Growth Energy Challenges EPA’s Decision to Excuse Refineries from Biofuel Obligations |
Recently filed: Growth Energy filed petitions for review in the U.S. Court of Appeals for the D.C. Circuit challenging the U.S. Environmental Protection Agency’s (EPA) decision to excuse certain refineries from their obligations under the Renewable Fuel Standard (RFS).
What happened: In a decision announced this April, EPA reversed 31 small refinery exemptions (SREs) it had previously granted for the 2018 compliance year but declined to hold affected refiners accountable for meeting any blending obligations for that year. Instead, EPA crafted a novel ‘alternative compliance’ approach that excused these refiners from ever having to comply with their 2018 blending obligations. In June, EPA reaffirmed this approach when it excused additional refiners whose petitions for 2016 and 2017 SREs it denied for the first time.
What Growth Energy said: “EPA’s ‘alternative’ approach to RFS compliance provides no actual alternatives for refineries to meet their biofuel blending obligations,” said CEO Emily Skor. “It’s a mistake that needlessly pulls EPA off the forward-looking path this administration set under the new 2022 Renewable Volume Obligation (RVO). As President Biden said in Iowa, ‘you simply can’t get to net-zero by 2050 without biofuels’. To take full advantage of the carbon reductions and cost savings offered by biofuels, EPA must hold refineries accountable to their blending obligations.”
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For more information, please contact General Counsel Joe Kakesh. |
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Growth Energy Comments on CARB Scoping Plan
Growth Energy Testifies in Support of Michigan Bill Boosting Biofuel Blends Oregon Clean Fuel Standard Update Supporting Ag Priorities in the 2022 Water Resources Development Act Canadian Clean Fuel Regulations are a Victory for Canadian Consumers and Low-Carbon Biofuels |
Skor Joins Brownfield Ag Radio on Gas Prices, Emerging Technologies for Biofuels Sharing Gas Prices on Social Media |
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Biofuels Summit Sep. 12 - 15, 2022 Washington, D.C.
National Association of Convenience Stores (NACS) Show October 1 - 4, 2022 Las Vegas, N.V. |
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ENERGY INFORMATION ADMINISTRATION WEEKLY DATA |
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Last week, domestic ethanol demand was 13.8 BGY, up 4.9% compared to a week ago. The EIA-reported gas demand was up 4.9% from last week, at 136.8 BGY. The 4-week average ethanol and gas demand have been 13.9 and 136.9 BGY.
There was a steep stock draw over the last week dropping U.S. ethanol inventory to the lowest level yet this year. The draw reported for the last week is more than expected, even though a net loss was widely anticipated for the week. The EIA reported an uptick in gasoline demand versus the week ending 06/17/22, contributing to gains in ethanol blending. |
Growth Energy Comments on CARB Scoping Plan |
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Growth Energy submitted comments on Friday to the California Air Resources Board (CARB) on its draft 2022 Climate Change Scoping Plan, which lays out the path toward achieving the state’s carbon reduction goals. In its comments, Growth Energy highlighted the role higher blends of biofuels play in reducing greenhouse gas emissions, addressing air quality, and cutting consumer costs from current and future California vehicles.
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“While California and the Board have made great strides to address air quality, climate change, and the move away from the use of fossil fuels, challenges remain.” wrote Growth Energy. “To address those challenges and for the state to meet its ambitious goals, there must be significant and immediate emission reductions from California’s on-road vehicle fleet. The Scoping Plan update will help define future state actions to address these challenges, and it is critical that all solutions be considered. Specially, liquid fuels will continue to play an important role in the transportation sector for decades to come, even as alternative technologies flourish.
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Growth Energy Testifies in Support of Michigan Bill Boosting Biofuel Blends |
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Growth Energy General Counsel Joe Kakesh testified in support of a proposal to expand access to lower-cost, lower-emissions biofuel blends for drivers in Michigan. At last week's hearing before the Michigan Senate Agriculture Committee, Kakesh urged lawmakers to pass Senate Bill 814, authored by committee chairman Sen. Kevin Daley. The bill would establish a retailer tax incentive for higher ethanol blends, specifically a tax credit of $0.05 per gallon on sales of E15 and $0.085 per gallon on sales of E85.
