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Tariffs guarantee higher prices for Americans who believe they are too high already

5 December 2024 at 11:00
Ferris Bueller’s Day Off

A scene on tariffs from Ferris Bueller’s Day Off in 1986 is getting some extra attention. (Paramount Pictures.)

Fans of the movie, “Ferris Bueller’s Day Off,” will remember the scene. Ben Stein plays a famously boring high school teacher giving a lecture about economics to a room full of teenagers fighting to stay awake. In about a minute, he covers the Smoot-Hawley Tariff Act and the Laffer Curve, fundamental economic topics, desperately trying to get the students to engage with him.

“Anyone? Anyone…” is the memorable device Stein uses, to no avail, to engage an audience who couldn’t care less.

Some analysts say the economy is the reason voters chose Donald Trump for a second term in last month’s election. His economic plan is rooted in the broad and cavalier use of tariffs on imports from friends and foes alike. Last week, he announced his plan to impose 25% tariffs on Canada and Mexico. The announcement prompted a surprise visit from Canadian Prime Minister Justin Trudeau, and a phone call from Mexican President Claudia Sheinbaum.

Meanwhile, the American public, particularly Trump voters, remain in an economic daze much like Ben Stein’s class.

The Smoot-Hawley Tariff Act was passed in 1930 in an attempt to thwart the impacts of the Great Depression. It was legislation initially designed to provide relief to the American agriculture sector but became “a means to raise tariffs in all sectors of the economy.” It also marked the end of an entrenched Republican platform of protectionist policymaking during that era. The policies ended because they were…anyone…anyone? Failures.

The details

Ignorance has become a vital asset in the political space these days. Yes, it is an asset in politics, but it is the devil in economics.

As a political asset, there are voters who believe that simply throwing a tariff at any nation they are mad at has nothing but benefits. Mad at Mexico because of migration? Slap them with a tariff and border crossings will go down, right? A good number of voters believe the answer is yes. Though this is almost entirely wrong, politically speaking, that ignorance served the pro-tariff candidate in November.

Economically however, the only real certainty that a 25% tariff on Mexico will have, is a 25% price increase in America. There actually is no disagreement on how tariffs functionally work, but I will refer to PBS for a simple explanation. Importers here pay the tariff, otherwise known as a tax, and remit that payment to the U.S. Treasury. How they pass that increase in costs along may vary a little from merchant to merchant, but ultimately it ends up in the price the American consumer pays.

Yes, a tariff program, in the most basic sense, is government imposed price increases. So, if high prices are the reason why an American voted against the current party in power, voting for higher prices seems, well, ignorant.

Now, does a tariff hurt who the angry American is mad at? Sure. In our example, Mexican goods become less affordable if a tariff is applied to them. In that sense, a tariff can hurt who it is designed to hurt. But that doesn’t change the fact that Americans pay the tariff, not the other country.

Many voters have the perspective that Trump imposed tariffs during his first term, and everything worked out fine. The Associated Press reports, “When Trump first became president in 2017, the federal government collected $34.6 billion in customs, duties and fees. That sum more than doubled under Trump to $70.8 billion in 2019, according to Office of Management and Budget records.” That sounds like a lot of money, until it is put in the context of the current $29.3 trillion gross domestic product.

The tariffs Trump is discussing in 2024 are wildly bigger and are being threatened toward virtually every country. But that’s not the only thing different between 2024 and 2017.

What else is different?

Anyone? Anyone?

The economy that Trump inherited in 2017 is sharply different than the one he will inherit in January. Inflation eight years ago was low and had been for a long time. Interest rates were also low and had been for a long time. The 2016 election wasn’t about inflation, and those rather small tariffs weren’t either. But times have changed.

For the life of me, I cannot find any credible theory as to how raising prices on imported goods will have the effect of lowering prices. I’ve written that sentence six times, and I know it reads like gibberish, but I just can’t help it.

Simply put, tariffs raise prices. After a bout with historic global inflation, consumers are exhausted with high prices. We can all agree with that part.

But there is a word for thinking that raising prices will actually lower them.

Anyone? Anyone?

Ohio Capital Journal is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Ohio Capital Journal maintains editorial independence. Contact Editor David Dewitt for questions: info@ohiocapitaljournal.com. Follow Ohio Capital Journal on Facebook and X.

