Growth Energy
Growth Energy is the leading biofuel trade association in the country. We represent producers and supporters of biofuels who are working to bring consumers better choices at the fuel pump, grow America’s economy, and improve the environment for future generations. Our growing membership base now represents nearly half of all American biofuel plants along with many of the largest and most prominent fuel retailers in the country and the industry’s top associate members whose businesses support the bioeconomy.
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- Fuel Cells
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A bioeconomy.
At Growth Energy, we’re cultivating this bioeconomy by reimagining what’s possible with crops. Our members make low-carbon fuels, high-protein animal feed, and supply plant-based ingredients for everything from bioplastics to safer cleaning products.
Our industry’s been providing domestic, renewable energy solutions since ethanol blends arrived at the gas pump decades ago. And we’re continuing to accelerate green innovation today. We’re driving increased efficiency in how crops are grown, and how they’re used, finding new and better uses for every part of the plant, from the fiber to the fat to the starch.
Our growing membership base now represents nearly half of all American ethanol plants along with many of the largest and most prominent fuel retailers in the country and the industry’s top associate members whose businesses support the ethanol industry.
Unity is our strength as we work to impact public policy, build consumer support for higher blends of ethanol, and combat misinformation from the oil industry head on. Three core principals of engagement guide our mission at Growth Energy:
- Facilitating greater market access for higher blends of ethanol
- Reintroducing American consumers to ethanol
- Defending the Renewable Fuel Standard (RFS) and pursuing pro-biofuel policies
Membership
Growth Energy is the nation’s premier trade association working to advance pro-biofuel policies and expand consumer access to higher blends of ethanol at the gas pump. We are committed to driving demand for ethanol by empowering consumers with information on homegrown biofuels and forging strategic partnerships across the entire biofuels supply chain.
Our membership is the lifeblood of our organization, and our members play a key role in every segment of the biofuel supply chain, operating more than 90 U.S. biorefineries providing homegrown biofuels that cut energy costs and reduce U.S. reliance on foreign oil. In 2016, our industry contributed over $42.1 billion to America’s GDP, added nearly $22.5 billion to household income and supported more than 339,000 American jobs.
Are you ready to help us tell the world that ethanol is the best option to bring consumers better choices at the fuel pump, grow America’s economy, and keep our air cleaner for future generations? Click here to learn more about the benefits and importance of becoming a Growth Energy member.
Renewable Fuel Standard (RFS)
The Renewable Fuel Standard (RFS) is a great American success story. It has helped provide consumers with real choice and savings at the pump while strengthening our economy, delivering greater energy independence, and improving our environment.
The RFS has broad, bipartisan support in Congress and among state leaders. It has injected much-needed competition into the market, ensuring that homegrown fuels can reach consumers at the fuel pump since its enactment under the Energy Policy Act of 2005 and expansion under the Energy Independence and Security Act of 2007.
Efforts to repeal or change the RFS would undermine that progress, make the U.S. more dependent on foreign oil, and increase gas prices. Moreover, it is vital that the Environmental Protection Agency (EPA) continue to meet the statutory biofuel targets set by Congress for annual Renewable Volume Obligations (RVOs), ensuring that America remains a global leader in renewable energy.
Leading up to the release of the final 2018 RVOs, Growth Energy filed substantive commentsincluding several studies that provided insight into the potential for cellulosic biofuels production, the role of renewable fuel in achieving the U.S.’s energy policy goals, and the risk of an increase to national greenhouse gas emissions if the EPA were to reduce the conventional fuel volume. Growth Energy Vice President of Regulatory Affairs, Chris Bliley, also testified during the EPA’s hearing in August on the RVOs.
Point of Obligation
The RFS has worked for over 11 years with gasoline refiners and importers as the obligated parties to ensure that biofuels cannot be locked out of the market. Unfortunately, some refiners have sought to rewrite key elements of the RFS to avoid their obligation under the law. One such attempt has been to shift the point of obligation and ultimately the responsibility of complying with the goals of the RFS. The attempt would have shifted from refiners and importers to downstream players such as fuel retailers. The change would have imposed a major regulatory burden on hundreds – if not thousands – of fuel retailers and distributors, leading to higher consumer costs and fewer renewable options at the pump.
In February 2017, Growth Energy released an expert economic analysis that identified numerous problems associated with changing the RFS point of obligation. This analysis was part of the association’s comments to EPA highlighting how a shift in point of obligation would be detrimental to growing the renewable fuels marketplace and would ultimately undermine an energy policy that has cut oil imports and reduced transportation-related emissions.
On November 22, 2017, the EPA announced its final decision to keep the point of obligation unchanged.
Benefits of the RFS
Create jobs and grow the U.S. economy
Thanks to the RFS, ethanol is now blended into 97 percent of our fuel supply, and production of homegrown biofuels supports economic growth across the heartland. In fact, America is a global leader in ethanol production, an industry that supports nearly 360,000 U.S. jobs and added nearly $44.4 billion to the nation’s gross domestic product.
