No. 284, July 13, 2023

TOP STORY

In a letter submitted late last week, Growth Energy urged the U.S. Internal Revenue Service (IRS) to include the U.S. ethanol industry in its effort to reach the Biden administration’s goals for the expanded use of sustainable aviation fuel (SAF). Specifically, the administration’s SAF Grand Challenge pledges to reach 3 billion gallons of SAF production per year by 2030 and 35 billion gallons per year by 2050.

“To meet these goals, it will be necessary to harness the U.S. ethanol industry, which at 17.4 billion gallons per year accounts for over 80% of biofuels production capacity in the U.S.,” said Growth Energy in the letter. “Ethanol is one of the few readily available feedstocks for SAF production that can be utilized in the aviation sector if the proper economic conditions are in place and if lifecycle analysis of greenhouse gas emissions associated with ethanol-to-jet (ETJ) SAF is conducted properly.”

Under the Inflation Reduction Act (IRA), IRS is responsible for the implementation of the bill’s SAF tax credits included in sections 40B and 45Z. How large these incentives are, and who is eligible to receive them, will be determined by what lifecycle analysis (LCA) model IRS chooses to use in its assessments of potential SAF sources and feedstocks.

In our letter, Growth Energy called on IRS to rely on the best available science to accurately account for the emissions profile of biofuels, in particular by using the Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model developed by the Department of Energy’s Argonne National Laboratory. We also highlighted the increasing efficiency of the U.S. biofuels sector and outlined the reasons why other LCA models aren’t as accurate as GREET. 

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

WORKING FOR YOU

UPCOMING EVENTS

Growth Energy Biofuels Summit

Washington, DC

September 11-14, 2023

IN REGULATORY AFFAIRS

Following last week's comment submission on EPA's tailpipe proposed rule, Growth Energy joined over 100 ag, petroleum, and industry groups on a join letter to the White House calling on President Biden to direct his EPA to preserve consumer choice and include consideration of low-carbon, higher biofuels blends to lower emissions. 

 “EPA’s proposals inhibit the marketplace from identifying the most efficient, lowest cost opportunities to reduce GHG emissions from vehicles and greatly restrict consumer choice. We are concerned that such a prescriptive policy is not in the best interest of the consumer or of U.S. energy and economic security.” 

For more information on EPA's tailpipe standard, tune into the video above featuring Growth Energy's General Counsel Joe Kakesh.

Earlier this week, Growth Energy General Counsel Joe Kakesh participated in the Environmental Law Institute's (ELI) webinar "Decarbonization of the Aviation Sector: Goals, Pathways, and Policies." The event offered a deep dive discussion on Sustainable Aviation Fuel technologies underway, and key considerations as SAF and new technologies are developed. The webinar was part of ELI's Green Tech webinar series. Other participants included Annie Petsonk, Assistant Secretary of Transportation for Aviation.

For more information, please contact General Counsel Joe Kakesh.

IN GOVERNMENT AFFAIRS 

Yesterday, the U.S. House Energy and Commerce Committee Subcommittee on the Environment, Manufacturing, and Critical Materials held markup of three bills related to the future of transportation and electric vehicles:

• The Preserving Choice in Vehicle Purchases Act | This legislation would restrict EPA from issuing any waiver for new regulations that would ban the sale or use of new motor vehicles with internal combustion engines. 
• The Choice in Automobile Retail Sales Act | This legislation would prevent overly burdensome emissions standards on vehicles.
• The No Fuels Credit for Batteries Act | This legislation would prevent qualification of E-RINs under the RFS.

As Congress focuses on legislation related to the future of transportation and liquid fuels, we will continue to track the status of each bill.

The U.S. House Ways and Means Committee held a field hearing this week on "Trade in America: Agriculture and Critical Supply Chains" to highlight the importance of growing international markets for American agriculture. Ahead of the hearing, Growth Energy sent a letter to the committee thanking its members for their commitment to expanding markets for U.S. agriculture and enforcing trade agreements. In the letter, Growth Energy also raised the current trade imbalance in Brazil of a 16% tariff and the non-tariff barrier of RenovaBio.

"More broadly, keeping global markets open to American ethanol offers tremendous benefits not only for our industry, but for our nation's farmers and our rural economy," wrote Skor. "We are grateful to our supporters in Congress and our industry partners. Together, we are committed to ensuring that U.S. investments in innovation, from carbon capture to climate-smart feedstocks, will be recognized and valued around the world."

On Tuesday, Xochitl Torres Small was confirmed by the U.S. Senate to serve as Deputy Secretary of the U.S. Department of Agriculture. Torres Small currently serves as USDA Under Secretary for Rural Development.

“Growth Energy congratulates Deputy Secretary Xochitl Torres Small on her bipartisan confirmation," said CEO Emily Skor. "As a member of the House Agriculture Committee and as a leader at USDA, Torres Small has established a proven track record of advancing solutions important to rural families and American agriculture. She has worked hard to unlock the full potential of the U.S. bioeconomy and ensure the success of initiatives like USDA’s Higher Blends Infrastructure Incentive Program (HBIIP). We look forward to working with Torres Small in her new capacity to continue that progress and expand opportunities for low-carbon biofuels, at home and abroad.” 

E15/UNL88 is available at fuel terminals across the U.S. this summer thanks to a successful campaign by Growth Energy and the biofuels industry to secure an emergency waiver from the EPA. This was a welcome development but Growth Energy continues to make the case for year-round E15 to the EPA, on Capitol Hill, and in state legislatures around the country. If you see an example of significant cost savings at a fuel station near you, take a picture (like the ones above) and share it with us! We'll put your photos to good use telling the story of how E15 saves drivers money.

Please email your photos to kwebster@growthenergy.org.  

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

IN OUR ASSOCIATION

Marquis Energy received exciting news and received the necessary permits for its South Dock Expansion project on the Illinois River at the Marquis Industrial Complex. The new 700 foot loading dock on the mile-long riverfront will allow the export of twenty bares of soy meal from the complex each week, approximately 1.5 million tons each year. Located in Hennepin, IL, the forthcoming Marquis soybean crush facility will be one of the largest single-sit soybean processors in the country.

“We are pleased to receive the necessary permits to begin dock construction for our advanced soybean crush facility,” stated Mark Marquis. “Our aim is to actively contribute to the growth of our local community and the surrounding regions by providing a state-of-the-art processing facility to enhance the local agricultural landscape. With our team and technical resources, we are confident this facility will set new benchmarks in soybean processing excellence, safety and sustainability.”

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

The Weekly Rundown is the weekly newsletter for Growth Energy's members. It is published weekly by the communications staff at Growth Energy. For more information, email team@growthenergy.org or visit our website GrowthEnergy.org. 

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