The next census will gather more racial, ethnic information

2 December 2024 at 11:15

People participate in a Puerto Rican Day parade in New York City. Multiracial cultures such as Puerto Rican and Dominican may pose problems for new proposed Census Bureau survey formats that ask about race and Hispanic status separately. (Stephanie Keith | Getty Images)

The U.S. Census Bureau and a growing number of states are starting to gather more detailed information about Americans’ race and ethnicity, a change some advocates of the process say will allow people to choose identities that more closely reflect how they see themselves.

Crunching and sorting through those specific details — known as data disaggregation — will help illuminate disparities in areas such as housing and health outcomes that could be hidden within large racial and ethnic categories. But some experts say the details also might make it harder for Black people from multiracial countries to identify themselves.

Racial data gleaned from the census is important because local, state, tribal and federal governments use it to guide certain civil rights policies and “in planning and funding government programs that provide funds or services for specific groups,” according to the Census Bureau.

The form will have checkboxes for main categories — current census groupings include “Asian,” “Black,” “African American” and “White,” among others — followed by more specific checkboxes. Under Asian, for example, might be Chinese, Asian Indian, Filipino, Vietnamese, Korean or Japanese. And then there will be an empty box for people to write in more specific subgroups.

Collecting more detail by allowing free-form answers, for example, will make it possible for people to identify themselves as part of more racial and ethnic subgroups — such as “Sardinian” (an autonomous region within Italy) instead of simply “Italian” — and include alternative names for certain groups, such as writing “Schitsu’umsh,” the ancient language for “Coeur D’Alene Tribe.”

And the Census Bureau will for the first time include Middle Eastern/North African as a separate racial/ethnic category for respondents with that heritage. Until now, Middle Eastern people who did not choose a race were treated as a subcategory under “white,” based on a 1944 court ruling intended to protect Arab immigrants from racist laws banning U.S. citizenship for nonwhite immigrants.

Under new federal guidelines approved in March, the bureau also will give people the option to check no race at all if they identify as Hispanic or Middle Eastern/North African.

The Census Bureau already has decided to use more open-ended questions in both the 2027 American Community Survey and the nation’s 2030 census. But the agency is seeking public comment on the way write-in responses will be categorized.

The bureau wants to hear how people are likely to identify themselves, said Merarys Ríos-Vargas, chief of the bureau’s Ethnicity and Ancestry Branch, Population Division, in a recent webinar. The agency also is interested in whether there are missing or incorrect entries in its proposed list of possible responses.

‘It’s about people’s lives’

Nancy López, a University of New Mexico sociology professor, said she and other experts in Black Hispanic culture think the census should have a “visual race” or “street race” question, so people can communicate how others see them as well as how they identify themselves. The answer might be “Black” or a yet-unrecognized racial category such as “brown.”

“A separate question on race as a visual status helps illuminate the kind of things we are interested in — discrimination in housing, discrimination in employment, discrimination in education and accessing health care in public spaces,” said López, who is the daughter of Dominican immigrants and a co-founder of the university’s Institute for the Study of “Race” & Social Justice.

“It’s about people’s lives, it’s about the future, it’s about children, it’s about access to opportunities and it’s about fairness,” she added, noting that even if the federal government doesn’t add such questions to surveys and the decennial census, state and universities can still do it on their own as they collect data for health care, student enrollment and other topics.

The NALEO Educational Fund, an organization representing Latino elected and appointed officials, supports the decision to make a race choice optional for Hispanics.

“Many Latinos did not see themselves in any of the categories for their racial identity,” said Rosalind Gold, NALEO’s chief public policy officer. “There’s a large number of Latinos who feel that identifying as Latino is both their racial and ethnic identity.”

Gold said NALEO understands the concern some have that failing to require a race designation will obscure racial information on Black Hispanics. But her group argues that the census can get what it needs by educating the public on how to respond and by including prompts on the questionnaires to guide race choices.

Black Hispanic people often see themselves as having a single racial and ethnic identity, according to several experts in Hispanic identity who spoke at a Census Bureau National Advisory Committee meeting Nov. 7.

“They conceptualize themselves as belonging to one [group],” said Nicholas Vargas, an associate professor of ethnic studies at the University of California, Berkeley, speaking at the committee meeting.

“They check ‘Black’ and they check ‘Dominican’ — and don’t want to be counted as two or more,” he said.

In response, Rachel Marks, an adviser for the Census Bureau on race and ethnicity, said the bureau will consider that issue and other “feedback on how people want to be represented” before making a final decision on survey details.

It’s about people’s lives, it’s about the future, it’s about children, it’s about access to opportunities and it’s about fairness.

