Testimony Archives - Growth Energy https://growthenergy.org/category/comments-testimony-letters/testimony/ Growth Energy is the leading voice of America’s biofuel industry, delivering a new generation of plant-based energy and climate solutions. Wed, 12 Jun 2024 19:06:46 +0000 en-US hourly 1 Growth Energy Provides Testimony at Ohio Retail Tax Incentive Hearing https://growthenergy.org/2024/06/12/growth-energy-provides-testimony-at-ohio-retail-tax-incentive-hearing/ Wed, 12 Jun 2024 19:06:46 +0000 https://growthenergy.org/?p=18382 Chairman Blessing, Vice Chair Roegner, Ranking Member Smith, and members of the Committee: Thank you for the opportunity to provide testimony in support of House Bill 324 on behalf of Growth Energy....

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Chairman Blessing, Vice Chair Roegner, Ranking Member Smith, and members of the Committee: Thank you for the opportunity to provide testimony in support of House Bill 324 on behalf of Growth Energy.

My name is Dallas Gerber, Director of State Government Affairs for Growth Energy. We are the world’s largest association of bioethanol producers, representing 97 producer plants, including 5 plants here in Ohio, and 119 businesses associated with bioethanol production. Collectively, our members produce more than 9.5 billion gallons of cleaner-burning, affordable fuel. Together, we are committed to bringing better and more affordable choices at the pump for consumers, helping our country diversity our energy portfolio, creating more energy jobs, and sustaining family farms.

Producing ethanol provides a nearly threefold increase from the energy put into production with increasing plant efficiency and a growing suite of coproducts. Our industry simply takes the starch from the kernel of corn turning it into bioethanol, while the rest of the fat, fiber, and protein continues into nutrient-rich animal feed, corn oil which is used for additional biofuel production, and carbon dioxide, which is captured for commercial food and beverage use.

Today, 98 percent of all gasoline sold in the United States contains 10 percent bioethanol. E15— a fuel containing up to 15% bioethanol—is approved for use in all vehicles model year 2001 and newer. 96% of the vehicles on the road today can run on E15. Consumers across the country have now driven 100 billion miles on E15. There have been no adverse reports on fuel quality experienced with E15 since first being approved in 2011.

While E15 is available at more than 3,400 retail locations in 33 states, Ohio is falling behind. There are only 144 retail locations selling E15 in the state. That is around 2 percent of all stations in Ohio are selling E15. Compare that to Minnesota which has nearly 500 locations selling E15 or Wisconsin which has at least 350 locations.

We believe this legislation would provide an important, and temporary, tax credit to incentivize E15. Specifically, the bill’s nonrefundable 5 cent per gallon tax credit for fuel retailers who offer E15 helps Ohio compete with other Midwest states that are expanding E15 offerings through similar means.

While Ohio ranks 7th in bioethanol production in the United States, recent data shows it is second to last in term of statewide bioethanol blend rates. The only state with a lower blend rate is Alaska, which has zero bioethanol. Simply put, Ohio is not utilizing an Ohio-grown product that will help reduce fuel costs for drivers. For instance, at the relatively few retailers offering E15 in the state, Ohio drivers saved an average of 16 cents per gallon during the summer of 2023. In some instances, drivers even saved as much as 40 cents per gallon.

This temporary credit is important to ensure retailers that Ohio’s E15 market will continue to build out and invest in additional infrastructure, helping position Ohio for the future. It provides an opportunity to increase the domestic market for Ohio’s corn growers, who face the prospect of a 25% decline in farm income according USDA forecasts. Incentivizing E15 allows Ohio-grown corn to become affordable fuel for Ohio drivers, who would be saving several multiples of the temporary 5 cent incentive for every gallon of E15 they purchase.

The increased usage of ethanol also results in the availability of more nutrient-rich animal feed, an important co-product in the bioethanol production process, to the benefit of Ohio livestock farmers.

When the economic benefits to the consumer, and downstream benefits to the agriculture and bioethanol industries are considered in combination with there being no negative impact on Ohio’s fuel tax revenue, this proposal does not impact the state’s bottom line. As more states implement or consider similar incentives, we believe it is important Ohio does the same, thus ensuring a product made in Ohio using corn grown in Ohio can benefit Ohio consumers with lower prices at the pump for many years to come.

Thank you for your time, and I will be happy to answer any questions the committee may have.

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Growth Energy Testimony on Rhode Island Alternative Fuel Legislation https://growthenergy.org/2024/05/30/growth-energy-testimony-on-rhode-island-alternative-fuel-legislation/ Thu, 30 May 2024 16:21:13 +0000 https://growthenergy.org/?p=18378 Growth Energy is the world’s largest association of biofuel producers, representing 97 U.S. plants that each year produce more than 9.5 billion gallons of cleaner-burning, renewable fuel, 119 businesses associated with the...

