| No. 260, January 26, 2023 |
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Growth Energy Highlights Ways for Ethanol Producers to Lower Their CI Score |
Ethanol producers across the country are constantly innovating to lower the overall greenhouse gas (GHG) emissions of their operations. These efforts to reduce carbon intensity (CI) scores sector-wide have gained new urgency, however, with the enactment of the Inflation Reduction Act (IRA) last year. In particular, the Section 45Z Clean Fuel Production Credit is determined by how much GHG emissions can be reduced. Growth Energy has been, and continues to be, actively engaged in the implementation of the IRA and recently filed detailed comments to the IRS outlining our strong push that the IRS use the Argonne National Laboratories’ most recent GREET model to produce an emissions rate table for ethanol that reflects the variety of methods by which a biofuel producer can significantly reduce their fuels’ emissions rate. As part of our comments filed in December, we partnered with Lifecycle Associates to closely examine the detailed options for ethanol producers to lower their carbon intensity. Their full analysis is here and a chart on potential CI reductions is included below.
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For more information, please contact Senior Vice President of Regulatory Affairs Chris Bliley. |
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Last week, domestic ethanol demand was 12.7 BGY, up 1.1% compared to a week ago (we assume 10.18% ethanol penetration in 2023, up from 10.12% in 2022). The EIA-reported gas demand was up 1.1% from last week, at 124.8 BGY. The 4-week average ethanol and gas demand are 12.2 and 119.8 BGY and reflect the holidays, winter storms and end-of-year effects in the prior weeks’ data.
Ethanol production was 15.5 BGY last week, up 0.4% versus the week before, and 1.6% less than the 4-week average in 2019. Midwest production was up 0.5% (+1.5 MG) versus a week ago, and average production in the other regions was down 2.0% (-0.3 MG). Capacity utilization of plants online was 89.4% overall, 91.0% in the Midwest, and 67.4% 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 84.1% overall, 88.9% in the Midwest and 40.7% in the other regions.
Exports were an estimated 27.1 MG last week based on 120 MG of exports forecast for January. The EIA reported no ethanol imports last week.
Overall inventory was up 22.7 MG last week. EIA-counted stocks increased 70.3 MG, and regional changes were: East (+21 MG), Gulf (+18 MG) and West (+12 MG) Coasts and the Midwest (+19 MG). In-transit inventory decreased 47.6 MG.
Based on the total inventory of 1,858 MG on January 20th and the 4-week avg. domestic demand, there were 54.7 days of supply, up 1.9 days versus a week ago. Including the 4-week avg. of net exports, there were 48.7 days of supply, up 1.8 days versus a week ago. |
For more information, please contact Vice President of Market Development Jake Comer. |
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State Updates: E15 in Nebraska, SAF Credits in Illinois and Washington, and Retail Incentives for Ethanol Blends in Indiana |
Growth Energy Promotes Pro-Ethanol Report in WSJ |
Ethanol Myth vs. Fact with Dr. Andy: Car Benefits |
Space Is Limited - Register Now for ELC 2023! |
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State Updates: E15 in Nebraska, SAF Credits in Illinois and Washington, and Retail Incentives for Ethanol Blends in Indiana |
In Nebraska, legislation (LB 562) has been introduced in the state's unicameral legislature to implement a statewide E15 standard by 2027. The legislation is very similar to the statewide standard enacted by Iowa last year. A hearing has been scheduled in the Committee on Agriculture on the legislation for February 7th. We are continuing to work with stakeholders in Nebraska as well as our on-the-ground consultant in Lincoln to support the effort.
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Meanwhile, the Illinois General Assembly approved a 10-year consumer (airline) credit for sustainable aviation fuel. Specifically, the legislation provides $1.50 per gallon for every gallon sold to or used by an airline in Illinois from 2023 until 2033 that meets a 50% carbon reduction using either the ICAO or GREET model and allows for on the farm accounting and CO2 sequestration. The language can be found on pages 133-138 of the full text of the bill here. The legislation is supported by the Governor and is expected to be signed into law.
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In Indiana, the General Assembly has introduced legislation (HB 1080) that would provide a $0.05 cent/gallon retail tax credit for ethanol blends from 15-85% with similar retail incentives for biodiesel. The bill is pending in the State House Ways and Means Committee. Growth Energy has continued to retain a local consultant who is actively supporting the legislation on our behalf.
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Finally, in Washington the legislature has introduced several bills to support sustainable aviation fuel. Most notably, they’ve introduced legislation to implement a $1/gallon credit for production or blending of SAF with an additional 2 cents for every 1% reduction in CO2 equivalent emissions, but not to exceed $2/gallon. We retain a consultant on the ground in Washington and are engaging the legislature on the bill.
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As always, Growth Energy will continue to keep you updated and urges its members to reach out to us directly if you have any questions. |
For more information, please contact Senior Vice President of Regulatory Affairs Chris Bliley. |
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Growth Energy Promotes Pro-Ethanol Report in WSJ |
Growth Energy sent a letter to the editor of the Wall Street Journal in response to a recent piece pitting two academics against one another in an argument about the environmental benefits of ethanol and biofuels. On the "pro-ethanol" side was a Harvard professor who smartly outlined the hard facts about ethanol's benefits to the environment, while the "anti-ethanol" writer cited the widely-debunked Lark study for most of his figures. Read Growth's letter highlighting the differences and the facts about ethanol's environmental bona fides here.
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Ethanol Myth vs. Fact with Dr. Andy: Car Benefits |
Tune in to our Myth vs. Fact video series with Dr. Andy Randolph of ECR Engines, who sets the record straight on common ethanol myths--this time about whether or not ethanol is good or bad for your car (spoiler alert: it's good). Watch the video here (and don't forget to share on your social media channels). |
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Two Weeks Left – Register Now for ELC 2023! |
For more information, please contact Senior Vice President of Development Kelly Manning. |
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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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