– Nancy López, University of New Mexico sociology professor

The bureau may recognize a term, Afro-Latino, that could be used to indicate both Black race and Hispanic ethnicity, according to a proposed code list from the agency, as well as “Blaxican” for Black Mexican and “Blasian“ for Black Asian.

The Leadership Conference on Civil and Human Rights, a coalition of civil rights groups, called the more detailed questions “a step forward” but also suggested more guidance on the forms to ensure people are categorized the way they want to be. In its comment on the changes, the group noted that in 2020, some people who wrote in “British” under the Black checkbox were categorized as partly white even if they didn’t mean that.

The group also said it is “concerned about a conflation of the concepts of race and ethnicity,” and it asked for more research to make sure people understand how to respond.

State actions

Some states are acting on their own to gather more detailed data about identity.

New Jersey is among the latest states to pass a law requiring more detailed race and ethnic data collection for state records such as health data and school enrollment.

A similar bill in Michigan would require state agencies that gather information to offer “multiracial” and “Middle Eastern or North African” as choices; the bill remains in committee.

And advocates in Oregon, which already has a law requiring detailed ethnic data collection, are asking the state for more details on Asian subgroups who face education challenges.

A December 2023 report by The Leadership Conference Education Fund identified 13 other states with laws requiring more detailed state data on ethnic and racial groups, including laws passed last year in Hawaii, Illinois, Massachusetts and Nevada.

The states of California, Connecticut, Minnesota, New Mexico, New York, Oklahoma, Oregon, Rhode Island and Washington already had such laws, the group found.

Stateline is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Stateline maintains editorial independence. Contact Editor Scott S. Greenberger for questions: info@stateline.org. Follow Stateline on Facebook and X.

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Ex-Rivian Chief To Lead VW Group Of America After EV Tie-Up

  • VW taps former Rivian and Porsche exec to strengthen its North American presence.
  • Kjell Gruner joins VW Group of America as it invests $5.8 billion into new EV platforms.
  • This latest leadership shift aligns with its long-term plan for EV advancements in 2027.

Just days after Volkswagen and Rivian announced the finalization of their joint venture to co-develop a next-generation electrical architecture and software, another major shift has surfaced. Kjell Gruner, one of Rivian’s former top executives, is set to become the new chief executive of Volkswagen Group of America.

That executive is Kjell Gruner, who joins Volkswagen after serving as chief commercial officer and president of Business Growth at Rivian. Gruner took on the role at Rivian in September 2023 but resigned in July 2024, after just 10 months. He is set to become the new head of Volkswagen Group of America on December 12, succeeding Pablo Di Si, who is stepping down.

Read: VW And Rivian Team Up To Develop EV Tech for 2027 Launch

Until Gruner officially takes charge, Gerrit Spengler, the current chief human resources officer for Volkswagen Group of America, will act as interim CEO.

A Familiar Name in the Industry

VW will no doubt hope that Gruner’s expertise in the US market will help it broaden its reach across the region. Through the first months of this year, VW sold 769,000 vehicles in North America, a 7% increase from the previous year.

Gruner brings extensive experience in both the US and German automotive markets. While his tenure at Rivian was brief, it’s hardly his first time in a high-profile role. His career began as a consultant before moving to Porsche in the early 2000s. In 2004, he joined DaimlerChrysler, where he led strategy for Mercedes-Benz Cars. By 2010, Gruner returned to Porsche, this time as the global chief marketing officer. In 2020, he ascended to president and CEO of Porsche Cars North America, a role he held until his transition to Rivian in 2023.

 Ex-Rivian Chief To Lead VW Group Of America After EV Tie-Up

“Kjell Gruner is an absolute expert for the US market. He has over 25 years of experience in the automotive industry and extensive know-how in exploiting and expediting growth opportunities in North America,” VW AG group board member for human resources Gunnar Killian said. “Volkswagen AG is indebted to his predecessor, Pablo Di Si. His outstanding commitment was of central importance in realigning our business in South America. He subsequently laid the foundation for the positive development of our North American strategy.”

A $5.8 Billion Bet on Rivian Tech

Gruner’s appointment comes as VW doubles down on its collaboration with Rivian. The automaker has committed a significant $5.8 billion investment into co-developing a new electrical architecture based on Rivian’s systems. The partnership’s first fruits will debut in 2027 with a VW-branded vehicle. Afterward, the software stack will roll out across models from Audi, Porsche, Scout, and others under the Volkswagen Group umbrella.