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Growth Energy is the world’s largest association of biofuel producers, representing 97 U.S. plants that each year produce more than 9.5 billion gallons of cleaner-burning, renewable fuel, 119 businesses associated with the production process, and tens of thousands of biofuel supporters around the country. Together, we remain committed to bringing better and more affordable choices at the fuel pump to consumers, improving air quality, protecting the environment for future generations, sustaining family farms, and driving down the costs of transportation fuels for consumers.

We appreciate the opportunity to provide written testimony for S2930, which provides a tax credit for individual taxpayers who convert their gas-powered vehicle into a vehicle propelled by an alternative fuel source. Growth Energy strongly supports legislation that incentivizes the expanded use of fuels with higher blends of bioethanol. We applaud Rhode Island’s efforts to reduce greenhouse gas (GHG) emissions in the state’s transportation sector. Biofuels can play a major role in those efforts, as bioethanol emits 46% fewer GHGs compared to gasoline. Bioethanol’s other environmental benefits are also noteworthy. As has been researched by the University of California, Riverside and the University of Illinois at Chicago, the use of more bioethanol and bioethanol-blended fuel reduces harmful particulates and air toxics such as carbon monoxide, and benzene. In other states, where market-based solutions were implemented, e.g. California’s Low Carbon Fuel Standard, biofuels such as bioethanol have been among the largest contributors to GHG reductions.

And with as many as 780,000 vehicles in the state capable of fueling up with E15, a more affordable fuel containing up to 15% bioethanol approved by the US EPA in 2011 for vehicles model year 2001 and newer, even those vehicles without having converted their engine can contribute to GHG reductions. Additionally, vehicles capable of running on E85 number more than 43,000 in the state.

More than 100 billion miles has been driven on E15 in the United States since its approval by the EPA. Additionally, in California alone, more than 118 billion gallons of E85 fuel was sold in 2023. These fuels are being embraced by drivers across the country.

Not only would E15 adoption provide considerable environmental benefits for the state, but Rhode Island drivers would also enjoy lower fuel costs. During the summer of 2023, consumers across the United States saved an average of 16 cents per gallon of E15 compared to E10. In some instances, consumers saved anywhere from 33 to 60 cents per gallon.

Rhode Island has an opportunity to utilize bioethanol as an important GHG reduction tool. If the state replaced E10—the most common blend of gasoline sold in Rhode Island—with E15, nearly 50,000 tons of GHGs emissions would be avoided. This is the equivalent of removing nearly 11,000 vehicles from the roads, all without impacting a single Rhode Island driver.

Unfortunately, despite these readily available fuels being used across the country, there are zero retail fuel sites in Rhode Island offering either E15 or E85. As the Senate Finance Committee considers S2930, an important bill that incentivizes Rhode Island drivers to adopt environmentally beneficial transportation fuel sources, we encourage the legislature to consider the positive environmental impact of expanding the use of biofuels. While many legacy vehicles owners could take advantage of this tax credit by modifying their vehicle to run on E85, the lack of retail fuel sites in Rhode Island offering E85 discourages those owners from utilizing this opportunity to contribute to the reduction of GHGs.

We respectfully urge the General Assembly to consider policies that encourage the expanded use of fuels with higher blends of bioethanol, as legacy vehicles are expected to be on the road for many years. Expanding access to higher bioethanol blends allows these vehicles to contribute to GHG reductions immediately as future technologies are adopted.

The consideration of biofuels, particularly bioethanol, is a crucial component to carbon emissions reductions as future decarbonization technologies are developed. We hope the committee recognizes the role fuels with higher blends of bioethanol can play in reducing GHGs and providing a more affordable option for Rhode Island drivers. Thank you and we look forward to any questions you may have.

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Growth Energy Testimony Supporting Connecticut GREET Bill https://growthenergy.org/2024/03/14/growth-energy-testimony-supporting-connecticut-greet/ Thu, 14 Mar 2024 15:40:21 +0000 https://growthenergy.org/?p=17823 Growth Energy is the world’s largest association of biofuel producers, representing 97 U.S. plants that each year produce more than 9 billion gallons of cleaner-burning, renewable fuel, 117 businesses associated with the...

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Growth Energy is the world’s largest association of biofuel producers, representing 97 U.S. plants that each year produce more than 9 billion gallons of cleaner-burning, renewable fuel, 117 businesses associated with the production process, and tens of thousands of biofuel supporters around the country. Together, we remain committed to bringing better and more affordable choices at the fuel pump to consumers, improving air quality, protecting the environment for future generations, sustaining family farms, and driving down the costs of transportation fuels for consumers.

