TOP STORY

Growth Energy, EPA Reach Settlement on Deadline for Issuing 2023 RVO

Following settlement discussions with Growth Energy, the U.S. Environmental Protection Agency (EPA) filed a notice in the Federal Register on Monday seeking comment on a proposed judicial consent decree that would require EPA to propose the 2023 Renewable Volume Obligation (RVO) by no later than September 16, 2022 and finalize it no later than April 28, 2023. EPA’s notice comes after Growth Energy filed a notice of intent to sue and a complaint in federal district court in response to the agency’s violation of the deadlines to issue RVOs established by Congress for the Renewable Fuel Standard (RFS) program.

“Securing a deadline for the 2023 RVO is a significant victory in our mission to ensure certainty when it comes to biofuel blending, especially as we face a new era of the RFS,” said CEO Emily Skor. “2023 is the first year where required volumes of renewable fuel are not specified by Congress and must be set by EPA. Releasing the proposed RVO is the first step for EPA to keep the RFS program on sound footing for 2023 and beyond. We look forward to EPA releasing an RVO that sets biofuel blending at levels that reflect a move toward more lower-carbon, lower-cost fuel in our transportation system.”

For more information, please contact General Counsel Joe Kakesh.

ENERGY INFORMATION ADMINISTRATION WEEKLY DATA

Last week, domestic ethanol demand was 13.6 BGY, down 2.5% compared to a week ago. The EIA-reported gas demand was down 2.5% from last week, at 134.9 BGY. The 4-week average ethanol and gas demand have been 13.7 and 135.6 BGY, respectively.

Ethanol output grew representing the first trip back over the 1-million-b/d level since the last week of March. Regionally EIA revealed the weekly gain coming largely from a 29,000-b/d week-to-week surge from Midwest producers that made 960,000 b/d

IN REGULATORY AFFAIRS

DOE Scientists Release Comments Citing Inaccuracies and Misrepresentations from Lark Study

Yesterday, environmental scientists and experts from across the country associated with the U.S. Department of Energy’s (DOE’s) Argonne National Laboratory released a new set of comments in response to the recent article in the Proceedings of the National Academy of Sciences (PNAS) by Tyler Lark, et al.

The scientists, including Steffen Mueller of University of Illinois-Chicago and Michael Wang of Argonne National Laboratory, who also published an initial response in March 2022, revisited many of the claims and found Lark’s modeling approach to be “too limited to effectively consider the drivers of ethanol industry.” They also found the Lark study to include “outdated and inaccurate projections for future crop prices”, “double counted” and incorrect emissions results, and “magnificent changes” in land use that are “overestimated”.

The report released today criticizes “various major deficiencies and problematic assessments” from the Lark report, including a failure to account for yield improvements and overestimated land use impacts of corn ethanol.

“We recently reviewed the article published by Lark et al. (2022) in PNAS, detected various problematic assumptions, approaches, data, and results in that study,” wrote the scientists. “Based on our findings, we concluded that these authors overestimated GHG emissions of corn ethanol consumption due to the RFS.”

Chris Bliley, Growth Energy’s senior vice president of regulatory affairs, added, “We are pleased to see continued progress in bringing forward sound science from some of our nation’s most well-known and well-respected researchers. U.S. biofuel producers remain undeterred by our opposition’s efforts to recirculate the same false claims from 2015, and will continue to make meaningful progress on delivering immediate carbon reductions and economic benefits.”

Growth Energy: EPA Must Consider Biofuel Benefits for Peer Review Panel 

In response to the U.S. Environmental Protection Agency’s (EPA) pool of candidate peer reviewers for the “Biofuels and the Environment: Third Triennial Report to Congress”, Growth Energy submitted comments that raised a number of critical considerations on biofuels as it finalizes its list of peer reviewers.  