 Ex-Rivian Chief To Lead VW Group Of America After EV Tie-Up

Mexico Wants Elon Musk To Clarify His Intentions Over Local Tesla Gigafactory

  • Tesla confirmed plans to establish a Mexican factory in March 2023.
  • The facility was supposed to build vehicles underpinned by Tesla’s next-generation platform.
  • Musk paused development of the site in the lead-up to the 2024 presidential election.

Officials from Mexico are eager to meet with Elon Musk about Tesla’s production plans for the country after Donald Trump won the US election last week. Musk, who has supported Trump since the assassination attempt on him in July, had originally announced Tesla would establish a Gigafactory in Mexico, but those plans are in jeopardy.

The planned factory was originally confirmed in March 2023 and came after months of meetings between Musk and local officials. The new site was to be located near Monterrey in the state of Nuevo León and handle the production of one of the automaker’s planned ‘next gen’ vehicles. However, in July, Musk said Tesla had paused plans for the factory after Trump began touting the idea of leaning heavily into massive tariffs on imported vehicles.

Read: The $25,000 Tesla You Can Drive Is Dead, And Autonomy Killed It

While recently speaking on a Mexican radio show, as reported by Reuters, the nation’s Economy Minister, Marcelo Ebrard, said he’s “going to set up a meeting with [Musk] soon so that he tells me exactly what he’s thinking and see what we can do so this project moves forward.”

 Mexico Wants Elon Musk To Clarify His Intentions Over Local Tesla Gigafactory

Given Musk’s newfound fondness of Trump, and the President-elect’s promise during his campaign to slap vehicles imported from Mexico with tariffs of 200% or more, it seems unlikely that Tesla will be able to justify investing in a Mexican plant. Tesla never confirmed which markets it intended to sell its Mexican-built vehicles into, but the United States and Canada would have been the most logical choices.

However, since pressing pause on its Mexican plant, Tesla has changed its production plans for its next-generation, ‘unboxed’ manufacturing process that will underpin the recently unveiled electric Robotaxi, also known as the Cybercab. This vehicle will be manufactured in Texas alongside other existing Tesla products.

Even though Mexico seems unlikely to get a Tesla factory, newly-electric president Claudia Sheinbaum does want a cheap EV to be built in the country. Last month, Sheinbaum said the government would work with local Mexican companies and researchers to try and develop a compact and cheap EV for the market, Fortune reports.

Elon Musk Boasts About Tesla Cybertruck’s Strength After Devastating Crash

  • An 18-year-old woman was thrown from the Cybertruck and taken to hospital in a critical condition.
  • Authorities suspect that excessive speed contributed to the severity of this high-impact crash.
  • A second, unrelated accident involving a Cybertruck also recently occurred in Mexico.

Since customer deliveries of the Tesla Cybertruck started late last year, we’ve seen photos and videos of a number of examples involved in crashes. However, other than an incident from a few months ago when a Cybertruck crashed and caught fire, we haven’t seen one that’s been as badly damaged as this one. If you’ve ever wondered what a smashed Cybertruck looks like, well, this is it.

This Tesla was destroyed in Guadalajara, Mexico, over the weekend after reportedly crashing into a statue. No exact cause for the crash has been confirmed, although local media suggests that speeding was probably a factor. The extent of the damage speaks to this.

Read: Florida Man Smashes Porch Pirate’s Getaway Car With Rental Cybertruck

Photos shared to social media show the Cybertruck sitting on its roof in the middle of the road with extensive damage to the front and rear fascias, as well as both sides. It’s been so badly damaged that it’s almost unrecognizable and shockingly, three of the wheels and hubs have been torn from the truck, giving us some idea of the forces that must have been involved.

Even Tesla chief executive Elon Musk caught wind of the crash, and shared photos of the destroyed Tesla to X, proclaiming the “Cybertruck is tougher than a bag of nails.”

Cybertruck is tougher than a bag of nails https://t.co/vEHBjSpgE7

— Elon Musk (@elonmusk) November 2, 2024

This Cybertruck is almost unrecognizable. It saved three people’s lives. pic.twitter.com/70jyNJQJ4s

— Nic Cruz Patane (@niccruzpatane) November 2, 2024

Local outlet Monclova reports that there were four people inside the Cybertruck at the time of the crash. One of them, an 18-year-old woman, was thrown from the Tesla and found lying on the pavement. She was taken to hospital in a critical condition. The three other occupants avoided serious injuries, but were also rushed to the hospital.

This isn’t the only recent Mexican crash involving the Cybertruck. A few days ago, a 23-year-old driving the futuristic-looking EV slammed into the wall of a property in San Miguel, Chapultepec. The force of the impact crumpled the front end of the Tesla. Fortunately, the driver did not suffer any significant injuries.