Thank you for the opportunity to provide written testimony for HB 5440, which requires the use of the Argonne National Laboratory’s greenhouse gases, regulated emissions, and energy use in technologies (GREET) model in the Department of Energy and Environmental Protection’s lifecycle analysis of biofuels. Growth Energy strongly supports the use of GREET in any lifecycle analysis of biofuels, as it is the most accurate and up-to-date lifecycle analysis of greenhouse gas emissions for transportation fuels. Additionally, we support the inclusion of farm-level climate-smart agricultural practices when considering biofuels’ lifecycle emissions. There has been a wealth of data including a recent study done by Argonne National Laboratory showing the possibility of a 35 percent reduction in carbon intensity through adoption of current best on-farm practices such as cover crops, no till, low carbon, fertilizer use, and other innovations.

Use of Higher Blends of Bioethanol Leads to Better Environmental Outcomes
Growth Energy also strongly advocates for the important role low-carbon biofuels can play an in reducing the state transportation sector’s carbon emissions. A primary solution for decarbonizing the liquid transportation fuel supply is the promotion of additional use of bioethanol. Today, 98 percent of all gasoline sold in the U.S. contains 10 percent bioethanol. E15 (gasoline with 15 percent bioethanol) is approved for all 2001 and newer vehicles, more than 96 percent of all light duty vehicles on the road today. Consumers
have now driven more than 100 billion miles on E15, and retailers have conducted millions of transactions with this fuel. There have been no adverse reports of fuel quality experienced with E15 since first being approved 13 years ago.

According to recent data from Environmental Health and Engineering, today’s bioethanol reduces greenhouse gas emissions (GHG) by nearly 50 percent compared to gasoline and can provide even further GHG reductions with additional readily available technologies. A study conducted in 2022 by the University of California – Riverside found that shifting from E10 to E15 reduces emissions including harmful particulates and air toxics such as carbon monoxide, and benzene.

The potential for fuels with higher blends of bioethanol to reduce GHGs are further illustrated in a national analysis showing more than 177,000 tons in GHG reduction in Connecticut alone if E10 gasoline was replaced with E15. These studies illustrate the vital role that higher bioethanol blends play in protecting our air, our climate, and our health.

In addition to its clear environmental benefits, E15 saved drivers an average of 15 cents per gallon last summer. It is now available at more than 3,400 retail locations in 31 states, and higher bioethanol blends such as E85 are available at nearly 6,000 sites around the
country. Unfortunately, in Connecticut, there are no retail locations selling E15 and only 6 retail locations selling E85.

Biofuels Are the Primary Feedstock of SAF
Additionally, our members embrace the role biofuels play in the aviation industry, which the state’s work on the 2022 Comprehensive Energy Strategy categorized as an industry “hard to decarbonize.” The adoption of GREET for the sustainable aviation fuel (SAF) federal tax credit is critical to the inclusion of biofuels in the efforts to reduce aviation’s carbon emissions. With current technologies, farm-based feedstocks—including bioethanol and corn oil—are the primary source of clean, renewable energy that can be used to produce volumes large enough to meet the demand. As a result, harnessing the U.S. bioethanol industry, which at 17.4 billion gallons per year accounts for over 80% of biofuel production in the United States, will be necessary to achieve U.S. goals for decarbonizing the aviation sector. HB 5440 will provide the opportunity for biofuels to be an essential contributor to Connecticut’s aviation decarbonization efforts.

Given our experience with state and national fuel policy, and our focus on expanding the use of lower-cost, environmentally beneficial fuels with higher bioethanol blends, we are happy to assist the committee with technical questions as they consider this important legislation. Additionally, we are available to answer any questions on sustainable aviation fuel, GREET modeling, and biofuels’ role in decarbonization. Thank you in advance for your consideration.

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Growth Energy Testimony in Support of Michigan SAF Bill https://growthenergy.org/2024/03/14/growth-energy-testimony-in-support-of-michigan-saf-bill/ Thu, 14 Mar 2024 14:53:34 +0000 https://growthenergy.org/?p=17822 Thank you for the opportunity to provide testimony for SB 447. Growth Energy is the world’s largest association of biofuel producers, representing 97 U.S. plants—including two plants in Michigan—that produce more than...

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Thank you for the opportunity to provide testimony for SB 447. Growth Energy is the world’s largest association of biofuel producers, representing 97 U.S. plants—including two plants in Michigan—that produce more than 9 billion gallons of renewable fuel annually; 117 businesses associated with the production process; and tens of thousands of biofuel supporters nationwide. Together, we are working to bring consumers better and more affordable choices at the fuel pump, improve air quality, and protect the environment for future generations. We remain committed to helping diversify our country’s energy portfolio, grow more energy jobs, decarbonize our nation’s energy mix, sustain family farms, and drive down the costs of transportation fuels for consumers.

Growth Energy strongly advocates for policies supporting sustainable aviation fuel (SAF) development, which presents an historic opportunity for Michigan farmers and bioethanol producers, including Growth Energy’s Michigan members which collectively have a production capacity of more than 200 million gallons of bioethanol, to help decarbonize the aviation industry.

