40B Modeling Updates Delayed, Growth Energy Responds |
The latest: On Friday, March 1, an interagency working group within the Biden Administration was expected to release an updated GREET model for the Inflation Reduction Act's 40B sustainable aviation fuel tax credit. After months of advocacy to ensure the updates accurately reflect the carbon reduction benefits of biofuels, we received word from the Administration that it would miss its self-imposed March 1 deadline.
What the Administration said: The delay was announced at last week's Commodity Classic, where USDA Secretary Tom Vilsack said the final updates would arrive within "weeks, not months" and further observed that "the reason we’re not (announcing) today is because we’re measuring twice and cutting once. We want to make sure that the latest and best information is utilized in the modeling that will inform the Treasury.” Vilsack added that “We have to make sure that the guidance is correct, that it acknowledges the work that’s being done in reducing greenhouse gas emissions relative to the transportation fuels and the good work that’s being done out in the field to embrace climate-smart practices.”
What Growth Energy said: “The administration made a clear commitment to finalize this guidance no later than March 1. This delay is frustrating, but we’re optimistic that it’s happening for a productive reason. Ultimately, what’s most important is getting it right, and making sure that the resulting updates provide real opportunities for American farmers to contribute to the SAF market,” said CEO Emily Skor. “American bioethanol producers must be allowed to compete in the SAF marketplace. The alternative is making SAF from Brazilian sugar cane, or used cooking oil imported from China, instead of renewable crop-based feedstocks grown on American farms.”
Read Growth Energy's full comment here. Learn more about the importance of the GREET model here. |
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Last week, domestic ethanol demand was 14.2 BGY, up 6.4% compared to a week ago. The EIA-reported gas demand was up 6.4% from last week, at 138.2 BGY. The 4-week average ethanol and gas demand are 13.3 and 129.7 BGY (-2.9% YoY).
Ethanol production was 16.2 BGY last week, down 1.9% versus the week before, and 3.2% more than the 4-week average in 2019. Midwest production was down 2.0% (-6.2 MG) versus a week ago, and average production in the other regions was unchanged. Capacity utilization of plants online was 91.6% overall, 93.3% in the Midwest, and 66.2% on average, elsewhere, excluding 1,197 MGY of capacity shutdown at 25 ethanol plants for other than maintenance (details on pg. 31). On an installed capacity basis, utilization was 85.8% overall, 90.9% in the Midwest and 39.8% in the other regions.
Exports were an estimated 29.0 MG last week based on 120 MG of exports forecast for February. The EIA reported no ethanol imports last week.
Overall inventory was up 6.2 MG last week. EIA-counted stocks increased 1.2 MG, and regional changes were: East (+3 MG), Gulf (-17 MG) and West (-2 MG) Coasts and the Midwest (+17 MG). In-transit inventory increased 5.0 MG.
Based on the total inventory of 1,885 MG on March 1st and the 4-week avg. domestic demand, there were 51.0 days of supply, up 0.4 days versus a week ago. Including the 4-week avg. of net exports, there were 45.8 days of supply, up 0.4 days versus a week ago. |
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Growth Energy Provides Testimony on Minnesota Clean Transportation Standard Proposal |
Growth Energy Signs Trade Letter in Support of Transportation Board Confirmation |
IRS Finalizes Rule on Elective Payments for Credits Under the IRA |
Read: EIA Analysis on Biomass-Based Diesel |
Status of Federal Funding and Appropriations Bills |
Send Us Photos of E15 Cost Savings in Your Area |
Growth Energy Hosts Webinar on Biofuels Funding for Iowa Retailers |
Growth Energy's Board Chairman Attends Commodity Classic |
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Get Bioethanol NASCAR Paint Out Austin, Texas
March 24, 2024 Celebration of Modern Agriculture on the National Mall Washington, D.C. May 6-8, 2024 2024 International Fuel Ethanol Workshop
Minneapolis, Minn. June 10-12, 2024 | |
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Growth Energy Provides Testimony on Minnesota Clean Transportation Standard Proposal |
Earlier this week, the Minnesota Senate Transportation Committee heard testimony on the state’s proposal for a Clean Transportation Standard. The bill’s proposed greenhouse gas emissions reductions are 30% by 2025, 50% by 2030, and for Minnesota transportation emissions to be net-zero by 2050.
Growth Energy’s Senior Vice President of Regulatory Affairs Chris Bliley provided written testimony to the committee, raising concerns regarding the state’s proposed use of a modified GREET model, which could lead to a standard “contradicting the legislation’s stated commitment to fuel and feedstock neutrality,” a land use change penalty impacting crop-based biofuels, and the wide latitude the Transportation Commissioner is given in implementing a standard.