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Kakesh testified that Senate Bill 814 “would provide an important tax credit for retailers selling higher ethanol blends” and that the credits are important “as retailers in Michigan continue to build out the market and invest in additional infrastructure” for higher ethanol blends. “Ethanol blends such as E15 and E85 provide environmental benefits, boost Michigan’s farmers and biofuel producers, and give consumers more affordable choices at the pump. With today’s record high gas prices, we’re seeing E15 sell for nearly 60 cents less per gallon than regular gasoline and E85 at a discount of 2 to 3 dollars per gallon,” added Kakesh
Growth Energy appreciated our members, associates, and industry partners who have supported this legislation. Growth Energy members in Michigan include POET Biorefining – Caro, The Andersons – Albion, the Corn Marketing Program of Michigan, NUVUFuels, One Ethanol, and Trucent. |
Oregon Clean Fuel Standard Update |
The Oregon Department of Environmental Quality (DEQ) has issued its proposal to update and extend its reductions for the state’s Clean Fuel Standard (CFS). The original program had called for a 10% reduction in carbon intensity by 2025 (from 2015) and is now proposing a 20% reduction from 2015 by 2030 and a 37% reduction by 2035%. Additionally, DEQ is proposing other changes including credits from ocean going vessels, expansion of advanced crediting for other zero emission vehicles (expansion to hydrogen fuel cell), and changes to penalties and violations. More information on the program itself can be found here.
The proposal is available for comment through July 21st and DEQ will be holding a public hearing on July 19th. |
Supporting Ag Priorities in the 2022 Water Resources Development Act |
Growth Energy joined the Agricultural Transportation Working Group (ATWG) in sending a letter to the U.S. Senate Committee on Environment & Public Works (EPW) and the U.S. House Committee on Transportation and Infrastructure to promote ag priorities in the Water Resources Development Act (WRDA). Specifically, the ATWG calls attention to the need to modernize locks and dams and inland waterways.
"Our members take a lot of pride in the fact that U.S. agricultural exports hit an all-time high of $177 billion in 2021, accounting for 25 percent of a farmer's income," wrote the coalition. "WRDA can impact trade because barges move about half of all grains to export grain elevators, including 48 percent of corn, 62 percent of soybeans, and 47 percent of wheat. Critical farm inputs like fertilizer, feed, and fuel are transported via the inland waterways system. From the Pacific Northwest to the Mississippi River and Gulf Coast, the importance of inland waterways and ports to the ATWG and American agriculture is definitive."
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Canadian Clean Fuel Regulations are a Victory for Canadian Consumers and Low-Carbon Biofuels |
Canada has now publicly released its unofficial version of the Clean Fuel Regulation (CFR), an initiative to reduce the lifecycle carbon intensity of fuel and energy used in Canada and achieve more than 20 million tons of annual reductions in greenhouse gas emissions by 2030. Environment and Climate Change Canada's (ECCC) press release, regulation, and regulatory impact analysis are available here. ECCC notes in their quick fact section that they will need “700M liters of additional ethanol by 2030”.
Growth Energy, the U.S. Grains Council, and the Renewable Fuels Association (RFA) welcomed the finalized regulations. “We applaud Canada for finalizing its Clean Fuel Regulations and leading the globe in putting a plan in place to slash greenhouse gas emissions from the transportation sector through higher blends of biofuels,” the organizations said. “The Clean Fuel Regulations set Canada on a path toward better air quality, energy security, and carbon mitigation, all supported by rural communities, by setting the achievable goals of reducing more than 20 million tons of greenhouse gas emissions through their move to a 15 percent ethanol in all gasoline by 2030. The Clean Fuel Regulations stand as testimony to the powerful impact biofuels can and will have for Canada’s transportation future.”
ECCC also provided an update on changes to the program from earlier publication here with notes below.
Highlights of confirmed changes in the final regulations Program review scheduled for five years after the regulations come into force Carbon intensity (CI) stringency is a 15% CI reduction (14gCO2e/MJ) (announced in March 2022). Coming into force date of July 2023 for the obligation under the policy, with early action credit generation as of June 20, 2022.
