Growth Energy Cheers Biofuel Boosters in Latest Senate Budget Proposal |
What happened: Last week, U.S. Senators Joe Manchin (D-W.V.) and Chuck Schumer (D-N.Y) announced a surprise legislative deal on an energy and healthcare bill, now titled the Inflation Reduction Act of 2022. Why it's important: The draft legislation includes several priorities for the biofuels industry, including: - 45Q credits through 2032 with rates of $85/ton for sequestration and $60/ton for utilization.
- Clean Fuel Production Credit starting in 2025 and expiring at the end of 2027.
- SAF credits as its own provision for two years and then as part of the Clean Fuel Production Credit for three years.
- $500 million for biofuels infrastructure through the end of 2031.
- Extension of Biomass-Based Diesel Blenders Credit and the Second Generation Biofuels Producer Credit for two years.
What Growth Energy is saying: "It’s very encouraging to see Senate negotiators continue to recognize key priorities we’ve pushed forward over the last year, including SAF, infrastructure, and other incentives aimed at maximizing the biofuel industry’s contributions to a low-carbon future,” said CEO Emily Skor. “For the U.S. to meet its climate goals, we must quickly expand the volume of low-carbon biofuels available across the entire transportation sector – on the ground, in the air, and at sea. These provisions can jump-start that climate progress, while delivering more savings at the pump, greater long-term energy security, and a welcome economic boon to rural communities."
What's next: We know the legislative process is far from done and we look forward to continuing our work with champions in the House and Senate to ensure our priorities are reflected in any final package. The Senate is expected to attempt to pass the bill as soon as possible. |
For more information, please contact Senior Vice President of Government Affairs John Fuher. |
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Growth Energy to EPA: Alternative RIN Retirement Schedule Backtracks Effort to Strengthen RFS CARB Shares Additional Data on Evaluation of E15 SVP Chris Bliley Joins Agritalk Radio to Discuss 2023 RVO, Next Generation Fuels Act, and Gas Prices |
Western New York Energy Launches High-Purity Alcohol ClearFlame CEO BJ Johnson Joins U.S. Secretary of Energy Jennifer Granholm and Congressman Bill Foster for Roundtable Discussion on Sustainable Domestic Energy Production Alternatives |
Coming Up: 2022 Growth Energy Biofuels Summit |
Webinar: Access USDA's $100 million HBIIP Funding: Find out how with Growth Energy and the USDA |
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Biofuels Summit
Sep. 12 - 15, 2022
Washington, D.C. NACS Show October 1 - 4, 2022 Las Vegas, N.V.
Export Exchange 2022 October 12 - 14, 2022 Minneapolis, Minn. Society of Independent Gasoline Marketers Association (SIGMA) November 8-10, 2022 Hollywood, Calif.
NAFB Trade Talk
November 16-17 Kansas City |
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ENERGY INFORMATION ADMINISTRATION
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Since the end of June and the EIA’s computer problems, demand data has been more volatile than usual. The 4-week average ethanol and gas demand are 13.3 and 131.7 BGY.
U.S. fuel ethanol blending posted a gain for the second consecutive week, this is the highest blending level since the last week of June. Ethanol production was also up for the week ending July 29. Gasoline demand took a big step backwards, EIA reported a 7.6% demand drop in gasoline falling 12.6% behind the same reporting period in 2021. It is worth noting that RBOB futures are also facing pressures brought on from EIA's latest big drop in its weekly gasoline demand reading. | Growth Energy to EPA: Alternative RIN Retirement Schedule Backtracks Effort to Strengthen RFS |
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Growth Energy submitted comments to the U.S. Environmental Protection Agency (EPA) in response to EPA’s proposed alternative RIN retirement schedule for small refineries. In its proposal, EPA gives all small refineries, whether they submitted a small refinery exemption (SRE) or not, until February 1, 2024, to demonstrate 2020 Renewable Volume Obligation (RVO) compliance using RINS from 2021, 2022, 2023, or 2024.
“The RFS program was meant to drive more biofuel blending not for refineries to continually delay meeting their obligations. We can only ensure the goals of the program are met by getting the program back on track with timely and predictable compliance deadlines.”
In the letter, Growth Energy calls on EPA to hold small refineries to a December 1, 2022, deadline for 2020 RVO compliance finalized under EPA’s rulemaking in February 2022. Growth Energy also calls on EPA to eliminate the ability of small refineries to use 2023 and 2024 vintage RINs for their 2020 compliance especially as renewable volume obligations for those years have not yet been proposed or finalized. |
CARB Shares Additional Data on Evaluation of E15 |
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On Friday, the California Air Resources Board (CARB) posted Growth Energy and the Renewable Fuel Association’s joint multimedia evaluation of E15 blends Tier 1 report. The Tier 1 report is a comprehensive review of E15, a 15 percent ethanol-blended fuel, and the first step in a three-tiered evaluation process of the fuel blend.
“CARB’s posting of the Tier 1 report, which includes a wealth of data on the environmental benefits of E15, is an encouraging sign of progress,” said CEO Emily Skor. “As California works to address climate change and air quality challenges and meet its ambitious carbon reduction goals, E15 can help to reduce emissions from cars on the road today and lower prices at the pump. CARB’s posting of the Tier 1 report, paired with its recently released study from University of California-Riverside on the benefits of shifting from E10 to E15, continues the progress toward E15 approval in the state.”