In 2021, the United States produced approximately 5 million gallons of SAF but incentives like SB 447 can help the ethanol industry occupy up to half of the domestic aviation marketplace. Growth Energy members have committed over 1.1 billion gallons of ethanol capacity to SAF, which would ultimately produce more than 650 million gallons of SAF. To achieve these goals, getting the policy and life cycle modeling right is essential.

Growth Energy supports SB 447, which will provide a $1.00 tax credit for SAF sold for use in Michigan, which with additional tax incentives for each additional percentage reduction in GHG emissions. We are pleased to see the inclusion of the Argonne GREET model to measure reductions in greenhouse gas emissions. The GREET model uses the most updated science accounting for all emissions reductions made in bioethanol production. When using the most recent science, cornstarch bioethanol is a readily available source of clean, renewable energy available in large enough volumes to decarbonize the skies. Additional important factors contributing to ethanol’s lower carbon intensity include the consideration of low-carbon on-farm practices and carbon capture and underground sequestration.

SB 447 represents an opportunity for Michigan farmers and biofuel producers to benefit from this still-nascent market poised to skyrocket in the coming decades. To achieve 100% SAF usage by 2050, 63 new bioethanol plants of 200 million gallons production capacity each will need to be constructed. Michigan’s status as a leading state for corn and bioethanol production has the potential to be enhanced with the passage of SB 447.

Today, biofuels support more than half a million jobs across the rural bioeconomy. If bioethanol producers take full advantage of SAF opportunities, that number has the potential to double. SB 447 incentivizes Michigan to embrace SAF production and capitalize on the economic and employment benefits of the low-carbon economy.

We appreciate the opportunity to express our support for SB 447, thank Senator Singh for introducing the legislation, and respectfully request the committee’s support for the bill. Additionally, we are available to assist the committee with any technical questions.

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Growth Energy Submits Testimony on Kansas E15 Incentive Bill https://growthenergy.org/2024/03/11/growth-energy-submits-testimony-on-kansas-e15-incentive-bill/ Mon, 11 Mar 2024 15:38:41 +0000 https://growthenergy.org/?p=17826 Growth Energy is the world’s largest association of biofuel producers, representing 97 U.S. plants that each year produce more than 9 billion gallons of cleaner-burning, renewable fuel – including five of Kanas’...

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Growth Energy is the world’s largest association of biofuel producers, representing 97 U.S. plants that each year produce more than 9 billion gallons of cleaner-burning, renewable fuel – including five of Kanas’ twelve biorefineries. We also represent 117 businesses—including six associate members in Kansas—associated with the production process; and tens of thousands of biofuel supporters around the country. Together, we remain committed to bringing better and more affordable choices at the fuel pump to consumers, helping our country diversify our energy portfolio in order to grow more energy jobs, sustaining family farms, and driving down the costs of transportation fuels for consumers.

Today, 98 percent of all gasoline sold in the U.S. contains 10 percent bioethanol. E15 (15 percent bioethanol) is now available at more than 3,400 retail locations in 31 states, and higher bioethanol blends such as E85 are available at nearly 6,000 sites around the country. In Kansas, there are 71 retail locations selling E15 and 90 locations selling E85. E15 is approved for all 2001 and newer vehicles, more than 96 percent of all light duty vehicles on the road today. Consumers have now driven more than 100 billion miles on E15, and retailers have conducted millions of transactions with this fuel. There have been no adverse reports of fuel quality experienced with E15 since first being approved 13 years ago.

Growth Energy appreciates this opportunity to support House Bill 2763, which would provide an important tax credit for bioethanol fuel blends from 15 to 85 percent. Specifically, this legislation would provide to fuel retailers a non-refundable 5 cent per tax credit for every gallon of higher bioethanol fuel blends sold. This credit is important as retailers in Kansas continue to build out the market and invest in additional infrastructure to offer these bioethanol blends.

Bioethanol blends such as E15 and E85 also give consumers more affordable choices at the pump. During the summer of 2023, Kansans saved an average of 11 cents per gallon on E15 compared to E10. Providing a 5 cent per gallon tax credit to incentivize a higher bioethanol blend, the production of which benefits an industry supporting 13,000 Kansas jobs, allows hardworking Kansans to save on fuel costs without any impact to the state’s fuel tax revenue.

This credit for retailers will also help Kansas bioethanol producers, corn growers and sorghum producers, and livestock farmers. While Kansas is currently eighth in the nation in bioethanol production, the state’s fuel bioethanol blend rate is only 9.75 percent, well below the national average of 10.38 percent. If Kansas incentivized retailers to offer higher bioethanol blends and the state reached the national average, the increased bioethanol production could result in an estimated 6.5 percent increase in bushels purchased from Kansas corn growers and sorghum producers. This increased production in bioethanol also results in the availability of an additional 1 million pounds of nutrient-rich animal feed, an important co-product in the bioethanol production process, for Kansas livestock farmers.

