TOP STORY

This week, Growth Energy CEO Emily Skor joined global biofuel industry leaders on a panel titled Business Models to Scale Biofuels Supply at S&P Global’s CERAWeek to discuss the changing biofuels supply chain and the central role that American bioethanol will have in further decarbonizing the transportation sector.

“Bioethanol plants are making all the optimizations at the plant, [including] looking at carbon sequestration. The last thing for us to do is to decarbonize that feedstock,” Skor said. “The good thing is that we can do that—through the Inflation Reduction Act (IRA) we can monetize the value of low-carbon farming and we can pay a premium for that low-carbon corn because of the tax credits provided for in the IRA.” 

Skor also called for will clearer support for biofuels from policymakers in Washington—including in the updated modeling guidelines that will be used to apply the IRA’s 40B sustainable aviation fuel credit and 45Z clean fuel production credit. “We’ve got to make sure the modeling of carbon intensity allows bioethanol to be competitive,” she said. 

Read more of Skor's comments here. Learn more about the importance of carbon modeling here.

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

LATEST EIA DATA

Last week, domestic ethanol demand was 13.8 BGY, down 2.6% compared to a week ago. The EIA-reported gas demand was down 2.6% from last week, at 135.0 BGY. The 4-week average ethanol and gas demand are 13.9 and 135.4 BGY (+0.3% YoY).

Ethanol production was 16.0 BGY last week, up 2.1% versus the week before, and 2.5% more than the 4-week average in 2019. Midwest production was up 2.3% (6.5 MG) versus a week ago, and average production in the other regions was unchanged. Capacity utilization of plants online was 90.4% overall, 92.1% in the Midwest, and 66.6% on average, elsewhere, excluding 1,157 MGY of capacity shutdown at 24 ethanol plants for other than maintenance (details on pg. 31). On an installed capacity basis, utilization was 84.9% overall, 89.7% in the Midwest and 41.4% in the other regions.

Exports were an estimated 29.4 MG last week based on 130 MG of exports forecast for March. The EIA reported no ethanol imports last week.

Overall inventory was up 8.7 MG last week. EIA-counted stocks increased 9.5 MG, and regional changes were: East (+1 MG), Gulf (+5 MG) and West (-3 MG) Coasts and the Midwest (+6 MG). In-transit inventory decreased 0.8 MG.

Based on the total inventory of 1,889 MG on March 15th and the 4-week avg. domestic demand, there were 49.6 days of supply, down 0.6 days versus a week ago. Including the 4-week avg. of net exports, there were 44.7 days of supply, down 0.5 days versus a week ago.

For more information, please contact Jake Comer.

WORKING FOR YOU

UPCOMING EVENTS

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

IN REGULATORY AFFAIRS

Growth Energy expressed disappointment yesterday in the U.S. Environmental Protection Agency’s (EPA) final rule on Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles.

“Since this rule was proposed last April, the Biden administration has heard loud and clear that it would be a mistake to ignore biofuels – a proven, abundant, and American-made solution to reduce emissions,” said Growth Energy CEO Emily Skor. “The final rule offers automakers some limited flexibility, but it fails to include any meaningful changes to ensure we’re not leaving biofuels on the sidelines.

“Experts worldwide agree that EVs alone cannot get us to a net-zero future. We need carbon savings within liquid fuels, and that requires a bigger role for American bioethanol. It’s baffling to see EPA accept a false choice between only two paths forward – fossil-fuel-only vehicles or mass adoption of EVs. Neither outcome reflects reality, and we’ll continue to work with our allies in Congress and across the heartland to demand a course correction that harnesses the full power of America’s low-carbon bioeconomy.”

Read more here.

Last week, Growth Energy’s Senior Vice President of Regulatory Affairs Chris Bliley submitted comments in support of legislation in Michigan that would create a tax incentive for the use of sustainable aviation fuel (SAF) in the state. The Michigan Senate Energy and Environment Committee heard testimony on SB 447, which would establish a $1.00 per gallon tax credit for the use of SAF and includes additional tax incentives for each percentage reduction in emissions past 50%.

“We are pleased to see the inclusion of the Argonne GREET model to measure reductions in greenhouse gas emissions,” wrote Bliley. He added “SB 447 represents an opportunity for Michigan farmers and biofuels producers to benefit from this still-nascent market poised to skyrocket in the coming decades.”

A copy of the written testimony can be found here.

Bliley also submitted comments to the Connecticut Joint Energy and Technology Committee in support of HB 5440, which requires the state’s Department of Energy and Environmental Protection to use Argonne GREET in any lifecycle analysis of biofuels. The Department is currently in the process of completing its Comprehensive Energy Strategy, a plan statutorily required to be completed every four years. In supporting the use of GREET, the testimony also pushed for “the inclusion of farm-level climate-smart agricultural practices,” citing data showing the “possibility of a 35 percent reduction in carbon intensity through adoption of current best on-farm practices.”

