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No. 15; Jan. 17, 2018





Growth Energy is still working with other impacted agriculture companies to find a mutually beneficial pathway to ensure the newly passed Sec. 199a better mirrors the original intent, which was to ensure that farmer cooperatives and the farmers they serve were not adversely impacted by the new tax law. As we mentioned last week, an unintended drafting of the new tax bill allows farmers to take a 20 percent income tax deduction off the gross value of their grain sales to co-op grain buyers. In contrast, grain sales to non-co-op buyers are only allowed a 20 percent deduction off the net proceeds of that sale.

Last week the National Council of Farmer Cooperatives and the National Grain and Feed Association released a joint statement on behalf of their members. Both organizations are working collaboratively with key stakeholders in Congress to address potential unforeseen impacts on producers’ marketing decisions. We strongly support these efforts.

While there continues to be discussion on fixing this provision to match the original intent of Congress, there has not been any resolution that would allow a fix to be included in a bill to extend government funding beyond this Friday, Jan. 19. As this progresses, we will be sure to keep you abreast of what's happening on this issue.

For more details contact Vice President of Government Affairs John Fuher.



Nominations Update


News from Washington State, Canada, and Japan


Getting to Know... Protec

Member of the Week: Cardinal Ethanol

All-Member Call Recap


2018 Iowa Renewable Fuels Summit

Jan. 30, 2018

Altoona, Ia.

Executive Leadership Conference

Feb. 7-10, 2018

Boca Raton, Fla.

Commodity Classic

Feb. 27 - March 1, 2018

Anaheim, Calif.


Nominations Update

At the end of last year, some of President Trump's agency nominations were sent back to the White House, meaning that the administration had to re-submit these nominations. The nominations listed below will require a new committee vote before moving to a full Senate vote:


U.S. Trade Representative Agriculture Trade Ambassador

Nominee: Greg Doud

Status: Awaiting vote by full Senate

U.S. Department of Agriculture Undersecretary of Farm Production and Conservation

Nominee: William “Bill” Northey

Status: Awaiting vote by full Senate; Sen. Ted Cruz (R-Tex.) has currently placed a hold on this nomination to force negotiation of RFS reform

EPA Deputy Administrator

Nominee: Andrew Wheeler

Status: Nomination sent back to White House and re-submitted to the Senate's Environment and Public Works committee; a new vote is tentatively expected to take place today, Wednesday, Jan. 17


White House Council on Environmental Quality Director 

Nominee: Kathleen Hartnett White

Status: Nomination sent back to White House; no confirmation of re-submission to committee 

For more details contact Vice President of Government Affairs John Fuher.


News from Washington State, Canada, and Japan

Washington State
Representative Joe Fitzgibbon, chairman of the state's House Environment committee, has introduced legislation to enact a low-carbon fuel standard in the state for transportation fuel. The legislation proposes a 10 percent reduction of greenhouse gas emissions from 2017 levels by 2028. The legislation proposes to have these rules in place by 2020. The bill was heard in the Environment committee last week on Tuesday, Jan. 9, and may be considered further by the committee this week. Growth Energy has retained local counsel in Olympia to engage on this legislation as well as other state activities on greenhouse gas reduction. We will continue to provide updates as they occur.


Canadian Clean Fuel Standard
Environment and Climate Change Canada has begun stakeholder discussions and issued a framework for development of their Clean Fuel Standard. The first stakeholder meeting is this week in Ottawa, and Growth Energy's Chris Bliley will be attending along with representatives from the U.S. Grains Council and the Renewable Fuels Association. You may recall Growth Energy filed extensive comments on the Canadian Fuel Standard last year. For more information on Canada’s efforts, visit this link.


Japan’s Ministry of Economy, Trade, and Industry (METI) has proposed changes to its fuel ethanol policy that includes a value for the carbon intensity of U.S. starch ethanol that would allow it to be imported into Japan for the production of bio-ethyl tertiary butyl ether (ETBE) for the first time. Growth Energy is working with the U.S. Grains Council and the Renewable Fuels Association to file comments to improve Japan’s assumptions about ethanol’s greenhouse gas emission profile.

For more details contact Vice President of Regulatory Affairs Chris Bliley.


Getting to Know... Protec

Protec Fuel Management distributes to retailers from their home state of Florida north to Maryland and west to Texas. They currently supply over 400 stations that sell E85; more than 200 of them also offer E15, with dozens more that we expect to be completed in the first half of 2018. Additionally, Protec is the largest distributor of higher-blend ethanol fuels to airports, government fleets, military bases, federal agencies, and local governments, including all the way to California.


