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Growth Energy submitted new comments this week to the California Air Resources Board (CARB), criticizing the board’s latest updates to California’s Low Carbon Fuel Standard (LCFS) for unfairly singling out American biofuels in a way that will make it hard for them to generate credits under the program. 

Specifically, Growth Energy objected to a proposed “sustainability certification” requirement, calling it “an unfair and unnecessary double penalty for corn starch bioethanol.”  

“The [economic impact analysis] (EIA) acknowledges potential direct and indirect land use change (LUC) ‘is at least partially (and potentially fully) accounted for by the LUC scores added to crop-derived pathways,’” said Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley in the comments. “This acknowledgement renders the need for a sustainability certification moot as potential LUC concerns for crop-based feedstocks are addressed.” 

Furthermore, farmers that produce corn and other crops used in the production of biofuels would be required to use climate smart agriculture practices to qualify for the “sustainability certification.” However, those same farmers would still not receive any credit for the emissions-reducing impact of deploying those practices under the LCFS. 

For more information, please contact Senior Vice President of Regulatory Affairs Chris Bliley.

LATEST EIA DATA

Last week, domestic ethanol demand was 14.6 BGY, up 1.2% compared to a week ago. The EIA-reported gas demand was up 1.2% from last week, at 142.7 BGY. The 4-week average ethanol and gas demand are 14.3 and 139.9 BGY (+1.1% YoY).

Ethanol production was 16.4 BGY last week, down 2.5% versus the week before, and 3.3% more than the 4-week average in 2019. Midwest production was down 2.5% (-7.6 MG) versus a week ago, and average production in the other regions was down 1.7% (-0.3 MG) mainly in the Gulf Coast. Capacity utilization of plants online was 91.4% overall, 92.5% in the Midwest, and 76.5% on average, elsewhere, excluding 1,027 MGY of capacity shutdown at 22 ethanol plants for other than maintenance (details on pg. 31). On an installed capacity basis, utilization was 86.5% overall, 90.8% in the Midwest and 47.6% in the other regions.

Exports were an estimated 31.6 MG last week based on 140 MG of exports forecast for August.  The EIA reported no ethanol imports last week.

Overall inventory was down 1.2 MG last week. EIA-counted stocks decreased 0.1 MG, and regional changes were: East (-6 MG), Gulf (+11 MG) and West (+4) Coasts and the Midwest (-8 MG). In-transit inventory decreased 1.1 MG.

Based on the total inventory of 1,584 MG on Aug 23rd and the 4-week avg. domestic demand, there were 40.2 days of supply, up 0.1 days versus a week ago. Including the 4-week avg. of net exports, there were 36.0 days of supply, up 0.1 days versus a week ago.

For more information, please contact Jake Comer.

WORKING FOR YOU

UPCOMING EVENTS

Growth Energy Biofuels Summit

Washington, D.C.

September 9-12, 2024

Learn More

IN OUR ASSOCIATION

Members of the Conestoga Energy and SAFFiRE teams join Growth Energy CEO Emily Skor (seventh from left) and other partners at yesterday's groundbreaking ceremony.

Growth Energy Members Conestoga Energy and SAFFiRE Renewables broke ground yesterday on a new facility that will eventually produce cellulosic bioethanol from corn stover--then convert that bioethanol into sustainable aviation fuel (SAF). Growth Energy CEO Emily Skor attended the event, along with Kansas Senators Jerry Moran (R) and Roger Marshall (R), Kansas Rep. Tracey Mann (R), Federal Aviation Administrator (FAA) Deputy Regional Administrator Debra Sanning, and U.S. Department of Energy Bioenergy Technologies Office Director Valerie Sarisky-Reed. 

In his opening remarks before the groundbreaking, Conestoga CEO (and current Growth Energy Chairman) Tom Willis called on attendees to "remember today." 

"This is a day where western Kansas goes from producing natural gas energy, to the start of producing sustainable aviation fuel with our partner SAFFiRE," he said. "This is transformational for western Kansas. This is transformational for the airline industry. This is transformational for agriculture and the value that it brings. It started here."

Willis addresses the crowd during the program preceding yesterday's groundbreaking.

Skor echoed Willis in her remarks, saying that the plant "has the potential to be a big step for Kansas—and a huge leap for the entire biofuels industry." She also called on policymakers to help support the project through the 45Z clean fuel production tax credit, for which guidance from the U.S. Treasury is still pending.

