No. 133 July 2, 2020 
TOP STORY Iowa's updated tax differential a boon for biofuels On Tuesday, June 30th, Iowa Governor Kim Reynolds signed legislation extending and modernizing Iowa tax incentives for higher biofuel blends. The new law reduces the per-gallon excise tax on E15 and higher ethanol blends and B11 and higher biodiesel blends through 2026, and included $7 million additional funding for biofuels infrastructure. 
“The tax update offers a welcome source of market certainty for Iowa biofuel producers and our farm suppliers, who have faced unprecedented economic challenges in the wake of COVID-19,” said Emily Skor, CEO of Growth Energy. “We applaud Iowa lawmakers for crafting bipartisan legislation that can serve as an example for lawmakers nationwide seeking to support rural communities, save motorists money at the pump, and promote low-carbon fuels that keep our air clean. Smart tax policies like these are a proven strategy for accelerating infrastructure investments, creating rural jobs, and expanding consumer access to E15 and other higher biofuel blends.”
We're grateful to the Iowa state legislature for enacting this critical update, and for our members across the state of Iowa for their advocacy on this issue. For more details, contact Senior Vice President of Regulatory Affairs Chris Bliley.
WORKING FOR YOU IN GLOBAL MARKETS US.-Mexico-Canada agreement entered into force IN GOVERNMENT AFFAIRS House Select Committee releases climate crisis report
Growth Energy cheers Governors’ Biofuels Coalition opposition to gap year exemptions IN REGULATORY AFFAIRS Growth Energy champions ethanol blends in EPA update to fuel regs
Growth Energy submits comments on National Ambient Air Quality Standards for Particulate Matter ON THE TRACK Austin Dillon and the No. 3 American Ethanol Team have strong run at Pocono Raceway UPCOMING EVENTS
Fuel Ethanol Workshop 2020 August 24-26, 2020 Omaha, NE
Growth Energy Biofuels Summit September 14-17, 2020 
IN GLOBAL MARKETS US.-Mexico-Canada agreement entered into force
Yesterday, we celebrated that the U.S-Mexico-Canada Agreement (USMCA) officially entered into force, which modernizes the previous trade pact, and strengthens the trade relationship between these North American nations. As this trade agreement is a monumental occasion, below is an updated on each of our neighboring countries. 
CANADA: Canada is the U.S’s second-largest ethanol export market, accepting 330 million gallons of ethanol in 2019. The Canadian market has the potential to increase materially over the next 10 ten years due to changes in both federal and provincial policy, including pushes by Ontario and Quebec to move to a fifteen percent blend.
MEXICO: Mexico is the largest dried distillers grains (DDGs) export destination, constituting over 25% of DDGs exports in 2019. This potential 1.2 billion gallon ethanol market holds both opportunities and challenges. While E10 is approved for use today outside of Mexico’s three largest metropolitan areas, in January, the Mexican Supreme Court of Justice struck down a regulation (NOM-016-CRE-2016) that allowed the sale of 10 percent ethanol blends. Originally issued by Mexico's Energy Regulatory Commission (CRE) in June 2017, the rule increased ethanol blending from 5.8 percent to 10 percent outside those metropolitan areas.
Alongside the U.S. Grains Council, Growth Energy will continue to offer our partners in Mexico technical and scientific information as we collectively work to ensure North America leads the region in the reduction of greenhouse gases in the transport sector and become conscientious stewards of the global environment. For more details, contact Senior Vice President of Global Markets Craig Willis.
IN GOVERNMENT AFFAIRS House Select Committee releases climate crisis report 
This week, the U.S. House of Representatives Select Committee on the Climate Crisis issued an action plan to build a clean energy economy in the U.S. Growth Energy appreciates the Committee’s inclusion of biofuels as an important component of a comprehensive plan to decarbonize the transportation sector.
“The evidence is clear that biofuels offer an immediate path toward decarbonization, while replacing toxic fuel additives that poison our air, ” said Growth Energy CEO Emily Skor. “Federal data show that U.S. ethanol cuts carbon emissions by 39 percent or more – and that’s only a floor – with the potential to achieve much more thanks to innovations in agriculture and ethanol production. In fact, biofuels are responsible for nearly 80 percent of all the carbon reductions credited under California’s Low Carbon Fuel Standard (LCFS), with the recorded carbon intensity of ethanol declining nearly 33 percent since 2011.
“We appreciate the hard work of lawmakers seeking to accelerate our progress toward a healthy climate and are pleased that this report recognizes that a zero carbon future must include all clean transportation solutions—from ethanol to electric vehicles. We stand ready to explore policies and opportunities which showcase low-carbon, liquid fuels’ role in reducing emissions and pollution, and driving innovation for low-to-zero carbon renewable fuels.”
Growth Energy cheers Governors’ Biofuels Coalition opposition to gap year exemptions
On Monday, June 29th, the Governors’ Biofuels Coalition joined congressional leaders in sending a letter to the Environmental Protection Agency (EPA) opposing retroactive small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS). In their letter, the governors noted, “Approving prior-year SREs in this manner ignores the court’s decision and congressional intent and will severely impact farmers and rural communities that support the biofuels industry.” The letter was signed by coalition co-chairs South Dakota Governor Kristi Noem and Minnesota Governor Tim Walz, as well as Iowa Governor Kim Reynolds and Nebraska Governor Pete Ricketts.