Aviation fuel has no obligation under the policy, but sustainable aviation fuel can generate opt-in credits. Marine fuel has no obligation under the policy, but biofuel use used between two Canadian ports can generate opt-in credits. Volumetric requirement - Broadened the scope of low carbon intensity (CI) fuels that are eligible to meet the 2% volumetric requirement. - Moved from strictly HDRD and biodiesel to all fuels suitable to be used as a diesel replacement – including SAF, low carbon intensity fuel oils, and co-processed low CI fuel.
Compliance category I (credits from fossil fuel): - Exported fossil fuels will not generate credits
- CI reductions for Gaseous and solid fuels will not generate credits.
- Direct air capture for CCS and EOR projects are not eligible for credit creation.
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Deficit carry forward for obligated parties is increased from two to five years, and interest rate reduced to 5%; however, there remains a 10% (of obligation) cap on deficits.
- Projects for facilities in jurisdictions outside of Canada will be able to enter into an agreement with the government t of Canada to ensure their projects are comparable to Canadian projects and meet the Regulations’ objectives in order to be recognized for credit creation.
Compliance category II (credits from liquid biofuel use) - No significant changes, but see simplifications under “Land Use and Biodiversity Criteria”.
Compliance category III (electric vehicles and H2 fuel cell) -
Main update is for provisions requiring credit sales at fair market value.
Land Use & Biodiversity Criteria – nothing has changed since Spring communications. -
Simplifications announced in the Spring are reflected in the regulation. We expect this to put Canada and US as qualifying for full legislative recognition and aggregate compliance, but this is to be confirmed upon application to ECCC.
- Updates include simplification of administrative approaches (e.g., declarations are on a per-contract period for up to one year).
- Wildlife habitat criterion refined to remove the term “vulnerable ecosystems”.
Carbon Intensity and Fuel LCA Model - Credit Creation can occur back to the point of the registration of the Regulations for all CI applications before 2024.
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A new version of the LCA model will be published in 2024 – if the new CI is lower than the previous CI, a one-time credit adjustment will be provided for the associated volume of low-CI fuels supplied since the registration of the credit creator in the reporting system.
- Parties other than the low CI fuel producer can contribute information that leads to a final CI value.
- Enabled credit adjustment for changes in the CI annually.
Verification and Certification - Delayed verification to June 30, 2024
- Streamlined requirements for site visits, allowing for remote site visits and audits when possible; flexibility on who can be designated accreditation body to the international accreditation forum or equivalent body (must meet ISO 17011 standards).
Reporting/Record Keeping - New credit adjustment report will provide additional credits that account for reduction in CI of low CI fuels annually.
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For more information, please contact Senior Vice President of Regulatory Affairs Chris Bliley. |
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Skor Joins Brownfield Ag Radio on Gas Prices, Emerging Technologies for Biofuels |
CEO Emily Skor joined Brownfield Ag Radio to discuss her 2022 FEW keynote address, where she highlighted the emerging technologies and opportunities on the horizon for the biofuels industry. In her interview, Skor also explained the impact of a recent vote in the U.S. House of Representatives on the Lower Food and Fuel Costs Act, a bill that would make permanent year-round E15 in order to address sky-high gas prices. Tune in! |
Sharing Gas Prices on Social Media |
We are continuing to amplify real-time photos on social media of the cost savings of E15 at the pump. Sharing these photos provides a strong proof point of the economic benefits of biofuels and that E15 is now saving American families almost a dollar per gallon at the pump. Check out a few of our recent gas prices photos posted to Growth Energy's Twitter page:
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June 27, 2022 in Rantoul, Ill. |
| June 26, 2022 in Grandview Heights, Ohio. |
| June 24, 2022 in Breezewood, Pa. |
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Help us continue to amplify the savings that E15 provides at gas stations across the country this summer. Be sure to take photos or videos of E15 price reductions at the pump or on your local gas retail sign. Share the photos on your social media and tag @GrowthEnergy or send the post/photo to kwebster@growthenergy.org. |
For more information, please contact Vice President of Communications and Public Affairs Elizabeth Funderburk. |
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Happy Independence Day from Growth Energy. We hope everyone enjoys a safe and fun celebration of this great country! |
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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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