Domestic Fuel

The Advanced Ethanol Council (AEC) is asking the U.S. Environmental Protection Agency (EPA) not to grant a retroactive waiver to the oil industry for the cellulosic requirements under the Renewable Fuel Standard (RFS) in 2011.

Under the 2011 RFS, the EPA required petroleum refiners and importers to blend 6.6 million gallons of cellulosic biofuels in 2011 or buy waiver credits by the end of February 2012 to make up for the difference.

In January, trade groups for refiners and oil producers asked EPA for a waiver from that requirement, because of the absence of cellulosic biofuel production last year.

In a letter to the EPA, Brooke Coleman, Advanced Ethanol Council Executive Director, made very clear that Congress anticipated potential shortfalls in cellulosic ethanol production in the early years and created a mechanism, with the blessing of petroleum interests, to address such a situation.

“We are well‐aware that the commercialization of cellulosic biofuels is behind the schedule set forth by the federal RFS. However, Congress anticipated the inevitable uncertainties and variability inherent with the commercialization of new technologies and set up a credit waiver system to account for variances from the established schedule for advanced biofuels,” wrote Coleman.

Coleman says the purpose of the RFS was to be forward-looking and drive the commercialization of new renewable fuel technology. Moreover, Coleman notes, oil interests and other obligated parties have multiple options available to them to comply with RFS mandated volumes.

Read the entire letter here.

The City of Marinette, Wis. Police Department is driving a propane autogas cruiser to save taxpayer dollars and use a clean-burning fuel alternative. With an estimated savings of more than $25 each time the vehicle refills, the city will potentially save $5,000 in fuel costs annually with just one propane vehicle on the road.

Charter Fuels, a Wisconsin-based partner in the national Alliance AutoGas network, coordinated the vehicle conversion and will provide clean-burning, affordable autogas fuel as part of the Alliance AutoGas complete program for fleets. Charter also held a training session to show Marinette police how to safely, effectively operate and fuel the new autogas-powered Ford Crown Victoria.

“We are extremely pleased to help the Marinette Police Department run on the most cost-effective alternative fuel technology on the market today,” said Bill Langlois of Charter Fuels. “The city will cut fuel costs by thousands of dollars, and the savings will be even greater if gasoline prices reach the $4 mark this year as many predict.”

Autogas is historically around $1 per gallon less than gasoline, and autogas fleets also report savings from reduced vehicle maintenance needs because autogas burns cleaner. Autogas conversions from Alliance utilize the bi-fuel Prins Vapor Sequential Injection (VSI) system, which allows drivers to revert to gasoline if an autogas fueling station cannot be reached when the tank is running low. The unique ability of the vapor system to be transferred from one vehicle to another, unlike many propane-dedicated liquid systems on the market today, makes it an especially viable option for fleets.

“We were able to lock in the price of propane autogas for an entire year, and not having to worry about the fluctuating price of gasoline and what it has done to our budget in the recent past was a big plus,” said Lt. Bryan Knapp with the City of Marinette. “Autogas is also a cleaner-burning fuel, reducing emissions into the environment, as well as causing less wear and tear on the engine. The useful life of the oil, spark plugs and other engine components is extended, saving money on vehicle maintenance.”

High school seniors in Minnesota are encouraged to apply for the 2012 Reuben Youngerberg Memorial Biodiesel Essay Scholarship.

The scholarship is given in memory of Reuben Youngerberg, and in honor of his son, Mike Youngerberg, senior director of field services at Minnesota Soybean Growers Association and huge supporter of biodiesel.

The scholarship is sponsored by the Minnesota Soybean Research and Promotion Council, with special thanks to the National Biodiesel Board, MEG Corp, and Renewable Energy Group, Inc. for their added support.

To submit your essay for the 2012 scholarship online, please fill out the form. Do not place your name or high school name anywhere on the essay you submit to ensure fairness of judging.

If you prefer to submit your essay via U.S. mail or FAX, please download, print and complete the 2012 Entry Form.

Review the Biodiesel Essay Scholarship Contest Rules before submitting your application.

Oil prices have reached a new six-month high as Iran’s reduction of oil shipments to Europe is forcing American motorists to pay more for gasoline. In reaction, the American ethanol industry is telling consumers that higher blends of ethanol in motor fuel would reduce prices at the pump and reduce OPEC’s influence over our nation’s economy.