For those counting, that’s two major Mexican mishaps in as many weeks for Tesla’s toughest vehicle.

Image Credit: LilHumansBigImpact@X

BMW To Build iX3 In Mexico From 2027 But Trump’s Tariff Threats Loom Large

  • The new BMW iX3 was previewed by the Vision Neue Klasse X concept earlier this year.
  • More than €800 million is being invested into expanding the production facility.
  • BMW’s massive plant in South Carolina will also build several EVs this decade.

BMW’s huge factory complex in San Luis Potosí, Mexico, will start to build the brand’s next-generation Neue Klasse vehicles in 2027, and the first model that’ll roll off the production line will be the second-generation iX3.

The world was provided a glimpse of the new-age iX3 earlier this year with the launch of the Vision Neue Klasse X. While the name of the new road-going variant is yet to be confirmed, we do expect it to look very similar to the concept, and as such, radically different than the current iX3. Whether or not that’s a good thing will be up to the market to decide, but there’s no denying BMW is adopting a brave new design language in the Neue Klasse era.

Read: 2026 BMW iX3 Electric SUV Promises 500 Mile-Range With New Battery Tech

This new model isn’t far off. BMW has already confirmed it will be built at the i Factory in Debrecen, Hungary, starting next year, before sales and deliveries of the new all-electric SUV begin. It will be a true global model and BMW likely expects it to sell well, hence why it’ll also be built in Mexico. During a recent press event attended by BMW Blog, the president and chief executive of the brand’s San Luis Potosí facility confirmed the site would start assembly of the iX3 two years after the Hungary site, meaning sometime in 2027.

BMW confirmed in early 2023 that it was investing €800 million ($870 million) into Mexico its Neue Klasse EVs. Some €500 million ($543 million) of this investment is being directed to the construction of a new assembly center for high-voltage batteries, while the existing assembly site and body shop will be expanded. These investments will create 1,000 new jobs.

 BMW To Build iX3 In Mexico From 2027 But Trump’s Tariff Threats Loom Large

The new iX3 will be sold in the United States, and logic dictates that it will be the Mexican-made vehicle that’s sold locally, as opposed to the one manufactured in Hungary. However, if Donald Trump wins the upcoming federal election, BMW may have to change its plans. The Republican presidential candidate has threatened to hit vehicles imported from Mexico with 200% or even 500% tariffs, aiming to prevent a single Mexican-built car from being sold in the US.

“I don’t want their cars,” Trump told Fox News in an interview. “They will not be able to sell cars. I’m not going to let them build a factory right across the border and sell millions of cars into the United States and destroy Detroit further.”

Fortunately, BMW could make things work. It currently has a huge production facility in Spartanburg, South Carolina, and has confirmed that it will produce six EVs models by the end of the decade at this site. There’s no word on which models these will be and if they will be Neue Klasse-based models or instead built around the existing CLAR architecture.

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Growth Energy Submits Comments on New Mexico’s Clean Transportation Fuel Standard

7 August 2024 at 14:17

Thank you for the opportunity to provide written comments in response to the New Mexico Environment Department (NMED) Clean Transportation Fuel Standard’s (CTFS) Advisory Committee and its technical report. 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 renewable fuel; 119 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 in order to grow more green energy jobs, decarbonize our nation’s energy mix, sustain family farms, and drive down the costs of transportation fuels for consumers.

We applaud New Mexico’s efforts to reduce carbon emissions through the CTFS. Growth Energy has previously provided extensive comments on similar programs in California, Washington, and Oregon, ensuring those states recognize the carbon reduction value of
increased bioethanol use. In California, biofuels have been among the largest contributors to the success of the LCFS program to date and are poised to continue to do so with appropriate updates to the program. Additionally, as mentioned in the June 28 Advisory Committee meeting, bioethanol has been a significant credit generator in the Oregon and Washington programs. Like those states, we believe the CTFS has the opportunity to utilize biofuels as a means of immediate greenhouse gas (GHG) reduction in the current light-duty vehicle fleet as future technologies are further developed.

Environmental and Economic Value of Bioethanol

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.

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.

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.

Use of GREET for Life Cycle Analysis Modeling

We believe the Argonne National Laboratory’s GREET model is the most accurate tool to examine the life-cycle greenhouse gas emissions of all fuels and considers a wide range of carbon reduction processes and technologies that bioethanol production can utilize. It is the gold standard for measuring the emissions-reducing power of farm-based feedstocks and biofuels. It incorporates up-to-date science that more accurately scores lifecycle carbon intensity (CI) for corn ethanol and other renewable fuels.

