On RFS Anniversary, Growth Energy Sets Expectations for Landmark EPA Proposal |
This week, Growth Energy celebrated the 17th anniversary of the Renewable Fuel Standard (RFS), signed into law on August 8, 2005, by outlining the biofuel sector’s top priorities for the Environmental Protection Agency’s (EPA) fast-approaching update to the program. Under a consent decree agreement reached with Growth Energy, EPA will be required to formally propose the 2023 RFS biofuel requirements no later than November 16, 2022. The rulemaking – called the Set – promises to usher in a new era for the RFS, marking the first year a baseline for biofuel volumes is not specified by Congress but must be set based on statutory factors like fuel costs, environmental benefits, and commercial production.
As EPA staff works on the Set proposal, we're calling on EPA to: - Ensure that bioethanol continues to play a growing role in driving climate progress, as Congress intended, by building on the 15 billion gallons of conventional biofuels set for 2022;
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Update EPA models to reflect the best available science on the contributions of low-carbon bioethanol to the nation’s climate goals;
- Set forward-looking requirements for advanced and cellulosic biofuels that will spur continued innovation and growth without favoring one technology over another;
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Protect the integrity of the RFS by rejecting improper exemptions and other efforts to cut, cap, or water down the incentive to ensure physical biofuel gallons actually reach the market; and
- Provide certainty and predictability to all stakeholders with timely, multi-year requirements that will drive growth.
“As we approach a new era for the RFS, Growth Energy is laser-focused on making sure the Set reflects Congress’s overarching directive to steadily expand the critical role biofuels play in mitigating climate change and lowering prices at the pump,” said CEO Emily Skor. |
For more information, please contact General Counsel Joe Kakesh. |
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U.S Senate Passes Inflation Reduction Act Coming Up: 2022 Growth Energy Biofuels Summit |
Growth Energy Comments on Updates to California Low Carbon Fuel Standard
Bliley Speaks During World Biofuel Day SIAM Conference on ‘Promotion of Biofuels: A Pathway for Low Carbon Mobility’ Canadian Clean Fuel Regulations Resources |
The Andersons Celebrate 75 Years by Ringing the NASDAQ Bell ICM and Impacto to Build Bahia’s First Corn-Based Biorefinery Illinois Corn Celebrates 50 Years |
Growth Energy Market Development Team Presents at CSP Outlook Leadership
Webinar: Access USDA's $100 million HBIIP Funding: Find out how with Growth Energy and the USDA |
| 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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Last week, domestic ethanol demand was 14.2 BGY, up 6.8% compared to a week ago. The EIA-reported gas demand was up 6.8% from last week, at 139.9 BGY. The 4-week average ethanol and gas demand are 13.7 and 135.8 BGY.
At midmorning Wednesday, tighter ethanol inventory was reported from last week, down 0.59%, and production that also pulled back from the week before, down 2%, but both figures are greater than what the predictions were from the EIA a year-ago. Ethanol blending demand appeared to stall after recent gains, despite a partial recovery in gasoline demand. EIA noted blending indications for ethanol are slightly behind a year ago after running mixed week to week. |
U.S Senate Passes Inflation Reduction Act |
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On Sunday, the U.S. Senate passed the Inflation Reduction Act, a legislative deal on energy and healthcare priorities, including several priorities for the biofuels industry: -
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.
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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: The U.S. House of Representatives is expected to pass the legislation tomorrow. |
Coming Up: 2022 Growth Energy Biofuels Summit |
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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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Growth Energy Comments on Updates to California Low Carbon Fuel Standard |
Growth Energy Senior Vice President of Regulatory Affairs submitted comments to the California Air Resources Board (CARB) following its initial workshop on potential revisions to its low carbon fuel standard (LCFS). CARB is considering increasing the carbon intensity (CI) targets of its LCFS from a 20% CI reduction by 2030 to a 25% or 30% CI reduction by 2030.
“We sincerely appreciate CARB’s attention and hard work to reshape California’s fuel mix to make it more sustainable,” wrote Bliley. “This objective is a central driver for our industry, and we look forward to continuing our work on our common goals as you explore revisions to the LCFS moving ahead. Specifically, liquid fuels will continue to play an important role in the transportation sector, even as alternative technologies flourish. As such, it is imperative to consider the vital role that environmentally sustainable fuel options such as plant-based bioethanol will play in reducing greenhouse gas emissions and cutting consumer costs in the current and future California vehicle fleet.”
