No. 162 February 11, 2021 ![]() TOP STORY U.S. Ethanol Exports Surpass 1.3 Billion Gallons for 2020 The U.S. Department of Agriculture (USDA) released information regarding U.S. ethanol exports for 2020, which totaled 1.334 billion gallons, down 9.8 percent from 2019 and hovering around 2017 levels. In response, CEO Emily Skor released the following statement:
“In a year where gasoline demand has taken an unprecedented dive due to the COVID-19 pandemic, we’re optimistic to see worldwide ethanol demand continue to provide U.S. producers with market opportunities.
“One of our main objectives at Growth Energy is building strategic global partnerships with countries around the world in order to grow demand here at home and to underscore to international leaders the economic and environmental benefits of ethanol. As we look ahead, we see that a global movement is afoot to achieve aggressive clean energy goals, and the 2020 ethanol export number shows that the world is seeing biofuels as a part of the solution as an affordable, low-carbon, high-octane fuel.”
Canada took over as the top export market for U.S. ethanol in 2020, with 326.4 million gallons (mg) for the year. Canada continues to be a global leader in the use of biofuels, which is expected to grow with their Clean Fuel Standard as well as provincial moves to higher biofuel blends.
Brazil dropped to the second U.S. export market, at 188.8 mg, a 40% difference from 2019, due to tariff issues between the U.S. and Brazilian government.
In India we saw an 9.1% increase at 189.6 mg. The fourth largest export market in 2020 was South Korea at 105.8 mg, followed by the Netherlands at 77.5 mg.
WORKING FOR YOU IN GOVERNMENT AFFAIRS Senate Biofuels Champions Defeat Cruz's Midnight-Hour RIN Cap Amendment
Legislation Introduced to Streamline Pathways for Low-Carbon Biofuels
Senators Send Letter Asking EPA to Review Trump Administration Refinery Exemptions
Growth Energy Praises Senate Push on Biofuel Infrastructure IN REGULATORY AFFAIRS Growth Energy to EPA: Reject Extension of RFS Compliance Deadlines
Setting the Record Straight in Cambridge IN OUR ASSOCIATION Titan of Business: Cecil O'Brate IN COMMUNICATIONS Inside EPA: Biofuels Producers Seek Role In Providing Near-Term, Low-GHG Fuels UPCOMING EVENTS
IN GOVERNMENT AFFAIRS Senate Biofuels Champions Defeat Cruz's Midnight-Hour RIN Cap Amendment Early in the morning during last week's Senate “vote-a-rama” on a budget resolution for COVID-19 relief, U.S. Senator Ted Cruz (R-Texas) offered an amendment that would cap Renewable Identification Numbers (RINs) at 10 cents apiece, using tired and debunked arguments for a policy that would destroy markets for homegrown biofuels under the Renewable Fuel Standard (RFS).
The measure was swiftly defeated by a 26-74 vote thanks to strong biofuels voices like Senators Chuck Grassley (R-Iowa) and Tammy Duckworth (D-Ill.), who rightly called the amendment a “direct attack on the Midwest and America’s hundreds of thousands of farmers.” In response to this resounding defeat, CEO Emily Skor made the following statement:
“We are grateful to Senators Duckworth and Grassley – and all of our biofuels champions and those who opposed this in the Senate – for defeating Senator Cruz’s midnight-hour attempt to gut the RFS and destroy markets for hard-pressed farmers and producers across rural America. It has been proven time and again that RIN prices do not threaten refiner profits, but that’s not why oil companies are back to pushing these tired gimmicks. They see that this change in Administration signals an end to their free pass on blending biofuels.
“We look forward to working with the Biden Administration’s EPA to restore integrity to the RFS and help our farmers and producers build back what they have lost from past regulatory abuse.”
Legislation Introduced to Streamline Pathways for Low-Carbon Biofuels ![]() U.S. Senators John Thune (R-SD) and Jeanne Shaheen (D-NH) introduced legislation that would reduce delays at the Environmental Protection Agency (EPA) in approving advanced and cellulosic biofuel production pathways under the Renewable Fuel Standard.