Growth Energy also took the opportunity to highlight the role higher blends of bioethanol can play in decarbonizing the state’s transportation fleet. The testimony noted that while E15 is available at more than 3,400 retail locations in 31 states, there are no retailers with E15 in Connecticut, and with E15 replacement, the state can reduce GHG emissions by more than 177,000 tons annually without taking a single car off the road.

You can read the written testimony here.

Bliley is pictured with U.S. Grains Council's Isabelle Ausdal in front of Parliament Hill. 

This week, Growth Energy SVP of Regulatory Affairs Chris Bliley joined the U.S. Grains Council in Canada for meetings with a number of Canadian government agencies and members of parliament. Discussions were focused on implementation of Canada’s Clean Fuel Regulation, higher bioethanol blends, and sustainable aviation fuel (SAF).

This week, Reps. Darin LaHood (R-Ill.) and Randy Feenstra (R-Iowa) led a group of 20 members of Congress in sending a pair of letters to President Joe Biden, Agriculture Secretary Tom Vilsack, and U.S. Trade Representative Katherine Tai urging the administration to take action on biofuel exports – particularly in Brazil.

In the first letter, led by Rep. Feenstra, the group of lawmakers urged the administration to support American biofuel producers during global trade discussions. “The United States should negotiate market-opening free trade agreements, and the Biden administration should use these negotiations to level the playing field for American works, farmers, and business,” they wrote. “In the absence of enforceable [free trade agreements], we urge you to pursue an aggressive strategy to increase opportunities for market access through the reduction of trade barriers.” The letter mentioned trade barriers in Brazil, India, the United Kington, and Mexico.

The second letter, led by Rep. LaHood, focused on the dual trade issue facing American bioethanol in Brazil. This letter coincides with a pending comment period opening at the Foreign Trade Chamber at the Brazil Ministry of the Economy (CAMEX) on Brazil’s tariff on U.S. ethanol. The letter encourages the administration to weigh in during this comment period and remind CAMEX of the current trade imbalance and its impact on our country’s ag industry.

“Brazil’s continued unfair treatment of U.S. exports displaces American ethanol and negatively impacts the rural communities we represent. We appreciate your continued attention to this matter and advocacy with CAMEX and the broader Brazilian government during this open comment period.”

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

IN GOVERNMENT AFFAIRS

Pictured L to R: Sheetz Senior Government Relations Manager Jason Bassett, Minnoco Executive Director Lance Klatt, NUVU Fuels Michigan CEO Carson Berger, Musket (Love's) GM Ethanol Paul Melton, and Growth Energy VP of Development Jake Comer. 

Yesterday, Growth Energy welcomed top retail leaders from NUVU Fuels, Sheetz, RaceTrac, and Musket/Love's to DC for a fly-in focused on pushing EPA for an E15 emergency waiver this summer. The group met with important Congressional and Biden administration officials, making it clear that ethanol supporters and retailers agree – we need year-round nationwide E15 in 2024.

Growth Energy and the biofuels industry need your help!

With continued inflation and volatile gas prices, higher blends of biofuels like E15 have saved American drivers as much as $1 per gallon at the pump – all while reducing emissions and supporting economic growth across rural America. In fact, the popularity of higher bioethanol blends is rising faster than ever, and American drivers have now logged more than 100 billion miles on the road using E15 (UNL88).   

Unfortunately, these cost savings could vanish from many markets on June 1, 2024, due to outdated federal restrictions on summer sales of higher ethanol blends.  

Last year, the Biden administration waived E15 restrictions on an emergency basis for the summer to deliver relief at the pump, and this year should be no different. America is the world’s largest producer of biofuels, and we should be making use of our full capacity in the push for affordable, cleaner energy. 

Additionally, global fuel supply issues persist, given the unrest in Ukraine, the Middle East, and the Red Sea shipping routes.

Join us in calling on lawmakers to press the Biden administration for action on an emergency RVP waiver ahead of the start of summer driving season.  

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 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.

IN MARKET DEVELOPMENT

This week, Growth Energy's Market Development team, in conjunction with Iowa Corn and the Iowa Renewable Fuels Association, hosted an in-person work day 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 work day was attended by 16 retailers. 

Learn more about how Growth Energy's Market Development team helps retailers gain a competitive advantage with E15 (Unleaded 88) by emailing us at Grants@GrowthEnergy.org.

Growth Energy's VP of Market Development Jake Comer and Manager of Market Development & Analytics Andrew Falco recently spent several days in California last week touring several retailers, visiting an ethanol transload facility, meeting with retailers they are writing HBIIP grants for, and spending a day with Pearson Fuel. Thank you to Pearson for hosting! 

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

ON THE TRACK 

This weekend, Austin Dillon will take the Get Bioethanol No. 3 Chevy to the rolling hills of Austin, Texas for Circuit of the Americas to celebrate the benefits of bioethanol. Follow along here and be sure to tune in on Sunday at 3:30 PM ET on NASCAR on FOX!

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

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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