When the economic benefits to the consumer, the agriculture industry, and the bioethanol industry are considered in combination with there being no effect on Kansas’ fuel tax revenue, this proposed retail tax credit ultimately does not impact the state’s bottom line. Several other Midwestern states have embraced higher blends of bioethanol and successfully implemented similar tax incentives. As more states consider incentivizing higher blends, we believe it is important the state does the same by ensuring a product made in Kansas using corn and sorghum grown in Kansas benefits drivers in Kansas.

Given our experience with retailers around the country offering bioethanol blends, we are happy to assist the committee with technical questions as they consider this important legislation. We look forward to working with you to finalize this important benefit for Kansas drivers, fuel retailers and farmers. Thank you in advance for your consideration.

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Growth Energy Testimony on Minnesota Clean Transportation Standard Proposal https://growthenergy.org/2024/03/04/growth-energy-testimony-on-minnesota-clean-transportation-standard/ Mon, 04 Mar 2024 16:57:03 +0000 https://growthenergy.org/?p=17827 Thank you for the opportunity to provide written testimony on SF 2584, which would establish a clean fuel standard for the state of Minnesota. Growth Energy is the world’s largest association of...

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Thank you for the opportunity to provide written testimony on SF 2584, which would establish a clean fuel standard for the state of Minnesota. Growth Energy is the world’s largest association of biofuel producers representing 97 U.S. plants that produce more than nine billion gallons of cleaner-burning, renewable fuel annually; 117 businesses associated with the production process; and tens of thousands of biofuel supporters across the country. Minnesota is home to 19 bioethanol production plants, with a collective annual capacity of more than 1.4 billion gallons from 500 million bushels of corn. Our ultimate objective is to work together to bring better and
more affordable choices at the fuel pump, improve air quality, and protect the environment for future generations.

Growth Energy strongly advocates for the role low-carbon biofuels and higher biofuel blends can play in Minnesota’s efforts to reduce the carbon intensity of transportation fuels used in the state. A primary solution for decarbonizing the liquid transportation fuel supply is the promotion of additional use of bioethanol. Bioethanol has a proven history of contributing to greenhouse gas (GHG) reductions in an existing low carbon fuel standard (LCFS): according to the Transportation Energy Institute, bioethanol is responsible for 31 percent of GHG reductions in California’s Low Carbon Fuel Standard (LCFS), the largest percentage among fuel sources.

According to recent data from Environmental Health and Engineering, today’s bioethanol reduces GHGs by nearly 50 percent compared to gasoline and can provide even further GHG reductions with additional readily available technologies.

Today, nearly all gasoline in Minnesota – and across the United States – is blended with 10 percent ethanol. E15, a blend consisting of 15 percent bioethanol, has been approved for use by the U.S. Environmental Protection Agency (EPA) in all passenger vehicles model year 2001 and newer. This accounts for more than 96 percent of the vehicles on the road today and is now sold at more than 3,400 locations in 31 states. Minnesota currently has 460 fuel retail sites offering E15.

Last summer E15 was sold at a nationwide average of 15 cents less per gallon where available and in some Minnesota locations, we saw E15 selling for as much as 33 cents less per gallon than regular gasoline – that is meaningful consumer cost-savings. Minnesota is already on its way to embracing the environmental and economic benefits of E15. In 2021, Minnesota had the highest bioethanol blend rate, 12.6 percent, in the country.

Beyond its capacity to deliver GHG reductions, E15 provides significant improvements in air quality. Research conducted by the University of California, Riverside found that the use of more bioethanol and bioethanol-blended fuel reduces emissions including harmful particulates and air toxics such as carbon monoxide and benzene. This study illustrates the vital role that higher ethanol blends play in protecting our air, our climate, and our health.

Given Minnesota’s status as a leader in bioethanol production and utilization, we would like to take this opportunity to raise several concerns with SF 2584. Notably, the Argonne National Laboratory’s Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) model uses the most up to date data and science to calculate fuels’ lifecycle GHG emissions. Modifying GREET for a clean transportation standard in Minnesota risks ignoring important GHG reductions among various fuel pathways. This could result in a clean transportation standard that contradicts the legislation’s stated commitment to fuel and feedstock neutrality.

Additionally, among SF 2584’s text is an unfair land use change (LUC) penalty for crop-based biofuels, namely that the standard “include a non-zero emissions factor reflecting indirect land use change for cropland-derived fuels, not less than the emissions factor derived from the Argonne GREET model.” We believe concerns about the use of crop-based biofuels and their impact on land use are misplaced and unfounded. These fears have been largely based on outdated and flawed data. A review of more recent science over the last five years indicates a decreasing trend in land use values, with the newer data indicating LUC values closer to 4gCO2e/MJ, far less than the outdated and erroneously inflated LUC value used in other states’ standards. Minnesota’s modeling and LUC value should reflect the latest science that better addresses innovation and increasing yields in agriculture.