This bipartisan legislation would approve certain advanced and cellulosic biofuel registrations that have been pending at EPA for at least 180 days, despite having been already successfully used in at least one state. Additionally, the bill would require EPA to make a decision within 90 days on any other registration application that has been pending for at least 180 days. Emily Skor welcomed the bipartisan legislation and its recognition of biofuels as acritical piece of the national climate change conversation:
“Advanced and cellulosic biofuels are proven to provide low-cost and low-emission alternatives to petroleum-based fuel. It is time EPA addresses the current regulatory backlog that is stifling fuel technology progress that allows our country to harness the clean, renewable energy available from agricultural residue, corn fiber, and waste.
“The Biden Administration has been clear in setting aggressive clean energy goals for our country, which is why Senators Thune and Shaheen’s legislation arrives at the perfect time. Further developing advanced biofuels would help provide the clean fuel necessary to reduce emissions and decarbonize our transportation sector.”
Senators Send Letter Asking EPA to Review Trump Administration Refinery Exemptions Senators Amy Klobuchar (D-Minn.) and Chuck Grassley (R-Iowa) led a bipartisan group of senators in sending a letter to the Environmental Protection Agency (EPA) asking for a review of the three exemptions issued by former Trump EPA Administrator Andrew Wheeler, which, according to the letter, betrayed earlier assertions by the Trump Administration that EPA would not grant additional exemptions pending the resolution of ongoing litigation.
The Senators called on EPA to reverse the decision to grant three exemptions if they do not comply with the Tenth Circuit Court small refinery exemption (SRE) decision, stating that, “Because the Tenth Circuit decision is the most definitive legal pronouncement to date regarding EPA’s small refinery waiver authority, we encourage the Agency to adhere to that decision for the purposes of deciding all pending exemption petitions during the pendency of the Supreme Court’s review of the decision.”
CEO Emily Skor made the following statement in support of Senator Klobuchar and Senator Grassley’s urgency for reviewing the last-minute refinery exemptions and for restoring integrity to the Renewable Fuel Standard:
“We’re grateful that these senators are standing up for American farmers and biofuels producers,” said Skor. “When EPA granted three small refinery exemptions in the final hours of the Trump Administration, we were disheartened to see more SRE abuse and uncertainty for rural Americans after a tough year. The Biden Administration must review these exemptions and take this opportunity to restore integrity to the Renewable Fuel Standard and the biofuels industry as a whole.”
Growth Energy Praises Senate Push on Biofuel Infrastructure Growth Energy welcomed the introduction of legislation to fast-track infrastructure investments designed to open new markets for higher ethanol blends, like E15. Authored by U.S. Senators Amy Klobuchar (D-Minn.) and Joni Ernst (R-Iowa), the Renewable Fuel Infrastructure Investment and Market Expansion Act would authorize $500 million over five years for infrastructure grants, building on successful programs like the U.S. Department of Agriculture’s (USDA) Biofuel Infrastructure Partnership (BIP) and the Higher Blends Infrastructure Incentive Program (HBIIP). It would also require the Environmental Protection Agency (EPA) to finalize proposed rules that would eliminate onerous labeling and underground tank requirements that limit access to E15.
“We applaud Senators Klobuchar and Ernst for leading a bipartisan effort that promises to fuel the next wave of growth in rural communities and expand cleaner, more affordable options for all American motorists,” said CEO Emily Skor. “Higher biofuel blends play a vital role in America’s fight against climate change, and the transition to E15 alone could slash greenhouse gas emissions by nearly 18 million tons per year – equal to removing 3.85 million vehicles from the road. With support from our champions in Congress, and fewer roadblocks at EPA, there’s no reason why every driver in America cannot take advantage of low-carbon biofuels to reduce their own footprint while saving money at the pump. We urge leaders in Congress and at EPA to ensure that biofuels remain a top infrastructure priority as we work to fast-track America’s climate progress and ensure healthy air for all.” For more information, please contact Vice President of Government Affairs John Fuher.
