IN REGULATIONS

Source: EPA Small Refinery Exemption Dashboard

Last Thursday, the U.S. Environmental Protection Agency (EPA) announced that the agency would grant five new small refinery exemptions (SREs) for 2017. With the granting of these five waivers, the total lost demand for ethanol has now reached 2.6 billion gallons in 2016-2017. Growth Energy's CEO Emily Skor had the following to say:

“EPA’s decision to grant five more small refinery exemptions is a slap in the face to rural communities, where farmers have lost a key market for their crops and biofuel plants have shut down or idled production,” said Skor. “EPA continues to hand out exemptions to unidentified refiners, which only strengthens our serious concern that EPA continues to enrich some of the most profitable oil refineries in the world, all in secret.

“Now more than ever, EPA must restore the 2.6 billion gallons of biofuel lost to these small refinery exemptions and ensure that the targets set by EPA are met in earnest, and we will continue to fight tooth and nail to see that happen.”

Growth Energy remains actively engaged with EPA to ensure that all gallons lost to demand destruction as a result of SREs are accounted for as is mandated by Congress in the Renewable Fuel Standard. Additionally, we are fighting the excessive granting of SREs in the courtroom:

• In 2018, Growth Energy and allied organizations filed a lawsuit in the D.C. Circuit Court of Appeals and a related administrative petition with EPA on the misuse of small refinery exemptions.
• Growth Energy and Renewable Fuels Association filed another lawsuit in federal district court in August on 2018, alleging that the Environmental Protection Agency (EPA) and Department of Energy (DOE) have improperly denied agency records requested by Growth Energy, RFA, and others under the Freedom of Information Act (FOIA).
• At the start of 2019, Growth Energy filed an appeal in federal district court in Feb. challenging EPA over their failure to address small refinery exemptions in their 2019 renewable volume obligation.

To learn more about EPA's granting of SREs, visit our website here.

RVP Relief Update

Last week, following EPA’s release of its proposed rule allowing year-round access to E15, the agency also scheduled a public hearing on E15/RIN reform March 29 in Ypsilanti, Michigan. The meeting provides an opportunity for key stakeholders to respond and present perspectives on the proposal.

Growth Energy looks forward to participating on March 29, in addition to providing the agency with formal written comments by the April 29 deadline. For those unable to attend but interested in sharing perspectives on the proposal, EPA invites comments that can be filed online. For more information on the rule as well as how to submit a comment once EPA has opened the comment portal, visit E15now.com.

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

IN REGULATIONS

Growth Energy Submits Comments to Washington State Senate LCFS Legislation

This week, Growth Energy submitted comments to the Washington State Senate on its pending legislation, E2SHB 1110, to establish a statewide 'Clean Fuel Standard'. The comments were submitted in response to a public hearing held this week in the State Senate on the topic. Our comments thanked members of the Washington State Senate Environment, Energy, and Technology Committee for their work in making Washington's fuel mix more sustainable and advocated for the use of higher blends of ethanol fuel, like E15, in doing so.

In particular, Growth Energy's comments suggested explicitly excluding all alternative fuels from carbon intensity reduction requirements, using the most up-to-date science related to carbon intensity values, resolving ambiguity on fuel emissions credits, and ensuring proper carbon intensity calculations on a plant-by-plant basis. Growth Energy's full comments can be view on our website here.

We remain committed to engaging with the Washington State Senate as it considers biofuels-related legislation and will keep you informed on our efforts and important developments.

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

IN COMMUNICATIONS

Beto O'Rourke First Democratic Presidential Candidate to Tour Ethanol Plant

Last Friday, recently announced Democratic candidate for president, Beto O’Rourke, became the first in the field to tour an ethanol plant. O’Rourke toured Growth Energy board member Ray Defenbaugh’s Big River Resources plant in West Burlington, IA to learn firsthand about the success of our industry. After his visit, O'Rourke was asked about ethanol:

“How do we free ourselves from a commodity market over which we have no control? We do so by adding value to what we grow at the same time that we meet our energy needs, renewable standards that we have in this country and the crisis of climate change,” O'Rourke said.

“The farmers in Iowa are able to do that. We visited an ethanol facility today: 50 jobs in a community that wants to have high-wage, high-skill, high-investment industry in their hometowns—drawing young people back or keeping them there in the first place. Owned not by some gigantic corporation in another place; owned cooperatively by the farmers that are growing the corn there in the first place. In other words, we’re addressing not just a fuel standard, not just environmental concerns, but we’re reviving rural America in the process. So let’s stand behind and with those farmers. Iowa is showing us the way.”

This is a significant milestone for the centrality of ethanol in the upcoming 2020 election, as it will spur the other candidates in the field to engage on the issue. And we’re already beginning seeing it happen. Over the weekend, Senator Amy Klobuchar also spoke about ethanol at her campaign stop in Davenport, IA and called attention to the effect small refinery waivers are having.