Reject Caps and Sustainability “Guardrails” on Biofuels

As several members of the CTFS Advisory Committee noted in presentations and we reiterated above, biofuels have been a major driver of GHG reductions in existing fuel standard programs. They have been able to be so despite onerous, and we believe unnecessary, land use change (LUC) penalties for cornstarch bioethanol of varying values, including 19.8 gCO2e/MJ in California’s Low Carbon Fuel Standard. This penalty was designed to mitigate alleged land use change with respect to cornstarch ethanol’s production. We believe these scores to be outdated and not based on the most up to date research. A review of more recent science indicates a decreasing trend in land use values with the newer data indicating values closer to 4 gCO2e/MJ.

Concerns over land use change for cornstarch ethanol are unfounded. The United States is planting grain corn on roughly the same number of acres as it was in 1900. At the same time, the per acre yield has increased more than 600%. Capping the use of bioethanol in the CTFS or adopting a sustainability framework similar to what has been proposed by the California Air Resources Board would create an unfair double penalty on cornstarch ethanol in addition to violating the New Mexico legislature’s directive for technology neutrality in the program.

Expanding E15 and Higher Blends

Emissions reductions through the use of E15 also 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.

Consumers have embraced E15’s reputation as a more environmentally beneficial, more affordable fuel. Since the US EPA approved E15 in 2011, at which time there were zero retailers offering it, its availability rapidly expanded to what is now more than 3,400 retail sites in 32 states. Since then, drivers in America have relied on E15 to drive 100 billion miles.

Recognizing Carbon Capture and Other CI Reduction Methods

Bioethanol producers constantly make improvements to their production process, increasing economic efficiency and more importantly, reducing CI. Among the newest tools bioethanol producers are utilizing to reducing CI is carbon capture utilization and sequestration (CCUS). Recently, California adjusted their modeling to account for CCUS, recognizing its importance in carbon reduction. By accounting for CCUS, the pathway CI for E85—approved for use in California—was updated such that it reduces the assumed CI score for ethanol from 66 gCO2e/MJ to 35 gCO2e/MJ. We urge NMED to also recognize the CI reductions CCUS provides to biofuels pathways.

Additionally, we have recently advocated for expanded crediting for low-CI power sourcing in California’s LCFS, Currently, the ability to credit low-CI power in a pathway is limited to specific fuel pathways. While CARB is considering expanding crediting ability to hydrogen-as-fuel pathways, we believe the ability to credit new low-CI power sourcing—power not included in a utility’s preexisting capacity—through power purchase agreements should be available to all feedstocks and pathways. With bioethanol production occurring entirely outside of New Mexico, the state has an opportunity to become a national leader by encouraging, via the CTFS, the adoption of low-CI power for bioethanol producers in other jurisdictions. We encourage NMED to consider the ability of all fuel pathways to credit low-CI power sourcing in their CI score.

On-farm carbon reduction practices, commonly called climate-smart agriculture (CSA), should also be credited in the CTFS. With the use of the GREET model, including the model’s Feedstock Carbon Intensity Calculator, along with the USDA’s database of CSA practices, the carbon reduction values can easily be quantified and verified. Among these practices are the use of cover crops, low or no-till farming, precision fertilizer application, and the use of enhanced efficiency fertilizer.

Bioethanol producers have a wide variety of tools at our disposal to reduce our product’s carbon intensity. We strongly urge NMED to consider maximizing the opportunities for bioethanol producers to lower the CI for bioethanol pathways.

Sustainable Aviation Fuel (SAF)

As producers of one of the most scalable feedstocks for SAF production, we appreciate NMED’s attention to development of this key market. We encourage NMED to work with SAF producers, biofuel feedstock producers, and airlines to seek ways to accelerate use of these important fuels to help decarbonize the aviation sector.

Thank you for the opportunity to provide input on the CTFS Advisory Committee’s technical report. The CTFS will be a critical tool in New Mexico’s decarbonization efforts, and we look forward to working with NMED to ensure the role of biofuels in making New Mexico’s fuel mix more sustainable and help the state achieve its progressive climate goals through the expanded use of bioethanol. Additionally, we are happy to make ourselves available for any questions NMED may have.

The post Growth Energy Submits Comments on New Mexico’s Clean Transportation Fuel Standard appeared first on Growth Energy.

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