No. 266, March 9, 2023

TOP STORY

Growth Energy last week hailed a final rule by the Arizona Department of Agriculture Weights and Measures Services Division to allow the sale of E15 in the greater Phoenix area under the state’s Clean Burning Gasoline (CBG) program. While E15 is currently allowed in other areas in Arizona, regional restrictions will no longer discourage retailers from bringing new options to the pump statewide. The rule took effect on March 5, 2023.

“E15 delivered big savings for working families over this past year, and that momentum continues to grow,” noted Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley, who submitted comments in favor of the rule last August. “We’re excited to see Arizona opening the door for more drivers to take advantage of lower-cost, lower-carbon E15 blends. Not only will this rule lift outdated limits on our retail partners, it positions Arizona to take full advantage of new federal infrastructure resources to expand competition at the pump. We’re grateful to the Arizona Department of Agriculture and leaders in the Weights and Measures Services Division, as well as the Arizona Department of Environmental Quality’s Air Quality Division and Maricopa Association of Governments, for their diligent work to help us get this important update over the finish line.”

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

EIA WEEKLY ETHANOL DATA

Last week, domestic ethanol demand was 13.4 BGY, down 6.0% compared to a week ago. The EIA-reported gas demand was down 6.0% from last week, at 131.3 BGY.  The 4-week average ethanol and gas demand are 13.6 and 133.6 BGY.

Ethanol production was 15.5 BGY last week, up 0.7% versus the week before, and 1.4% less than the 4-week average in 2019. Midwest production was up 0.6% (+1.8 MG) versus a week ago, and average production in the other regions was up 2.2% (+0.3 MG). Capacity utilization of plants online was 89.3% overall, 91.0% in the Midwest, and 63.2% on average, elsewhere, excluding 1,355 MGY of capacity shutdown at 27 ethanol plants for other than maintenance. On an installed capacity basis, utilization was 83.9% overall, 89.0% in the Midwest and 38.2% in the other regions.

Exports were an estimated 28.0 MG last week based on 110 MG of exports forecast for February and 130 MG for March. The EIA reported no ethanol imports last week. Overall inventory was up 8.7 MG last week. EIA-counted stocks increased 22.9 MG, and regional changes were: East (+18 MG), Gulf (+24 MG) and West (-12 MG) Coasts and the Midwest (-9 MG). In-transit inventory decreased 14.2 MG.

Based on the total inventory of 1,950 MG on March 3rd and the 4-week avg. domestic demand, there were 52.3 days of supply, down 0.1 days versus a week ago. Including the 4-week avg. of net exports, there were 47.3 days of supply, down 0.1 days versus a week ago.

Based on US Census data, 1.0 MG of fuel ethanol were imported in January, with none from Brazil and 1.0 MG from Canada. In 2022 imports totaled 94.9 MG, +30.2% versus 2021.  In January, there were no ethanol imports reported for ETBE production for re-export to Japan, and 44.9 MG total in 2022 (-2.6% vs. 2021).

Ethanol exports in January were 126.3 MG, including an estimated 7.7 MG used to make ETBE exported to Japan (assuming 44% of ETBE exports were derived from U.S. corn ethanol). The major export destinations were Canada (48 MG), United Kingdom (18 MG0, South Korea (16 MG), India (9 MG) and The Netherlands (7 MG). total to Europe (EU + UK) was 31 MG. There was none to China, or Brazil. For 2022, exports totaled 1,468 MG, +8.2% vs. 2021.

WORKING FOR YOU

UPCOMING EVENTS

2023 Growth Energy Executive Leadership Conference 

March 15-18, 2023

Dana Point, Calif.

Get Bioethanol NASCAR Paint Out

March 26, 2023

Austin, Texas

IN REGULATORY AFFAIRS

Last week, EPA released a proposal to address a petition from eight Midwest governors seeking to ensure that retailers in those states can continue to offer year-round access to E15. However, the proposal would not take effect until 2024, and would not be applicable to this summer. However, EPA has said it will look at what tools it has for the retail sale of E15 for this summer.

In response, Iowa Attorney General Brenna Bird and Nebraska Attorney General Mike Hilgers announced their intent to sue the Environmental Protection Agency (EPA) for delaying its decision regarding whether to allow year-round sales of higher-ethanol fuel blends this summer. 

“The EPA needs to follow the law and make E15 gasoline available year-round,” AG Bird said in a statement. “With record-high gas prices, consumers deserve relief and flexibility when paying at the pump. The EPA’s failure to respond on time not only deprives hard-working Iowans of a cheaper, cleaner option, it’s also a violation of the Clean Air Act.”

Ensuring that retailers have the ability to sell E15 this summer through an emergency waiver continues to be among our highest priorities. We will continue to work with lawmakers on the state and federal levels on this important issue.

Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley and Senior Vice President of Development Kelly Manning attended the Nebraska Ethanol Board's Emerging Issues Forum in La Vista, Neb. Bliley participated in the Federal and Global Policy panel and discussed a number of issues including updates on year-round E15, the RFS Set proposal from EPA, the Inflation Reduction Act, and Sustainable Aviation Fuel. Nebraska Governor Jim Pillen also discussed the importance of year-round nationwide access to E15 and his efforts to expand E15 availability across Nebraska.

Growth Energy again called on the EPA to rely on the best available science in its assessment of the environmental impacts of ethanol production and of the Renewable Fuel Standard (RFS).

In response to a call for comments on EPA’s draft Third Triennial Report on biofuels and the environment, Growth Energy noted that while the report correctly makes several important conclusions about the biofuels industry, it continues to rely too heavily on outdated science that inaccurately measures the nature and scale of the environmental impacts attributable to the RFS. 

“Biofuels are an essential tool for combatting climate change with enormous potential for decarbonizing the transportation fuel sector, while bolstering domestic energy security, providing jobs in rural areas, and lowering the price at the pump for consumers,” said Growth Energy. 

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

IN OUR ASSOCIATION

Growth Energy's ELC 2023 – to be held at one of Southern California's most picturesque hotels, the Waldorf Astoria Monarch Beach Resort & Club in Dana Point – is now just one week away.

We are looking forward to welcoming over 500 attendees to Dana Point, CA, where we will chart a course for 2023 and share our vision for America’s clean energy future. We'll be hosting panels on issues such as:

• Unlocking the Inflation Reduction Act
• Get Biofuel: The Green American Road Trip with Shawn Johnson
• Soaring to New Heights: SAF Outlook
• The Future of E15: A Retail Perspective
• A Conversation with POET CEO Jeff Broin
• USTR Chief Agricultural Negotiator Doug McKalip

What are you most looking forward to? Share with us on Twitter and learn more at GrowthEnergy.org/ELC

POET, the world’s largest producer of biofuels, is celebrating its 35th anniversary.

The company, which built its success from humble beginnings, has experienced unparalleled growth since its inception in 1987 ‒ becoming the largest and fastest-growing biofuels company on the planet. What began as a small-scale bioethanol plant on the Broin family farm led to the purchase of a one-million-gallon-per-year facility in Scotland, South Dakota, and has fueled a legacy of innovation and economic growth across America’s Heartland, now processing 7% of the U.S. corn crop into biofuel and plant-based bioproducts.

Now, POET boasts an annual production rate of three billion gallons of bioethanol, 14 billion pounds of animal feed, and 1 billion pounds of corn oil. The company’s heavy investment in biotech research and development has resulted in a suite of more than a dozen value-added bioproducts, and each of POET’s 33 bioprocessing plants contributes an average of $200 million to its local economy. Read more here.

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

IN COMMUNICATIONS

Last month, we announced Get Biofuel's new consumer campaign The Green American Road Trip, an initiative designed to show drivers how they can lower their carbon emissions just by filling up their cars with higher biofuel blends like Unleaded 88. 

This week, we released the spring road trip itineraries so you can follow along with Shawn Johnson East and her family's adventures, and plan your own greener, cleaner getaway. Check out The Green American Road Trip website at the link below!

For more information, please contact Vice President of Communications Elizabeth Funderburk. 

IN GOVERNMENT AFFAIRS

The Biden-Harris Administration, through the U.S. Department of Energy (DOE), announced $2.52 billion in funding for two carbon management programs to catalyze investments in transformative carbon capture systems and carbon transport and storage technologies. Funded by President Biden’s Bipartisan Infrastructure Law, the two programs—Carbon Capture Large-Scale Pilots and Carbon Capture Demonstration Projects Program—aim to significantly reduce carbon dioxide (CO2) emissions from electricity generation and hard-to-abate industrial operations, an effort critical to addressing the climate crisis and meeting the President’s goal of a net-zero emissions economy by 2050.  

The new programs will help accelerate the demonstration and deployment of carbon management technologies, supporting the Biden-Harris Administration’s efforts to create good-paying manufacturing jobs, reduce pollution to deliver healthier communities, and reinforce America’s global competitiveness in the clean energy technologies of the future.    

“Drastically cutting emissions across our economy through next-generation carbon management technologies is a critical component of President Biden’s strategy to combat the climate crisis and achieve our ambitious clean energy goals,” said U.S. Secretary of Energy Jennifer M. Granholm. Read more about these new funding opportunities for carbon capture here. 

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 ones 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 kwebster@growthenergy.org. 

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

The Weekly 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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