Growth Energy is working with our allies on the ground in Iowa and across the country to ensure that ethanol remains a key topic during the lead-up to the 2020 election. Check out photos from the O'Rourke plant tour visit below and stay tuned for more in the coming days:

Growth Energy Staff Keep Biofuels Active in The News

As part of Growth Energy's efforts to engage and educate stakeholders and consumers on the value of ethanol, our communications team identifies ways for our staff to stay engaged with media sources to tell the story of ethanol. Over the past week Growth Energy's Senior Vice President of Global Markets Craig Willis and Vice President of Government Affairs John Fuher sat down for interviews to discuss the importance of fostering growth in biofuels both at home and abroad.

In an interview with WCIA/WCIX TV in IL, Willis discussed the global ethanol outlook and the importance of growing market demand abroad. Fuher sat down with WZFG's 'The Flag' about the Legislative Social that took place in Bismarck, ND, and biofuels' outlook in the state. Listen to each of the interviews by clicking the buttons below:

For more details, contact Vice President of Communications and Public Affairs, Elizabeth Funderburk.

LEGAL REVIEW

What is the reset?

As you may have heard, EPA is gearing up for its RFS “reset” process. This process requires EPA to establish a new renewable volume obligations (RVOs) total through 2022. These RVOs or “statutory volumes” represented Congress’ intention that renewable fuel production steadily increase and make up a greater share of our nation’s fuel supply over time. Although Congress’ initial RVOs are part of the U.S. Code, Congress nevertheless gave EPA the authority to determine RVOs annually through a formal rulemaking that would be binding on obligated parties. This flexible approach allows EPA to assess the renewable fuels infrastructure and market to set volumes that reflect current conditions.

How did we get here?

If EPA’s RVOs are more than 20 percent below the statutory volumes of a renewable fuel category for two consecutive years, EPA is required to “reset” those volumes for future years, and because of recent RVOs rulemakings falling in this category, we are now in “reset” mode.

EPA’s 2018 and 2019 RVOs both set annual targets for total renewable fuels at levels far below the statutory volumes set by Congress. As a result, EPA is required to finalize a reset rulemaking by November 2019 and set new RVOs through 2022.

What are next steps for the reset?

Before publishing a final reset rule, EPA is required under the RFS to engage in an in-depth review that addresses six statutory factors that Congress has deemed relevant to the impact of renewable fuels production in the United States - including economic, environmental, infrastructure, and national security impacts. This review is much more involved than what EPA normally undertakes for single-year RVOs.

How is Growth Energy guiding this process along?

Growth Energy has been actively engaged with EPA for the past year on the reset. We have met with agency officials multiple times both to understand EPA’s position on the statutory reset factors and the timing of the rulemaking, and to explain to EPA how it can and should set robust RVOs through 2022. We will keep you updated as EPA goes through the reset rulemaking process.   

For more details, contact General Counsel, Joe Kakesh.

IN POLICY

Last week, Growth Energy members met with over 70 lawmakers to discuss key legislative priorities for the ethanol. The fly-in took place during the same week as EPA's proposed rule to allow year-round sales of E15, giving our members the opportunity to stress the significance of EPA completing the rule by June 1.

Check out more photos from the event below:

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

AT THE PUMP

Last week, Growth Energy’s Vice President of Market Development Mike O’Brien spoke with CSP Magazine to discuss the market growth of E15 availability. O’Brien addressed the expansion of ethanol fuel infrastructure, which has contributed to the higher demand for the fuel and has allowed more terminals to begin offering pre-blended E15 to retailers:

“12 of the top 20 retailer retail chains are currently already selling E15. Retailers like Casey’s, Kum & Go, QuikTrip, Kwik Trip, RaceTrac, Family Express, Thorntons, Protec, Murphy USA and Minnoco have been offering E15 for close to five years now. Today, there are 1,800 sites around the country offering E15, and by the end of 2019 we expect more than 1,900 sites will be selling E15.”

Magellan Midstream, which operates one of the largest networks of refined products pipelines in the country, discussed fuel ethanol developments over the last several years and their ultimate goal of providing customers with multiple options at the pump. As the availability of E15 continues to grow, retailers will have more opportunities to expand their business at the pump with the fuel.

To read the full article from CSP Magazine, click here.

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

AROUND THE GLOBE

President Trump Meets With Brazilian President Bolsonaro to Discuss Trade

This week, President Donald Trump met with Brazilian President Jair Bolsonaro to discuss bilateral relations, which was expected to include ethanol trade, in the foreign dignitary's first official visit overseas. Recent reporting suggests that both leaders were pleased with the meeting, and the White House released a joint statement with Brazil committing to new tariff quotas for wheat and pork and to negotiate a Mutual Recognition Agreement.

Currently Brazil is the largest export destination for U.S. ethanol globally, reaching a record 513 million gallons in 2018 alone. Brazil enforces a 20 percent tariff on all imports of U.S. ethanol over 40 million gallons per quarter. With the highest blend rate in the world - averaging around 47 percent annually - the Brazilian market is hugely important for American producers.

Growth Energy is committed to working with the Office of the U.S. Trade Representative and our allies to ensure a fair and open market between the United States and Brazil. We will continue to keep you up-to-date on our efforts and any important developments that may impact the global ethanol outlook.

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

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 or visit our website GrowthEnergy.org. 

You're receiving this newsletter because you've subscribed to Growth Energy's The Weekly Rundown.

Not interested anymore? Unsubscribe instantly.

Copyright © 2019 Growth Energy.