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Growth Energy last week urged the White House to swiftly finalize clear, flexible guidance for the 45Z clean fuels credit, which was signed into law two years ago on August 16.

“After two long years, we’re eager to see this administration’s clean fuel incentive reach its full potential,” said Growth Energy CEO Emily Skor. “That’s why we’ve been working closely with the administration and our bipartisan champions on Capitol Hill to ensure the Department of Treasury finalizes flexible guidance for 45Z, so farmers and biofuel producers can plan and invest ahead of the next harvest.

“Properly implemented, 45Z could be the starting pistol for rural communities waiting to access new economic opportunities and deliver on the promise of climate-smart agriculture. To unlock those investments, the White House must avoid pitfalls that encumbered its approach to the 40B sustainable aviation fuel (SAF) credit. That means setting the new guidelines without delay, and sending a strong market signal that all low-carbon innovations on the farm and at the plant will be properly rewarded."

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

LATEST EIA DATA

Last week, domestic ethanol demand was 14.4 BGY, up 1.6% compared to a week ago. The EIA-reported gas demand was up 1.6% from last week, at 140.9 BGY. The 4-week average ethanol and gas demand are 14.3 and 139.7 BGY (+1.5% YoY).

Ethanol production was 16.8 BGY last week, up 2.4% versus the week before, and 6.0% more than the 4-week average in 2019. Midwest production was up 2.4% (+7.1 MG) versus a week ago, and average production in the other regions was up 3.4% (+0.6 MG) mainly in the Gulf Coast. Capacity utilization of plants online was 93.7% overall, 94.9% in the Midwest, and 77.8% on average, elsewhere, excluding 1,027 MGY of capacity shutdown at 22 ethanol plants for other than maintenance (details on pg. 31). On an installed capacity basis, utilization was 88.7% overall, 93.1% in the Midwest and 48.5% in the other regions.

Exports were an estimated 31.6 MG last week based on 140 MG of exports forecast for August.  The EIA reported no ethanol imports last week.

Overall inventory was up 10.2 MG last week. EIA-counted stocks increased 9.2 MG, and regional changes were: East (+27 MG), Gulf (-11 MG) and West (-5) Coasts and the Midwest (-2 MG). In-transit inventory increased 0.9 MG.

Based on the total inventory of 1,585 MG on Aug 16th and the 4-week avg. domestic demand, there were 40.1 days of supply, up 0.5 days versus a week ago. Including the 4-week avg. of net exports, there were 35.9 days of supply, up 0.5 days versus a week ago.

For more information, please contact Jake Comer.

WORKING FOR YOU

UPCOMING EVENTS

Growth Energy Biofuels Summit

Washington, D.C.

September 9-12, 2024

Learn More

IN OUR ASSOCIATION

From left to right: AxAdvocacy's Samantha Dravis, Exxon/Mobil's Neil Hansen, and Skor.

This week, Growth Energy CEO Emily Skor joined a panel at the Conservative Energy Network's (CEN) Annual National Conservative Energy Summit in Houston, Tex. This summit brings together an unparalleled group of conservative clean energy advocates, policy experts, state and federal leaders, and technical specialists from across the nation.

Skor spoke on a panel entitled "Incentivizing Innovation: The Role of Tax Credits in Sustainable Aviation Fuels," alongside Neil Hansen, SVP of Global Energy Products at Exxon/Mobil and Samanthan Dravis, COO & Principal at AxAdvocacy.

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

IN MEMBERSHIP

Bill Krueger, The Andersons' newly-named CEO.

Growth Energy member The Andersons, Inc. announced that Bill Krueger, the company's current Chief Operating Officer, will succeed Pat Bowe as President and CEO effective October 1, 2024. Krueger also will be appointed to The Andersons Board of Directors, and Bowe will remain as the company's Chairman of the Board.

We look forward to working with Mr. Krueger in his new role. Read more here.

Growth Energy member Gevo recently released a report by Charles River Associates demonstrating the benefits of sustainable aviation fuel (SAF) production, including at Gevo’s planned Net-Zero 1 (NZ) alcohol-to-jet facility in South Dakota.

