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Growth Energy called the new tax and carbon modeling guidelines released this week by the Biden administration "an important step forward for the bioeconomy."

“This guidance crosses an important threshold in carbon modeling, recognizing for the first time that farming techniques can reduce the carbon intensity of crops, and, by extension, bioethanol production. It’s also the first time Treasury has used the Argonne National Laboratory’s GREET model in federal tax policy," said Growth Energy CEO Emily Skor. "These are promising big-picture developments and signal that agriculture is a key part of our nation’s climate strategy."

In her statement, Skor noted that the new 40B GREET model is trending with scientific consensus when it comes to measuring indirect land use change (iLUC). "Years’ worth of peer-reviewed research has shown that this number has been decreasing when it comes to bioethanol production," she said. "We hope future guidance for the 45Z tax incentive follows this trend and continues to reflect the falling iLUC values for American biofuels."

Still, the administration’s restrictive all-or-nothing approach (also known as "bundling") to recognizing the value of climate smart agriculture practices may ultimately limit innovation and "make farmers, blenders, and producers less – not more – likely to invest in emissions-reducing technologies," Skor added. "America’s potential SAF producers and their farm partners need flexibility to find the path that works best for them, but these rigid guidelines will leave carbon reductions on the table."

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

LATEST EIA DATA

Last week, domestic ethanol demand was 13.5 BGY, up 2.3% compared to a week ago. The EIA-reported gas demand was up 2.3% from last week, at 132.1 BGY. The 4-week average ethanol and gas demand are 13.5 and 131.5 BGY (-3.6% YoY).

Ethanol production was 15.1 BGY last week, up 3.5% versus the week before, and 4.0% less than the 4-week average in 2019. Midwest production was up 3.0% (+7.9 MG) versus a week ago, and average production in the other regions was up 11.8% (+1.8 MG), mainly in the USGC region. Capacity utilization of plants online was 85.5% overall, 86.4% in the Midwest, and 74.1% 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 79.9% overall, 83.7% in the Midwest and 46.1% in the other regions.

Exports were an estimated 32.7 MG last week based on 140 MG of exports forecast for April. The EIA reported no ethanol imports last week.

Overall inventory was down 6.2 MG last week. EIA-counted stocks decreased 10.3 MG, and regional changes were: East (-4 MG), Gulf (-5 MG) and West (-3 MG) Coasts and the Midwest (+1 MG). In-transit inventory increased 4.6 MG.

Based on the total inventory of 1,838 MG on April 26th and the 4-week avg. domestic demand, there were 50.1 days of supply, up 0.8 days versus a week ago. Including the 4-week avg. of net exports, there were 44.5 days of supply, up 0.5 days versus a week ago.

For more information, please contact Jake Comer.

WORKING FOR YOU

UPCOMING EVENTS

High Performance Low Carbon Liquid Fuels Summit

Indianapolis, IN

May 1-2, 2024

Get Bioethanol NASCAR AdventHealth 400

Kansas City, KS

May 5, 2024

Celebration of Modern Agriculture on the National Mall 

Washington, D.C.

May 6-8, 2024

2024 International Fuel Ethanol Workshop

Minneapolis, MN

June 10-12, 2024

IN REGULATORY AFFAIRS

Last week, Growth Energy welcomed the U.S. Grains Council’s Japanese media team to Washington. Senior Vice President of Regulatory Affairs Chris Bliley met with the delegation of reporters who were visiting the country to learn more about the U.S. ethanol industry, corn production, and sustainable aviation fuel. Bliley walked the delegation through the latest on biofuels policy, the U.S. and Japan’s recent joint statement on SAF, and the role that ethanol is playing in both reducing emissions and reducing gas prices across the U.S.

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

IN GOVERNMENT AFFAIRS

As the Senate and House Ag Committees consider the Farm Bill, Growth Energy, along with 35 other associations and companies, recently sent a letter to both committees "to highlight the important role played by, and significant opportunity for, America’s farmers and the domestic agricultural sector in the development of sustainable aviation fuels (SAF)."

Specifically, the letter called on the committees to recognize "the integral role American farmers play in SAF development within U.S. Department of Agriculture (USDA) Farm Bill Energy Title programs," and to make sure the final Farm Bill includes the Farm to Fly Act, a bipartisan, bicameral piece of legislation that "would provide a critical pathway supporting U.S. farm production for SAF," among other provisions.

Read the full letter here. 

With an emergency waiver for summertime sales of E15 secured, 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. If you see an example of significant cost savings at a fuel station near you, 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 OUR ASSOCIATION

In Case You Missed It: Growth Energy CEO Emily Skor reflected on her CERAWeek panel discussion in the High Plains Journal. Skor highlighted how research-based solutions and policy implications to excel the United States are needed in the sustainable aviation fuel (SAF) sector.

"Higher blends like E15 are a critical part of our industry, and they are a key way for us to reduce carbon emissions from the light-duty vehicles that are on the road today," said Skor. "I stressed this point in the many conversations I had at CERAWeek, urging the broader energy community not to overlook higher blends as a means to lower carbon intensity in today’s auto fleet while generating new business."

This week, Growth Energy's Senior Vice President of Regulatory Affairs Chris Bliley and Director of State Government Affairs Dallas Gerber are attending the annual High Performance Low Carbon Liquid Fuels Summit in Indianapolis, Ind. 

Gerber joined a panel Wednesday on the state policy landscape in Indiana and beyond. Today, Bliley will speak alongside representatives from American Fuel and Petrochemical Manufacturers, Clean Fuels Alliance America, and Boyden Gray PLLC to discuss federal policy, politics, and the 2024 election.

Kristy Moore, a consultant for Growth Energy, will also be moderating and speaking on a panel for this event. 

If you're in Washington, D.C. next week, make sure to visit Growth Energy's booth at the Celebration of Modern Agriculture on the National Mall! Running from May 6th to May 8th, nearly 50 trade associations and equipment manufacturers will set up booths on the lawn of the National Mall to showcase their organizations and products. The event is open to the public, so we hope to see you there next week!

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

IN MEMBERSHIP

Growth Energy will be host a member-exclusive webinar next week for the latest industry updates from Washington, D.C., including a detailed analysis of the recently released 40B guidance and its implications. Please join us Tuesday, May 7th at 9 am CDT/ 10 am EDT.

Save the date and register for the webinar here.

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

ON THE TRACK

This weekend, Austin Dillon will take the Get Bioethanol No. 3 Chevy to "the heart of our country's bioethanol production" – Kansas City. Follow along here and be sure to tune in on Sunday, May 5th at 3:00 PM ET on FOX's FS1!

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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