Protect the environment & our air
Ethanol is an earth-friendly biofuel that reduces greenhouse gas emissions by an average of 43 percent, according to the U.S. Department of Agriculture, and this percentage continues to increase with ongoing innovations in technology. Ethanol also protects our health by displacing toxic chemicals in gasoline associated with groundwater contamination, smog, asthma, and cancer.
Increase America’s energy security
By providing an affordable alternative for foreign oil, ethanol helps to hold down prices and shields U.S. drivers against efforts by hostile nations to manipulate global energy prices. In fact, ethanol now meets more than 10 percent of our motor fuel needs and has helped America cut our dependence on oil imports in half since 2005, when the RFS was first enacted.
Expand fuel options for U.S. drivers
The RFS creates competition at the pump, ensuring that consumers have cleaner, more affordable options when fueling up. As a result, U.S. drivers save money on fuel – as much as $1.50 per gallon during the last spike in global oil prices. Consumers also appreciate that higher biofuel blends can deliver more octane for better performance and help to reduce toxic emissions in the air.
Drive investments in research and development
The RFS also stimulates investment in second-generation biofuels that can reduce greenhouse gas emissions by 100 percent or more over gasoline. This technology creates value from the waste portion of crops left in the field, while displacing even more carcinogens in gasoline.
Benefits of the RFS
Create jobs and grow the U.S. economy
Thanks to the RFS, ethanol is now blended into 97 percent of our fuel supply, and production of homegrown biofuels supports economic growth across the heartland. In fact, America is a global leader in ethanol production, an industry that supports nearly 360,000 U.S. jobs and added nearly $44.4 billion to the nation’s gross domestic product.
Protect the environment & our air
Ethanol is an earth-friendly biofuel that reduces greenhouse gas emissions by an average of 43 percent, according to the U.S. Department of Agriculture, and this percentage continues to increase with ongoing innovations in technology. Ethanol also protects our health by displacing toxic chemicals in gasoline associated with groundwater contamination, smog, asthma, and cancer.
Increase America’s energy security
By providing an affordable alternative for foreign oil, ethanol helps to hold down prices and shields U.S. drivers against efforts by hostile nations to manipulate global energy prices. In fact, ethanol now meets more than 10 percent of our motor fuel needs and has helped America cut our dependence on oil imports in half since 2005, when the RFS was first enacted.
Expand fuel options for U.S. drivers
The RFS creates competition at the pump, ensuring that consumers have cleaner, more affordable options when fueling up. As a result, U.S. drivers save money on fuel – as much as $1.50 per gallon during the last spike in global oil prices. Consumers also appreciate that higher biofuel blends can deliver more octane for better performance and help to reduce toxic emissions in the air.
Drive investments in research and development
The RFS also stimulates investment in second-generation biofuels that can reduce greenhouse gas emissions by 100 percent or more over gasoline. This technology creates value from the waste portion of crops left in the field, while displacing even more carcinogens in gasoline.
Reid Vapor Pressure (RVP)
Fuel retailers want to offer their customers E15 – a federally approved fuel with 15 percent ethanol and 85 percent gasoline. It is approved for almost 90 percent of American vehicles, can save motorists money and increase a vehicle’s performance. In fact, U.S. motorists have traveled over 4 billion miles on E15. And E15 can be found in 29 states, where it is sold at over 1,300 stations. Growth Energy expects that number to double in 2018, yet many fueling stations are in regions of the country where unnecessary regulations limit sales of E15 during the summer fueling season (June 1 – September 15).
This regulation is tied to Reid Vapor Pressure (RVP) – a measure of how quickly fuel evaporates. In 1990, Congress provided a one-pound RVP volatility waiver to 10 percent ethanol blends because ethanol fuels reduce tailpipe emissions. While the EPA has extended this waiver to blends below 10 percent, and the agency has assured members of Congress that a regulatory fix is under review, the agency has not yet provided RVP relief for E15.
Enacted before E15 was part of the conversation, the current rules remain hopelessly out of date, barring many drivers from accessing cleaner fuels during summer months when Americans spend the most time on the road.
Growth Energy has led the way along with our retail partners to gain support for legislation to extend the RVP waiver to E15 and ensure American drivers have access to this affordable option year-round. Congress should act quickly to send it to the president’s desk.
Renewable Volume Obligations (RVOs)
Each summer, the Environmental Protection Agency (EPA) issues a proposal governing how much renewable energy should be available to consumers in the year ahead. These targets are called Renewable Volume Obligations (RVOs) and they determine how many gallons of biofuel refiners will add to the motor fuel mix. After a proposal is issued, the agency then accepts comments from the public before issuing a final rule making under the RFS.
In late November 2016, the EPA issued final 2017 targets for the RFS. For the first time in years, these matched the full statutory goals for corn ethanol (15 billion gallons), although growth in advanced biofuels was very modest. Earlier this year, the EPA released its proposed renewable volume obligations (RVOs) for 2019. The total renewable fuel volume is proposed to be 19.88 billion gallons, while the proposed conventional biofuel amount of 15 billion gallons maintains the level set in the final RVOs for 2018. The proposal also calls for 4.88 billion gallons of advanced biofuel, including 381 million gallons of cellulosic biofuel and 2.43 billion gallons of biodiesel for 2020.