“American motorists are looking down the barrel of $5 a gallon gasoline this summer, all while foreign strongmen and dictators threaten to drive prices up even more by shutting down oil supplies. And yet we have the answer to this right here in front of us with American ethanol,” said Tom Buis, CEO of Growth Energy. “Ethanol is trading at about 75 cents a gallon cheaper than gasoline. We ought to be giving motorists here at home more choices at the pump. The choices are simple — stay chained to the whims of an Iranian strongman,or invest in clean, renewable, American-made energy with ethanol.”

Growth Energy petitioned the U.S. Environmental Protection Agency to permit blends of up to E15, from the current level of E10. After rigorous testing of engine drivability and emissions testing and found that every car tested – from model year 2001 and newer – met standards for E15.

While minor steps remain before E15 can be brought to market, there are some in Congress who continue to slow the advance of alternatives to gasoline. In a House Science Committee vote last week, Rep. James Sensenbrenner’s (R – WI) legislation to delay E15 even further won approval.

“That’s a last desperate step to keep consumers from having a choice at the pump and keep us addicted to the most unstable region in the world,” Buis said of the Sensenbrenner bill.

Read more facts and information on ethanol and prices.

Could E15 ethanol (a blend of 85% gasoline and 15% ethanol) be the economical answer to the nation’s higher fuel costs? The American Coalition for Ethanol (ACE) believes so.
National surveys indicate that gasoline prices are up about 45 cents a gallon compared to a year ago, while ethanol prices have dropped more than 30 cents. Current ethanol wholesale prices are about 80 cents less than gasoline, says Ron Lamberty, senior vice president for ACE, a national advocacy association for the U.S. ethanol industry.

“At today’s prices, 10% ethanol blends are already saving consumers 8 to 10 cents per gallon compared to unleaded gasoline. Nationally, that saves almost $30 million dollars a day,” Lamberty says. “E15 could offer even greater savings. Drivers with vehicles new enough to use E15 could be saving 12 to 15 cents a gallon by choosing the E15 blend, potentially cutting gasoline costs by an additional $10 million dollars each day.”

E15 would benefit consumers and federal officials should immediately complete any work needed to allow marketers to offer the fuel for sale at stations across the country, Lamberty adds.

After years of testing by EPA and the Department of Energy, E15 was approved more than a year ago, as an option for cars and light trucks built in 2001 and later.

“Ethanol opponents continue to create new roadblocks, claiming to be “pro-consumer” and “pro free market,” while they do everything they can to keep E15 – a tested, approved, safe fuel – off of the market. That causes consumers to over-pay for gas and it is the opposite of a free market.” says Lamberty. “E15 is approved as an option. Retailers don’t have to add it to their product slate and consumers don’t have to buy it. Yet there is considerable effort to continue misleading and frightening consumers into supporting this idea of an auto fuel Nanny Slate that only benefits the oil industry and those who depend on Big Oil’s support,” according to Lamberty.

“ACE is urging federal officials and Congress to get behind efforts to open up E15 for public sale to all vehicles that are 2001 and newer as soon as possible. It’s time that we allow American consumers the option to support a cleaner fuel that helps cut down on imports of foreign oil and supports American jobs. We think that the majority of Americans would be in favor of something this beneficial for consumers rather than supporting efforts that only go to increase profits for oil companies,” Lamberty said.

A sleek, black, propane autogas-powered 2008 Ford Expedition is on display this week at the International Limousine, Charter & Tour (LCT) Show in Las Vegas courtesy of Blue Star Gas, the West Coast flagship fuel provider for the national Alliance AutoGas network.

The LCT Show is the largest industry gathering in the world for limousine, charter and tour operators. Blue Star Gas autogas experts Darren Engle and Brett Flanigan are on-hand at the Propane Education Research Council exhibit to educate for-hire vehicle fleets on the benefits of affordable, American-made autogas. Their messages is that commercial fleets running on autogas not only save money on fuel costs and reduce harmful pollutants, they also help enhance America’s energy security by utilizing this domestically produced clean fuel.

“We’re here as a resource for chartered vehicle fleet owners and managers interested in driving greener while boosting their bottom line,” says Engle. “The up-front cost of converting to autogas is more cost-effective compared to other alternative fuels, so fleets can start saving right away.”

