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Emily Skor at IRFA Summit: New Opportunities on the Horizon for Biofuels

On Tuesday, Growth Energy CEO Emily Skor delivered the keynote address at Iowa Renewable Fuels Association’s Annual Iowa Renewable Fuel Virtual Summit. In her speech, Skor reviewed the successes and challenges faced by the ethanol industry over the last year and outlined the opportunities ahead in 2021 for the biofuels industry to work with a new Administration in Washington as a key voice on President Biden’s climate initiatives and rebuilding the rural economy. 

 

A few highlights below:

 

On Working with the Biden Administration: 

 

"...We look forward to working with this White House to ensure they keep those promises, and restore strength to the rural economy, while addressing our country’s climate goals. But President Biden will need to act swiftly and boldly to meet the current challenges facing rural communities.  If he is successful, it will send an unmistakable signal that we have a sincere partner in the White House.”  

 

On Upholding the RFS: 

 

“...Make no mistake, we won a major battle at the end of the Trump administration against gap-year exemptions, but we haven’t yet won the war. There are still 65 small refinery exemptions sitting at the EPA...And we won’t let up until the SRE pipeline is shut down, just as the 10th Circuit Court intended...On this front, our aim remains simple – the RFS of tomorrow should be stronger and more forward-leaning than the RFS of the past...” 

 

On Higher Blends: 

 

 “ Last year was the worst fuel market in 30 years. Retailers across the board suspended capital investment. But E15 sites actually grew 10%.... E15 is now available at nearly 2,300 locations...And I’m excited to announce that we’ve recently formed a new partnership that is uniquely positioned to help bring E15 to consumers in untapped markets from Colorado to the Pacific. So be sure to keep an eye out for more updates later this spring...To fast-track this progress, we also helped our retail partners secure nearly $30 million in grants under USDA’s Higher Blends Infrastructure Incentive Program (HBIIP)…" 

 

Ethanol as a Climate Solution: 

 

“... Leaders need to know what we know – there is no silver bullet to decarbonizing the transportation sector...But growing the share of renewable biofuels in our fuel supply can and will accelerate our transition to a healthier, zero-emission future and reduce our dependence on fossil fuels...” 

 

IN REGULATORY AFFAIRS

Report: Greenhouse Gas Emissions From Corn Ethanol 46% Lower Than Gasoline

A new report published by the Environmental Research Letters found that greenhouse gas emissions from corn ethanol are 46% lower than gasoline, up from the estimated 39% done by previous modeling.

 

The report, led by David MacIntosh, Chief Science Officer of Environmental Health & Engineering, Inc. (EH&E) and Adjunct Associate Professor of Environmental Health at Harvard’s T.H. Chan School of Public Health, and consulted by dozens of experts in academia, updates ethanol’s carbon intensity score to reflect how continuous improvements in technology and practices have driven further emissions reductions in the lifecycle of ethanol and will lead to net zero renewable fuel in the future. 

 

“In light of the United States’ renewed effort to achieve a net zero carbon economy, our research team believes this critical review is a timely contribution to establishing an accurate, common understanding of the greenhouse gas profile for corn ethanol in comparison to gasoline refined from crude oil,” said MacIntosh. “Our findings indicated that displacement of gasoline with ethanol produced from biofuels yields greater greenhouse gas benefits than are generally recognized and that prior analyses of the payback period for conversion of land to corn production should be updated.  

 

“We believe the results of our analysis are relevant to continued development and refinement of low carbon fuel standard programs in the US.” 

Kansas City Makes Moves Toward 15% Ethanol

A big step toward offering E15 in the Kansas City, Missouri and Kansas City, Kansas metro areas was pushed forward recently with the publication of the notice and comment to amend the volatility rules for the region. A coalition of Kansas and Missouri Corn Growers and stakeholders, including Growth Energy, have worked over the last three years to modify the legacy vapor pressure requirements which allowed only 10% ethanol blends a 1psi increase. This language dates back to the initial filing of the State Implementation Plan (SIP) as the region took measures to meet the National Ambient Air Quality Standards. 

 

The Kansas City Metropolitan areas, which include both Missouri and Kansas, has dramatically improved air quality, so much so that modification of the legacy vapor pressure limits could be re-evaluated by both state environment protection agencies. The Missouri Department of Natural Resources and the Kansas Department of Health and Environment have published final rule notice and comment for the modifications to allow for equal treatment vapor pressure of gasoline containing up to 15% ethanol

ASTM Clears the Way for State E15 Allowances

ASTM International's Committee on D02 Petroleum Products, Liquid Fuels and Lubricants voted unanimously to incorporate the necessary language to recognize the EPA 1psi waiver for gasoline containing up to 15% ethanol in the D4814 gasoline specification. The ballot passed the 2,500 member committee in November 2020 after overcoming significant opposition by the oil industry.

 

Growth Energy's technical consultant, Kristy Moore lead the Task Force and committee members to the mutually agreed upon language to recognize EPA's changes to substantially similar fuels alongside the recognition of the vapor pressure "special provision" for ethanol blended fuels. Previously, the ASTM specification capped the EPA 1psi waiver to 10% ethanol blends.

 

The E15 recognition in Specification D4814 for gasoline will assist E15 retailers in utilizing existing gasolines as the market growth continues across the U.S. Many state regulations mirror EPA requirements and adopt ASTM specifications into state statute; this makes having the most up to date requirements and allowances for E15 critical for adherence to fuel quality standards and expectations.

New Mexico Clean Fuel Standard Act Introduced

Members of the New Mexico state House and Senate introduced the New Mexico Clean Fuel Standard Act (S.B. 11). This legislation would require fuel producers and importers to reduce the amount of carbon in fuels used in New Mexico, ultimately working toward a 10% reduction by 2030 and a 20% reduction by 2040.

