TOP STORY

Democrats Urge Inclusion of Biofuels in Budget Process

Growth Energy CEO Emily Skor applauded Senator Amy Klobuchar’s (D-Minn.) efforts to include support for homegrown, renewable biofuels in Congress’ upcoming budget reconciliation process. In a letter to Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi, Klobuchar, joined by Senators Smith, Duckworth, Durbin, and Baldwin, and Representatives Craig, Axne, Bustos, and Pocan, called on Congressional leadership to include in reconciliation key biofuel initiatives, including the following:

• Biofuel Infrastructure and Agricultural Market Expansion Act
• Consumer and Fuel Retailer Choice Act
• Low Carbon Biofuel Credit Act
• Clean Fuels Vehicle Act
• Biodiesel Tax Credit Extension Act
• Extension of the Second-Generation Biofuel Producer Tax Credit

“Providing additional market access for higher blends of low carbon fuels in the budget reconciliation process will create jobs in rural communities, lower the price of fuel for consumers at the pump, reduce our dependence on fossil fuels, and, most importantly, decrease carbon emissions,” wrote the Members.

Growth Energy CEO Emily Skor applauded Senator Klobuchar and the coalition of senators and representatives for fighting for the biofuels industry. “We’re currently working with our U.S. Senate and House champions on a number of biofuels issues before Congress, including a legislative effort to allow retailers to sell E15 year-round,” said Skor. “Including these initiatives would return certainty to the biofuels market as we face continued regulatory uncertainty from the administration.

“These Members of Congress have long been advocates for biofuels producers and rural America, and we are grateful for their efforts to strengthen the production and sale of renewable biofuels.”

For more information, please contact our Vice President of Government Affairs John Fuher.

IN GOVERNMENT AFFAIRS

Rep. Axne: $1,000,000,000 for Biofuel Infrastructure in House’s Build Back Better Act

Yesterday, Rep. Cindy Axne (IA-03) announced that she had secured $1,000,000,000 for biofuels infrastructure in the House’s initial draft of the Build Back Better Act to support expanded availability and use of renewable fuels.

“This is a great day for our rural communities, our agricultural economy, our planet, and for hundreds of thousands of Americans whose jobs will be supported by the investments I’ve helped secure in the Build Back Better Act,” said Rep. Axne. “Make no mistake, this was no easy fight. For months, I have been helping members of the administration, the Senate, and my own colleagues in the House understand the key advantages of biofuels – from the fact that it’s been proven to be more than twice as clean as fossil fuels to how much it can help the economies of states like Iowa. But I wouldn’t let up, because it was clear from other infrastructure negotiations that this was not as much of a priority for others in Washington.

“While I will still withhold my final decision on this package until I see the full bill, seeing these investments included will be a critical part of my choice,” Rep. Axne added.

This week, House committees are beginning to consider their sections of the Build Back Better Act, a comprehensive legislative package that will tackle a range of issues from infrastructure to health care, education, and climate.

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

IN REGULATORY AFFAIRS

Group Spotlights Biofuel Benefits for California’s Carbon-Neutral Future

In joint comments submitted last week to the California Air Resources Board (CARB), a group of ag and biofuel organizations and companies highlighted the role  renewable fuels like ethanol can and should play in helping the state achieve its goal of reaching carbon neutrality by 2045 or sooner. CARB is in the  process of updating its Scoping Plan, which lays out the path toward achieving the state’s carbon reduction targets.

The comments were signed by leadership of the Growth Energy, Renewable Fuels Association, National Corn Growers Association, Aemetis Inc., Alto Ingredients Inc., Calgren Renewable Fuels, Pearson Fuels, Propel, POET and RPMG. Their letter spotlights recent state-funded research that indicates pathways to carbon neutrality through greater reliance on renewable fuels like low-carbon ethanol.

“The carbon intensity of the fuel continues to drop as farmers and fuel producers invest in better techniques and technologies,” the group writes. “Ethanol in a wide range of blend levels above today’s typical 10% blend represents an immediate, mid-term and long-term opportunity for California to maximize GHG reductions, while proving affordable fuel to consumers and encouraging new economic development and job growth in the state.”

Reminding CARB that ethanol has already cut more than 26 million metric tons of carbon in California with a weighted average carbon intensity 46% lower than gasoline, the group recommended first that the board expedite the approval of E15 as a legal fuel in California. This action alone has the potential for an immediate 50% increase in GHG reductions from ethanol in the existing light duty fleet.

Second, the group recommended the state consider requiring internal combustion engine light-duty vehicles sold in California be flex-fuel vehicles beginning in model year 2024.  This requirement would put more vehicles on the road capable of maximizing GHG reductions comparable to battery electric vehicles  through use of higher biofuel blends, which emit fewer toxic tailpipe emissions.

Finally, they urged that the Low Carbon Fuel Standard program be extended beyond 2030 in a form that is consistent with the state’s carbon neutrality goals. Specifically, the program should incorporate crediting for agricultural soil carbon sequestration, given the significant opportunity for GHG reductions with appropriate incentives and accounting

For more information, please contact Senior Vice President of Regulatory Affairs Chris Bliley.

IN LEGAL

Biofuel and Ag Leaders Oppose EPA Motion to Remand 2018 SREs Without Vacatur

On Tuesday evening, Growth Energy, Renewable Fuels Association, National Corn Growers Association, National Biodiesel Board, American Coalition for Ethanol, and National Farmers Union opposed the U.S. Environmental Protection Agency’s (EPA) motion to remand but not vacate the 31 small refinery exemptions (SREs) the Trump Administration EPA granted in August 2019. The coalition of biofuel and ag leaders is currently challenging the 31 SREs in the D.C. Circuit, arguing that EPA’s issuance of the exemptions was arbitrary and capricious and exceeded the Agency’s authority under the Clean Air Act.

Together, these leaders provided the following statement in opposition to this motion:

“While it is encouraging that EPA intends to reconsider the 31 SREs granted for the 2018 compliance year, we must oppose EPA’s motion to remand without a deadline and without addressing the SREs’ ongoing damage to the biofuel industry. In addition to seeking a remand of the SREs, the Biden Administration EPA should ask that they be vacated; or at the very least, EPA should ask the court to set a deadline by which the reconsideration of these petitions must be completed. This would allow the Biden Administration EPA to hit the reset button and conduct a new evaluation of each 2018 SRE request in light of the 10th Circuit Court decision in Renewable Fuels Association et al. v. EPA and the recent Supreme Court decision overturning one piece of the 10th Circuit decision. We are looking to the Biden Administration to renew the bond with farmers and rural economies by restoring certainty and integrity to the RFS.”

For more information, please contact General Counsel Joe Kakesh.

IN GLOBAL

Ethanol Exports Update: July 2021

The U.S. Department of Agriculture released the latest ethanol export numbers last week. For the month of July, Canada remained a top partner in North American use of ethanol. Here's a quick breakdown:

Total exports for July 2021 | 51.6mg

1. Canada at 29.2 mg
2. S. Korea at 5.3 mg
3. Netherlands at 4.0 mg

For more information, please contact Senior Vice President of Market Development Mike Lorenz.

IN OUR ASSOCIATION

Iowa Corn Announces Leadership Change

Iowa Corn is kicking off a a new year with new leadership! Thanking ICPB President Greg Alber and ICGA President Carl Jardon for their leadership, Iowa Corn has welcome Kelly Niewenhuis as the new president for ICPB and Lance Lillibridge as president of ICGA. Welcome Kelly and Lance, we look forward to working with you!

For more information, please contact Vice President of Membership Kelly Manning.

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