We applaud the Minnesota Legislature for their efforts and consideration of methods to reduce GHG emissions in the state. SF 2584 contains provisions that will aid the Transportation Commissioner in implementing a fuel-neutral standard that, among other requirements, “creates broad rural and urban economic development.” Given Minnesota’s leadership in agriculture and biofuel production, if implemented properly, we believe this program could provide significant benefits for in-state bioethanol production. Yet we remain concerned about the lack of precision regarding the clean transportation standard’s implementation. Stakeholders representing a broad array of transportation-related and environmental groups convened over several months in 2023 for the Clean Transportation Standard Working Group. The group’s final report demonstrated the complexities surrounding the implementation of a clean transportation standard. We believe the committee should consider the realities of this complexity and the diverse interests of the advisory committee prescribed in SF 2584. We recommend a stronger commitment to ensure a truly technology-neutral standard as well as stakeholder engagement in the promulgation and implementation of the state’s clean transportation standard.

The consideration of biofuels, particularly bioethanol, is a crucial component to a clean fuel standard, one that can have an immediate impact on carbon emissions reductions as future decarbonization technologies are developed. We hope the committee recognizes the role bioethanol can play in reducing GHGs, providing a more cost-effective option for consumers, and helping Minnesota meet its ambitious decarbonization goals. We look forward to further engagement with the committee and are available to answer any technical questions that may arise.

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Growth Energy Testimony on New Mexico LCFS Bill (Senate Conservation) https://growthenergy.org/2024/02/08/growth-energy-testimony-on-new-mexico-lcfs-bill-senate-conservation/ Thu, 08 Feb 2024 18:43:32 +0000 https://growthenergy.org/?p=17840 We appreciate the opportunity to provide comments on House Bill 41, which will establish a clean transportation fuel standard for New Mexico. Growth Energy is the world’s largest association of biofuel producers,...

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We appreciate the opportunity to provide comments on House Bill 41, which will establish a clean transportation fuel standard for New Mexico. Growth Energy is the world’s largest association of biofuel producers, representing 96 U.S. plants that each year produce 9 billion gallons of renewable fuel; 115 businesses associated with the production process; and tens of thousands of biofuel supporters around the country. Together, we are working to bring better and more affordable choices at the fuel pump to consumers, improve air quality, and protect the environment for future generations. We remain committed to helping our country diversify our energy portfolio, grow more green energy jobs, decarbonize our nation’s energy mix, sustain family farms, and drive down the costs of transportation fuels for consumers.

Growth Energy strongly advocates for the role low carbon biofuels and higher biofuel blends can play in New Mexico’s efforts to reduce the carbon intensity of transportation fuels. We urge members of the Senate Conservation Committee to consider the ability of bioethanol to help New Mexico fuel standard’s goal of reducing greenhouse gas (GHG) emissions. A primary solution for decarbonizing the liquid transportation fuel supply is the promotion of the additional use of bioethanol. Bioethanol already has a proven record of success in California’s Low Carbon Fuel Standard (LCFS), such that in 2020, bioethanol was the largest LCFS volume and second-largest credit generator.

Today, nearly all gasoline in New Mexico – and across the United States – is blended with 10 percent ethanol. E15, a blend consisting of 15 percent bioethanol, has been approved for use by the U.S. Environmental Protection Agency (EPA) in all passenger vehicles model year 2001 and newer, more than 96 percent of the vehicles on the road today and is now for sale at 3,400 locations in 31 states, including 21 locations in New Mexico.

According to recent data from Environmental Health and Engineering, today’s bioethanol reduces GHG by nearly 50 percent compared to gasoline and can provide even further GHG reductions with additional readily available technologies. Ethanol has a proven history of contributing to GHG reductions in an existing low carbon fuel standard (LCFS): according to the Transportation Energy Institute, ethanol is responsible for 31% of GHG reductions in California’s LCFS, the largest percentage among fuel sources.

The potential for fuels with higher blends of ethanol to reduce GHGs are further illustrated in a national analysis showing more than 146,000 tons in GHG reduction in New Mexico alone if E10 gasoline was replaced with E15. This is the GHG reduction equivalent of removing 32,000 vehicles from New Mexico’s fleet just by using a higher ethanol-blend fuel. These emissions reductions come with meaningful consumer cost-savings. During the summer of 2023, E15 was sold at 15 cents less per gallon where available on average nationwide. In some locations, we saw E15 selling consistently for as much as 60 cents less per gallon than E10. Bioethanol’s other environmental benefits are also noteworthy. As has been researched by the University of California, Riverside and the University of Illinois at Chicago, the use of more bioethanol and bioethanol-blended fuel reduces harmful particulates and air toxics such as carbon monoxide, and benzene.

