No. 210 February 3, 2022
TOP STORY Tomorrow: RVO Comment Deadline In December, the U.S. Environmental Protection Agency (EPA) released its proposed 2020, 2021, and 2022 biofuel blending requirements. EPA’s projection of strong biofuel blending requirements in 2022, commitment to halt illegal refinery exemptions, and long-awaited progress toward complying with a 2017 court order on lost gallons represent a welcome step forward.
However, EPA also proposed rolling back blending requirements for 2020 and lowering volumes for 2021. The proposed retroactive cuts to 2020 not only exceed EPA’s legal authority under the Renewable Fuel Standard (RFS), they impact the entire fuel supply chain, including the farmers, producers, blenders, retailers, and responsible refiners whose business decisions depend on final blending requirements.
We need EPA to immediately fix the flaws to this proposal and finalize it as soon as possible. Tomorrow is the final deadline to send a clear message to the EPA to support proposals that increase the amount of biofuels like plant-based ethanol into our fuel supply.
Join us NOW in submitting comments to the EPA to finalize strong 2021 and 2022 RVOs and reject retroactive cuts to 2020 RVOs. For more information, please contact Senior Vice President of Regulatory Affairs Chris Bliley.
WORKING FOR YOU IN REGULATORY AFFAIRS Iowa State House Passes Landmark E15 Legislation IN OUR ASSOCIATION Member Alert: Update to USDA Pandemic Assistance
Agenda Preview: Executive Leadership Conference IN GOVERNMENT AFFAIRS Growth Energy Applauds Bipartisan Call for EPA to Fix and Finalize RVOs
Letter: Include Carbon Capture Tax Credits in Clean Energy Legislation MARKET DEVELOPMENT Training Session: Canada Fuel LCA Model UPCOMING EVENTS
Texas Food & Fuel Association Fuel and Conference Summit February 15 - 17, 2022
Western Petroleum Marketers Association Convention February 22 - 24, 2022
USDA’s 98th Agricultural Outlook Forum February 24 - 25, 2022
EPA/DOE Workshop on Biofuel GHG Modeling February 28 - March 1, 2022
National Ag Day on the National Mall March 21 - 22, 2022
IN REGULATORY AFFAIRS Iowa State House Passes Landmark E15 Legislation Yesterday evening, the Iowa State House passed H.F. 2128, the 2022 Biofuel Access Bill, with an overwhelming bipartisan majority. This legislation would offer E15 statewide by 2026 and update the E15 promotion tax credit to $0.09 per gallon year-round through 2025. Research shows that statewide E15 in Iowa could cut climate emissions by 180,000 metric tons, the equivalent of removing almost 40,000 vehicles off the road across the state. In a statement, CEO Emily Skor applauded the bill’s passage:
“The bipartisan passage of the Biofuel Access Bill in the Iowa State House is an exciting development in the move toward statewide E15 and in Iowa’s leadership in increasing access to higher blends of biofuels,” said Skor. “Statewide access to higher blends of biofuels means that all drivers across Iowa will have the opportunity to choose fuel that is good for their engine, good for their pocketbook, and one that benefits the community around them. We thank Speaker Pat Grassley, Majority Leader Matt Windschitl, and Chairman Lee Hein for working hard to support biofuels and get this legislation one step closer to becoming law.”
The 2022 Biofuel Access Bill was introduced by Governor Reynolds on January 24, 2022, and Growth Energy supported its introduction. The bill now moves to the Senate for consideration For more information, please contact Senior Vice President of Regulatory Affairs Chris Bliley. IN OUR ASSOCIATION Member Alert: Update to USDA Pandemic Assistance The U.S. Department of Agriculture (USDA) has published a formal notice in the Federal Register that includes a number of our requested changes to the Biofuel Producer Program. This is good news for biofuel producers seeking pandemic assistance because those who ran during the pandemic now have increased ability to access the program, it clarifies and expands what can qualify for payments, and it addresses many of the concerns we've raised and shared with USDA. Read the official notice here.
Key changes in the notice include making additional gallons available to the program and adding a definition of “essential market” for the gallons eligible, which is now as follows:
"Essential market means markets for biofuel, co-products, and byproducts where there are limited alternative replacement buyers and a biofuel producer’s failure to maintain supply has the potential to result in current buyers moving to other suppliers. Essential markets also include critical supply markets to the buyer and local and regional markets are dependent on the supply of products provided by the biofuel producer. Limited alternative near-term supply markets exist and the loss of supply has the potential to have an adverse impact on buyers’ viability."