Renewable Identification Numbers (RINs) allow refiners and fuel importers to track each gallon of biofuel and demonstrate compliance with the law.
When Congress enacted the RFS targets, lawmakers set specific, near-term goals for the consumption of biofuels. After 2022, the EPA is required to continue setting targets guided by specific procedures and pro-growth guidelines laid out by Congress, similar to the procedure used today for setting RVOs for biomass-based diesel.
Strong annual targets for biofuel consumption remain vital to consumers, biofuel producers, and rural communities that depend on the RFS to drive economic growth. Across the heartland, a global crop surplus has pushed down farm incomes, threatening to stall the entire rural economy. The RFS provides policymakers a proven tool to harness America’s abundant renewable energy and revitalize rural growth.
Higher Blends
Today, ethanol is everywhere you buy gasoline – 97 percent of the fuel sold in the U.S. includes 10 percent ethanol. Increasingly, retailers also offer higher fuel blends, which provide consumers with cleaner, more affordable options at the gas pump. These include E15, a 15 percent ethanol blend, E30, a 30 percent ethanol blend, and E85, a blend of up to approximately 85 percent ethanol.
E15 and E85E15 was unavailable prior to 2011, when the Environmental Protection Agency (EPA) first approved the higher ethanol blend for all conventional light duty vehicles model year 2001 and newer – about nine out of 10 light duty vehicles on the road. Most automakers – including all the “Big Three” U.S. manufacturers – agree and have approved E15 for use in new vehicles. Today, E15 is offered in 29 states, with more locations being added every month thanks in part to our work with industry organizations like Prime the Pump. Prime the Pump is an industry effort that helps fuel retailers with offering higher blends of ethanol, like E15 and E85.
In fact, U.S. ethanol consumption has already surpassed a national average of 10 percent, and demand continues to grow as more retailers seek to market lower-cost, higher-octane options.
To protect this progress, policymakers must uphold a strong Renewable Fuel Standard and work to pull down remaining regulatory barriers at the state and federal level that obstruct the sales of higher ethanol blends. Federal regulations, including fuel economy guidelines, must also be updated to reflect the full environmental, health, and performance benefits of homegrown fuels.
Mid-level Blends (E25-E30)Study after study shows that ethanol is a proven high-octane fuel that increases engine efficiency and reduces tailpipe greenhouse gas and criteria pollutant emissions. Growth Energy has been working with federal regulators and the automakers to boost the use of high octane midlevel blends such as E30 for use in the next generation of fuel efficient vehicles.
Growth Energy testified in September during the EEPA’s public hearing for the reconsideration of the Final Determination of the Mid-Term Evaluation of Greenhouse Gas Emission Standards for Model Years 2022-2025 Light-Duty Vehicles.
Export and Trade
America is the world’s top ethanol exporter, supplying more than one billion gallons of fuel ethanol to our trading partners annually.
These exports provide a vital market for U.S. farmers and help keep America competitive in the global economy. They also serve an important role in nations like China, India, Brazil, Mexico, and South Korea, where U.S. ethanol provides an alternative to toxic gasoline additives and helps to reduce air pollution in areas where air pollution remains a major threat to public health.
Ethanol is the only alternative that can seamlessly and cost-effectively replace fossil fuels in today’s vehicles, and American biofuel producers are ready to meet that demand.
That is why Growth Energy has joined the U.S. Grains Council (USGC) and other allies to hold seminars, establish bilateral working groups, and educate foreign policymakers about the demonstrated benefits of ethanol and its value to drivers all over the globe. We also support ongoing efforts to expand U.S. access to foreign markets and reduce the uncertainty associated with fuel policies in other countries.
As part of that effort, we urge the U.S. Trade Representative to work hand-in-hand with our industry to eliminate duties, tariffs, and other protectionist trade barriers that prevent U.S. exports from reaching consumers overseas.
Growth Energy continues to push government stakeholders here in the U.S. and abroad to remove unnecessary tariffs and other barriers to free trade and reopen key export markets for ethanol and DDGS in Brazil, China, and the EU.
Some of that work can be seen recently with China’s announced proposal to move to E10 throughout the country by 2020, and they’ve also announced their intention to remove the value added tax from imported DDGS. Vietnam has also announced that it will now allow imports of DDGS from the U.S.
Additional Policy Priorities
Ensuring Access to the Marketplace
State regulations have a major impact on the market for ethanol. For example, California alone commands nearly 1.5 billion gallons of ethanol with Californians driving nearly 1 billion miles each and every day. Growth Energy has been a leader in advocacy engagement on California’s Low Carbon Fuel Standard keeping the market open for the last five years for Midwestern starch ethanol.
Growth Energy continues to knock down state and technical barriers to higher ethanol blends. New York is the fourth largest gasoline market in the country, yet it prohibits E15, so Growth Energy is working to lift the cap on ethanol in New York.