Regarding HB 41, the definition of “fuel lifecycle” to include “all stages of fuel and feedstock production and distribution, feedstock generation or extraction through the distribution, delivery and use of the finished fuel by the consumer, including consideration of storage, transportation and combustion” is encouraging, as the entirety of any and all feedstocks’ lifecycle should be assessed and calculated equitably. Additionally, we applaud the bill’s commitment to technology neutrality within the standard.

With respect to the program’s measurement of carbon intensity, we strongly urge the use of the Greenhouse gases, Regulated Emissions, and Energy use in Technologies (GREET) model developed by the U.S. Department of Energy’s Argonne National Laboratory. GREET is the most accurate and up-to-date lifecycle analysis of GHG emissions for transportation fuels.

The consideration of biofuels, particularly bioethanol, is a crucial component to a clean fuel standard, one which can have an immediate impact on carbon emissions reductions as future decarbonization technologies are developed. We hope the committee recognizes the role bioethanol can play in reducing GHGs, providing a more cost-effective option for consumers, and help New Mexico meet its ambitious decarbonization goals. Thank you and we look forward to any questions you may have.

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Growth Energy Testimony on Indiana E15 Retail Tax Incentive https://growthenergy.org/2024/01/29/growth-energy-testimony-on-indiana-e15-retail-tax-incentive/ Mon, 29 Jan 2024 18:50:43 +0000 https://growthenergy.org/?p=17841 Thank you for the opportunity to testify in support of House Bill 1315 today. My name is Dallas Gerber, Director of State Government Affairs for Growth Energy. We are the world’s largest...

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Thank you for the opportunity to testify in support of House Bill 1315 today. My name is Dallas Gerber, Director of State Government Affairs for Growth Energy. We are the world’s largest association of biofuel producers, representing 96 American plants that each year produce more than 9 billion gallons of cleaner-burning renewable fuel – including 8 biorefineries right here in Indiana.

We also represent 115 businesses associated with the production process and tens of thousands of biofuels supporters around the country. Growth Energy is committed to bringing better and more affordable choices to the fuel pump for consumers, helping our country to responsibly diversify our energy portfolio, grow more energy jobs, sustain family farms, and drive down the costs of transportation fuels.

House Bill 1315 provides an important tax credit for the sale of fuel with higher ethanol blends. Specifically, the bill will provide a non-refundable tax credit of five cent per gallon sold to fuel retailers who offer E15, E85, and all other ethanol blends in between. This credit is important as retailers in Indiana continue to build out the market and invest in additional infrastructure to offer these ethanol blends.

House Bill 1315 empowers Indiana fuel retailers, farmers, and consumers to benefit from increased ethanol production and blending in fuel that can be used in more than 96% of all vehicles on the road.

Providing a tax incentive for the sale of E15 provides a needed boost for Indiana corn farmers, who would see stronger sales and increased farm incomes because of higher demand for an Indiana-grown-and-produced product.

For example, Iowa enacted a biofuels tax incentive for fuel retailers in 2014. In June of 2013, the per bushel price of corn was $4.49 according to Iowa State University. In the decade since Iowa’s tax incentive was enacted, the per bushel price increased more than 46% to $6.57. This is compared to the national average increase of only 35% in that same time frame.

Corn farmers are not the only ones to benefit from increased ethanol production. An important co-product of the ethanol production process is distillers’ grains, a nutrient-rich animal feed for livestock. With more ethanol and E15, livestock farmers will have access to more distiller’s grains for feed.

Incentivizing the sale of E15 and higher ethanol blends enables Indiana farmers to sell more corn, increasing the size of their domestic market and raising their farm incomes while helping provide Indiana drivers with a more affordable fuel choice.

During the summer of 2022, drivers in the United States saved on average 16 cents per gallon by filling up with E15 instead of E10, with Indiana drivers saving more than 31 cents per gallon. Additionally, increasing access to E15 and higher blends through this tax credit will expand capital investments in Indiana and help ensure Indiana farmers and fuel retailers are contributing to American energy security.

HB 1315 is a win for farmers in the state, for drivers seeking lower gas prices, and for fuel retailers wishing to provide customers with more choices. I thank Representatives Snow and Heine for introducing House 1315 and respectfully request the committee’s support.

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Growth Energy Testimony in Support of Nebraska SAF Tax Credit https://growthenergy.org/2024/01/24/growth-energy-testimony-in-support-of-nebraska-saf-tax-credit/ Wed, 24 Jan 2024 19:10:16 +0000 https://growthenergy.org/?p=17843 Thank you for the opportunity to provide testimony for LB 1072. Growth Energy is the world’s largest association of biofuel producers, representing 96 U.S. plants that produce more than 9 billion gallons...