"SAF is a multi-billion-dollar opportunity for rural America," she added. "Getting to that future will take all of us. It will take innovators like Conestoga and SAFFiRE. It will take policymakers like our champions here today, creating the right conditions and sending the right market signals. That means a 45Z clean fuel production credit that allows rural America to prosper at the speed of innovation, not the snail’s pace of bureaucracy."

Skor delivering her remarks.

Growth Energy congratulates both of our members for this exciting and potentially game-changing development for the future of cellulosic biofuel and SAF. You can read more about the event on KSCB News.

Did you know that you can access all past newsletters, webinars, and events information, at any time, in our Member Portal?

Log in here to access the exclusive archival content.

For more information, please contact Senior Vice President of Development Kelly Manning.

IN MARKET DEVELOPMENT

From left to right, Jeff Wilkerson of Pearson Fuels, and Growth Energy's John Fuher and Jake Comer.

Growth Energy's Market Development Team hosted its Retailer Retreat this week. The event welcomed more than 25 attendees representing 11 retailers and over 15,000 gas stations in the U.S. to Park City, Utah for a multi-day educational forum complete with numerous networking opportunities. Attendees heard from Growth Energy staff about the organization's federal and state policy work and how it impacts fuel retailers, and learned more about the immense value that E15 provides to both retailers and their customers.

Learn more about how Growth Energy helps fuel retailers sell more biofuels in the retailer hub.

For more information, please contact Vice President of Market Development Jake Comer.

IN MEMBERSHIP

Growth Energy's Kelly Manning (second from right) with fellow golfers at the Oxbow Country Club.

This week, Growth Energy's SVP of Development Kelly Manning traveled to Oxbow, N.D. to support our member, the North Dakota Ethanol Producers Association (NDEPA), for their golf scramble to raise funds for the NDEPA PAC.

Around 100 members, sponsors, and golfers turned out to support NDEPA on the course. The tournament was followed by a banquet and awards ceremony for the golfers.

Continued support for associations like NDEPA is important to help drive the industry forward. Looking ahead, the next NDEPA event is a clay shoot in Bismarck, N.D. on September 20, 2024. To stay updated on NDEPA activity and events, follow North Dakota Ethanol on Facebook.

As a reminder, the Iowa Utilities Commission (IUC) will host public informational meetings in 23 counties across the state regarding the expansion of the carbon pipeline to be built by Growth Energy Member Summit Carbon Solutions. The meetings are an important opportunity for residents to learn more about the project, the benefits of carbon capture, and the steps Summit is taking to ensure safety and environmental protection. 

Here are the next upcoming meetings. To view the full slate of meeting dates, click here.

Date: August 28, 2024 at 12 p.m.

Location: Clover Hall, Greene County Fairgrounds, 601 E. Lincoln Way, Jefferson, IA 50129

Docket: HLP-2024-0004

Date: August 28, 2024 at 6 p.m.

Location: Cardiff Center, Fort Frenzy, 3232 First Ave S., Fort Dodge, IA 50501

Docket: HLP-2024-0003

Date: August 29, 2024 at 12 p.m.

Location: Jewell Golf Club Banquet Room, 1225 Main St., Jewell, IA 50130

Docket: HLP-2024-0002

Date: August 29, 2024 at 6 p.m.

Location: Albrights Bluff, 119 Main St., Iowa Falls, IA 50126

Docket: HLP-2024-0002

Summit is encouraging any interested parties to attend and participate in these informative sessions. If you are interested in speaking on behalf of the project, please reach out to Kelly Manning at kmanning@growthenergy.org.  

For more information, please contact Senior Vice President of Development Kelly Manning.

IN GOVERNMENT AFFAIRS

Summer driving season is winding down, but we're still urging you to fill up with lower-cost, lower-carbon E15 (Unleaded 88) at the pump as you hit the road! 

We must 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. Next time you fill up with E15, 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.   

For more information, please contact Vice President of Government Affairs John Fuher.

Growth Energy is the leading voice of America’s biofuel industry, delivering a new generation of plant-based energy and climate solutions.

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The Rundown is the weekly newsletter for Growth Energy's members. It is published weekly by the communications staff at Growth Energy. For more information, email team@growthenergy.org or visit our website GrowthEnergy.org. 

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