Propane autogas historically averages $1 per gallon less than gasoline, and fleets running on autogas report reduced maintenance costs because it’s a cleaner-burning fuel. It is the third most widely used fuel in the world, and 90 percent of the U.S. autogas supply is made in America. There are already more than 2,000 public autogas fueling stations in place across the country, and an Alliance AutoGas partner will install an on-site fueling station for fleets at no up-front cost.

“Some fleet operators may be initially intimidated by the prospect of shifting to an alternative fuel, but working with us doesn’t require fleet personnel to have an extensive knowledge of clean technology,” says Engle. “Blue Star Gas is part of the Alliance AutoGas complete program, so we are there every step of the process to provide autogas vehicle conversions, fuel stations and supply, staff training and ongoing technical support. We’re working to help make this affordable clean fuel an even more viable option for more U.S. fleets.”

Two key programs that will encourage the use of renewable biomass and production of advanced biofuels is available through the FY 2012 USDA budget, according to the Agriculture Secretary Tom Vilsack. About $25 million will be made available through each program.

First, the Repowering Assistance Program provides approximately $25 million in funding to biorefineries that have been in existence on or before June 18, 2008. The purpose of the program is to provide a financial incentive to biorefineries to use renewable biomass in place of fossil fuels used to produce heat or power. By providing this assistance, USDA is helping these facilities install new systems that use renewable biomass.

Eligible costs must be related to construction or repowering improvements, such as engineering design, equipment installation and professional fees. The application deadline for this program to receive funds for Fiscal Year 2012 is June 1, 2012. For additional details, please see pages 5232 through 5234 of the February 2, 2012, Federal Register.

Second, USDA also announced the availability of up to $25 million to make payments to advanced biofuels producers who expect to produce eligible advanced biofuels at any time during Fiscal Year 2012. To be eligible for these funds, an advanced biofuels producers must have enrolled in the program by October 31, 2011, even if the producer has an existing contract with the Agency.

Payments will be made to producers of advanced biofuels derived from renewable biomass, other than corn kernel starch. These include cellulose, sugar and starch, crop residue, vegetative waste material, animal waste, food and yard waste, vegetable oil, animal fat, and biogas.

Contract payments will be made quarterly. For additional details, please see pages 5229 through 5232 of the February 2, 2012, Federal Register.

“President Obama has laid out a new era for American energy—an economy fueled by homegrown and alternative energy sources that will be designed and produced by American workers,” said Vilsack. “These programs support that vision by helping biorefineries use renewable biomass as a replacement fuel source for fossil fuels and supporting advanced biofuel producers as they expand production.”

Alliance AutoGas has added five new certified conversion centers in Virginia, Florida, Georgia and Texas to their national network of partners that offer complete programs for America’s fleets to run on clean-burning propane autogas.

Ark Enterprises 2, Braggs Truck Repair, Green Tech Energy Solutions, Grimes Auto Service Inc., and NDMJ Transportation are joining Alliance to provide fleets with EPA-certified autogas vehicle conversions, as well as ongoing service and technical support.

“From Virginia to Texas, these new partners help strengthen Alliance AutoGas as we continue expanding nationwide, helping our nation’s fleets save money and drive clean,” says Stuart Weidie, president of Alliance Autogas and founder of Autogas for America.

Certified Alliance AutoGas conversion centers are equipped to implement both bi-fuel and dedicated propane vehicle conversions using Prins vapor and liquid injection technology. Alliance has the largest privately financed portfolio of autogas vehicle certifications in the U.S., with more than 200 vehicle types eligible for autogas conversions.

Fleets that convert to autogas will save on both fuel and maintenance costs. Because autogas is a cleaner-burning fuel than gasoline, many fleets report reduced maintenance needs for vehicles, like fewer oil changes and an extended engine life. Alliance AutoGas provides leasing and financing options that allow fleets to start saving immediately, with zero up-front cost—including for an on-site autogas station.The new Alliance conversion center partners include:

Ark Enterprises 2 in Churchville, VA; Braggs Truck Repair in Berryville, VA; NDMJ Ltd. Transportation of Tyler, Texas;
Green Tech Energy Solutions in Miami, FL; and Grimes Auto Service of Tifton, GA.