“We’re grateful to Governors Noem, Walz, Reynolds, and Ricketts for standing up against this latest scheme to steal markets from struggling farmers and biofuel workers,” said Emily Skor, CEO of Growth Energy. “From state capitols to the U.S. senate, rural champions are putting their foot down because there is no excuse for allowing these regulatory games to hold back the rural recovery. The last thing farm states need right now is another legal battle driving uncertainty in the market and undermining efforts to rebuild the agricultural supply chain.”
We'll continue to keep you updated on the "gap year" SRE requests in the weeks ahead. For more details, contact Vice President of Government Affairs John Fuher.
IN REGULATORY AFFAIRS Growth Energy champions ethanol blends in EPA update to fuel regs
On Monday, Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley submitted written comments to the U.S. Environmental Protection Agency (EPA) on its proposed “Fuels Regulatory Streamlining Rule.” On behalf of the nation’s largest renewable fuel organization, Bliley welcomed the agency’s efforts to “reduce burdensome and duplicative requirements on fuels” while cautioning against changes that could negatively impact market access to higher ethanol blends such as E15 and E85.
“With E15 currently available at more than 2000 retail locations in 29 states and E85 available at more than 4000 locations, any update to the fuel regulations should first and foremost, do no harm to the availability of these fuels,” wrote Bliley, who urged the agency to fine tune its proposed definition of gasoline, which could inadvertently impose gasoline regulations on all ethanol blends beyond E15 including E85.
Bliley also called on the EPA to clarify language on blendstock for oxygenate blending (BOB). “With E15 now approved for year-round sale, it makes little sense why E15 would have substantially different BOB requirements for E10 and E15,” wrote Bliley. “At a minimum, if downstream oxygenate blenders choose to add 15% ethanol, they should not incur any additional requirements of that as a fuel manufacturer or refiner. We believe that current recordkeeping from retailers and downstream blenders should satisfy EPA’s need for certainty with the fuel. Alternatively, we would ask that you work with retailers to simplify any BOB recertification, so that there are not any additional burdensome requirements added to the process to sell this fuel, nor are there any additional restrictions imposed on retailers choosing to offer the fuel.”
In addition, Bliley urged the agency to move ahead on efforts to limit the costs of a burdensome E15 sampling survey requirement under the misfuelling mitigation regulation, which costs ethanol producers and retailers more than a million dollars annually. Finally, Bliley called on the agency to follow through on the administration’s prior commitment to streamline labeling and remove infrastructure barriers to the sale of E15.
“In discussions last year, the EPA administrator committed to review of the E15 label as well as removing hurdles to the sale of E15 through existing infrastructure,” added Bliley. “E15 is approved for all 2001 and newer vehicles which represents more than 9 out of 10 cars on the road today and more than 95 percent of the vehicle miles traveled. American drivers have now driven more than 14 billion miles and fuel marketers have had millions of transactions with this fuel without any reported issues. Additionally, as it relates to retail infrastructure, nearly all underground storage tanks made in the last 30 years are compatible with ethanol blends up to 100 percent, and nearly all fuel dispensers made since 2008 are compatible with E15. It makes no sense why EPA should not make the fuel more available to consumers and remove these remaining restrictions.”
The comments submitted by Growth Energy build on oral testimony Bliley offered during the agency’s public hearing on the rule in late May.
Growth Energy submits comments on National Ambient Air Quality Standards for Particulate Matter
This week, Chris Bliley also submitted comments to EPA on the agency’s review of the national ambient air quality standards for particulate matter (PM NAAQS). In his comments, Bliley noted that, "Through multiple rulemakings at EPA over the last decade including those on greenhouse gas emissions from vehicles and the Tier 3 fuel regulation, Growth Energy has submitted a wealth of data to further support the conclusion that ethanol decreases harmful particulate emissions. We have attached that data here from our recent submission to the agency’s Science Advisory Board (SAB). We think this is a critical opportunity for the agency to review this data as it reviews the PM NAAQS standards."
Our brief letter reiterates our previous comments submitted by Growth Energy to EPA in May, urging their Science Advisory Board to examine the impact of toxic gasoline additives on respiratory health, as well as the potential benefits offered by bio-based alternatives like ethanol.
For more details, contact Senior Vice President of Regulatory Affairs Chris Bliley.
ON THE TRACK Austin Dillon and the No. 3 American Ethanol Team have strong run at Pocono Raceway
Last weekend, driver of the No. 3 American Ethanol Chevy Camaro, Austin Dillon, had a strong run at the Pocono Raceway, finishing the race at 19th.
Even though he finished in top 20, Dillon described the setbacks of the race, stating, " We lost our track position in the middle of Stage 2 when the caution flag was displayed. We were running eighth at the time and hoping that it would go green and cycle out, but it didn't. We had some really good lap times in Stage 3 but the way tire strategy played out we were not able to cycle our way back to the front for the end of the race."
The American Ethanol driver also took a moment to thank our nations' farmers and biofuel producers: "I want to recognize all of the farmers with American Ethanol. They are the true back bone of America and I am proud to race for them." For more details, contact Vice President of Membership 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. You're receiving this newsletter because you've subscribed to Growth Energy's The Weekly Rundown. Not interested anymore? Unsubscribe instantly. Copyright © 2020 Growth Energy. |
