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Growth Energy filed a notice of intent to sue the U.S. Environmental Protection Agency (EPA) yesterday regarding the agency’s anticipated failure to meet its statutory deadline for issuing the 2026 Renewable Volume Obligation (RVO) under the Renewable Fuel Standard (RFS). 

EPA is required by law to finalize RFS volumes for 2026 by November 1, 2024. However, the White House’s recently-published Spring 2024 unified agenda indicates that the agency will not finalize the delayed 2026 RFS Set Rule until December 2025, more than a year late. 

“The law doesn’t change just because EPA gives advance notice of its failure to comply,” said Growth Energy CEO Emily Skor. “America’s biofuel producers and their farm partners rely on the certainty the RFS provides in order to make investments that bear fruit in the form of lower fuel costs for consumers, more jobs in rural communities, and lower carbon emissions.” 

Growth Energy has filed similar lawsuits to force EPA to comply with its statutory deadlines in 2020 and in 2021. 

Read the notice of intent to sue regarding the delayed 2026 RFS Set Rule here. 

For more information, please contact General Counsel Joe Kakesh.

LATEST EIA DATA

Last week, domestic ethanol demand was 14.5 BGY, down 2.2% compared to a week ago. The EIA-reported gas demand was down 2.2% from last week, at 141.8 BGY. The 4-week average ethanol and gas demand are 14.5 and 141.4 BGY (+4.2% YoY).

Ethanol production was 17.0 BGY last week, up 1.3% versus the week before, and 5.5% more than the 4-week average in 2019. Midwest production was up 1.0% (2.9 MG) versus a week ago, and average production in the other regions was up 6.7% (1.2 MG) mainly in the Gulf Coast. Capacity utilization of plants online was 95.0% overall, 95.9% in the Midwest, and 82.9% on average, elsewhere, excluding 1,087 MGY of capacity shutdown at 23 ethanol plants for other than maintenance. On an installed capacity basis, utilization was 89.6% overall, 93.8% in the Midwest and 51.7% in the other regions.

Exports were an estimated 33.9 MG last week based on 150 MG of exports for July.  The EIA reported no ethanol imports last week.

Overall inventory was up 9.4 MG last week. EIA-counted stocks increased 10.5 MG, and regional changes were: East (-3 MG), Gulf (-12 MG) and West (+8) Coasts and the Midwest (+18 MG). In-transit inventory decreased 1.1 MG.

Based on the total inventory of 1,644 MG on Jul 26th and the 4-week avg. domestic demand, there were 41.1 days of supply, up 0.3 days versus a week ago. Including the 4-week avg. of net exports, there were 36.6 days of supply, up 0.5 days versus a week ago.

For more information, please contact Jake Comer.

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IN REGULATORY AFFAIRS

Growth Energy responded last week to a request for information (RFI) from the U.S. Department of Agriculture (USDA) about how the agency should account for the impact climate smart agriculture (CSA) practices have on lowering the carbon intensity of bioethanol production. 

“While our biorefineries are focused on a range of innovative technologies to reduce carbon intensity at the plant, agriculture represents more than 50 percent of bioethanol’s carbon intensity (CI) score,” said Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley in the comment. “It is therefore essential to recognize the full range of climate-smart agriculture (CSA) innovation taking place on the farm – including farm applications such as cover crops, reduced tillage, manure application, crop nutrient management and other ag innovations – that can reduce the lifecycle CI score of bioethanol.” 

As it has in previous comments to other agencies, Growth Energy emphasized the importance of giving farmers flexibility that allows them to get credit for each and every CSA practice they deploy. Specifically, Growth Energy reiterated how the U.S. Treasury’s guidance on the 40B sustainable aviation fuel tax credit was too restrictive, and would steer farmers away from climate smart ag by requiring them to use three specific practices before they could qualify for the credit at all. 

Read Growth Energy’s full comment here. 

Chris Bliley (far left) with members of the Indiana Corn Marketing Council and Indiana Farm Bureau.

Growth Energy’s Senior Vice President of Regulatory Affairs, Chris Bliley, attended the U.S. Grains Council’s 64th Annual Board of Delegates Meeting in Salt Lake City, Utah. Along with numerous state grower groups, ethanol producers, and other stakeholders, Bliley participated in session discussions on key issues affecting ethanol exports around the world including funding from the Regional Agriculture Promotion Program (RAPP). Bliley was also recently appointed to the Ethanol Advisory Team (Ethanol A-Team) effective August 1, 2024, and participated in the Ethanol A-Team meeting where discussions focused on priority markets for the upcoming year. Read more here. 

Twenty-six associations (including Growth Energy) that represent the full U.S. agricultural supply chain jointly sent a letter yesterday calling on U.S. officials to take action to address capacity issues in the Mexican railway system that are negatively affecting ag trade between the U.S. and its southern neighbor.