You can read the testimony in full here.
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Growth Energy Signs Trade Letter in Support of Transportation Board Confirmation |
Last week, Growth Energy joined two dozen other trade association members of the Ag-Transportation Work Group in sending a letter to the U.S. Senate Commerce Committee urging the confirmation of Patrick Fuchs for another term at the Surface Transportation Board (STB). The STB is an independent federal agency with oversight over freight rail.
“Mr. Fuchs has a deep understanding of the vital role the STB serves in the American supply chain given its charge to provide economic regulation for the freight rail industry,” wrote the coalition. “As a board member since 2019 he has intelligently shaped many rulemakings to help the rail industry better serve its customers and the American public.”
You can read the full letter here.
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IRS Finalizes Rule on Elective Payments for Credits Under the IRA |
On Tuesday, the Internal Revenue Service finalized its rule on Elective Payment of Certain Applicable Credits under the Inflation Reduction Act (IRA) or so-called “Direct Pay” provisions. Most notably, this final rule applies to the Section 45Q credits for carbon capture and sequestration, giving taxpayers five years of direct pay of the 12 years of the credit for such projects. Nonprofit organizations and co-ops may receive direct pay for all 12 years of these projects. You can find the rule here.
Growth Energy provided comments in November and December 2022 and August 2023 on this rulemaking and continues our engagement with the administration on implementation of the IRA.
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Read: EIA Analysis on Biomass-Based Diesel |
The U.S. Energy Information Administration (EIA) recently published an in-depth analysis of biomass-based diesel and related impacts on the RIN market. This analysis reflects many of the topics discussed during our RINs panel at the Executive Leadership Conference and are very top of mind for our discussions on the Renewable Fuel Standard (RFS). You can find the analysis here.
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For more information, please contact Senior Vice President of Regulatory Affairs Chris Bliley. |
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Status of Federal Funding and Appropriations Bills |
Late last week, the House (Vote 320-99) and Senate (Vote 77-13) passed the fourth short-term continuing resolution (CR) for fiscal year 2024, avoiding a government shutdown. The CR extended funding for six bills (Ag-FDA, Military Construction and Veterans Affairs, Commerce-Justice-Science, Energy & Water, Interior, and T-HUD) through Friday, March 8, 2024. This past weekend, House and Senate Appropriations Committees released the first package of final fiscal year 2024 appropriations bills. The Consolidated Appropriations Act, 2024, passed the House yesterday 339-85, and is expected to have Senate consideration before the weekend. Funding for the remaining six bills runs through March 22.
A summary of the package is available here. Bill text can be read here.
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Send Us Photos of E15 Cost Savings in Your Area |
As we continue to make our argument for year-round E15 to the EPA, on Capitol Hill, and in state legislatures around the country, we've found that a picture really is worth a thousand words. If you see an example of significant cost savings at a fuel station near you, take a picture (like the one above) and share it with us! We'll put your photos to good use telling the story of how E15 saves drivers money. Email them to hcullen@growthenergy.org.
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For more information, please contact Vice President of Government Affairs John Fuher. |
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Growth Energy Hosts Webinar on Biofuels Funding for Iowa Retailers |
This week, Growth Energy's Market Development team, in conjunction with Iowa Corn and the Iowa Renewable Fuels Association, hosted a webinar for Iowa retailers looking to learn more about upgrading their infrastructure for higher ethanol blends in order to boost their bottom line. State and federal funding is available through the USDA's Higher Blends Infrastructure Incentive Program (HBIIP) and Iowa's Renewable Fuels Infrastructure Program (RFIP). The webinar was attended by 35 retailers who all operate sites in Iowa.
Learn more about how Growth Energy's Market Development team helps retailers gain a competitive advantage with E15 (Unleaded 88) at Grants@GrowthEnergy.org. |
For more information, please contact Vice President of Market Development Jake Comer. |
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Growth Energy Chairman Meets with USDA Secretary Vilsack, EPA Administrator Regan at Commodity Classic |
Growth Energy Chairman Tom Willis (left) meets with USDA Secretary Tom Vilsack (center, striped tie) and EPA Administrator Michael Regan (right of Vilsack, blue coat). |
Growth Energy Board Chairman Tom Willis and Growth Energy SVP of Membership Kelly Manning were in Houston last week for the Commodity Classic, a large annual farmer-led, farmer-focused conference. While there Willis had the opportunity to speak with USDA Secretary Tom Vilsack and EPA Administrator Michael Regan (pictured above). This year was the largest Commodity Classic ever, with a record 11,537 attendees. Next year's will take place March 2-4, 2025 in Denver, Colo.
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For more information, please contact Senior Vice President of Membership Kelly Manning. |
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