"This report shows that reducing greenhouse gas emissions in a business system like ours generates a payback for all of us, in addition to the project economics itself," said Lindsay Fitzgerald, Gevo’s Senior Vice President of Public Affairs. "The exciting benefits of NZ1 are not limited to South Dakota—Gevo has identified several potential sites in other states."

Read the report here.

As a reminder, the Iowa Utilities Commission (IUC) will host public informational meetings in 23 counties across the state regarding the expansion of the carbon pipeline to be built by Growth Energy Member Summit Carbon Solutions. The meetings are an important opportunity for residents to learn more about the project, the benefits of carbon capture, and the steps Summit is taking to ensure safety and environmental protection. 

Here are the first upcoming meetings. To view the full slate of meeting dates, click here.

Date: August 26, 2024 at 6 p.m. 

Location: Corning Opera House Cultural Center, 800 Davis Ave., Corning IA 50841

Docket: HLP-2024-0006 

Date: August 27, 2024 at 12 p.m.

Location: Red Coach Inn, 1200 Senate Ave., Red Oak 51566

Docket: HLP-2024-0006 

Date: August 27, 2024 at 6 p.m.

Location: Guthrie County Activity Center, 209 State St., Guthrie Center, IA 50115

Docket: HLP-2024-0004

Date: August 28, 2024 at 12 p.m.

Location: Clover Hall, Greene County Fairgrounds, 601 E. Lincoln Way, Jefferson, IA 50129

Docket: HLP-2024-0004

Date: August 28, 2024 at 6 p.m.

Location: Cardiff Center, Fort Frenzy, 3232 First Ave S., Fort Dodge, IA 50501

Docket: HLP-2024-0003

Date: August 29, 2024 at 12 p.m.

Location: Jewell Golf Club Banquet Room, 1225 Main St., Jewell, IA 50130

Docket: HLP-2024-0002

Summit is encouraging any interested parties to attend and participate in these informative sessions. If you are interested in speaking on behalf of the project, please reach out to Kelly Manning at kmanning@growthenergy.org.  

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

IN GOVERNMENT AFFAIRS

From left to right: Rep. Claudia Tenney (R-N.Y.), Rep. Zach Nunn (R-Iowa), Rep. Ashley Hinson (R-Iowa), Rep. Darin LaHood (R-Ill.), Rep. Randy Feenstra (R-Iowa), Ways & Means Chairman Jason Smith (R-Mo.), Rep. Adrian Smith (R-Neb.), Rep. David Schweikert (R-Ariz.), Rep. Ron Estes (R-Kansas), and Rep. Nicole Malliotakis (R-N.Y.)

Last week, the House Ways and Means Committee traveled to Des Moines, Iowa for a field hearing titled, “The Success of Pro-Growth, Pro-Worker Tax Policy in the American Midwest.” The event provided an important opportunity for our champions in Congress to explore how U.S. tax policy is impacting opportunities for small-town communities, where farmers, biofuel producers, and rural workers are fueling a new era for America’s bioeconomy.

Few topics received as much attention as the 45Z clean fuels credit, which is slated to take effect in 2025. The credit was signed into law two years ago, and will become the primary incentive for the production of low-carbon fuels in transportation on the ground and in the air.

Speakers on hand included Jolene Riessen, President of the Iowa Corn Growers Association, and Steve Sukup, President and CEO, Sukup Manufacturing – a Growth Energy member. For more insights from these witnesses – and our allies in Congress – read our wrap-up blog below.

Rep. Feenstra (far left), Rep. Malliotakis (center), and Rep. Smith (far right) with Elite Octane representatives.

Last week, Growth Energy was excited to welcome members of the House Ways and Means Committee Rep. Randy Feenstra (R-Iowa), Rep. Adrian Smith (R-Neb.), and Rep. Nicole Malliotakis (R-N.Y.) to member plant Elite Octane in Atlantic, Iowa. As Ways and Means puts together its tax package next year, Growth Energy will continue to share the importance of an extension of the 45Z tax credit to ethanol producers, our farm partners, and the growth of the ag economy.

