No. 287, August 3, 2023

TOP STORY

Growth Energy-supported legislation that would allow for the year-round sale of E15 was introduced in the Senate recently. The bill—S. 2707, the Nationwide Consumer and Fuel Retailer Choice Act—is the product of extensive negotiations between Senator Deb Fischer (R-Neb.) and Senator Shelley Moore Capito (R-W.Va.). It would permanently eliminate outdated barriers preventing retailers from offering E15 (fuel blended with 15 percent ethanol) during the summer months while providing a limited and finite number of one-time small refinery exemptions (SREs) to select obligated parties under the Renewable Fuel Standard (RFS). These exemptions were included in the bill in order to garner more support and increase its chances for enactment.

Joining Senators Fischer and Capito in sponsorship are Senators Tammy Duckworth (D-Ill.), Tammy Baldwin (D-Wisc.), Cindy Hyde-Smith (R-Miss.), Roger Wicker (R-Miss.), Pete Ricketts (R-Neb.), John Thune (R-SD), Mike Rounds (R-SD), Roger Marshall (R-Kan.), Joni Ernst (R-Iowa), Chuck Grassley (R-Iowa), Jerry Moran (R-Kan.), and John Hoeven (R-ND).

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

WEEKLY EIA DATA

Last week, domestic ethanol demand was 13.8 BGY, down 1.1% compared to a week ago. The EIA-reported gas demand was down 1.1% from last week, at 135.5 BGY.  The 4-week average ethanol and gas demand are 13.8 and 135.6 BGY. 
 
Ethanol production was 16.4 BGY last week, down 2.5% versus the week before, and 1.5% more than the 4-week average in 2019. Midwest production was down 1.5% (-4.4 MG) versus a week ago, and average production in the other regions was down 16.2% (-3.5 MG), reversing the erroneous increase in West Coast production reported the prior week. Capacity utilization of plants online was 94.2% overall, 94.8% in the Midwest, and 84.6% on average, elsewhere, excluding 1,425 MGY of capacity shutdown at 28 ethanol plants for other than maintenance (details on pg. 29). On an installed capacity basis, utilization was 88.6% overall, 92.7% in the Midwest and 51.5% in the other regions. 
 
Exports were an estimated 27.1 MG last week based on 120 MG of exports forecast for July. The EIA reported no ethanol imports last week.
 
Overall inventory was up 18.1 MG last week. EIA-counted stocks decreased 15.5 MG, and regional changes were: East (-7 MG), Gulf (-22 MG) and West (+13 MG) Coasts and the Midwest (-0.3 MG). In-transit inventory increased 33.5 MG.

Based on the total inventory of 1,780 MG on July 28th and the 4-week avg. domestic demand, there were 46.3 days of supply, up 1.4 days versus a week ago. Including the 4-week avg. of net exports, there were 42.0 days of supply, up 1.3 days versus a week ago.

For more information, please contact Jake Comer.

WORKING FOR YOU

UPCOMING EVENTS

Growth Energy Biofuels Summit

Washington, DC

September 11-14, 2023

Learn More

IN COMMUNICATIONS

You might've seen yesterday that Reuters ran a story, “Biden Administration Split over Ethanol’s Role in Aviation Fuel Subsidy Program,” that highlighted the ongoing debate in Washington when it comes to using the right model for sustainable aviation fuel (SAF). The article demonstrates the critical nature of this debate and, importantly, it quotes a well-timed July 28th House letter to Treasury in support of GREET modeling for SAF (this House letter compliments a similar June 16th Senate letter for which we also helped gain signatories).

The piece did include some false claims that renewable fuels will promote “clearing land to grow crops,” despite decades of data showing U.S. cropland is on the decline as farmers increase the productivity of each acre. In response we published a strong op-ed rebutting those assertions and highlighting other important facts about ethanol and SAF in Ethanol Producer magazine.

Our work promoting the importance of GREET continues. As always, we will continue to keep you informed about our efforts to ensure a strong future for homegrown biofuels in the still-nascent SAF market, and about our efforts to push back against the stubborn anti-ethanol narrative.

IN GOVERNMENT AFFAIRS

Growth Energy applauded the introduction of new legislation this week that would maximize the benefits of low-carbon biofuels under federal tailpipe standards. Authored by Senators Amy Klobuchar (D-Minn.) and Pete Ricketts (R-Neb.), the Flex Fuel Fairness Act would allow automakers to earn credit toward Environmental Protection Agency (EPA) tailpipe standards by manufacturing Flex Fuel Vehicles (FFVs), which are designed to operate on cleaner ethanol blends, ranging from E10 to E85. “U.S. automakers need flexibility to pursue innovative strategies for decarbonizing light-duty vehicles,” said Growth Energy CEO Emily Skor. “This bill would level the playing field, so both electricity and low-carbon biofuels can drive progress toward a net-zero future. We applaud Senators Klobuchar and Ricketts for working to make sure that EPA regulations protect access to cleaner, more affordable transportation options.”

Learn more about the bill and read Growth Energy's full statement here.

E15/UNL88 is available at retailers across the U.S. this summer thanks to a successful campaign by Growth Energy and the biofuels industry to secure an emergency waiver from the EPA. This was a welcome development but Growth Energy continues to make the case for year-round E15 to the EPA, on Capitol Hill, and in state legislatures around the country. If you see an example of significant cost savings at a fuel station near you, take a picture (like the ones above) and share it with us! We'll put your photos to good use telling the story of how E15 saves drivers money.

Please email your photos to kwebster@growthenergy.org.  

Lend your voice to the fight for biofuels at the 2023 Biofuels Summit in Washington D.C. from September 11-14. Growth Energy members are uniquely positioned to connect the dots for lawmakers, so they understand how decisions in Washington impact your success back home.

At this year’s Biofuels Summit, we’ll showcase how the biofuels industry is delivering on the nation’s energy, climate, economic, and human health goals. We’ll also provide policymakers with a roadmap for unleashing the full power of biofuels both on the ground and in the air.

Monday, August 14 is your last chance to secure a room at the Hilton Washington DC Capitol Hill at our discounted group rate. Learn more, register, and reserve your hotel room at GrowthEnergy.org/GEBS.

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

IN REGULATORY AFFAIRS

Illinois is considering its own low-carbon fuel standard (LCFS) as it debates state Senate Bill 1556, the Clean Transportation Standard proposal. Growth Energy weighed in on the legislation with recommendations to make the bill's language clearer and to ensure there's room in the final standard for ethanol. "The potential for fuels with higher blends of ethanol to reduce GHGs are further illustrated in a national analysis showing more than 634,000 tons in GHG reduction in Illinois alone if E10 gasoline was replaced with E15," wrote Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley in the comments. "This is the GHG reduction equivalent of removing nearly 140,000 vehicles from Illinois’ fleet just by using a higher ethanol-blend fuel." 

IN OUR ASSOCIATION

Growth Energy Director of State Government Affairs Dallas Gerber (seated, left in photo) is visiting Wichita and Topeka this week, meeting with POET, ICM, Kansas Corn Growers Association, Renew Kansas, and Kansas Ethanol. Dallas joined Kansas Corn at their Listening Tour stop in Tampa, Kansas Wednesday evening. He discussed the important role our state stakeholders play in advancing ethanol policy in state legislatures and discussed opportunities for Growth Energy to provide assistance in these efforts.

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

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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