No. 278, June 1, 2023

TOP STORY

Growth Energy applauded the Nebraska legislature's approval of the Adopt the E-15 Access Standard Act (LB 562) this week. The bill, sponsored by Sen. Myron Dorn (R-30), would expand access to E15 at more Nebraska fueling stations and increase tax incentives for fuel retailers selling higher bioethanol blends.

“This legislation cements Nebraska’s leadership role in homegrown, renewable energy, ensuring that more drivers can enjoy savings at the pump thanks to the state’s world-class biofuel sector,” said Growth Energy CEO Emily Skor. “We’re grateful to Senator Dorn, Governor Pillen, and other leaders in the legislature for working to get this important new law over the finish line. Growth Energy looks forward to working alongside our farm and retail partners to fully unleash E15 in Nebraska, boost the state’s rural economy, and cut fuel costs for working families.”

Passage of LB 562 followed months of work by Growth Energy, POET, Renewable Fuels Nebraska, and other biofuel and ag leaders in the state to expand access to E15. Under the bill, requirements for new fuel sites would take effect in January 2024, while requirements for existing sites would take effect in January 2028, if the state’s blend rate remains below 14 percent. Modeled after a similar E15 access standard in Iowa, the final bill is expected to be signed into law by Governor Pillen today. Read Growth Energy's full statement here.

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

EIA WEEKLY ETHANOL DATA

Last week, domestic ethanol demand was 14.7 BGY, up 5.9% compared to a week ago. The EIA-reported gas demand was up 5.9% from last week, at 144.7 BGY.  The 4-week average ethanol and gas demand are 14.1 and 139.0 BGY. Volatility in the weekly data has continued but the overall trend in demand has been decidedly upward this year and this spring.

Ethanol production was 15.1 BGY last week, down 0.4% versus the week before, and 6.4% less than the 4-week average in 2019. Midwest production was down 0.1% (-0.3 MG) versus a week ago, and average production in the other regions was down 5.5% (-0.9 MG). Capacity utilization of plants online was 87.3% overall, 88.0% in the Midwest, and 75.9% on average, elsewhere, excluding 1,480 MGY of capacity shutdown at 29 ethanol plants for other than maintenance. On an installed capacity basis, utilization was 81.6% overall, 85.9% in the Midwest and 43.2% in the other regions.

Exports were an estimated 27.1 MG last week based on 120 MG of exports forecast for May. The EIA reported no ethanol imports last week.

Overall inventory was down 24.5 MG last week. EIA-counted stocks decreased 48.3 MG, and regional changes were: East (-7 MG), Gulf (-31 MG) and West (-2 MG) Coasts and the Midwest (-9 MG). In-transit inventory increased 23.8 MG.

Based on the total inventory of 1,791 MG on May 19th and the 4-week avg. domestic demand, there were 47.0 days of supply, down 0.3 days versus a week ago. Including the 4-week avg. of net exports, there were 42.7 days of supply, down 0.2 days versus a week ago.

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

WORKING FOR YOU

UPCOMING EVENTS

Growth Energy Spring Fly-In

June 6-8, 2023

Get Bioethanol NASCAR Enjoy Illinois 300

Madison, IL

June 4, 2023

Fuel Ethanol Workshop (FEW)

Omaha, NE

June 12-14, 2023

IN REGULATORY AFFAIRS 

In California, the recent California Air Resources Board (CARB) workshop on a proposed Auto-Accelerating mechanism (the “ratchet”) of the Low Carbon Fuel Standard (LCFS) targets provided the opportunity for input from stakeholders. The major question is whether to implement the mechanism for one year and “freeze” it until the targets and credit prices are stabilized, or to shift the targets forward, thereby accelerating future benchmarks. Growth Energy plans to once again submit comments on this matter, as well as comments on California's updated calculators for the LCFS.

Details here:  LCFS Meetings and Workshops | California Air Resources Board.  

Meanwhile, in Illinois, both chambers of the legislature passed a tax revenue omnibus related to the state budget. The bill, SB1963, contains a new 10% sales tax reduction for E15 and a 20% sales tax reduction for “mid-range blends” of between 20% and 51% ethanol through 2028. The bill also extends a 100% sales tax reduction for E85 through 2028. There are also changes to Illinois’ sustainable aviation fuel (SAF) tax credit (including allowing the credit for “air common carriers,” bringing it in line with the existing international fuel credit), among other changes and clarifications. Read the full text here.

Lastly, in Minnesota, Governor Tim Walz signed the state’s budget into law this past Wednesday. The budget includes additional funding for biofuels infrastructure to help retailers with equipment upgrades. A $1.50/gallon sustainable aviation fuel (SAF) tax credit was also included, with $7.4 million allocated for it in the 2024-2025 budget. Additionally, a Clean Transportation Fuel Standard Work Group was created, with the directive to “study and address information gaps and opportunities related to a clean transportation fuel standard.” The work must be based on reductions from 2018 baseline of 25% by the end of 2030, 75% by the end of 2040, and 100% by the end of 2050. Membership of the working group is detailed in the statute.

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

IN GOVERNMENT AFFAIRS

Our June Spring Fly-In is next week and we hope to see you in DC! If you have any last-minute questions, email Senior Manager of Government Affairs Katie Webster.

Now that we've secured a summertime waiver to keep E15 available, we can keep saving at the pump. 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.

Please email your photos to kwebster@growthenergy.org.  

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

IN OUR ASSOCIATION

Whitefox Technologies, a Growth Energy associate member, and The Andersons, Inc., a Growth Energy producer plant member, announced the successful install of the Whitefox ICE® membrane dehydration system at the latter's ethanol plant located in Denison, Iowa. This is Whitefox’s eleventh installation in the U.S., and its fourth installation in Iowa.  

The Whitefox ICE® system treats existing recycle streams to free up and debottleneck distillation-dehydration capacity, enabling The Andersons and other producers to lower natural gas use, cut carbon emissions, improve plant cooling, and increase potential production capacity depending on the system design. Whitefox ICE® is integrated into existing corn ethanol production plants with minimal disruption and a small footprint. 

Malcolm Rock, Whitefox COO, commented “The goal of this installation is to decrease carbon emissions by reducing steam consumption per gallon of ethanol produced. Our process engineers designed a tailored solution that fits the distinctive features of the Denison plant integrating heat where possible. Together with The Andersons, I am pleased to see the final stages of the project coming together. It has been a real pleasure to work with Bill Krueger, and the team at the Denison plant.”

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

ON THE TRACK

This weekend, Austin Dillon will take the Get Bioethanol No. 3 Chevy to St. Louis. The car, which showcases the performance benefits of racing with engine-smart and earth-kind bioethanol blended fuel, Sunoco Green E15, will drive under the lights at the World Wide Technology Raceway. Follow along here and be sure to tune in on Sunday!

For more information, please contact Director of Sales and Marketing Ryan Welsh.

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. 

You're receiving this newsletter because you've subscribed to Growth Energy's The Weekly Rundown.

Not interested anymore? Unsubscribe instantly.

Copyright © 2023 Growth Energy.