| No. 254, December 8, 2022 |
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Growth Energy Leads Response to EPA's New RVO Proposal |
Just hours after we sent out last week's Rundown, EPA officially released its draft proposal—also known as the Set—for the volumes of renewable fuel that refiners are required to blend with other fuels for 2023, 2024, and 2025. And just minutes after the proposed rule was released, Growth Energy was in the press making sure its response was being heard.
"We are greatly encouraged by EPA’s strong proposal and appreciative of Administrator Regan’s support for the growing role ethanol continues to play in decarbonizing the transportation sector, now and into the future," said Growth Energy CEO Emily Skor in her statement. "We’re also appreciative that the proposal restores the final 250 million gallons of biofuel demand that had been illegally waived in the agency’s 2016 rule—a long-overdue fix that began with 2022 volumes. Moving forward, our opportunities for growth across both conventional and advanced biofuels are linked, so it’s important that EPA’s volumes must reflect industry growth and innovation—especially when it comes to the rapid expansion of renewable diesel.”
Read the full statement here. Now that the Set has been proposed, a comment period begins that will last until Feb. 10. EPA will also hold a virtual public hearing on Jan. 10, with the potential for an additional session to be held the following day if needed. Under the terms of its Consent Decree with Growth Energy, EPA is still required to deliver its final rule by June 14, 2023. We're already at work on our comments and recommendations and will continue to keep you posted on any developments.
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For more information, please contact Senior Vice President of Regulatory Affairs Chris Bliley. |
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Rail Strike Averted Update: House Introduces Companion Bill, Putting Year-Round E15 on the Docket for Both Chambers of Congress Make Your Voice Heard: Tell Ohio Senators to Support Ohio House Bill 165 |
Growth Energy to IRS: Make the Most of the IRA's 45Z and 45Q Tax Credits |
Registration for ELC Opening Soon |
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Last week, domestic ethanol demand was 13.0 BGY, up 0.5% compared to a week ago. The EIA-reported gas demand was up 0.5% from last week, at 128.1 BGY. The 4-week average ethanol and gas demand are 13.1 and 129.3 BGY and may be a better indication of current demand than the weekly snapshot due weekly data volatility.
Ethanol production was 16.5 BGY last week, up 5.8% versus the week before, and 3.0% more than the 4-week average in 2019. Midwest production was up 5.4% (+15.3 MG) versus a week ago, and average production in the other regions was up 12.5% (+2.1 MG). Capacity utilization of plants online was 95.6% overall, 96.2% in the Midwest, and 86.9% on average, elsewhere, excluding 1,373 MGY of capacity shutdown at 28 ethanol plants for other than maintenance. On an installed capacity basis, utilization was 89.4% overall, 93.6% in the Midwest and 52.3% in the other regions.
Exports were an estimated 28.5 MG last week based on 120 MG forecast for November and 140 MG for December. The EIA reported 2.9 MG of ethanol imports to California last week.
Overall inventory was up 38.4 MG last week. EIA-counted stocks increased 13.6 MG, and regional changes were: East (+1 MG), Gulf (+15 MG) and West (+8 MG) Coasts and the Midwest (-10 MG). In-transit inventory increased 24.8 MG.
Based on the total inventory of 1,767 MG on December 2nd and the 4-week avg. domestic demand, there were 47.9 days of supply, up 1.5 days versus a week ago. Including the 4-week avg. of net exports, there were 43.5 days of supply, up 1.4 days versus a week ago.
Based on US Census data, 16.8 MG of fuel ethanol were imported in October, with 16.0 MG from Brazil and 0.8 MG from Canada. Year-to-date imports have totaled 72.3 MG versus +3.3% versus 2021. In October, there were also 6.0 MG of ethanol imports reported for ETBE production for re-export to Japan, and 33.4 MG YTD.
Ethanol exports in October were 91.5 MG, including an estimated 8.5 MG used to make ETBE exported to Japan (assuming 44% of ETBE exports were derived from U.S. corn ethanol). The major export destinations were Canada (45 MG), Mexico (9 MG), India (7 MG) and the Netherlands (6 MG) and none to China. The total to EU countries, including the Netherlands, was 10 MG. Year-to-date, exports have totaled 1,295 MG, +21.3% vs. YTD 2021. |
For more information, please contact Vice President of Market Development Jake Comer. |
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Congress and the Administration stepped in at the 11th hour last week to preclude a rail strike from happening, thereby avoiding a period of major economic disruption for the ethanol industry and the American economy at large. Read our statement on the topic here. While the bill is now law and the threat of a strike is now eliminated for the foreseeable future, we will continue to monitor any other potential risks in the supply chain and keep you informed if and when they arise.
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Update: House Introduces Companion Bill, Putting Year-Round E15 on the Docket for Both Chambers of Congress |
The effort to enact legislation that would codify year-round access to E15 continues to gain momentum. After Senator Deb Fischer (R-Neb.) introduced an E15 bill (S. 5145, the Consumer and Fuel Retailer Choice Act) after Thanksgiving, a House companion billfollowed that would accomplish the same goal. Most recently Growth Energy signed onto a letter with hundreds of other organizations and companies calling on the Senate to take action on Fischer's bill. We will continue to urge legislators to endorse these bills and keep our membership abreast of their status.
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Make Your Voice Heard: Tell Ohio Senators to Support Ohio House Bill 165 |
Over the summer, as Ohio drivers faced record high gas prices, higher blends of biofuels like E15 saved drivers across the state an average of $.21 per gallon – and up to $.80 per gallon in some cities – all while reducing emissions and supporting economic growth across Ohio.
Made with more biofuel from energy harvested on Ohio farms, E15 is available to consumers now to reduce prices at the pump and offer a lower-carbon fuel option. Drivers can find it at almost 90 retail sites across Ohio and more than 2,700 locations across 30 states.
Supporting House Bill 165 would help more Ohioans enjoy the benefits of E15. It would increase access to lower-cost, lower-carbon fuel options at the pump, unlock dependable domestic markets for farm families, and grow Ohio's rural economy.
Join us TODAY in calling on Ohio lawmakers to support HB 165, an initiative which would provide a temporary, nonrefundable 5-cent tax credit to gas stations for every gallon of E15 they sell. |
For more information, please contact Senior Vice President of Regulatory Affairs Chris Bliley. |
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Growth Energy to IRS: Make the Most of the IRA's 45Z and 45Q Tax Credits |
Last Friday Growth Energy submitted comments in response to notices issued by the Internal Revenue Service (IRS) on implementation of tax credits under the Inflation Reduction Act (IRA) for clean fuel production (45Z) and carbon capture (45Q). In the comments, Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley called on regulators to ensure that both credits reflect the best available science, grow American jobs, and harness the unique contributions of U.S. biofuels to drive reductions in greenhouse gas (GHG) emissions. Read our press release and the full comments here.
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For more information, please contact Senior Vice President of Regulatory Affairs Chris Bliley. |
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Registration for ELC Opening Soon |
ELC 2023 will be held at one of Southern California's most picturesque hotels – the Waldorf Astoria Monarch Beach Resort & Club in Dana Point, California. Make plans now to participate: Wednesday, March 15 – Saturday, March 18, 2023. Watch your inbox for further information and your invitation.
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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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