In an op-ed on Monday in the Times-Republican, U.S. Congressman Randy Feenstra of Iowa shared the importance of building a strong, competitive, and resilient tax code that benefits America's families, farmers, and businesses. At the end of 2025, pro-growth, pro-worker, pro-family tax policies authorized by the Tax Cuts and Jobs Act (TCJA) are set to expire. 

Rep. Feenstra, who sits as Vice Chair of the Rural America Tax Team, recently toured Iowa and Nebraska to speak with people, organizations, and local businesses that benefited from the TCJA and hear their suggestions about how they can further improve the tax code.

"Homegrown American ethanol lowers prices at the pump, supports our farmers, helps stabilize corn prices, and strengthens American energy security," wrote Rep. Feenstra. "In addition to permanently making year-round E15 available at gas stations nationwide, we also need to work through the tax code to incentivize domestic energy production and end our reliance on foreign oil and gas."

Read the full piece here.

Summer driving season is winding down, but we're still urging you to fill up with lower-cost, lower-carbon E15 (Unleaded 88) at the pump as you hit the road! 

We must 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. Next time you fill up with E15, take a picture (like the one above) 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 GLOBAL MARKETS

This week, amid the rail/labor situation in Canada, Growth Energy joined the Ag Transportation Working Group (ATWG) to send a letter to Canadian Prime Minister Justin Trudeau expressing concerns regarding a potential significant disruption to the North American supply chains that could occur as soon as today.

Currently, Canadian rail lines Canadian National Railway and Canadian Pacific Kansas City (CPKC) are in negotiations with the Teamsters Union, which is demanding better wages, benefits, and crew scheduling. The Teamsters Union issued a Thursday strike notice to CPKC unless last-minute agreements are reached.

Canada is the world’s top exporter of canola, potash fertilizer, and the number three wheat exporter. A lockout would have severe impacts on the U.S. economy. “A lockout or strike would lead to shutdowns or slowdowns of rail-dependent facilities resulting in harmful consequences for Canadian and American agricultural producers, the agricultural industry, and both domestic and global food security,” wrote the ATWG.

“Agriculture is particularly exposed to rail stoppages due to robust fertilizer and other agricultural input trade and a sizable livestock industry that depends on rail for the timely delivery of feed grains, dried distillers grains, and further feed ingredients.”

Growth Energy will continue to monitor the situation and keep you updated.

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

IN MARKET DEVELOPMENT

On the left, USDA Secretary Tom Vilsack. On the right, Sec. Vilsack with Corner Store owner Chan Smith.

Last week, Growth Energy's Market Development team attended the U.S. Department of Agriculture (USDA) Roundtable, which included Secretary Tom Vilsack and several Minnesota members of Congress: Senator Tina Smith, Senator Amy Klobuchar, Rep. Angie Craig, and Rep. Betty McCollum. The USDA announced last week that the administration would be funding 160 projects in 26 states to expand access to clean energy systems and increase the availability of domestic biofuels that will create new market opportunities and jobs for U.S. farmers, ranchers and agricultural producers.

USDA is providing $99.6 million through the Higher Blends Infrastructure Incentive Program (HBIIP) and the Rural Energy for America Program (REAP) with funding from President Biden’s Inflation Reduction Act.

Rep. Angie Craig, Sec. Vilsack, Corner Store owner Chan Smith (blue shirt), Sen. Amy Klobuchar, and Sen. Tina Smith.

After the roundtable, Sec. Vilsack and the Minnesota delegation visited the Corner Store in Inver Grove Heights, Minn., where they thanked store owner Chan Smith for participating in the HBIIP program and being able to offer consumers more fuel choices at the pump, like E15 (Unleaded 88) and E85. Growth Energy facilitated the HBIIP application for the Corner Store, working directly with the owner, Chan Smith.

Kristy Moore (far left) with others at the site of the new Wally's location.

Kristy Moore, representing the Growth Energy Market Development Team, attended Wally’s groundbreaking event last week in Whitestown, Ind. Growth Energy facilitated the HBIIP grant for this prime location, which will offer Unleaded 88 at 38 dispensers off I-65, capturing southbound traffic into Indianapolis. The event was attended by Wally’s, Indiana Corn officials, construction companies, and local dignitaries. 

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

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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