IN REGULATORY AFFAIRS Growth Energy to EPA: Reject Extension of RFS Compliance Deadlines On Tuesday, Growth Energy’s Senior Vice President of Regulatory Affairs Chris Bliley testified at the Environmental Protection Agency’s (EPA) virtual hearing on the proposal to extend the Renewable Fuel Standard (RFS) compliance deadlines for the 2019 and 2020 Renewable Volume Obligations (RVOs). EPA’s proposal would extend the RFS compliance deadline for the 2019 compliance year to November 30, 2021 and extend the RFS compliance deadline for the 2020 compliance year to January 31, 2022.
During his testimony, Bliley called on EPA to reject calls to delay RFS compliance and instead take immediate steps to restore integrity to the RFS and restore lost biofuel demand. “The intent of the RFS is to blend more biofuels into our nation’s transportation fuel supply. Period. It is not meant to have oil companies use questionable legal tactics to avoid blending biofuels and then demanding that the agency further delay compliance.”
Bliley also reminded EPA about the benefits of biofuels as America works toward its clean climate goals, stating that “With recent research showing that greenhouse gas emissions from corn ethanol are 46 percent lower than gasoline, it makes no sense why EPA should continue to exempt oil companies and further delay them from complying with their blending obligations.”
Setting the Record Straight in Cambridge On Tuesday, Senior Vice President of Regulatory Affairs Chris Bliley sent a letter to the City of Cambridge, Mass., sharing Growth Energy's concerns regarding the city's deployment of fuel pump labels that could mislead consumers regarding the proven environmental and health benefits of ethanol.
"We support strong public policies aimed at reducing America’s dependence on fossil fuels and displacing a growing share of the gas tank with renewable options, like biofuels," wrote Bliley. "We also support the city council’s directive to “provide consumers with information about the impact of fossil fuel consumption directly at the point of purchase, which may encourage them to reduce their consumption and use alternative forms of transportation when appropriate.”
To underscore the environmental benefits of ethanol, Bliley also shared last month's EH&E report that found that greenhouse gas emissions from corn ethanol are 46% lower than gasoline. For more information, please contact Senior Vice President of Regulatory Affairs Chris Bliley.
IN OUR ASSOCIATION Titan of Business: Cecil O'Brate Cecil O'Brate, a board member of Conestoga Energy, will be featured on Fox Business's "Titans of Business" series this weekend. Born and raised on a farm in Oklahoma, Cecil was a child of the Great Depression and quickly learned the value of hard work.
After graduating from Oklahoma A&M College, Cecil went on to work as a farmer, rancher, banker, business manager, developer, oilman, and serial entrepreneur. In 1966 he embarked on a new challenge and purchased Palmer Manufacturing and Tank Company. When he purchased the company, Palmer's had 2 employees and manufactured tanks for the agriculture industry. When he sold the company in 2013 it had 215 employees and millions of dollars in annual sales. In 1984 he began investing in oil and gas ventures which evolved into American Warrior, Inc., currently one of the largest independent oil and gas producers in the state of Kansas.
Today, Cecil helps those less fortunate through the O'Brate Foundation, which provides college scholarships and life skills for students that are graduates of the foster care system or are below the poverty level.
IN COMMUNICATIONS Inside EPA: Biofuels Producers Seek Role In Providing Near-Term, Low-GHG Fuels In an interview with InsideEPA, a news outlet focusing on the federal policymaking process, CEO Emily Skor outlined Growth Energy's vision of positioning biofuels to provide a ready means of achieving quick greenhouse gas cuts, using existing vehicles and infrastructure, as well as partnering with electric vehicles to reduce emissions
“The more biofuels we use, the more we reduce GHGs,” said Skor. “We are eager to partner and help [President Biden] and his team. We don’t look at this as an either/or, we are going to need both” biofuels and EVs to achieve ambitious climate goals, Skor said. “There is no one silver bullet.”
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