In December, Growth Energy shared a breakdown of what you need to know about the $700 million available, how to apply, and additional links and resources. That information is available on our website. Additionally, we have linked below USDA's frequently asked questions document to help guide you through the application process. As a reminder, all applications for the Biofuel Producer Program must be received by 11:59 p.m. EST on February 11, 2022.
Agenda Preview: Executive Leadership Conference
This year's Executive Leadership Conference (ELC) is just one week away. For those attending, below is a sneak preview of the general session agenda panels that will be presented in Miami. For those not attending ELC, we will be sharing the content of these panels on our social media and on our website so you can follow along in real time on February 10th and 11th.
2022 ELC Program Agenda
Making E15 Mainstream Build Back Bioethanol: An Update from Washington State Policy: A Critical Battleground for Biofuels Re:imagining the RFS: the “Set” and the Future of Bioethanol A Carbon Conversation: Lowering CI to Open Markets Why We Litigate: Bioethanol in the Courts New Markets: Air New Markets: Land & Sea Fueling Change: The Get Biofuel Consumer Initiative Kernels of Wisdom: A Conversation with the Corn Growers The Holy Grail: E10 Worldwide
For more information, visit GrowthEnergy.org/ELC. For more information, please contact Senior Vice President of Development Kelly Manning. IN GOVERNMENT AFFAIRS Growth Energy Applauds Bipartisan Call for EPA to Fix and Finalize RVOs On Tuesday, in a letter to U.S. Environmental Protection Agency (EPA) Administrator Michael Regan, a bipartisan coalition of 14 U.S. Senators urged Administrator Regan to quickly finalize strong 2022 Renewable Volume Obligations (RVO), set 2021 volumes at the statutory levels, reject retroactive cuts to the 2020 RVO, and deny all pending small refinery exemptions (SREs). The letter was led by Senators Amy Klobuchar (D-Minn.), Chuck Grassley (R-Iowa), and Tammy Duckworth (D-Ill.) Growth Energy CEO Emily Skor released the following statement thanking the Senators for their support:
“The final versions of the recently proposed 2020, 2021, and 2020 RVOs will have an immense impact for years to come on not only the biofuels industry, but also on the environment as our nation works to achieve net-zero emissions,” said Skor. “We applaud our Senate champions for showing leadership in this bipartisan call for EPA to finalize strong RVO levels and eliminate any proposed retroactive cuts. By doing so, EPA would be making meaningful progress in the Biden Administration’s commitment to move toward more low carbon alternatives in our transportation sector while supporting farmers and biofuels producers.”
Letter: Include Carbon Capture Tax Credits in Clean Energy Legislation Growth Energy joined members of the Carbon Capture Coalition in sending a letter this week to President Biden and Democratic congressional leadership urging the inclusion of the energy tax title of the Build Back Better Act in the next iteration of budget reconciliation legislation. The energy tax title includes measures to bolster the 45Q tax credit such as a multi-year extension of the commence construction window; a direct pay option at full value of the credit; enhanced credit values for industry, electric power and direct air capture; and significantly lowered annual CO2 capture thresholds to expand eligibility.
"It is essential that the next iteration of budget reconciliation legislation retain the extraordinary gains made on carbon management and broader clean energy and industrial incentives in the BBBA’s most recent text," wrote the coalition. "This tax package will, in turn, deliver an essential down payment on deployment to meet critical emissions reduction targets, while retaining and creating high-wage jobs and fostering domestic energy and industrial production."
While negotiations on budget reconciliation and the Build Back Better Act have stalled, members of the Democratic caucus and President Biden have, in recent days, signaled that moving forward with certain pieces of the legislation may be possible. For more information, please contact Vice President of Regulatory Affairs John Fuher. IN MARKET DEVELOPMENT Training Session: Canada Fuel LCA Model On Thursday, February 17 at 1PM ET, Environment and Climate Change Canada will host a training webinar on Canada’s Fuel Life Cycle Assessment (LCA) Model, pre-published in December 2021. The purpose of the training session is to provide users with the basic knowledge required to model a fuel's carbon intensity. For more information, please contact Senior Vice President of Market Development Mike Lorenz.
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