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This week, Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley delivered keynote remarks at the 40th annual International Fuel Ethanol Workshop (FEW). Bliley emphasized the importance of the liquid fuel market in meeting carbon reduction goals and spoke on the bioethanol industry’s pivotal role in growing the broader American bioeconomy.

“If you look around at the industry today, there are objectively good reasons to be bullish about our future,” Bliley told the FEW crowd. “We’re in a world where carbon reductions and business growth are intertwined—a world where markets are gaining value from the reduction of carbon pollution. As a result, virtually every industry on the planet is facing this imperative to lower their carbon intensity.”

“But the good news is that bioethanol is already a low-carbon fuel—period,” he added. “We are made for this moment.”

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

LATEST EIA DATA

Last week, domestic ethanol demand was 14.2 BGY, up 1.1% compared to a week ago. The EIA-reported gas demand was up 1.1% from last week, at 138.6 BGY. The 4-week average ethanol and gas demand are 14.3 and 139.7 BGY (-1.3% YoY).

Ethanol production was 15.7 BGY last week, down 4.6% versus the week before, and 4.6% less than the 4-week average in 2019. Midwest production was down 4.4% (-13.2 MG) versus a week ago, and average production in the other regions was down 6.7% (-1.2 MG), with the decreases in the USGC and West Coast regions. Capacity utilization of plants online was 88.7% overall, 89.8% in the Midwest, and 72.8% on average, elsewhere, excluding 1,247 MGY of capacity shutdown at 25 ethanol plants for other than maintenance (details on pg. 31). On an installed capacity basis, utilization was 82.8% overall, 87.0% in the Midwest and 45.3% in the other regions.

Exports were an estimated 40.5 MG last week based on 140 MG of exports forecast for May and 180 MG forecast for June due to more favorable conditions for exports this year than in recent years. The EIA reported no ethanol imports last week.

Overall inventory was down 16.2 MG last week. EIA-counted stocks increased 7.1 MG, and regional changes were: East (-2 MG), Gulf (+15 MG) and West (-7 MG) Coasts and the Midwest (+1 MG). In-transit inventory decreased 23.3 MG.

Based on the total inventory of 1,787 MG on Jun 7th and the 4-week avg. domestic demand, there were 45.7 days of supply, down 0.4 days versus a week ago. Including the 4-week avg. of net exports, there were 40.7 days of supply, down 0.6 days versus a week ago.

For more information, please contact Jake Comer.

WORKING FOR YOU

UPCOMING EVENTS

Get Bioethanol NASCAR Iowa Corn 350 

Newton, IA

June 16, 2024

IN COMMUNICATIONS

Biofuels are leading a new wave of growth across the American bioeconomy, and a new report proves it.

New research commissioned by Growth Energy and other industry leaders – including ADM, POET, and Marquis Energy – shows that U.S. industrial bioeconomy supported nearly 644,000 domestic jobs, contributed $210 billion to the U.S. GDP, and drove $49 billion in wages. Additionally, the report found that for every direct job created in the bioeconomy (i.e., a job in bioethanol production), another 11 jobs are created elsewhere in the supply chain. That adds up to a job multiplication factor of 12. For comparison's sake, the job multiplication factor for the sector that includes solar photovoltaics is 6.50 and the multiplier for the sector that includes wind turbines is 3.73.

Providing new impetus for President Biden’s National Biotechnology and Biomanufacturing Initiative, the report illustrated state-by-state gains linked to the transformation of renewable biomass into new products. 

And most importantly for policymakers, the report explains why, “A considerable competitive and policy advantage of these industrial bioeconomy jobs is their tie to U.S. soil, both literally and figuratively—these jobs are here and stay in the U.S.”

To learn more, check out the full report available here.

After the U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) issued new vehicle fuel economy standards last week, Growth Energy CEO Emily Skor called them "yet another missed opportunity by NHTSA to recognize the importance of high-octane, low-carbon bioethanol blends in meeting the administration’s climate goals."

"Using high-octane midlevel bioethanol blends in conjunction with future engine technology holds tremendous potential for increasing vehicle efficiency and ultimately reducing greenhouse gas emissions," she added. "The carbon intensity of American bioethanol continues to go down, making it more and more useful as a decarbonization tool for on-road applications."

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

IN GOVERNMENT AFFAIRS

Senator John Thune (R-S.D.) stopped by Growth Energy's D.C. office last week to share insights on industry priorities and the upcoming elections.

This week, Rep. Sharice Davids (D-Kan.) and Rep. Dusty Johnson (R-S.D.) launched the Sustainable Aviation Caucus in the U.S. House. Co-chaired by Davids and Johnson, who are joined by Rep. Mike Flood (R-Neb.) and Rep. Nikki Budzinski (D-Ill.) as members, the caucus will work to reduce the aviation industry’s environmental impact and maximize its financial sustainability. By accessing federal policy, holding forums, and bringing together public and private partners, the caucus will play a key role in the integration of new technologies into the nation’s aviation network.