The final Tier 1 report is available here. The University of California-Riverside's study on E15 is available here. |
SVP Chris Bliley Joins Agritalk Radio to Discuss 2023 RVO, Next Generation Fuels Act, and Gas Prices |
Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley Joined Agritalk Radio to discuss the latest update on the 2023 RVO. Growth Energy and the U.S. Environmental Protection Agency (EPA) recently submitted a consent decree agreement to the U.S. District Court for the District of Columbia that requires EPA to propose the 2023 renewable fuel volume requirements no later than November 16, 2022, and to finalize those requirements no later than June 14, 2023. Bliley also discussed the Inflation Reduction Act, the Next Generation Fuels Act, and gas prices. Tune in!
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For more information, please contact Senior Vice President of Regulatory Affairs Chris Bliley. |
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Western New York Energy Launches High-Purity Alcohol |
Western New York Energy has completed a $38 million expansion to produce high-purity alcohol products under the ClearSource brand. The 6,000 square-foot expansion will enable WNYE to produce 15 million gallons of alcohol annually.
“While supplying alcohol for sanitizer during the pandemic, we made the decision to invest in a world-class distillation system to offer products that contain virtually no impurities,” CEO Tim Winters said. This state-of-the-art technology ensures New York’s largest ethanol facility can sustainably meet customers’ unique specifications. “Our method for producing ethanol and higher-purity alcohol is a zero-waste process which helps our customers achieve their commitments to sustainable practices,” Winters added.
The ClearSource brand includes pharmaceutical, industrial, and beverage-grade alcohol using New York farm corn and a natural fermentation process. The company sources corn locally and produces everything onsite to reduce shipping and transportation emissions. Winters said ClearSource is an extension of WNYE’s pledge 15 years ago to support local agriculture and the regional economy, “We purchase 20 million bushels of corn each year. We take our commitment to New York growers seriously and we’re proud to partner with them every year to manufacture clean, domestic products.”
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ClearFlame CEO BJ Johnson Joins U.S. Secretary of Energy Jennifer Granholm and Congressman Bill Foster for Roundtable Discussion on Sustainable Domestic Energy Production Alternatives |
ClearFlame Engine Technologies participated in a roundtable discussion hosted by U.S. Secretary of Energy Jennifer Granholm and Illinois Congressman Bill Foster (IL-11) focused on sustainable domestic energy production. The meeting presented a unique opportunity for a group of industry, workforce, and policy experts to highlight the economic growth and job creation that are linked to an increase in the need for alternative sources of energy, as well as the adoption of new technologies in transportation and manufacturing.
“I was proud to welcome Secretary Granholm to the 11th District, and I’m especially grateful she took the time to hear from innovative clean energy companies like ClearFlame about the investments they are making in advanced biofuel technologies and our Illinois communities.," said Foster. "These investments will create good jobs and allow us to realize the benefits of the cutting-edge energy research that happens at places like Argonne National Laboratory. Not only does this benefit our local economy, but if America is serious about decarbonization and cutting our dependence on foreign fossil fuels, it’s important we support the work being done to research and commercialize new technologies like ClearFlame’s that will make that possible."
“It was an honor to meet with Secretary of Energy Jennifer Granholm and Congressman Bill Foster yesterday and wonderful to see our leaders embracing the need for science-based discussion and further scientific investment," said BJ Johnson, ClearFlame’s CEO and Co-Founder. "Conversations like these that bring together innovative technologies and business leaders are incredibly important, as it’s clear there is no silver bullet solution to climate change – we need to work together and implement multiple solutions. Picking winners in advance will only slow down potential progress – we need to encourage innovation and support various options to meet the different needs in different sectors and industries. As Secretary Granholm herself noted, it’s only by embracing a variety of technologies will we be able to find real solutions to impact climate change.”
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For more information, please contact Senior Vice President of Development Kelly Manning. |
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Coming Up: 2022 Growth Energy Biofuels Summit |
At the 2022 Growth Energy Biofuels Summit this September, Growth Energy members will be part of the action in Washington, D.C., meeting with Members of Congress and their staff to drive home our message of the importance of bioethanol in a low-carbon future, the savings at the pump drivers have seen this summer thanks to E15, and the need for a permanent fix for year-round E15 and a strong Renewable Fuel Standard. Members will also get insights on how Growth Energy is driving change and working harder than ever to unleash the full potential of this industry - from expanding consumer access to higher blends to advancing new incentives for sustainable aviation fuel.
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For more information, please contact Vice President of Government Affairs John Fuher. |
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Webinar: Access USDA's $100 million HBIIP Funding: Find out how with Growth Energy and the USDA |
Tune in on Wednesday, August 17, for a free webinar sponsored by Growth Energy and hosted by CSP to learn more about USDA's fuel infrastructure grant program and the exciting opportunities in the E15 marketplace.
Growth Energy's Market Development Team will share expert knowledge on adding E15 to your fuel line-up and success from years of working with the nation's top retailers on expanding the E15 marketplace. Mike Lorenz, Senior VP of Market Development, will give an overview of the current E15 marketplace, while discussing the international market and how ethanol blends fuel a new global landscape. Chris Bliley, Senior Vice President of Regulatory Affairs, will discuss equipment compatibility and misfuelling mitigation requirements for E15. Jeff Carpenter, the Higher Blends Infrastructure Incentive Program (HBIIP) Manager for the U.S. Department of Agriculture (USDA), will discuss the Notice of Funding Opportunity (NOFO) and specifics of HBIIP, which has $100 million available, $75 million will be available for transportation fueling applications and $25 million for fuel distribution facilities.
Through this webinar, attendees will learn about the requirements of HBIIP, understand the equipment compatibility requirements for E15, and review the current E15 landscape. |
For more information, please contact Senior Vice President of Market Development Mike Lorenz. |
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