“We appreciate the agency’s effort to provide input for peer review and specifically on the list of peer reviewers,” wrote Chris Bliley, senior vice president of regulatory affairs at Growth Energy. “When selecting peer reviewers, it is important that the panel fairly assess the science and data, and not simply project their own views on biofuels. It is also essential that the panel consider the most up-to-date science and the wealth of data that continues to show the consistent environmental benefits of biofuels like ethanol. Further, the panel must represent diverse expertise and viewpoints, and we encourage the agency to avoid selecting a panel that is biased toward reviewers with expertise in a limited set of disciplines.” 

The submitted reports demonstrate ethanol’s positive contributions to the environment and debunk anti-ethanol research released earlier this year by Tyler Lark et al.

Senators Call on STB to Address Rail Service Disruptions

A group of 21 bipartisan U.S. Senators sent a letter this week to Chairman Oberman of the Surface Transportation Board (STB), calling on STB to address the numerous accounts of lengthy delays and unpredictable service that ethanol producers, manufacturers, and farmers have experienced throughout the freight rail network. 

"American industries rely heavily on freight rail to get commodities, parts, and products to market, not just in the U.S. but also globally. Rail transportation plays an integral role in our supply chain, and consistent service is vital to preventing further disruptions across the network. It is also critical for mitigating global food insecurity. If these problems persist into summer and fall, significant portions of the world's breadbasket could be cut off from assisting those most in need, yielding waste rather than solutions. The same applies to the transport of critical energy supplies in high demand across the United States and the globe.

"Given the impact of these rail service disruptions, STB's oversight role is more critical now than ever. As railroads work to address existing challenges through service restoration plans, we urge the STB to examine all constructive options towards ensuring reliable, consistent rail service is available to shippers across the U.S. rail network."

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

IN GOVERNMENT AFFAIRS

Rep. Cheri Bustos in Fox Business: 3 Ways Ethanol Brings Down Gas Prices

This week in Fox Business online, Rep. Cheri Bustos penned an op-ed on how ethanol can bring down prices at the pump as Americans across the country face record-high gas prices.

"I’m lucky enough to represent more than 7,000-square miles of Northwest and Central Illinois — home to nearly 10,000 family farms and seven biofuels plants in and around our Congressional District," wrote Rep. Bustos. "These plants support American jobs and drive economic growth in our rural communities as they turn corn grown right here in the Heartland into ethanol for cars and trucks.

"When we blend ethanol into our gasoline, it reduces harmful emissions almost in half, brings down the price for consumers by up to 60 cents per gallon and supports American farmers."

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

IN OUR ASSOCIATION

CEO Emily Skor Addresses Eco-Energy Alliance Summit

CEO Emily Skor flew to Nashville this week to speak to attendees of the 2022 Eco-Energy Alliance Summit. Skor spoke on Growth Energy priorities, provided an update on policy objectives in Washington, D.C. and in the states, and shared her perspective on new horizons for the biofuels industry. Thank you to all who attended!

POET Hosts Annual Seeds of Change Event

Golf for change! At this year's Seeds of Change fundraiser event is Sioux Falls, Logan Storley, a member of the Get Biofuel MMA fight team and recent winner of the Bellator Welterweight title, attended to support Seeds of Change's mission to transform lives through the power of education and miracle of agriculture. 

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

IN MARKET DEVELOPMENT

Growth Energy Represented at Eastern Energy Expo

Growth Energy Regional Sales Directors Will Beck and David Durling represented Growth Energy this week at the Eastern Energy, the largest show in the Northeast representing heating fuel markets, motor fuel distributors, HVAC service professionals, and new and innovative products within these industries. During this event, the Growth Energy team met with retailers representing more than 1,500 sites and held multiple conversations with prominent players representing more than 10,000 dealer-operated networks across the entire country.

Japan Moves to E3 Standard

In an exciting global ethanol markets announcement this week, Japan committed to taking all available measures to double demand for bioethanol, including for sustainable aviation fuel and on-road fuel, by 2030 to reduce dependence on imported petroleum. This move translates to roughly over an E3 blend. This announcement was made in a Japan-U.S. joint leaders statement on strengthening the free and open international order.

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

Commemorating Memorial Day

In observance of Memorial Day this weekend, we give a moment of grateful silence to those who have served this country and paid the ultimate sacrifice on behalf of our freedoms.

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