 

The New Mexico Clean Fuel Standard Act's goal is to reduce greenhouse gas emissions from transportation fuels. "As the first state in the Southwest to seek a clean fuel standard program, we are blazing a path toward significant economic investments while tackling emissions that contribute to climate change," said Gov. Lujan Grisham. "We must reduce the carbon intensity of our transportation fuels for the health and welfare of our communities - this program gets us there with the added benefit of significant clean energy investments."

Nebraska Introduces Legislation for Higher Blend Tax Credits

Legislation was also recently introduced in the Nebraska State Legislature to provide a tax credit for E15 and higher ethanol blends. For E15, the credit would be 3 cents/gallon and for E25 and higher, the credit would be 5 cents/gallon.

 

The Higher Blend Ethanol Tax Credit bill (L.B. 596) would create an incentive for retailers across the state to sell higher blends of ethanol and increase the availability of affordable, cleaner-burning fuels for Nebraskans.

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

IN GOVERNMENT AFFAIRS

Growth Energy Statement on Biden Climate Change Executive Order

Following yesterday’s sweeping executive order focused on tackling the climate crisis at home and abroad, creating jobs, and restoring scientific integrity across federal government signed by President Biden, Growth Energy CEO Emily Skor issued the following statement: 

 

“This executive order is another reminder of how inextricably linked addressing climate change is to our economy, and we're eager to help President Biden’s administration deliver on his promise to unleash biofuels as a key solution to climate change and restore economic opportunity for rural America. 

 

“Ethanol plays a critical role in reducing the impact of the transportation sector on climate and achieving net-zero emissions. Just this week groundbreaking research led by David MacIntosh, Chief Science Officer of Environmental Health & Engineering, Inc. (EH&E) and Adjunct Associate Professor of Environmental Health at Harvard, found that greenhouse gas emissions from corn ethanol are 46% lower than gasoline, and last week, analysis by the Rhodium Group concluded that biofuels must be in the mix if we are to attain net-zero emissions by 2050. 

 

“Importantly, ethanol is a homegrown, ready solution now that improves air quality by replacing toxic fuel additives and dramatically reduces emissions of pollutants that most adversely impact our most vulnerable communities. We need to quickly transition to fuels that burn cleaner, pollute less, and reduce greenhouse gas emissions while bringing farmers into the fold of addressing climate change and helping the rural economy. We look forward to partnering with the President and his Administration to do just that with biofuels.” 

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

IN LEGAL

Court Seeks Status Report on EPA Compliance with Order on Renewable Volumes

The U.S. Court of Appeals for the District of Columbia Circuit yesterday directed the U.S. Environmental Protection Agency to submit a status report every 60 days “on its progress in complying with the court’s remand” stemming from the July 2017 ruling in Americans for Clean Energy v. EPA. The 2017 ruling required EPA to address its improper waiver of 500 million gallons of 2016 renewable fuel blending requirements under the Renewable Fuel Standard (RFS).  

 

Yesterday’s order from the D.C. Circuit was in response to a motion filed in December 2020 by biofuel and farm organizations, in which the groups asked the court to enforce its 2017 decision by requiring EPA to fully restore the 500-million-gallons that were inappropriately waived from the 2016 RFS requirements. While the court denied the motion, the groups welcomed the court’s requirement that EPA provide status reports every 60 days on its progress in responding to the court’s decision. 

 

The coalition, which includes Growth Energy, the Renewable Fuels Association, National Biodiesel Board, American Coalition for Ethanol, National Corn Growers Association, National Farmers Union, and National Sorghum Producers, issued the statement following the court’s announcement:    

 

“While we are disappointed by the court’s order on our motion, we are glad to see that the court is holding EPA accountable by requiring it to submit a report every 60 days on the status of the court’s remand on the improper waiver. This time of transition provides EPA the opportunity to move boldly and address prior missteps when it comes to the need for a low-carbon future for our nation’s fuel supply; adjusting quickly for the court-ordered remand would do just that. America’s biofuel producers, rural communities and farm families look forward to working with EPA and the Biden administration to make progress on restoring integrity and growth to the RFS.”  

 

In the July 2017 ruling in the case Americans for Clean Energy et al. v. EPA et al., the court invalidated the EPA’s improper waiver of 500 million gallons in the 2016 RVO rule and ordered EPA to revisit the rule. The court held that EPA’s interpretation of the “inadequate domestic supply” waiver provision “runs contrary to how the Renewable Fuel Program is supposed to work.” To date, EPA has failed to complete any proceedings to reconsider the 2016 RVO and has not restored the 500 million lost RIN gallons. 

For more information, please contact General Counsel Joe Kakesh.

IN MEMBERSHIP

Missouri Corn Names New Chief Executive Officer

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

IN COMMUNICATIONS

Bliley: Clearly This is Unjust

Vice President of Regulatory Affairs Chris Bliley spoke with Michigan Ag Today on the Trump Administration EPA's last-minute small refinery exemptions. 

 

“Biorefinery workers as well as farmers struggled over the past year,” said Bliley. “With this loss in demand just as you’re starting to come back, adding these three [exemptions] continues to slow [by] grating these exemptions to oil companies that are obligated to blend more renewable fuels."

 

Bliley also discussed the anti-backsliding study, and a recent announcement from EPA on E15 labeling and infrastructure.

 

“They also finalized their anti-backsliding study and found that the RFS and the use of higher biofuel blends does not need any additional fuel mitigation measures—there hasn’t been the environmental backsliding many had talked about.”

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