No. 296, October 5, 2023

TOP STORY

Last Saturday, the U.S. House of Representatives led by Speaker Kevin McCarthy (R-Calif.), passed a last-minute continuing resolution to avoid a government shutdown and fund the government for 45 days, until November 17th. The Senate cleared the funding bill later that night which was subsequently signed into law by the President. The final funding package included regular government funding at 2023 levels, $16B in disaster relief, reauthorization of the Federal Aviation Administration (FAA) through the end of 2023, and did not include funding for Ukraine.

In response to bipartisan passage of the funding bill, a small portion of the GOP Conference in the House questioned (now-former) Speaker McCarthy's negotiations with the other side of the aisle. Rep. Matt Gaetz (R-Fla.) had previously warned that if Speaker McCarthy relied on Democratic support to pass a short-term spending bill, he would introduce a motion to vacate--a move to oust Rep. McCarthy from his position as Speaker of the House.

On Tuesday afternoon, Gaetz joined seven other Republicans and the entire Democratic caucus in voting for a motion to vacate. The motion passed, officially removing Rep. McCarthy as Speaker. A few short hours later, Rep. McCarthy announced he would not attempt another run for the position. The race for a new Speaker is now on, with names like Rep. Steve Scalise (R-La.) and Rep. Jim Jordan (R-Ohio) in the mix for top contender. The House GOP Conference election for Speaker is to occur during the week of October 9th.

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

WEEKLY EIA DATA

Last week, domestic ethanol demand was 12.5 BGY, down 7.0% compared to a week ago. The EIA-reported gas demand was down 7.0% from last week, at 122.9 BGY. The 4-week average ethanol and gas demand are 13.0 and 127.8 BGY.

Ethanol production was 15.5 BGY last week, unchanged versus the week before, and 2.8% more than the 4-week average in 2019. Midwest production was up 0.7% (+2.1 MG) versus a week ago, and average production in the other regions was down 12.1% (-2.1 MG), mainly the East Coast region. Capacity utilization of plants online was 89.0% overall, 90.3% in the Midwest, and 69.6% on average, elsewhere, excluding 1,415 MGY of capacity shutdown at 28 ethanol plants for other than maintenance (details on pg. 31). On an installed capacity basis, utilization was 82.3% overall, 86.8% in the Midwest and 41.6% in the other regions.

Exports were an estimated 28.0 MG last week based on 120 MG/mo. of exports forecast for September. The EIA reported no ethanol imports last week.

Overall inventory was up 24.8 MG last week. EIA-counted stocks decreased 6.9 MG, and regional changes were: East (-0.5 MG), Gulf (-13 MG) and West (+12 MG) Coasts and the Midwest (-6 MG). In-transit inventory increased 31.7 MG.

Based on the total inventory of 1,751 MG on September 29th and the 4-week avg. domestic demand, there were 48.5 days of supply, up 2.2 days versus a week ago. Including the 4-week avg. of net exports, there were 43.8 days of supply, up 1.6 days versus a week ago.

For more information, please contact Jake Comer.

WORKING FOR YOU

UPCOMING EVENTS

National FFA Convention

Indianapolis, IN

November 1-4, 2023

Learn More

Get Bioethanol NASCAR Cup Series

Phoenix, AZ

November 5, 2023

IN REGULATORY AFFAIRS

During a California Air Resources Board (CARB) meeting on September 28th on potential updates to the state’s Low Carbon Fuel Standard (LCFS), Growth Energy’s Director of State Government Affairs Dallas Gerber provided verbal comments to CARB once again highlighting the value of ethanol to achieving California’s emissions reductions targets. Dallas noted CARB’s recent update to their modeling, recognizing the positive impact carbon sequestration has on ethanol’s carbon intensity score, and reiterated E15’s ability to provide immediate emissions reductions in the wake of such an update. 

Additionally, Senior Vice President of Regulatory Affairs Chris Bliley submitted extensive written comments to CARB on changes to the LCFS, including data showing the financial and health benefits E15 can provide Californians. 

Click here to view the full recording of the meeting. Growth Energy's comments begin at the 5-hour 53-minute mark. 

Last week, Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley spoke on a panel hosted by the Environmental and Energy Study Institute (EESI). The briefing focused on the clean energy tax incentives enacted as part of the Inflation Reduction Act (IRA).

If you missed the live viewing, catch up on the discussion in the video above. 

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

IN GOVERNMENT AFFAIRS

We had a fantastic Growth Energy Biofuels Summit this year, and while we were on the Hill we found that a number of lawmakers had questions about co-products--What are they? How do they fit into the biofuel production process? Why are they important?

Whether it's animal feed, food-grade CO2, bioplastics, or anything else, we want to hear about what unique and value-added co-products (beyond biofuels) that you're involved in manufacturing. Every story you share helps us educate lawmakers about all of the innovative things that are happening in the plant and on the farm, and further demonstrates our industry's pivotal role in cultivating the bioeconomy. 

To share your story, contact Holly Cullen.

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

IN MARKET DEVELOPMENT

In June, the Department of Agriculture (USDA) announced funding programs made available by the Inflation Reduction Act, making $450MM available for biofuel infrastructure over the next 18 months. The program will share the costs related to upgrading fuel dispensers (gas and diesel pumps), related equipment, Underground Storage Tanks (USTS), and other infrastructure required at a location to ensure the environmentally safe availability of biofuels. Eligible biofuels include E15, E85, and B5+.

Round 1 has already closed, but there are still several rounds to go, with the next one running from October 1 - December 31, 2023.

Don’t miss out. Contact the Growth Energy team to learn more: MarketDevelopment@GrowthEnergy.org

This year's U.S. Grains Council Global Ethanol Summit is coming up! Growth Energy CEO Emily Skor will be moderating a panel titled, Government Perspective: Global Ethanol Policies and Regional Success Stories. The panel will feature leaders from across the globe who have pursued successful bioethanol policies over the years.

The summit will take place in Reston, Va. from October 16-18, 2023. As a Growth Energy member, you are entitled to the USGC member rate at registration. To find out more information on this event and how to register, click here.

For more information, please contact Senior Vice President of Market Development Mike Lorenz.

IN MEMBERSHIP

PROtect, a Growth Energy associate member, will be hosting a webinar October 6th on the lessons learned from recent ethanol industry property related incidents. Hosted by PROtect CEO Nathan VanderGriend, Senior Manager of Engineering Services Elizabeth Holtrop, and Process Engineering Consultant Ed Gaither, the webinar will cover valuable insights on how to safeguard your facility and efficiently reduce risks.

The webinar will be held October 6th at 11 AM EST. To register, click here. 

Didion Ethanol LLC, a Growth Energy producer plant member, recently held their 15th Annual Strong Communities Golf Outing. The event raised over $123,000, which will have a lasting impact on the lives of those in Didion's area communities through the Didion Foundation.

To learn more about the Foundation, click here and check out the video above!

For more information or to submit stories for your own member spotlight, please contact Vice President of Development Kelly Manning.

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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