As the name implies, Protec began as a full-service provider of fuel and risk management in 1999. One of their clients wanted to be the first in Texas to offer E85 and asked for help in installing a new flagship station to supply the fuel. Protec has repeated and perfected this process with many other branded and unbranded retailers across the country, helping retail station owners sell higher-margin, diversified fuel products.


From their beginnings at that first station, Protec has grown in expertise, service, and pricing power. They work with new retailers throughout the entire process by educating staff and helping with marketing strategies and materials. With such a diverse group of customers across all brands and demographics, and with such a wide geography, Protec is in a unique position to share secrets for success wherever a station is located.

Some of the greatest challenges Protec faces today are the myths and misinformation regarding biofuels as well as the fear consumers have of trying something unfamiliar in their vehicle. “We are glad to be able to face those challenges with Growth Energy, and we see education through proper marketing as a monumental opportunity," says Steve Walk, CEO of Protec Fuel.

“For us, Growth is a partner and resource in the truest sense of the words. We feel like we are growing together, and we benefit enormously by having a conduit to the rest of the industry. That said, it is a two-way street, and we are committed to sharing what we know with the team at Growth so that they can share it with others," Walk continued. 

For more details contact Vice President of Market Development Mike O'Brien.


Member of the Week: Cardinal Ethanol


Growth Energy is excited to continue our new regular Weekly Rundown feature: Member of the Week! Each week, we'll introduce you to one of our association's members and get to know them on a more personal level. Cardinal Ethanol is up next!

    • Location: Union City, Ind.
    • Management Team:
      • Jeff Painter, CEO/President
      • Bill Dartt, CFO
      • Jeremey Herlyn, Plant Manager
      • Greg Roy, Commodity Manager
      • Chad Lindow, Production Manager
      • Mark Durr, Maintenance Manager
      • Deanne McElhaney, Environmental, Health and Safety Manager
      • Rob Davis, Chairman of the Board
      • Tom Chalfant, Vice-Chairman
      • Tom Chronister, Secretary
      • Allan Rosar, Director
      • Lewis Roch, Director
      • Bill Garth, Director
      • David Dersch Jr., Director
      • Bob Baker, Director
      • Ralph Brumbaugh, Director
      • Dale Schweiterman, Director
      • Cy LeFevre, Director
      • Phil Zicht, Director
      • Steven Snider, Director
    • How long has the company been in operation?
      • The plant began construction in March of 2007 and began operations in October 2008.
    • Do you make any ethanol co-products?
      • Dried Distiller’s Grains with Solubles, Distiller’s Corn Oil, CO2
    • What do you consider some of your company’s main accomplishments?
      • Celebrated 1 billion gallons of production in August 2017
      • Pride ourselves in customer service, efficiency in grain handling and unloading
      • In October 2017, began diversifying by handling soybeans to supply regional and southeast U.S. customers/processors
      • We participate in many outreach programs and support FFA, 4-H, local YMCA, youth sports programs, local school programs, various farmer groups, and many service organizations.
      • Recognized by the Secretary of Defense as a Patriotic Employer and received the Seven Seals Award for our support of the men and women in the National Guard and Reserves
    • How long have you been a GE member?
      • Since February 2010
    • What's your website address?
    • What do you like about being a member of Growth Energy?
      • We appreciate Growth Energy’s dedication to the advancement of ethanol into the fuel supply and support continued education of consumers, developing relationships on Capitol Hill, fostering research and development opportunities, and giving a strong voice for the Industry. In addition, we welcome Growth’s willingness to address industry issues head on and to provide a course of attack to work through them. We like that Growth Energy is proactive rather than reactive.

For more details contact Vice President of Development Kelly Manning.


All-Member Call Recap


Last week on Thursday, Jan. 11, Growth Energy hosted our first-quarter all-member call for 2018. Thank you very much to everyone who dialed in!

Agenda topics included recent meetings regarding EPA and the RFS, updates on domestic and global markets, and current information on potential tax implications related to Sec. 199a, discussed above.

CEO Emily Skor reviewed Growth Energy’s ongoing defense of the RFS and analyzed the most recent maneuverings of Sen. Cruz, as well as our plans to keep up the pro-RFS public affairs momentum. She also highlighted key trade issues related to Europe, Brazil, Mexico, and Japan.

Vice President of Regulatory Affairs Chris Bliley discussed the most recent EIA numbers as well as the ongoing debate on RINs, merchant refineries, and Sen. Cruz's hold on Bill Northey.


We also received an update on next month’s Executive Leadership Conference from Vice President of Development Kelly Manning.


Make sure to save the date for our next quarterly all-member call: Monday, April 16!

For more details contact Vice President of Communications and Public Affairs Chris Hogan.


The Weekly Rundown is the weekly newsletter for Growth Energy's members, published by the communications staff at Growth Energy. For more information, email

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