“More broadly, we look forward to working with CARB as you work through the regulatory process on revisions to the LCFS program and ensure the role of biofuels in making California’s fuel mix more sustainable and help the state achieve its progressive climate goals through the expanded use of bioethanol." |
Bliley Speaks During World Biofuel Day SIAM Conference on ‘Promotion of Biofuels: A Pathway for Low Carbon Mobility’ |
Senior Vice President of Regulatory Affairs Chris Bliley joined the Society of Indian Manufacturers (SIAM) in celebrating World Biofuels Day (August 10), a day to raise awareness regarding the importance of alternatives to conventional fossil fuels and to highlight the various efforts made by federal governments and other stakeholders in the biofuel sector around the world. During yesterday's conference, Bliley joined SAIM in discussing the environmental benefits of biofuels as countries around the world, including India, look to reduce their carbon emissions. In 2021, the Prime Minister of India announced that the target date for achieving 20 percent ethanol-blending had been advanced by five years to 2025 to reduce pollution, and GHG emissions and cut import dependence.
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Canadian Clean Fuel Regulations Resources |
If you have any questions related to the Canadian Clean Fuel Regulations, Low Carbon Fuels Division, Environment and Climate Change Canada is hosting Q&A sessions throughout August and September. An updated session schedule has been posted on the CFR Google Drive which includes a date change for the topics covered on August 24 and August 31. Additionally, technical presentations outlining the Regulations are available on available on the Clean Fuel Regulations Google Drive in Folder 1. Please note in response to questions, ECCC noted the importance of registering by August 20, 2022 to create provisions credits. Q+A below:
Question: In the case of a US-based biofuel facility, to generate credits as of June 21, 2022, is it the US biofuel production facility that needs to register by Aug 20th, 2022; or is it the importer in Canada that needs to register by then (or is it both?).
ECCC response: The importer would likely be the registered creator; they would be the organization to register by August 20, 2022 to create provisional credits. Additional useful links:
- Clean Fuel Regulations and Regulatory Impact Analysis Statement - CFR Webpage
- Fuel LCA Model - Supplemental Documents
- Google Drive |
For more information, please contact Senior Vice President of Regulatory Affairs Chris Bliley. |
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The Andersons Celebrate 75 Years by Ringing the NASDAQ Bell |
The Andersons celebrated 75 Years this week by ringing the NASDAQ closing bell in New York City. Their story started with little more than one man’s dream. From humble beginnings, The Andersons has grown into a publicly traded Fortune 500® company through enduring commitment to serving its valued customers with innovative, forward-thinking solutions. We're pleased to congratulate such a vital part of our industry and our Growth Energy family for 75 years of operation. |
ICM and Impacto to Build Bahia’s First Corn-Based Biorefinery |
In a recently signed contract, ICM, Impacto Energia S/A and its sister company, Impacto Bioenergia, have agreed to build a new dry-mill ethanol production facility in Bahia, Brazil, with an estimated Q1 2025 start date.
The greenfield plant, designed for a daily grinding capacity of 1,700 metric tons of corn, will be equipped with ICM’s proprietary Base Tricanter System™, Selective Milling Technology™ and Fiber Separation Technology™. In addition to producing 260 million liters of anhydrous ethanol per year, the biorefinery will be able to recover of 9,000 metric tons of corn oil and recombine separated feed components into 185,000 metric tons of standard DDGS.
Issam Stouky, ICM’s director of global business development, said he shares the excitement of working with Impacto. “We’re looking forward to more projects together and further developing Impacto’s relationship with Brazil’s energy and feed markets,” Stouky said. “We both have the same mission for sustainable, energy-efficient solutions.” |
Illinois Corn Celebrates 50 Years |
This week, the IL Corn Growers Association (ICGA) is celebrating 50 years of outstanding service to their farmer members. ICGA was incorporated on July 30, 1971 by Rollie Main from Altona, IL. The first meeting of the association was held on February 18, 1972 in Galesburg with J.R. Block, Rollie Main, John Curry, Don Love, and Housel Roberts present. John Block was selected as the chairman of this initial meeting. Since then, ICGA has 39 presidents lead the association, 7 ICGA leaders serve as Chairman of the National Corn Growers Association, 1 leader serve as U.S. Secretary of Agriculture, 1 leader serve as Illinois Director of Agriculture, 1 leader serve as Illinois State Representative and Illinois State Senator, and 1 leader serve as USDA Risk Management Agency Administrator. ICGA is proud to have had a roll in developing the leaders that have guided the Illinois and U.S. agriculture industry.
Congratulations to ICGA on 50 years! |
For more information, please contact Senior Vice President of Development Kelly Manning. |
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Growth Energy Market Development Team Presents at CSP Outlook Leadership |
Earlier this week, the Growth Energy Market Development team attended the CSP Outlook Leadership event, in Asheville, NC. This invite-only event is designed for leaders to network, elevate their business, and gain strategic insights through influential speakers inside and outside the convenience store industry. As part of the innovative forum programming, the Growth Energy team presented on "The Future of Fuels" and explained the economic and environmental benefits of higher blends of biofuels. The event attracted representatives from over 35 retailers, representing 15% of the total convenience store locations in the United States.
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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 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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