"Partly due to the success of the United States-Mexico-Canada Agreement (USMCA), trade between the United States and Mexico is increasing faster than rail capacity in Mexico," the groups explain in the letter. "The increased demand for rail service coupled with insufficient investment in rail infrastructure has led to embargoes, congestion, and slowed servicing of U.S. agricultural products by Ferromex, a main rail carrier in Mexico."

The groups sent the letter to Surface Transportation Board Chairman Robert Primus, U.S. Secretary of Agriculture Tom Vilsack, and U.S. Trade Representative Katherine Tai. Specifically, the letter urges the officials "to speak with your colleagues in Mexico to encourage increased investment in the country’s rail network and to ensure U.S. agricultural products do not disproportionately bear the burden of rail service constraints."

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

IN LEGAL

Last week, the U.S. Court of Appeals for the D.C. Circuit issued an order vacating most of the U.S. Environmental Protection Agency’s 2022 denials of petitions for small refinery exemptions from Renewable Fuel Standard (RFS) obligations, and remanding those petitions to EPA for further proceedings. The court decision on small refinery exemptions remains under seal and is unavailable for public review.

Growth Energy, the Renewable Fuels Association (RFA), and the American Coalition for Ethanol (ACE), all of whom intervened on EPA’s behalf in the litigation, issued a joint statement in response to the order:

“We are extremely disappointed in today’s decision to vacate and remand EPA’s denial of dozens of small refinery exemption petitions. EPA’s decision in 2022 to deny the petitions was well-reasoned, based on sound economic analysis, and consistent with both the Clean Air Act and the objectives of the Renewable Fuel Standard. We will evaluate our next steps, which may include seeking further review of today’s decision. Our coalition remains resolute and committed to protecting and defending the proper implementation of the RFS.”

For more information, please contact General Counsel Joe Kakesh.

IN GOVERNMENT AFFAIRS

Fuher (second from right) joined fellow panelists for an EESI policy forum.

This week, Growth Energy Vice President of Government Affairs John Fuher spoke on a panel hosted by the Environmental and Energy Study Institute (EESI) as part of their 27th Annual Congressional Renewable Energy and Energy Efficiency Expo. 

Fuher discussed sustainable transportation alongside fellow experts including Michael Berube, Deputy Assistant Secretary for Sustainable Transportation and Fuels at the Department of Energy, who joined Growth Energy during last year's Biofuels Summit. 

You can watch a recording of all the panel discussions, including Fuher's, here.

Growth Energy members Vault 44.01 pose with Nebraska Senator Pete Ricketts (second from left).

Growth Energy member Vault 44.01 joined us in Washington, D.C. this week for meetings with Members of Congress on both sides of the aisle to discuss the benefits of carbon capture and sequestration projects to the biofuels industry. We also shared stories of the delays that ethanol plants are experiencing before the U.S. Environmental Protection Agency (EPA) while waiting for Class VI permit approval to begin these exciting projects. We'll continue to work with our champions to find ways to alleviate these delays at EPA. 

Growth Energy CEO Emily Skor filling up with Unleaded 88.

Summer driving season is fully underway, and we want to remind you to fill up with lower-cost, lower-carbon E15 (Unleaded 88) at the pump as you hit the road! 

Whether it's everyday errands or a cross-country road trip, join Growth Energy in our E15 Summer Challenge! Share your savings with us on social media using the hashtag #E15SummerChallenge!

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

IN MARKET DEVELOPMENT

Pearson Fuels, the largest and fastest-growing distributor of E85 in California, has announced that they will be offering significant savings through their retail station partners on August 5 in celebration of their first national E85 Day. 

E85 is a high-octane, renewable, biomass-based fuel containing up to 83% ethanol that is specifically designed for flex fuel vehicles (FFV). California uses more E85 than any state in the country and in 2023, E85 sales surged more than 14 percent. 

To show appreciation for their existing customers and encourage new FFV drivers to take advantage of this lower-carbon, renewable fuel, E85 will be offered for $1.85/gallon during a 24-hour period at the more than 200 participating Pearson Fuel retail stations. Drivers can find a station near them using their mobile app.

The average price in California for E10 (UNL 87) is $4.64 today, so FFV drivers in California are receiving a $2.79/gallon discount on average, if they take advantage of this offer. 

While E15 is still not approved for sale in the state, Growth Energy is helping retailers across the country apply for the U.S. Department of Agriculture’s (USDA) Higher Blends Infrastructure Incentive Program (HBIIP), to expand access to higher biofuel blends. Through outreach via partnerships including Pearson Fuels, Growth Energy wrote 64 percent of applications in the last round, which could result in more than 900 new E15 dispensers, nearly 400 new E85 dispensers, and over 500 new dispensers for biodiesel blends.

This week, Growth Energy Vice President of Market Development Jake Comer (pictured above) presented at the Clean Fuels National conference in Fort Wayne, Ind. to highlight the important role that carbon will play in the future of liquid fuels. Clean Fuels National holds their conference on an annual basis and is one of the premier service and maintenance conferences in the liquid fuels industry.

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

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