state chapter members. We always enjoy connecting with our nation's future farmers and agriculture industry leaders every year. Happy National FFA Week! For more information, please contact Vice President of Development Kelly Manning.
IN COMMUNICATIONS Skor Joins Iowa Farm Bureau Podcast Emily Skor joined Iowa Farm Bureau's 'The Spokesman' Podcast to discuss new data on the environmental benefits of ethanol and what that means for ethanol's role in our nation's aggressive climate change goals.
Social Media: Promoting Environmental Benefits of E15 Climate change continues to be at the forefront of the Biden Administration's agenda and in Capitol Hill hearings. While conversations continue, it is vital that we remind policymakers that biofuels should play a role in our country's climate goals.
This quick video on the environmental benefits of E15 includes an important statistic to remember and share: transitioning from E10 to E15 would lower greenhouse gas emissions by 17.62 million tons per year, which is the equivalent of removing approximately 3.85 million vehicles from the road.
To help spread the word, be sure to download this video and share on your own social media page.
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