Eight students will receive a scholarship to attend the 17th Annual National Ethanol Conference: Accelerating Industry Innovation, according to the Renewable Fuels Association (RFA) and the Renewable Fuels Foundation (RFF).

This is the third year the scholarship has been available to students in higher education. Recipients receive complimentary registration to the conference and the opportunity to connect with hundreds of ethanol leaders, policy makers and experts in the renewable fuels industry.

The National Ethanol Conference (NEC) is one of the preeminent conferences for delivering accurate, timely information on marketing, legislative and regulatory issues facing the ethanol industry. This year’s program will highlight how the ethanol industry continues to evolve to meet the demands of a rapidly changing marketplace. With federal policy changing, the global, market-driven environment in which the industry must compete comes with new market challenges. Industry leaders and experts will address how we are meeting these new demands by accelerating innovation in technology, marketing, logistics and feedstocks for the production of advanced ethanol.

“It is very encouraging to see such high levels of interest in biofuels from students year after year through this program,” said Mike Jerke, RFF Chairman and General Manager for Chippewa Valley Ethanol Company. “Networking with experts in the U.S. ethanol industry gives these students a first-hand look behind an evolving industry and the direction it is heading. This is a chance for them to explore the opportunities the industry has to offer.”

Each scholarship recipient has focused their studies on renewable energy and biofuels and is interested in pursuing a career in the industry. Read more about the eight recipients of the NEC Scholarship.

The National Biodiesel Board (NBB) testified this week to the Senate Finance Committee about the importance of reinstating the industry’s tax incentive. The $1-per-gallon biodiesel tax incentive expired on Dec. 31 for the second time in three years.

Anne Steckel, NBB vice president of federal affairs, said in her testimony, that when the incentive was reinstated last year after a lapse in 2010, it helped boost biodiesel production to a record volume of nearly 1.1 billion gallons in 2011. That volume – triple the production of 2010 – supported more than 39,027 jobs and $3.8 billion in GDP, according to a recent study conducted by Cardno ENTRIX, an international economics consulting firm.

“The biodiesel industry is poised to continue that momentum so long as Congress and the Administration continue supporting strong policies such as the biodiesel tax incentive,” Steckel said. “The recent expiration of the $1 per gallon biodiesel tax incentive poses a significant threat to the industry’s continued growth.”

Under projected expansion, with the tax incentive in place, the industry is expected to support more than 74,000 jobs by 2015 and some $7.3 billion in GDP.

Bipartisan legislation has been introduced in the House and Senate to extend the tax incentive for three years.

The USDA is seeking applications to provide assistance for ag producers and rural small businesses to complete a variety of energy efficiency and renewable energy projects.

“Renewable energy development presents an enormous economic opportunity for rural America,” said Agriculture Secretary Tom Vilsack. “This funding will assist rural farmers, ranchers and business owners to build renewable energy projects, providing opportunities for new technologies, create green jobs and help America become more energy self-sufficient.”

The Rural Energy for America Program (REAP) is designed to help agricultural producers and rural small businesses reduce energy costs and consumption and help meet the Nation’s critical energy needs. For 2012, USDA has approximately $25.4 million budget authority available to fund REAP activities, which will support at least $12.5 million in grant and approximately $48.5 million in guaranteed loan program level awards.

USDA is accepting the following applications:

• • renewable energy system and energy efficiency improvement grant applications and combination grant and guaranteed loan applications until March 30, 2012;
• • renewable energy system and energy efficiency improvement guaranteed loan only applications on a continuous basis up to June 29, 2012;
• • renewable energy system feasibility study applications through March 30, 2012; and
• • energy audits and renewable energy development assistance applications through February 21, 2012.

More information on how to apply for funding is available in the Jan. 20 Federal Register, pages 2,948 through 2,954.

In the State of the Union Address and other appearances this week, President Obama is endorsing a proposal that would extend the advanced energy manufacturing tax credit.

The Security in Energy and Manufacturing (SEAM) Act, authored by U.S. Sen. Sherrod Brown (D-OH), is a job-creating clean energy tax cut, which has delivered nearly $125 million to seven Ohio manufacturers to help create clean energy jobs, provides investment tax credits of 30 percent for facilities that manufacture energy equipment. Currently, 70 percent of clean energy components are manufactured outside of the United States.