"I am proud to announce the formation of the Congressional Sustainable Aviation Caucus, which will bring together a wide variety of aviation leaders and policymakers to help reduce the aviation industry’s impact on the environment and ensure its long-term economic viability,” said Davids. “Adopting these sustainable practices is critical for our national security and economic resilience. I’m glad to join forces with Representative Johnson to ensure America’s aviation industry continues to be resilient and reliable for years to come.”

You can read more about the coalition here. Growth Energy’s Government Affairs team looks forward to engaging with the coalition to ensure all sustainable aviation fuel (SAF) policy initiatives include crop-based fuels like corn ethanol.

In case you missed it, the United States Department of Agriculture’s National Agricultural Statistics Service (NASS) recently announced the discontinuation of the Cotton Objective Yield Survey and all County Estimates for Crops and Livestock beginning in the 2024 production year. This decision is already having a real impact on biofuel plants that depend on this county yield information on sourcing and pricing of grain.

To address this, our team has been engaging with ag champions in Congress. Just this week, the Fiscal Year 2025 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Bill was released. Including in the bill language is a directive to NASS to reinstate the July Cattle report, the Cotton Objective Yield Survey, and all County Estimates for Crops and Livestock. We will continue to track this issue as appropriations legislation is considered in Congress and ultimately signed into law.

The U.S. Department of Energy's (DOE) Office of Fossil Energy and Carbon Management and the National Energy Technology Laboratory (NETL) will be hosting a hybrid training workshop to inform stakeholders and lifecycle analysis (LCA) professionals of the tools and resources available from NETL to support the development of an LCA that is compliant with the 45Q requirements. The workshop will be on Wednesday, July 17, and can be attended both in-person or virtually. 

The workshop will also discuss the extended Utilization and Procurement Grant (UPGrants) program, which is looking to support projects that have the potential to take advantage of the 45Q tax credit for utilization. 

For more details on registration, click here.

Growth Energy CEO Emily Skor filling up with Unleaded 88.

Summer driving season is now 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 REGULATORY AFFAIRS

Responding to a recent workshop on potential amendments to Washington state’s Clean Fuel Standard (CFS), Growth Energy’s Senior Vice President of Regulatory Affairs Chris Bliley submitted comments highlighting bioethanol’s role in the production of sustainable aviation fuel (SAF), urging the Department of Ecology to consider the carbon-reduction values of farm-level climate-smart agricultural practices. In his comments, Bliley remarked that “in order for Washington to take advantage of SAF’s ability to reduce carbon emissions, Ecology should consider recognizing farm-level climate-smart agriculture practices,” noting that research conducted by the Argonne National Laboratory shows the potential for a 35% reduction in carbon intensity through the adoption of such practices.

Growth Energy’s comments also encouraged Washington to expand the use of low-carbon intensity power book-and-claim accounting for biofuels producers, and to consider alternatives for the proposed third-party verification and audit amendments.

You can read the comments here.

Additionally, Growth Energy submitted written testimony to the Rhode Island Senate Finance Committee for a hearing on S2930, a bill creating a tax credit for taxpayers who convert gas-powered vehicles into alternative fuel source vehicles. The testimony highlighted the importance of higher blends of ethanol, noting that while E85 is included in the list of alternative fuels, Rhode Island has no retail sites offering E85 or E15. The testimony urged the General Assembly to consider policies expanding the use of higher blends of bioethanol and allow the current vehicle fleet to contribute to Rhode Island’s greenhouse gas reduction goals.

Growth Energy’s testimony on S2930 can be read here.

This week, Growth Energy's Director of State Government Affairs Dallas Gerber testified at a hearing of the Ohio Senate’s Ways and Means Committee in support of legislation to establish a temporary five cent per gallon tax incentive for retailers to sell E15. In his testimony, Gerber noted that while Ohio ranks 7th in the nation in ethanol production, the state’s ethanol blend rate and E15 retail footprint has fallen behind neighboring states. Gerber’s testimony highlighted the financial impact the passage of the temporary incentive will have on Ohio corn growers and ethanol producers, as well as the savings Ohio drivers have enjoyed at the pump.

Gerber’s testimony, as prepared, can be read here.

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

ON THE TRACK

Next Sunday, NASCAR's No. 3 driver Austin Dillon will take the Get Bioethanol Chevy to Iowa Speedway for the inaugural Iowa Corn 350, Powered by Ethanol race! There couldn't be a better place to remind everyone about the benefits of homegrown, American-made bioethanol. And with the race falling on Father's Day, it's sure to be a special event.

Follow along here and catch the race this Sunday at 7 PM ET on USA Network!

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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