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Thank you for the opportunity to provide testimony for LB 1072. Growth Energy is the world’s largest association of biofuel producers, representing 96 U.S. plants that produce more than 9 billion gallons of renewable fuel annually; 115 businesses associated with the production process; and tens of thousands of biofuel supporters nationwide. Together, we are working to bring consumers better and more affordable choices at the fuel pump, improve air quality, and protect the environment for future generations. We remain committed to helping diversify our country’s energy portfolio, grow more energy jobs, decarbonize our nation’s energy mix, sustain family farms, and drive down the costs of transportation fuels for consumers.

Growth Energy strongly advocates for policies supporting sustainable aviation fuel (SAF) development, which presents an historic opportunity to Nebraska’s farmers and bioethanol producers, including the eight Nebraska biorefineries currently Grown Energy members, which collectively have a production capacity of 995 million gallons of bioethanol.

In 2021, the United States produced approximately 5 million gallons of SAF but incentives like LB 1072 can help the ethanol industry occupy up to half of the domestic aviation marketplace. Growth Energy members have committed over 1.1 billion gallons of ethanol capacity to SAF, more than 650 million gallons of SAF. To achieve these goals, getting the policy and life cycle modeling right is essential.

Growth Energy supports LB 1072, which will provide a $1.50 tax credit for (SAF) sold or used in Nebraska. We are pleased to see the inclusion of the Argonne GREET model to measure reductions in greenhouse gas emissions. The GREET model uses the most updated science accounting for all emissions reductions made in bioethanol production. When using the most recent science, cornstarch bioethanol is a readily available source of clean, renewable energy available in large enough volumes to decarbonize the skies. Additional important factors contributing to ethanol’s lower carbon intensity include the consideration of low-carbon on-farm practices and carbon capture and underground sequestration.

LB 1072 represents an opportunity for Nebraska farmers and biofuel producers to benefit from this still-nascent market poised to skyrocket in the coming decades. To achieve 100% SAF usage by 2050, 63 new bioethanol plants of 200 million gallons production capacity each will need to be constructed. Nebraska’s status as a leading state for corn and bioethanol production has the potential to be enhanced with the passage of LB 1072.

Today, biofuels support more than half a million jobs across the rural bioeconomy. If bioethanol producers take full advantage of SAF opportunities, that number has the potential to double. LB 1072 incentivizes the Cornhusker State to embrace SAF production and capitalize on the economic and employment benefits of the low-carbon economy.

We appreciate the opportunity to express our support for LB 1072, thank Senator Dungan for introducing the legislation, and respectfully request the committee’s support for the bill. Additionally, we are available to assist the committee with any technical questions.

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Growth Energy Testimony Supporting Ohio Higher Blends Tax Credit https://growthenergy.org/2023/12/12/growth-energy-testimony-supporting-ohio-higher-blends-tax-credit/ Tue, 12 Dec 2023 20:01:39 +0000 https://growthenergy.org/?p=17849 Growth Energy is the world’s largest association of biofuel producers, representing 96 U.S. plants that each year produce more than 9 billion gallons of cleaner-burning, renewable fuel – including five of Ohio’s...

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Growth Energy is the world’s largest association of biofuel producers, representing 96 U.S. plants that each year produce more than 9 billion gallons of cleaner-burning, renewable fuel – including five of Ohio’s seven biorefineries. We also represent 113 businesses associated with the production process; and tens of thousands of biofuel supporters around the country. Together, we remain committed to bringing better and more affordable choices at the fuel pump to consumers, helping our country diversify our energy portfolio in order to grow more energy jobs, sustaining family farms, and driving down the costs of transportation fuels for consumers.

Today, 98 percent of all gasoline sold in the U.S. contains 10 percent ethanol; E15 (15 percent ethanol) is now available at more than 3,244 retail locations in 31 states, and higher ethanol blends such as E85 are available at nearly 6,000 sites around the country. In Ohio, there are 144 retail locations selling E15 and 256 locations selling E85. E15 is approved for all 2001 and newer vehicles representing more than 95% of the vehicle miles traveled on the road today and more than 9 out of ten cars on the road. Consumers have now driven more than 90 billion miles on E15, and retailers have conducted millions of transactions with this fuel. There have been no adverse reports of fuel quality experienced with E15 since first being approved 12 years ago.

Growth Energy appreciates this opportunity to support House Bill 324 which would provide an important tax credit for ethanol blends from 15 to 85 percent ethanol. Specifically, this legislation would provide a non-refundable 5 cent per gallon tax credit to fuel retailers who offer E15, E85 and all other ethanol blends in between. This credit is important as retailers in Ohio continue to build out the market and invest in additional infrastructure to install these ethanol blends. Ethanol blends such as E15 and E85 provide environmental benefits, boost Ohio’s farmers and biofuel producers, and give consumers more affordable choices at the pump.

Given our experience with retailers around the country offering ethanol blends, we are happy to assist the committee with technical questions as they consider this important legislation. We look forward to working with you to finalize this important benefit for Ohio fuel retailers and drivers. Thank you in advance for your consideration.

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