“We can’t trade a dependence on foreign oil for a dependence on foreign-made sources of energy,” Brown said. “It’s unacceptable that 70 percent of clean energy components are made outside of the U.S. Extending the Advanced Energy Manufacturing Tax Credit will help more American manufacturers create jobs through the production of cutting-edge energy technologies.”

The initial tax credit, which was included in the Recovery Act, supported seven Ohio projects and dozens more eligible projects applied for funding but were denied due to a lack of funds. The Department of Energy (DOE) states that the program was more than three times oversubscribed. Nationwide, DOE deemed 418 projects eligible, which amounts to $5.8 billion in unfunded eligible applications. These manufacturers are waiting in the pipeline, and would be ready to break ground soon after they receive funding.

To be eligible for the tax credit, manufacturers must produce solar, wind, and geothermal energy equipment; fuel cells, microturbines, and batteries; electric cars; electric grids; energy conservation technologies; and equipment that captures and sequesters carbon dioxide or reduces greenhouse gas emissions. The SEAM Act is also cosponsored by Senators Debbie Stabenow (D-MI), Maria Cantwell (D-WA), and Bob Casey (D-PA).

Advanced Biofuels USA has released low cost and cost-efficient policies the group feels should be included in the Farm Bill which will be under consideration in 2012.

“We have identified two specific problem areas,” said executive director, Joanne Ivancic. “First, the challenges of bringing small, non-contiguous marginal acreage to productivity via an energy crop market; and, second, funding promising conversion and production technologies wallowing the in the financing valley of death.”

Read the Advanced Biofuels USA proposed policies in their entirety.

As Congress resumes work for 2012, the American Coalition for Ethanol (ACE) is urging its grassroots members and all ethanol supporters to attend the “Biofuels Beltway March” in Washington, DC. ACE’s fly-in for Capitol Hill visits will be held Tues., March 27 and Wed., March 28, headquartered at the Washington Court Hotel.

“Historic opponents to ethanol are again ramping up their misinformation game in an attempt to discredit the significant benefits seen as a result of the Renewable Fuels Standard (RFS) and it is imperative for our industry to proactively convey to Members of Congress that the RFS is successfully displacing foreign oil imports, creating American jobs, and reducing toxic pollution from gasoline,” said Brian Jennings, Executive Vice President of ACE.

Participants will break into teams for visits to Capitol Hill offices, meeting with Members of Congress or their staff about the RFS, ethanol infrastructure such as blender pumps and flex-fuel vehicles (FFVs), and educating Congress and federal agencies about the clean-octane benefits of ethanol. Sixty ethanol advocates met with more than 160 congressional offices during last year’s fly-in, and ACE is hoping for even greater attendance this year.

“Face-to-face meetings between constituents and lawmakers are the best way to make sure our consumer fuel choice message is heard,” said Jennings. “We encourage grassroots ethanol supporters to sign up for this fly-in and help explain that the RFS is accomplishing its purpose and will be the driver to help commercialize the next-generation of biofuels.”

Register with ACE for the event or get more information.

As the Global Forum for Food and Agriculture draws to a close in Berlin, the Global Renewable Fuels Alliance (GRFA) has challenged new United Nation’s Food and Agricultural Organization (FAO) Director General Jose Graziano Da Silva on his critique of biofuels and their alleged impact on commodity prices.

“Mr. Da Silva has failed to recognize that the rising price of energy is the primary driver in the rising cost of all commodities including corn and sugar,” said GRFA spokesperson, Bliss Baker.

Many international organizations have back tracked on their criticism of biofuels based on research which has found biofuels to have played a very minor role in the escalation of food prices globally. In fact, David Hallam, the FAO’s own Deputy Director has said that “unexpected oil price spikes could further exacerbate an already precarious situation in food markets.”

“Mr. Da Silva would do well to listen to the International Energy Agency’s dire warnings about our energy security future when commenting on biofuels,” said Baker. “The IEA concluded that biofuels could provide 27 percent of total transport fuel by 2050 and avoid around 2.1 gigatonnes of CO2 emissions per year when produced sustainably without jeopardizing food security,” said Baker.

The GRFA has repeatedly called for an increase in the use of biofuels to help reduce the world’s crippling reliance on crude oil.

“I would urge the new FAO Director General to focus on the real cause of high food prices – the rising cost of energy,” added Baker.